Core Insights - The Hong Kong Financial Development Council (HKFDC) released a report titled "Supporting the Success of Startups: Attracting and Deepening Local Alternative Investment Funds," aimed at reinforcing Hong Kong's position as a leading global asset and wealth management center [1][2] - The report emphasizes the growing importance of alternative investment funds (such as private equity, venture capital, and private credit) in shaping the startup landscape, highlighting their role in filling funding gaps and supporting early-stage companies [1][3] Group 1 - The HKFDC asserts that Hong Kong possesses unique advantages and potential to elevate its financial ecosystem into a new platform for startup development, connecting global capital with regional innovation [2] - The report outlines policy recommendations to enhance the alternative investment market, aiming to catalyze a more vibrant and sustainable innovative economy [2] - Specific recommendations include establishing a strategic policy vision, creating dedicated licensing systems for private equity and venture capital, optimizing tax and regulatory frameworks, and guiding public funds to support alternative investment development [2] Group 2 - As of June 2024, the assets under management (AUM) in Hong Kong's private equity, venture capital, and private credit sectors reached $240 billion, ranking second in Asia and fifth globally [3] - The mature private equity market in Hong Kong enables synergy between capital formation and entrepreneurial ventures, with startups increasingly relying on private funding for growth [3] - Despite the robust investment environment, there are still gaps in early-stage project financing and commercialization of research outcomes, indicating a need for closer collaboration among stakeholders to build an inclusive and future-oriented alternative investment ecosystem [3]