Chinese tech companies are shifting to Hong Kong to expand overseas

Mainland Chinese tech firms are increasingly setting up in Hong Kong to raise capital and test products with international clients; PwC reports listings rose to 76 from 30 in 2024.

A mainland robotics firm is testing delivery robots in a busy Hong Kong hotel as part of a local trial. The company, Yunji, says it aims to make the product succeed in Hong Kong and then expand outward. More mainland Chinese tech companies are using Hong Kong to raise money, test products with international clients, and build credibility for overseas expansion. This shift comes amid rising concern in some US and European circles about so-called "China risk," which has complicated access to capital and customers for some firms. Key developments: - Yunji is conducting product trials in Hong Kong and describes the city as a springboard for overseas expansion, according to its vice-president Xie Yunpeng. - PricewaterhouseCoopers reported that mainland Chinese firms listing on the Hong Kong Stock Exchange rose to 76 last year, up from 30 in 2024, an increase of 153%. - Invest Hong Kong said it has seen a rise in mainland firms it helped set up or expand in the territory, with innovation and technology among the largest sectors. - Analysts at Eurasia Group note firms are shifting primary share listings to Hong Kong as geopolitical headwinds make New York floats more difficult. - The Mercator Institute for China Studies describes Hong Kong as positioning itself as a connector to the outside world and adopting policies to speed up share flotations and support mainland firms. Summary: Mainland tech firms are increasingly using Hong Kong to access international capital, test offerings with global clients, and build outward-facing credibility. Hong Kong agencies and external analysts report rising listings and new supportive policies. The broader outcome for these firms' access to Western markets is undetermined at this time.