Hong Kong is poised to strengthen its role as a major financial gateway between China and the rest of the world over the next 25 years. As a springboard for Chinese companies expanding overseas and a key entry point for foreign businesses entering China, Hong Kong’s strategic position is unmatched.
In the first four months of this year, more than 220 firms invested over HK$22 billion (US$2.82 billion) in Hong Kong, marking a 42% increase compared to the same period last year. By the end of 2024, the number of companies with overseas parent companies in Hong Kong is expected to reach nearly 10,000, a 10% year-on-year growth. This trend is projected to continue as more businesses recognize the benefits of operating in Hong Kong.
The implementation of the National Security Law has brought stability to the region, which is essential for long-term investment and business expansion. Many companies appreciate the stable environment, with a recent survey indicating that over 70% of American companies in Hong Kong reported that the law did not negatively impact their operations. In fact, 60% plan to increase their investments in Hong Kong and other regions in China.
Hong Kong’s advantages extend beyond stability. Its prime geographical location in the heart of Asia, world-class infrastructure, and connectivity to over 150 destinations make it an ideal hub for international trade and logistics. As the world’s number three financial center and Asia’s leader, Hong Kong serves as a critical conduit for fund flows and capital markets.
Under the “One Country, Two Systems” principle, Hong Kong continues to facilitate mutual growth. Initiatives like the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect have streamlined investment flows between China and the global market. With a bilingual legal system and a familiar common law framework, Hong Kong offers an accessible environment for international businesses.
Looking ahead, Hong Kong aims to bolster its position as a vital economic and financial gateway. With ongoing efforts to promote investment and foster a stable, competitive environment, the region is set to play an increasingly significant role in global finance and trade over the coming decades.
