As global tech giants and startups expand into Asia to accelerate growth, Hong Kong is consolidating its position as a digital hub where data centers, cloud networks, and FinTech startups converge, offering companies a bridge between international markets and the Chinese mainland.
Leading these efforts is Wendy Chow, Head of Digital Technologies & Data Infrastructure at Invest Hong Kong (InvestHK). She explained in an interview with Inside Telecom how the city is leveraging its unique ecosystem to attract investment, support startups, and connect global businesses from both East and West.
InvestHK plays an important role in connecting overseas firms with opportunities in the city. “The UK is always a very important market for us,” Chow told Inside Telecom.
She continued to state that, “Every year we do a survey of how many overseas companies are operating in Hong Kong, and the UK always ranks as one of the top five… that’s why for the first time we attended the AI & Big Data Expo at London Olympia, so that we can get in touch with the companies and talk to them about their business plans.”
A Unique Digital Ecosystem
Hong Kong’s digital infrastructure, Chow explained, is multilayered, spanning data centers, cloud services and applications. The city’s role as a connector is very evident. “In terms of data center, for example, we’ve got major operators from the US, Japan and mainland China,” she said. “Customers have a wide range of choices, and they can be interconnected in Hong Kong.”
These data-center and digital infrastructure operators include Equinix Inc. from the US, NTT from Japan, and China Mobile Ltd and China Telecom Corp. from mainland China.
This connectivity allows mainland Chinese firms to expand internationally through Hong Kong while also engaging with US and European cloud services. “We have been collaborating with AWS (Amazon Web Services) … with programs like the Hong Kong Landing Program, which gives companies support when they land in Hong Kong,” Chow noted.
Hong Kong’s geographic location feeds into that connectivity. Located on the doorstep of the Greater Bay Area (GBA) – an 86-million-person market – and the Chinese Mainland, along with being Asia Pacific’s leading international financial center, the city is especially alluring.
Startups, Talent, and the Road Ahead
Startups are another focus, particularly in FinTech. Hong Kong hosts over 5,000 startups, with a significant share founded by overseas talent, including 33% from outside Hong Kong. Foreign talent is welcomed, with a fast-track visa system to help them settle in quickly.
“Number one is FinTech because they can find a readily available market, ours being a financial hub,” Chow said.
She emphasized that incubators like Hong Kong Science and Technology Park and Cyberport offer funding, office space, and crucial business matching to connect startups with investors and clients.
Looking ahead, Chow envisions Hong Kong expanding as an international innovation and technology hub within five years. Already, according to the Global Innovation Index published annually by the World Intellectual Property Organization, the “Shenzhen-Hong Kong-Guangzhou” cluster ranks second globally.
“Our goal is that Hong Kong will become an international I&T (innovation and technology) hub… we hope to see more success stories, with capital, talent, and solutions developing into world-leading brands,” she told Inside Telecom.
Making Business and Life Easier
Hong Kong recently made policy changes to strengthen the listing environment for innovative companies, with targeted refinements to its Chapter 18A and 18C regimes, respectively for biotech and specialist technology companies, including AI ones, that help expedite the listing process. This includes offering foreign biotech and tech issuers early, specialized engagement with a dedicated team, helping them navigate eligibility, regulatory thresholds and documentation before listing.
As well, an expanded confidential filing option allows applicants to submit draft prospectuses without immediate public disclosure, better protecting sensitive IP, data and commercial roadmaps during the IPO process.
For deep‑tech companies, temporary easing of key Chapter 18C market‑capitalization thresholds – from 1 September 2024 to 31 August 2027 – lowers the bar for both commercial and pre‑commercial issuers, opening the door for smaller but high‑potential technology businesses to access Hong Kong’s capital markets.
Alongside, businesses can enjoy Hong Kong’s tax regime, which is among the most attractive in the world. There is no sales tax, no VAT, no withholding tax, no capital gains tax, no inheritance tax, and no tax on dividends. Corporation tax is capped at 16.5%, while personal income tax scales up progressively to a maximum of 17%.
Chow underscores the city’s cultural and linguistic advantages as well. “Hong Kong is really the place where East meets West… both Chinese and English are official languages, which helps a lot as an international business city,” she said.
By combining a robust data ecosystem, regulatory alignment, and an inclusive international culture, Hong Kong is ready to remain a key gateway for tech innovation, connecting global talent and capital to the opportunities across Asia.
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