(Yicai) June 6 -- In a significant move to strengthen technology and financial cooperation between Hubei province and Hong Kong, over 80 leaders from the government, finance, technology, legal, and academic sectors gathered in Wuhan on June 5, for the IFF 2nd Sci-tech Finance Dialogue: Hubei-Hong Kong Cooperation & Integration and WHIIID HK Tech Innovation Hive Collaboration Forum.

With the theme of "Collaboration and Connectivity Between Hubei and Hong Kong," the summit co-hosted by the IFF Sci-tech Finance Committee and Wuhan Institute of Industrial Innovation and Development (WHIIID), aimed to deepen regional sci-tech finance coordination and build an exchange platform and financial channel for the international development of mainland tech enterprises.

Policy-Driven Cooperation Consensus

Guided by the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization, which advocates "actively developing sci-tech finance", the conference served as a strategic alignment with national priorities and a concrete step toward deeper sci-tech finance collaboration between Hubei and Hong Kong.

In his opening speech, Meng Hui, Vice Mayor of Wuhan and Executive Deputy Chairman of the WHIID Council, noted that the global sci-tech competition landscape is undergoing rapid transformation, and the two-way synergy between technology and finance has become a "highway" for connecting global innovation resources. As one of China's three major intellectual hubs, Wuhan boasts strategic sci-tech resources, including 1 national laboratory, 8 large-scale scientific facilities, and 41 national key laboratories. In 2024, its scientific research projects won 19 National Science and Technology Awards, and it ranked 13th globally in the Global Innovation Index (GII), demonstrating profound innovation capabilities.

Meanwhile, as China's first pilot zone for sci-tech finance reform and innovation, Wuhan is accelerating the development of a national sci-tech finance center, creating policy and ecosystem advantages for Wuhan-Hong Kong cooperation.

Xiong Wanpeng, Vice President of the International Finance Forum (IFF) and President of the International Finance Group 20, emphasized the natural complementarity between Hubei's scientific research resources and Hong Kong's advantage in international capital. He described the collaboration as "the wisdom of Luojia Mountain uniting with the capital of Hong Kong," noting that as one of the world's top three financial centers, Hong Kong boasts a vibrant capital ecosystem and professional service capabilities. The "Hong Kong Innovation Hive," jointly established by IFF and the WHIID, will address valuation challenges for mainland tech enterprises through innovative mechanisms like cross-border technology transaction pricing, forming a closed loop of "Hubei R&D — Hong Kong capitalization — global market."

This conference marked the first implementation activity of the IFF Sci-Tech Finance Committee since its April inauguration in Wuhan, signaling the practical launch of the integrated "sci-tech innovation — finance — rule of law — capital" mechanism. At the conference, four parties—International Finance Group 20, WHIID, Asia First Consulting Services Ltd., and Startup Ecosystem Development (Asia) Ltd.—signed an agreement to initiate the "Hong Kong Innovation Hive" project. Focused on "incubation acceleration — financial empowerment — cross-border matchmaking," the project aims to provide full-cycle services for central China's tech enterprises, covering technology transactions, capital matching, legal compliance, and market expansion, thereby creating a "super hub" for Hubei-Hong Kong sci-tech finance resource integration.

Hong Kong's Advantages: From Capital Hub to Innovation Springboard

As an international financial, trade, and shipping center, Hong Kong's unique advantages were analyzed from multiple perspectives at the conference, showcasing its strong enabling potential for tech enterprises.

Zhou Yikai, Director of Investment Promotion (Central China), Invest Hong Kong (InvestHK), outlined Hong Kong's strategic position with data, the world's freest economy, best investment environment, top three financial center, and fourth-largest foreign investment destination. He particularly emphasized that under the "One Country, Two Systems" framework, Hong Kong has formed a unique ecosystem of "four free flows" of capital, information, personnel, and goods. With over 1,400 regional headquarters established in 2023, it has become an "ideal springboard" for enterprises going global.

Zhang Jinmai, the head of the Investment Banking Department and the Equity Capital Market Department of Tianfeng International Securities focused on the advantages of Hong Kong's IPO market, noting that Hong Kong has raised USD303 billion in cumulative IPO financing over the past decade. The listing of star enterprises like CATL (the world's largest IPO in 2025) and Mixue Ice Cream further solidified its status as a global financing center. Hong Kong IPOs feature "short timelines and flexible conditions" — for example, biotech companies can go public without profits under Chapter 18A rules, and the "Tech Enterprise Express Line" launched in May 2025 provides a "green channel" for AI and biotech sectors, with the shortest review cycle compressed to 3 months. Additionally, Hong Kong's flexible rights issue mechanism allows companies to issue 20% new shares annually, providing continuous capital support for growth enterprises.

Jonathan Watkin, Vice Chairman of the Asian Family Office Association, proposed a framework of "strategic consulting network + capital intervention roadmap," advising enterprises to leverage Hong Kong's family offices and venture capital resources to expand overseas markets. Using an Australian case, he demonstrated the practical path of building a "bilateral innovation and investment platform" through Hong Kong, emphasizing its hub role in connecting emerging markets in the Middle East and Southeast Asia. Data shows that Hong Kong's asset management scale reached HKD31 trillion in 2023, with over 60% from international investors, and over 2,700 family offices, forming a unique "patient capital" ecosystem.

