The idea that power law returns stably encompass venture capital performance factors is a generalization that fails to capture the specific market dynamics' complexity, especially in jurisdictions like Hong Kong.
Here, privileged access to capital flows related to China and the listing channels of the HKEX create unique asymmetries in returns.
A strategic exit via a quick IPO, facilitated by cross-border relationships, can offer a maximum expression of capital, surpassing the impact of decision quality alone.
For example, an investment in a technology company ready for listing in Hong Kong can generate returns far beyond what classical factors would predict.