Singapore firm invests in Shanghai tech fund

​[Photo/IC]

Hong Leong Star River of Singapore entered into a qualified foreign limited partner agreement with Shanghai Sci-Tech Innovation Center Capital on Nov 23, injecting 500 million yuan ($70.36 million) into Shanghai's technology sector.

The investment will flow into the Shanghai Sci-Tech Innovation Center's Phase III Fund through a QFLP structure to support the growth of technological innovation in both Shanghai and throughout China.

China's QFLP pilot program is an important part of the country's capital-account opening, giving foreign investors a clearer and more efficient path to domestic equity. For tech companies in Shanghai, especially those working in high-tech fields and R&D, it offers a more stable channel for funding.

Beyond capital, Hong Leong Star River's global perspective and industry links should help beneficiary companies reach international markets and tap into advanced technologies and talent. The combination of investment and industrial expertise is expected to accelerate the transformation of scientific breakthroughs into commercial applications.

The broader aim is to strengthen Shanghai's industrial clusters in areas such as AI, biomedicine, integrated circuits, and green technology.

Market analysts believe that Hong Leong Star River's investment shows the international community that there is still confidence in the strength of the Chinese economy and the country's capacity for technological innovation. It also underscores Shanghai's advantages as a hub for finance and technology.