HK reaches new high as preferred location (hktdc.com)


	Hong Kong is a preferrred location for overseas companies and is the second biggest recipient of FDI in the region

A record 6,440 overseas and Chinese mainland companies have offices in Hong Kong, according to the results of a survey conducted by Invest Hong Kong, a government agency tasked with attracting investors to the city.

"Once again, Hong Kong is one of the most preferred locations for overseas and mainland companies managing their operations in Asia Pacific," said InvestHK's Director-General of Investment Promotion, Mike Rowse.

Of the 6,400 companies representing parent companies located outside Hong Kong, 3,890 are regional offices or headquarters. "This is an all-time high of 60.4 per cent," added Mr Rowse.

Regional headquarters manage offices in Asia, while regional offices are defined as co-ordinating regional operations. Local offices oversee business in Hong Kong.

As at June 2007, there were 1, 246 regional headquarters, 2,644 regional offices and 2,550 local offices representing their parent companies located outside Hong Kong. Together, they employ nearly 346,000 people, accounting for about 10 per cent of the working population.

Mr Rowse said he was delighted with the healthy growth trend over the past 10 years. "Since the handover in 1997, the number of regional headquarters and regional offices has increased by 55 per cent. It's certainly silenced a lot of critics who predicted the demise of Hong Kong a decade ago."

The US topped the list of countries/territories with regional headquarters (298), followed by Japan (232) and the UK (124). The major lines of business of regional headquarters were wholesale, retail and import/export trades; business services, transport and related services.

Number 2 in FDI

Hong Kong also retained its position as Asia's second-largest recipient - after the Chinese mainland - of foreign direct investment (FDI), attracting US$42.9 billion last year, up 28 per cent from 2005. The United Nations Conference on Trade and Development said in its "World Investment Report 2007" that FDI to Hong Kong and the mainland together accounted for more than half of FDI inflows into the Asia Pacific region.

On a global scale, Hong Kong ranked seventh in FDI inflows last year – one rank up – supported by a rise in cross-border merger and acquisition activity.

"These results confirm Hong Kong's status an international location in Asia for foreign companies and capital," said Mr Rowse. "The report shows that Hong Kong continues to act as a two-way springboard for overseas companies and capital into the mainland, and for mainland companies expanding into international markets."