Hong Kong would need to ease its listing rules and transaction requirements to attract more angel funds and become a hub for start-ups to go global, according to a leading industry body in the city.
The city has only around 100 active angel funds – private investment vehicles targeting very early-stage innovative enterprises. This was far fewer than Shenzhen, which had about 400 such institutions, according to Samson Tam Wai-ho, honorary chairman of the Hong Kong Electronic Industries Association (HKEIA).
Besides Shenzhen, Shanghai and the United States also had many active angel funds, helping them become start-up hubs, Tam told the South China Morning Post in an interview.
“Lack of angel funds and early-stage investors for start-ups is the weakest part of the capital market ecosystem in Hong Kong for us to attract start-up founders to come here,” Tam said.