Riverchain has launched a HK$400 million fund to support the working capital needs of the city’s subcontractors and construction suppliers. Hong Kong’s construction sector is currently facing significant challenges, with a widening financing gap. The use of back-to-back payment arrangements, lengthy receivable periods, and time-consuming paper-based processes is tying up an estimated HK$53.8 billion in the construction supply chain annually. This situation highlights the urgent need for accessible and efficient working capital solutions for the industry.
Riverchain is on a mission to optimise the industry’s capital flow and address the growing working capital gap by leveraging technology and attracting new capital to the sector. Riverchain’s pioneering digital platform and data-driven risk assessment model serve the needs of subcontractors looking for efficient and transparent short-term financing solutions as well as private and institutional investors who are interested in alternative investment opportunities with an attractive risk and reward profile.
Managed by an SFC-licensed subsidiary of Arta TechFin, the HK$400 million open-ended fund will utilise Riverchain’s extensive knowledge and platform capabilities to bring an innovative funding alternative to the sector.
“Riverchain is helping Hong Kong’s construction sector address the financing gap by building resilience in tough times and tread the path to sustainable growth. We believe in being a partner to a core sector that contributes to Hong Kong’s economic growth and this latest milestone provides a major boost in our mission to unlock more capital to support good businesses, complete projects on-time and safely, and get workers paid on schedule,” said Ben Wong, CEO of Riverchain.