Invest Hong Kong helps companies go global

As an international financial and trade center, Hong Kong special administrative region has a well-developed system of integrated financial, insurance, accounting and legal services.

Hong Kong acts as the bridge between the Chinese mainland and international markets so mainland companies can use the region's international marketing expertise and array of professional service providers to expand their global business.

In 2014, Hong Kong was ranked the world's freest economy for the 20th consecutive year by the US Heritage Foundation.

The region's strict adherence to principles of the free market provide a fair business environment and level playing field to all investors, which adds to the allure of Hong Kong as a business city.

Hong Kong provides a two-way platform, allowing overseas companies to access the mainland market while helping mainland companies globalize operations.

Hong Kong ranked fourth in terms of global foreign direct investment inflows in 2013, according to the United Nations Conference on Trade and Development's World Investment Report 2014.

In terms of global inflows, the United States ranked first with $188 billion, followed by the Chinese mainland with $124 billion, the Russian Federation with $79 billion, Hong Kong with $77 billion and Brazil with $64 billion.

Hong Kong is the second biggest FDI recipient in Asia after Mainland China.

"It is encouraging to see that Hong Kong continues to be one of the leaders in global and regional FDI.

"It shows that our city continues to be an important FDI conduit given its enduring business advantages including low and stable tax, free market access and easy business environment as well as a work force with international and mainland perspectives," said Simon Galpin, head of Invest Hong Kong, the government department responsible for attracting overseas and mainland investments.

"The region's status as an international business hub combined with its world-class infrastructure, low tax rate, simple tax system, deep pool of international talent and free flow of information and capital make it an ideal springboard to help mainland companies expand their business worldwide," said Victoria Tang, associate director-general of Invest Hong Kong.

The report said that Hong Kong was highly successful in attracting transnational corporations, or TNCs, with almost 1,400 TNC regional headquarters operating in Hong Kong in 2013.

The report added that Hong Kong continued to be one of the "major destinations" for headquarters of TNCs that target the Asia Pacific market.

Multinationals choose Hong Kong as the center for their global operations and the city also attracts a growing number of entrepreneurs from around the world to tap into the opportunities it has to offer.

In the first half of 2014, Invest Hong Kong helped a record total of 223 overseas and Mainland Chinese companies set up or expand in Hong Kong.

Galpin said he was encouraged by the interim results, which showed a 4.7 percent rise compared to the same period last year.

The 223 completed projects came from 38 countries and regions.

The Chinese mainland was the largest source of investment into Hong Kong, with a total of 55 companies, followed by the US with 30, Japan with 20, France with 19 and the UK with 18.

During the first six months of 2014, Invest Hong Kong helped companies from six new economies set up in Hong Kong, namely Bangladesh, Cyprus, Kuwait, Poland, Romania and Tajikistan.

By region, Asia Pacific was the biggest source market with 95 projects completed compared to 89 a year ago, followed by Europe and North America.

By sub-sector, Hong Kong's opportunities in the first half of 2014 proved most attractive to companies in asset management, e-retail and enterprise solutions.

Hong Kong's status as an international business hub and its geographical location will continue to make it an ideal platform for Mainland Chinese companies to go global and for large multinationals to manage global activities.

In 2014, Invest Hong Kong plans to continue its efforts to promote the region as an ideal platform for mainland companies to go global while working closely with the Ministry of Commerce and its representative office in Hong Kong to organize seminars aimed at fast-growing cities in inland and coastal provinces.

Invest Hong Kong offers a "one-stop" service to mainland enterprises, including a step-by-step guide for those looking to set up in the region.

The company has five investment-promotion units in Beijing, Shanghai, Guangzhou, Chengdu and Wuhan to reach out to enterprises and help them set up their business in Hong Kong.

Invest Hong Kong plans to continue to target and attract overseas and mainland companies in priority sectors to the region through its global network of investment units and overseas consultants.

Invest Hong Kong has participated in CIFIT every year since 2002. This year the company will continue its participation by hosting seminars and promoting Hong Kong as a business location in the Hong Kong Pavilion, which will be themed "Insight of Trend Setting".

Over the years, Invest Hong Kong has witnessed how CIFIT has grown stronger and become one of the largest and most far-reaching events in global economic cooperation.

Simon Galpin, director general of Invest Hong Kong, introduces Hong Kong's advantages in attracting mainland enterprises. Photos Provided to China Daily