SINGAPORE (Aug 26): With or without the ongoing US-China trade war and a global economic slowdown, the Middle Kingdom continues to press ahead with its Greater Bay Area plans, which would eventually lead to the area gaining developed-market status. Banks, developers and tech companies are all on board. At least three listed companies — two in Singapore and one in Hong Kong — have articulated a GBA strategy that should reap earnings for shareholders.
In June this year, HSBC Holdings launched a US$880 million ($1.2 billion) fund focused on supporting fast-growing technology companies in the GBA. Guangdong alone is home to more than 45,000 high-tech firms, the banking behemoth says.
“HSBC’s GBA+Technology Fund will provide senior debt financing to high-growth companies in sectors including e-commerce, fintech, robotics, biotech and healthcare technology. These firms will have demonstrated the viability of their business model and will likely have received backing from venture capital or private equity firms, but will still be at an early stage in their development,” HSBC says in an announcement on June 11. The new fund will focus on innovative companies in GBA in particular, as well as being available to firms throughout mainland China.