Hong Kong attracts domestic and foreign investors

The business environment in Hong Kong is continuously favored by the Chinese mainland and overseas enterprises, according to the 2018 edition of the Report on Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong that was jointly published by InvestHK and the Hong Kong Census and Statistics Department.

Hong Kong has attracted and retained many giant mainland and overseas enterprises. Entrepreneurs from all around the world also prefer to choose conducting new businesses in Hong Kong.

The number of companies in Hong Kong with parent companies outside Hong Kong increased from 8,225 in 2017 to 8,754 in 2018, an increase of 6.4 percent year-on-year. Among the 8,754 enterprises, 1,530 were regional headquarters, 2,425 were regional offices, and 4,799 were local offices. The number of regional headquarters was up by 8.3 percent year-on-year.

The survey also showed that the Chinese mainland was first with 1,591 enterprises in Hong Kong in terms of the countries and regions of parent companies, followed by Japan (1,393), the United States (1,351), the United Kingdom (712), and Singapore (427). From most to least important factors that these companies chose Hong Kong were simple tax institution and low tax ratio, freedom of information dissemination, its position as a free port, and its advantageous location.

As an international financial center and business city, Hong Kong has provided a beneficial business environment, attracting numerous overseas investors, said Stephen Phillips, director-general of the Hong Kong Investment Promotion. He added that due to the Belt and Road Initiative (BRI) and the national construction of the Guangdong-Hong Kong-Macao Greater Bay Area, more and more companies will come to Hong Kong to seek investment opportunities.

In addition, the entrepreneurial ecosystem in Hong Kong is developing rapidly. By November 2018, the number of start-up companies increased by 18 percent year-on-year, with employment posts up by 51 percent year-on-year. Also, about 35 percent of entrepreneurs came from all around the world who mainly engage in such industries as financial technology, e-commerce, and logistics technology.