HK 2nd in attracting investment

June 25, 2015

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Hong Kong registered foreign direct investment inflows of US$103 billion in 2014, a year-on-year increase of 39%, according to the United Nations Conference on Trade & Development World Investment Report 2015. For the first time, Hong Kong was ranked No. 2 in global foreign direct investment flows.

The report puts Hong Kong second only to Mainland China which had US$129 billion in foreign direct investment inflows, and ahead of the US’s US$92 billion, the UK’s US$72 billion and Singapore’s US$68 billion.

Hong Kong also ranks second in outflows with US$143 billion in 2014, a year-on-year increase of 76%, following the US with US$337 billion, and ahead of Mainland China’s  US$116 billion, Japan’s US$114 billion and Germany’s US $112 billion. The report said the increase was partly a result of booming cross-border merger and acquisition activity.

Secretary for Commerce & Economic Development Gregory So said the numbers underscored Hong Kong’s role as a super-connector, in which foreign companies use Hong Kong as a base to invest in the rest of China, and Mainland companies increasingly use Hong Kong as a platform to make global investments and acquisitions.

Director-General of Investment Promotion Simon Galpin said it is encouraging to see Hong Kong rank second in global FDI flows with both record amounts of inflows and outflows.

Director-General of Investment Promotion Simon Galpin:
It shows that the centre of economy gravity is still moving to Asia. The US and the Eurozone are showing some signs of recovery but it is not a very robust recovery. And for businesses that are looking to expand they need to look at this part of the world. They need to look at China. They need to look at the rest of Asia. And of course, Hong Kong is a great starting point for these companies when they are planning that investment. By the same token, Mainland Chinese companies are becoming more and more active, and are investing more and more overseas. And of course they are using Hong Kong as their springboard to make those investments through Hong Kong.

Invest Hong Kong will continue its promotion efforts across Mainland China, particularly in second-tier cities, to attract more private enterprises, in addition to state enterprises, to use Hong Kong to go global. And in line with the “One Belt, One Road” initiatives, Invest Hong Kong plans to bolster promotions in South East Asia, Central Asia and in certain key markets in Europe in the coming years.

For the first time, Hong Kong ranked second in global foreign direct investment (FDI) inflows last year in the United Nations Conference on Trade & Development's World Investment Report.

Hong Kong received US$103 billion in investments last year, a year-on-year increase of 39%, placing it second only to the Mainland (US$129 billion) and ahead of the US (US$92 billion), the UK (US$72 billion) and Singapore (US$68 billion) globally.

With US$92 billion, Hong Kong also ranks second in terms of FDI outflows, after the US (US$337 billion) and ahead of the Mainland (US$116 billion), Japan (US$1114 billion) and Germany (US$112 billion).

Secretary for Commerce & Economic Development Gregory So today said the result highlights Hong Kong's role as a super-connector and a conduit for direct investment, adding that it reflects international investors' affirmation of the city's investment policy.

Director-General of Investment Promotion Simon Galpin was also encouraged by the numbers and noted that foreign investors use Hong Kong as a base to invest in the rest of China and the region, while Mainland companies increasingly use Hong Kong as a platform to make global investments and acquisitions.

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