Innovation and Technology Industry-Oriented Fund (ITIF)

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Objective

To dovetail with the national strategy of developing "patient capital" and further promote the effective collaboration among the Government, industry, academia, research and investment sectors, the Government sets up the HK$10 billion Innovation and Technology Industry-Oriented Fund (ITIF) to give play to the guiding and leveraging roles of Government funding, so as to channel more social capital to invest in innovation and technology (I&T) industries and support the development of emerging and future industries of strategic importance.

Selection of Fund Managers

• Application Procedures

Key Features

• The ITIF invests in five thematic areas, including:
  
  1. life and health technology;
  2. artificial intelligence and robotics;
  3. semi-conductors and smart devices;
  4. digitalisation, upgrading and transformation; and
  5. future and sustainable development.
• The Government will select eligible professional fund managers to set up one or more sub-funds under each thematic area. Each of the selected fund manager shall be responsible for setting up a sub-fund, which must be a limited partnership fund under the Limited Partnership Fund Ordinance (Cap. 637).
• The target fund size of each sub-fund will be at least HK$2 billion. The overall target size of all the sub-funds under all thematic areas will be at least HK$40 billion.
• The Government will, as the last LP, commit capital into a sub-fund.
• The capital commitment from the Government is capped at HK$1 billion in each sub-fund and will not exceed 25% of the fund size of each sub-fund.
• The total amount of contribution of the Government is capped at HK$10 billion.
• Investment requirements for each sub-fund:
  
  1. 100% of the total fund size must be invested in enterprises related to Hong Kong I&T and new industrialisation-related industries as well as their industry chains;
  2. At least 50% of the total fund size must be invested in Hong Kong enterprises or non-Hong Kong enterprises which are going to establish operation in Hong Kong. The non-Hong Kong enterprises concerned must set up key segments related to I&T or new industrialisation-related industries as well as their industry chains in Hong Kong with substantive operations, such as headquarters, regional headquarters, research and development centres, innovation centres and advanced manufacturing bases. They are not allowed to solely engage in traditional businesses such as finance, trading and management; and
  3. At least 25% of the total fund size must be allocated within the investment period by the investee companies of the sub-fund for its establishment and operation of production and manufacturing bases in Hong Kong, covering pilot production lines, testing procedures, etc. related to I&T or new industrialisation-related industries.
• Strategic Investors:
  
  1. In order to guide market capital participation, the Government will play the role of "setting the stage", in a bid to attract more strategic investors. Each of the strategic investors shall commit no less than HK$3 billion, as limited partners, to invest alongside the Government into sub-funds under the various thematic areas.
  2. Any interested parties who wish to become strategic investors of the ITIF can contact the New Industrialisation Development Office (email: enquiry@itib.gov.hk) of the Innovation, Technology and Industry Bureau for details.

Others

To learn more about ITIF, please see the following:

• Innovation and Technology Industry-Oriented Fund (LC Paper No. CB(2)1671/2024(03))