Why Chinese tech giants are rushing to Hong Kong

Within the lobby of a hotel on Hong Kong Island, a delivery robot pauses as an elevator door opens and a guest exits. The robot waits patiently before entering the elevator.

What appears to be a simple action is, in fact, quite complex. To function in this bustling hotel, which belongs to an international chain, the robot must negotiate a space that continues operating at full speed.

With people frequently obstructing its path, the robot also needs to navigate elevators to reach the designated floor and locate the correct room.

The technology and expertise behind this robot come from Yunji, a tech firm based in mainland China, which intends to use its success in Hong Kong as a launching pad for global expansion.

"Our goal is to achieve success in Hong Kong and then extend our reach internationally," comments Xie Yunpeng, the company's vice-president.

Hong Kong is increasingly vital for mainland Chinese tech businesses as it offers opportunities to raise capital, engage with international clients, and enhance their credibility for overseas expansion.

There is a growing concern among the US and European countries about these companies. 

Often referred to as "China risk," these nations worry about state-linked surveillance and the dominance of Chinese firms in their tech industries.

Mainland Chinese tech companies are experiencing challenges accessing funding, acquiring customers, and building trust in various global markets. Consequently, they're initially concentrating on Hong Kong.

The previous year saw a rise in mainland Chinese companies listing on the Hong Kong Stock Exchange, totaling 76 compared to 30 in 2024, marking a 153% increase, as stated in a report by financial giant PricewaterhouseCoopers.

According to Invest Hong Kong, the region's investment promotion agency, there has been an uptick in the number of mainland businesses it has assisted in establishing or expanding in Hong Kong, with the innovative and technology sector being particularly prominent.

Xiaomeng Lu, a director with the political consultancy Eurasia Group, notes a trend where mainland Chinese tech companies are relocating their primary stock market listings to Hong Kong as "political challenges dampen their aspirations" to list in New York.

"These days, Hong Kong stands as their optimal opportunity to capture worldwide investor interest and establish themselves beyond the confines of the mainland market," she mentions.