HSBC unveils new measures to support Hong Kong, mainland startups

A specified lending fund was increased to $3b.

HSBC has announced new measures to enhance its support for the innovation sector in Hong Kong and mainland China. 

These include increasing its specialist lending scheme for start-ups and tech-led businesses to $3b and introducing venture debt capabilities in Asia. 

These initiatives aim to provide additional financing options for early-stage, high-growth companies with venture capital support in Hong Kong.

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HSBC is merging its current financing schemes to create the HSBC New Economy Fund, a larger fund with a total value of $3b. 

The fund will now support start-ups and tech-led businesses in Hong Kong and mainland China's climate tech, industrial, and consumer sectors. It will also continue to focus on technology, healthcare, and life sciences.

As part of the fund, the bank is introducing venture debt as a financing option for early-stage businesses. This will allow these businesses to access customized debt financing solutions, which may also include equity warrant instruments within the lending structures.