InvestHK's director-general Mike Rowse (centre), associate director-general Ophelia Tsang and Gregory Chiu from the Census and Statistic Department present results showing that overseas operations prefer HK as their regional base

Conducted by the Census & Statistics Department, the positive survey results are clear signs that international companies still see Hong Kong as the ideal base to oversee their regional operations, said director-general of Invest Hong Kong Mike Rowse. The number of local offices also recorded an increase.

"It is encouraging that Hong Kong remains international businesses' preferred location to manage their regional operations. The figures reflect that our city continues to attract investors from traditional markets, including the US and Japan," added Mr Rowse.

As at June 1, there were 1,098 regional headquarters (RHQs) and 2,511 regional offices (ROs). This represents an increase of 13.7 per cent and 12 per cent respectively when compared to the same period in 2003.

Preferred location

The US topped the list with 256 American RHQs in Hong Kong followed by Japan with 198 and the Chinese mainland with 106. "This shows that Hong Kong is retaining its attractiveness as a business location and we bounced back strongly from the economic problems we've had," said Mr Rowse.

A free flow of information was considered the most important among the key factors favoured by overseas companies in setting up RHQs. Other factors included a low and simple tax system, corruption-free government, absence of exchange controls, availability of support services and business opportunity in the mainland.   

A vote of confidence in Hong Kong's business environment is also evidenced in a 2004 British Chamber of Commerce Business Confidence Survey. Results showed confidence in the short to medium term business outlook to be at a four-year high.

Executive director Christopher Hammerbeck said the findings reinforce the views that the future of Hong Kong lies in its "burgeoning role as China's international financial centre and the key springboard for both Chinese and international companies seeking entry both outwards and inwards."  

Related links
HK still a magnet for overseas firms: Rowse
Invest Hong Kong
British Chamber of Commerce