Hong Kong Immigration: When searching for components across Europe last year, German entrepreneur Simon-Ding could only find a few motors small enough to fit into his wearable metronome, and the vibration effect of these motors was too weak. However, a trip to Hong Kong, China, last November enabled him to begin developing a new product, because in the rapidly expanding manufacturing hub of Shenzhen, located just across from Hong Kong in mainland China, he quickly found all the components he needed.
Simon-Ding told the Financial Times: "In Shenzhen, they sell all types of motors used in consumer goods, and I was able to find the one I needed, which is six times stronger than the vibration of a mobile phone."
Like Simon-Ding, an increasing number of international entrepreneurs are coming to Hong Kong to start companies, focusing on the Internet of Things (IoT) sector and developing products that utilize the latest digital technology to enhance the functionality of various everyday items. The Financial Times reported: They are attracted by Hong Kong's unique conditions. It serves as a gateway to the vast market and manufacturing base of mainland China, while possessing advantages such as a British-influenced legal system, clear regulations, and lower tax rates.
Many cities and countries are competing to emulate Silicon Valley, and against the backdrop of economic pressure, Hong Kong is particularly keen to enhance its reputation as a technology hub. "The government understands that we can no longer continue to rely on the financial services, retail, and tourism industries," said Allen Ma, CEO of Hong Kong Science and Technology Parks Corporation. The park is one of two facilities built by the Hong Kong government in the first decade of this century to promote the development of the technology industry.
Although the Science Park and Cyberport have been operating for more than a decade, Hong Kong's technology sector has struggled at times due to a lack of experienced venture capitalists, a small local market (only 7 million people), and a risk-averse corporate culture. However, investors say that in the past year or two, the situation has changed as entrepreneurs have gradually discovered that Hong Kong has unique advantages in the two major fields of IoT and financial technology (FinTech).
David Lin, Head of Technology for Mainland China and Hong Kong at DBS Bank, Singapore, said that Hong Kong's status as one of the world's major financial centers makes it an ideal location for starting FinTech companies targeting Asia and beyond. In the FinTech sector, Hong Kong startups are going head-to-head with competitors in other financial hubs such as Singapore and London. However, Chen Taijie, co-founder of the investment group AngelVest, said that Hong Kong has a significant competitive advantage in developing IoT technology: "For IoT, we believe Hong Kong is much more advantageous than other regions like Singapore, because of its proximity to Shenzhen and the convenience it offers for rapid prototyping."
Shenzhen itself presents a thriving entrepreneurial scene, but Chinese entrepreneur Mao Xianghui said that Hong Kong is more suitable for small companies looking to develop internationally. "Compared to the mainland, it is much simpler to start a company in Hong Kong, intellectual property protection is much better, and there are no internet restrictions like those on the mainland."