Huan Guohang, Chief Accounting Officer of Frontpage Capital Limited, illustrated through cases like NAGI Spirits and Time Interconnect Technology that Hong Kong's capital market not only serves high-tech enterprises but also provides financing support for traditional industries. For example, Time Interconnect Technology, incubated by the Hong Kong Science Park, became a "bridge" for Luxshare Precision's cross-border mergers and acquisitions after listing, highlighting Hong Kong's strategic value in industrial integration.

Dillan Sum, Hong Kong Lawyer and Startup Mentor, analyzed Hong Kong's advantages from a legal perspective, its common law system aligns with international standards, strict intellectual property protection (HKD285 million worth of counterfeit goods seized by customs in 2023), and efficient dispute resolution mechanisms (awards by the Hong Kong International Arbitration Centre enforceable in over 160 countries). He specifically mentioned Hong Kong's simple company registration process (completed in 1-2 weeks), allowing "HKD1 registration," and transparent corporate governance requirements, which enhance international investors' confidence.

Henry Kwong, Taxation expert, ONC Lawyer, compared the tax systems of the mainland and Hong Kong, noting that Hong Kong's corporate tax rate is as low as 8.25% (for the first HKD2 million in profits), with no tax on dividends or capital gains. Through holding structures, mainland enterprises can reduce withholding taxes on outbound investments from 10% to 5%. Using cross-border e-commerce as an example, he explained that designing trade structures through Hong Kong companies can significantly reduce tax costs, while emphasizing the importance of "substantial operations" — such as setting up offices and deploying staff in Hong Kong — to enhance tax compliance and eligibility for preferential policies.

Hubei-Hong Kong Collaboration: From Shared Vision to Action

As the flagship outcome of this conference, the "Hong Kong Innovation Hive" project will focus on developing three core functional modules:

First, the Cross-border Technology Exchange Platform: Establishing a real-time technology demand posting and service matching mechanism to facilitate precise alignment of supply and demand between Hubei and Hong Kong, while addressing valuation challenges for mainland enterprises.

Second, the Capital Connection Hub: Hosting year-round cross-border roadshows to link Hong Kong family offices, venture capital firms, and central China's tech enterprises, with plans to explore a cross-border collaborative development fund.

Lastly, the End-to-End Service Ecosystem: Integrating legal, tax, and intellectual property experts to provide "one-stop" support from incubation to IPO, lowering barriers for companies going global.

Li Xiling, Secretary-General of IFF Committee on Science and Technology Finance and President of WHIID, said that future efforts will focus on promoting the "Wuhan R&D + Hong Kong Capital" model, leveraging Wuhan's strengths in optoelectronics, life sciences, and digital technology to connect with global innovation resources through Hong Kong and build a "Wuhan node" in the international circulation of sci-tech finance. 

Representatives from Wuhan Municipal Bureau of Science and Technology Innovation and Local Financial Administration revealed plans to introduce special policies supporting enterprises in listing in Hong Kong and cross-border R&D cooperation. For example, subsidies will be provided to enterprises that complete financing through the "Hong Kong Innovation Hive," while mechanisms for cross-border data flow and intellectual property protection will be explored. Invest Hong Kong pledged to provide "customized services" for Hubei enterprises, including connecting with incubation platforms like the Hong Kong Science Park and Cyberport, and assisting in applying for government grants such as the "Innovation and Technology Fund" and "InnoHK Funding Scheme."

During the free exchange session, participating enterprises engaged in in-depth discussions with Hong Kong guests on issues such as "how to avoid cross-border compliance risks" and "key preparations for Hong Kong listing." Zou Chuan, CEO of Tianfeng International Securities, advised enterprises to standardize financial practices and design equity structures 1-2 years in advance, using Hong Kong's "confidential submission" mechanism to protect technological privacy. Paul Chan, Co-Founder of Startups Community (Asia) Ltd., highlighted that Hong Kong's "Northern Metropolis" plan and the Shenzhen-Hong Kong Science and Technology Park provide spatial opportunities for Hubei enterprises to "conduct R&D in Wuhan and commercialize in Hong Kong."

Outlook: Writing a New Chapter in Regional Collaborative Innovation

This dialogue was not only a grand gathering for exchanging ideas but also a milestone marking the transition of Hubei-Hong Kong cooperation from "conceptual consensus" to "substantive operations." As Vice Mayor Meng Hui stated, Wuhan and Hong Kong are "geographically close, culturally connected, and economically integrated." With projects like the "Hong Kong Innovation Hive" taking root, the two sides will form deep collaboration in "R&D — capital — market" across optoelectronics, life sciences, new energy, and other fields.

In his concluding remarks, Xiong Wanpeng emphasized that the development of sci-tech finance, like nurturing a tree, requires systematic coordination of "fertile soil" (policy support) and "sunlight and rain" (capital ecosystem). Relying on its global network, the International Financial Forum will promote Hubei and Hong Kong to pioneer trials in frontier fields such as cross-border technology pricing, green finance, and virtual assets, exploring a sci-tech finance development path with Chinese characteristics.

From Victoria Harbour to Donghu Innovation Island, from "Wuhan R&D" to "Hong Kong global expansion," Hubei and Hong Kong are building a model of regional collaborative innovation under the "dual circulation" framework through the bond of sci-tech finance. With the deep integration of advantageous resources, this collaboration across the Yangtze River and the Xiangjiang River is set to inject strong momentum into Chinese modernization.