IMH, which combines venture capital investment with incubation support activities, formally opened its Hong Kong office at the beginning of the week. At the launch party, Mr Mike Rowse, Director General of Investment Promotion in Hong Kong (InvestHK), said: The move reflects the importance of Hong Kong as a hub for IMH's regional business.We are glad to note that the company will bring in a sizable amount of money to invest in Hong Kong's fledgling Internet sector. It will also bring to Hong Kong its successful experience in incubating Internet start-ups in Germany. By linking us with the German technology market, this will help strengthen our technological capability and competitiveness in the New Economy.'

IMH Chairman Dr Hubertus Hoffmann, who has relocated to Hong Kong to steer the business there, commented: 'We are delighted to open our Asia headquarters in Hong Kong. Hong Kong has the entrepreneurial spirit, the proximity to market, and the legal and financial structures that we need to succeed.'

InvestHK, which has assisted IMH in establishing its regional headquarters in the SAR, is a new agency established in July 2000 to spearhead Hong Kong's efforts to attract inward investment. InvestHK offers investment promotion, facilitation and support services for prospective and existing foreign investors. Mr Rowse said of IMH's move to the region: 'This is indicative that many foreign business firms see great opportunities in Hong Kong.'