HK remains a strong springboard for mainland firms eyeing foreign markets, says official

With the backing of the country, Hong Kong has continued to be a good partner for Chinese mainland enterprises that look to expand in overseas markets, said Hong Kong special administrative region's financial secretary Paul Chan at a symposium held in Shanghai on Thursday.

Despite all the challenges, Hong Kong's status as an international financial center remains very solid and the city continues to be competitive, said Chan in the opening speech delivered via video.

"We welcome companies to come to Hong Kong and use our financial and professional services, and to capitalize on our role as a springboard to expand business abroad," he said.

Chan further said Hong Kong's financial markets remained stable and orderly over the past two years, ranking first and second in terms of the total amount of funds raised in initial public offerings in 2019 and 2020, respectively. The banking system also remains as resilient, with the total amount of deposits rising 2.9 percent in 2019 and 5.4 percent in 2020.

By mid-2020, there were over 9,000 Chinese mainland and foreign companies operating in Hong Kong, of which 1,500 had their regional headquarters in the city, reflecting the companies' confidence in Hong Kong, he added.

Stephen Phillips, director-general of investment promotion of InvestHK - the HKSAR government's department responsible for attracting investment and supporting business expansions, said in a news conference held online that Hong Kong can offer Chinese mainland enterprises an internationalized diversified and vibrant business environment.

"From Hong Kong, Chinese mainland enterprises can tap into a wide range of opportunities in the city, including the Greater Bay Area, the Association of Southeast Asian Nations region and further afield. Chinese mainland enterprises can leverage Hong Kong for brand building, upgrading and further business expansion," he said.

The comprehensive range of world-class legal, financial and professional services, as well as intellectual property protection in Hong Kong, can help expand businesses while mitigating risks effectively. At the same time, a pool of well-qualified talent can bring insights and expertise to help enterprises develop outside markets, he added.