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A fund affiliated with Singapore’s Hong Leong Group has reached a deal with a major state-backed innovation center in Shanghai to invest CNY 500 million (approximately USD 70.6 million) into the local technology industry.
The Hong Leong Star River fund will participate in the Shanghai Sci-Tech Innovation Center’s Phase III Fund via a qualified foreign limited partner structure, which supports Shanghai’s ambition to become a global hub for innovation and technology, according to a statement released yesterday.
The QFLP program facilitates cross-border capital flow into China, enabling approved foreign investment institutions to convert their currencies into Chinese yuan for investment in domestic funds.
The inclusion of Hong Leong Star River through the QFLP program exemplifies Shanghai’s strategy to attract long-term foreign investment. It aims to diversify funding options for the city’s innovation-driven enterprises and provide consistent financial backing for emerging advanced technology companies, as noted by Shanghai International.
Additionally, Hong Leong’s extensive international industrial network and investment outlook will help the invested companies tap into global markets, technologies, and talent pools. This partnership is expected to speed up the commercialization of technological innovations and foster the development of industrial clusters in sectors like artificial intelligence and biomedicine.
The Shanghai Sci-Tech Innovation Center Capital, established in 2017 and led by Shanghai International along with other government-owned entities, manages a fund of funds that has grown to over CNY 17 billion (around USD 2.4 billion). Over eight years, it has invested in more than 100 sub-funds, which collectively manage assets exceeding CNY 250 billion (roughly USD 35.3 billion).
Founded in 1941 by Singaporean entrepreneur Kwek Hong Png, Hong Leong Group operates across real estate, finance, and manufacturing sectors. The conglomerate eventually split into two entities: Hong Leong Group Singapore, led by Kwek’s son Kwek Leng Beng, and Hong Leong Group Malaysia, headed by his nephew Quek Leng Chan.
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