Hong Kong Pushes Impact Investing to the Forefront

14 September 2025

Hong Kong’s Financial Secretary Paul Chan Mo-po has set out a bold vision for the city to play a much larger role in the global impact investment market. At the annual Hong Kong Green Finance Association forum on 14 September 2025 he said that the government will foster an ecosystem that supports start-ups, produces innovative financial products, and adheres to world leading standards. His message is clear. Hong Kong must not only keep up but lead when money meets meaning.

Last year global capital flowing into impact investment—including funds aimed at tackling problems like climate change, poverty and inequality—hit US$1.6 trillion. By 2031 that number could swell to US$6 trillion Chan says. He urges the city’s many family offices, foundations, charitable organisations and investor networks to work together on socially beneficial projects. He sees Hong Kong’s strengths in finance and technology as key to sparking momentum.

Chan emphasised that startups are central to this ambition. He said that the kind of creativity and technological edge that small companies often bring can help Hong Kong accelerate sustainable development—in fields ranging from healthcare, education, financial services, and especially the green transition. For Chan these are not side issues. They are pillars of how the city can remain vibrant, relevant and prosperous in the years to come.

The Financial Services Development Council has also underlined how impact investing is shifting investor priorities. Increasingly people want to align their capital with values as well as returns they want investments to do good as well as make money. Chan’s plan includes boosting collaboration among government, private sector, nonprofits and investors to ensure that checks, reinforcements, and standards keep up with demand.

Hong Kong is not entering this space from zero. It already hosts a dense network of family offices, charities and investment groups. In ScMP’s sister reporting nearly 90 per cent of family offices globally now include ESG investments in their portfolios. Many are pushing for projects that show both measurable impact and financial safety. That growing commitment among major capital players gives Chan’s push much more foundation.

But ambition comes with challenges. Creating new financial products that can deliver strong environmental or social returns often requires navigating regulatory frameworks made for traditional finance. Startups need access to funding, favorable terms, and the kind of infrastructure that lets innovation scale. There are also questions around measurement: how do you verify that a project truly combats poverty, or reduces emissions, or improves healthcare in measurable ways. Without robust standards and accountability those who invest for impact risk greenwash or falling short.

Paul Chan made clear that upholding “world class standards” is essential. He wants Hong Kong to be trusted by investors not only for its financial prowess but also for transparency, integrity and real outcomes. He argued that failing to meet expectations could undercut Hong Kong’s reputation just as much as success could raise it. He also stressed that innovation technology and finance should move forward together. The hope is that fintech, cleantech, social enterprise and other emerging sectors will feed into and benefit from this shift.

Already signs of this direction are visible. Some investment firms and family offices in Hong Kong are prioritizing impact projects. New startups are forming around sustainability themes. Government advisory bodies are studying how financial law, tax, incentives and grant programs could more effectively support impact deals. The incubation of socially focused ventures appears likely to get pushed higher in policy plans. Chan says that by leveraging Hong Kong’s dual strengths in finance and innovation the city can make the “fairer and more sustainable development” real rather than aspirational.

For investors and entrepreneurs that means the time is ripe. Those who bring credible impact, good technology, measurable outcomes and aligned values may find both opportunity and support. For ordinary citizens it could mean cleaner air, better healthcare, educational access, and avenues for social mobility. For Hong Kong itself it may be a chance to sharpen its competitive edge in an increasingly values-driven global marketplace. Whether it can pull this off will depend on execution but the stakes are high, and the ambition is one of the most significant shifts in financial policy the city has embraced in recent years.