Risk and Financial Management

Enterprises Exploration from Governance to Prosperity: A Glimpse of Hong Kong's Entrepreneurial and Investment Environment

2025-07-06T21:31:16+08:00

This paper provides a comprehensive analysis of Hong Kong's evolving entrepreneurial and investment landscape, charting its strategic pivot from a traditional, finance-centric economy towards an innovation and technology (I&T) hub. It examines the local venture capital (VC) environment, startup ecosystem dynamics, the structural composition of its listed companies, and the impact of recent transformative government policies, primarily focusing on the period from 2015 to 2022. The study reveals a critical dichotomy: while Hong Kong's VC industry is nascent compared to regional counterparts like Shenzhen, it demonstrates significant growth in both investment scale and its contribution to the regional GDP. However, this growth is heavily concentrated in fintech and service-oriented sectors, exposing a systemic underinvestment in deep-tech domains such as biotechnology, new materials, and advanced manufacturing. An analysis of Initial Public Offerings (IPOs) reinforces this observation, showing a market historically dominated by traditional industries, although a nascent and crucial shift towards new economy companies is emerging. The paper argues that a fundamental structural challenge persists in the form of a mid-stage funding gap (Series A/B), which stifles the growth of promising startups. We conclude that recent government initiatives, including the establishment of the Hong Kong Investment Management Co., Ltd. and substantial R&D support schemes, are vital catalysts for fostering a more diversified and resilient innovation ecosystem. However, sustained success will hinge on bridging the mid-stage financing chasm, cultivating a more risk-tolerant investment culture, and strategically aligning policy with the goal of building a globally competitive deep-tech sector.

The Role of Big Data Finance in Supporting and Supervising Corporate Financial Decision-Making

2025-07-23T10:12:54+08:00

With the rapid adoption of big data technologies in finance, opportunities have emerged to enhance the transparency and compliance of corporate financial decision-making. This paper first reviews the concept and evolution of big data finance, then constructs a “supportive supervision–decision optimization–risk prevention” theoretical framework. Using panel data from representative listed firms, we select key variables and employ multivariate regression and robustness checks to empirically assess the supervisory effects of big data finance in the decision-making process. Our findings show that big data finance significantly strengthens firms’ real-time internal control monitoring capabilities, improves the accuracy of financial budgeting and forecasting, and enhances the quality of financial reporting. Moreover, its supervisory function has a pronounced positive impact on reducing financial fraud risk and boosting corporate performance. Finally, we offer management recommendations—such as improving big data platform infrastructure, reinforcing data governance and privacy protection, and fostering coordinated mechanisms between regulators and market participants—to provide practical guidance for more scientific financial decision-making and a more effective regulatory system.

Research on Financial Risk Control of Sovereign Wealth Funds’ Offshore Investments

2025-07-25T16:18:41+08:00

This study focuses on the financial risk control mechanisms of sovereign wealth funds (SWFs) in their offshore investment activities. Drawing on both domestic and international literature, it first clarifies the fundamental concepts of SWFs and the theoretical framework for financial risk control. Through analysis of global allocation patterns and representative Chinese cases, it reveals the evolution of SWF investment strategies and the principal risks they face—market risk, currency risk, credit risk, liquidity risk, and compliance risk. The study proposes an integrated risk-assessment system for dynamic monitoring and evaluation, and on this basis designs targeted risk-control strategies, including derivatives hedging, diversified portfolio allocation, enhancement of internal governance structures, and strengthening of compliance mechanisms. An empirical model is constructed using panel data from leading SWFs; the empirical results and robustness tests demonstrate that the proposed strategies significantly enhance portfolio resilience. Finally, by examining a typical case in depth, the paper offers practical recommendations for SWF management institutions and regulatory authorities to bolster the resilience and sustainability of offshore investment portfolios in an increasingly volatile global environment.