Industry Body States Hong Kong Must Ease Rules to Boost Angel Funds and Startup Ecosystem
A leading industry body in Hong Kong suggests that the city needs to relax its listing rules and transaction requirements to attract more angel funds and establish itself as a global startup hub, noting the scarcity of early-stage investors.
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According to a prominent industry body in Hong Kong, the city would need to reduce its listing regulations and transaction stipulations to draw in a greater number of angel funds and to become a center for startups aiming for global expansion.
Samson Tam Wai-ho, the honorary chairman of the Hong Kong Electronic Industries Association (HKEIA), stated that Hong Kong currently possesses only approximately 100 active angel funds, which are private investment vehicles focused on very early-stage innovative enterprises. This number was noted to be significantly lower than Shenzhen, which reportedly had around 400 such institutions.
Tam informed the South China Morning Post during an interview that besides Shenzhen, Shanghai, and the United States also maintained numerous active angel funds, which contributed to their status as startup hubs.
Tam commented that the deficiency in angel funds and early-stage investors for startups constitutes the weakest element of Hong Kong's capital market ecosystem regarding its ability to attract startup founders to the region.
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