HSBC launches $880m tech fund in China’s Greater Bay area

A man walks past a logo of HSBC outside a branch at the financial Central district in Hong Kong, China June 2, 2015. REUTERS/Bobby Yip/File Photo

In a move to support fast-growing tech companies, HSBC has launched a $880-million fund focused on China’s Greater Bay Area of Guandong, Hong Kong and Macau, it said in a statement on Tuesday.

The fund, GBA+ Technology Fund, will provide senior debt financing to high-growth companies in sectors including e-commerce, fintech, robotics, biotech and healthcare technology.

According to HSBC, the startups will need to have a viable business model and have received backing from venture capital or private equity firms, but are at an early stage in their development. An SCMP report added that HSBC will not take equity as part of the financing.

“Technology firms often have different business models and access to different forms of funding, so we are adapting the way we do business to better meet their needs,” said HSBC co-chief executive and head of commercial banking for Guangdong, Neo Wang.

In 2018, the bank has set up dedicated teams in Guangdong and Hong Kong to support tech companies in the Greater Bay Area, giving HSBC greater insight into the ambitions of high-growth businesses and the support they need, from managing foreign exchange to raising capital.

“We are committed to supporting the next generation of leading companies, helping them expand nationally and internationally,” said HSBC head of commercial banking for Hong Kong, Terence Chiu.

HSBC added that the Greater Bay Area of China has a population of China, with a $1.5 trillion combined GDP in 2017. The region is expected to hit $4.6 trillion GDP by 2030. The Guangdong province alone already houses over 45,000 tech firms.

Shenzhen, which is hailed as the Silicon Valley of China, is located within the Greater Bay Area. The city is also home to several largest tech giants in China including DJI, Tencent and Huawei.

Two years ago, in an effort to encourage investment in local innovation, the Hong Kong government had launched a HK$2 billion ($260 million) Innovation and Technology Venture Fund to co-invest alongside venture capital firms. In 2015, Hangzhou-based internet giant Alibaba Group had established a HK$1 billion ($130 million) fund to invest into startups with a Hong Kong nexus.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.