HK boosts mainland firms' forays

The Hong Kong Special Administrative Region is committed to supporting China's high-standard of opening-up, and expects to be a "super connector" and "super value-adder" to better bridge Chinese mainland companies with the world, senior officials said during the eighth China International Import Expo in Shanghai.

HKSAR Chief Executive John Lee Ka-chiu said at a promotion event during the expo that Chinese mainland companies are accelerating expansion overseas. In 2024, China's outward foreign direct investment exceeded $190 billion, marking an annual growth of over 8 percent. Investment in ASEAN countries surged by nearly 40 percent, while investment in countries involved in the Belt and Road Initiative grew by more than 20 percent.

He noted that the Global South boasts a significant demographic dividend, and as the markets get mature, consumer demand is poised for release. This creates a perfect alignment between market needs and China's robust supply chain capabilities, presenting a new blue ocean for mainland enterprises venturing abroad.

However, Chinese mainland companies may face multiple challenges in their overseas forays, such as cross-border fund management, foreign exchange risk management, market and cultural differences, regulation and compliance, as well as access to international talents.

Seizing on such challenges, Hong Kong and its authorities are actively promoting collaboration with Chinese mainland companies, and helping them go global on the city's own strengths. Last month, the city launched the GoGlobal Task Force initiative, which supports mainland firms' overseas expansion and facilitates capital flows.

This move also echoes with the nation's recently unveiled guidelines to improve overseas comprehensive service system, and resonates with the nation's recommendations for the 15th Five-Year Plan (2026-30).

The Hong Kong Trade Development Council, a statutory body established in 1966 to promote Hong Kong as a two-way global investment and business hub, is one of the main forces committed to the initiative. With 51 offices globally — including 13 in the Chinese mainland — the council features strong connections worldwide, and has been consistently promoting Hong Kong businesses as well as introducing Chinese mainland companies to the globe.

Supporting the nation's high-standard opening-up, the HKTDC has attended the CIIE for eight consecutive years. It brought about 400 Hong Kong companies to the expo, covering diverse sectors such as food, science and technology, medical services, financial services, logistics and more.

"We steadfastly support China's expansion of high-level opening-up. Fully leveraging Hong Kong's advantages, we hope to promote business connections between Hong Kong, the mainland and international markets," said Frederick Ma Si-hang, chairman of the HKTDC.

Ma added that the Chinese mainland is a huge market continuously witnessing the rise of the middle-income group, which indicates great potential in the growth of domestic consumption and opportunities for global businesses as well.

Meanwhile, Ma also emphasized that going global is essential, and especially so for Chinese mainland companies that have and can produce the "best" products in the world. He highlighted several focusing sectors such as renewable energy, food, and particularly technology — which is much needed in the Middle East and ASEAN nations.

"We won't limit to only several certain sectors. With Hong Kong being a super connector and the financial center, we can offer (Chinese mainland companies seeking global expansion) a wide range of services such as banking, stock market, issuing bonds, accounting professions and lawyers service. Foreigners feel very comfortable about our common law system and independent judiciary as well," said Ma.