Why Chinese Tech Firms Are Accelerating Their Presence in Hong Kong

Amid global tensions, Hong Kong has emerged as a critical hub for mainland Chinese technology companies seeking to expand internationally. This trend is underscored by a recent surge in firms choosing the city as their primary listing destination. According to a PricewaterhouseCoopers report, the number of mainland-based companies registering on the Hong Kong Stock Exchange rose to 76 last year, a significant jump from 30 in 2024—a 153% increase. This growth reflects Hong Kong’s strategic role in bridging the gap between China and international markets.

For many of these firms, the city offers a unique advantage. It allows them to demonstrate their ability to meet global standards, build trust with foreign investors, and test products with international clients. This is especially vital as US and European nations have become more cautious about Chinese tech firms, citing concerns over espionage and dominance in key sectors like AI and semiconductors. The term “China risk” has gained traction among analysts, highlighting these apprehensions.

Yunji, a mainland-based robotics company, exemplifies this shift. Its delivery robots, which navigate busy hotels with precision, are part of a broader strategy to establish credibility abroad. The firm’s vice-president, Xie Yunpeng, explains,

“We aim to make our product succeed in Hong Kong, and then expand outward.”

This approach aligns with the growing emphasis on Hong Kong as a gateway for Chinese tech firms to showcase their capabilities on the global stage.

Policies in Hong Kong have been tailored to expedite international listings and support operations. Wendy Chang of the Mercator Institute for China Studies notes that the city is positioning itself as a “connector to the outside world” for mainland companies, with streamlined processes for raising capital and launching ventures. Similarly, Xiaomeng Lu of Eurasia Group highlights how geopolitical challenges have made Hong Kong a more attractive option than New York, stating,

“These days Hong Kong is their best hope to attract global investors and position themselves as a player not fully constrained by the boundary of the mainland market.”

Meanwhile, the Chinese government in Beijing has prioritized “technology self-reliance” as part of its 15th Five-Year Plan. This initiative aims to reduce dependency on foreign hardware and software, particularly in high-tech fields. For companies like MiningLamp Technology, which established its operations in Hong Kong last year, the city serves as a “data compliance transfer station.” Founder Wu Minghui describes it as a space to refine cross-border data strategies before entering other markets.

Despite these efforts, hurdles remain. US and European governments have intensified scrutiny of Chinese investments, citing national security risks. Some nations, including the UK, have also begun restricting Chinese suppliers from critical infrastructure sectors like telecommunications. Yet, Hong Kong continues to play a pivotal role in enabling mainland firms to overcome these obstacles and gain a foothold in the global economy.