HK still top choice for mainland firms

Hong Kong remains the preferred location for overseas and mainland companies to house their Asian operations and is the main springboard for mainland enterprises to tap global markets.

Speaking at the 18th China International Fair for Investment and Trade, which was held in Xiamen, Fujian province recently, Francis Ho, the associate director-general of Invest Hong Kong, said Hong Kong has managed to retain its luster despite the uncertainties in the global economy.

Hong Kong ranked fourth in terms of global foreign direct investment inflows in 2013, according to the United Nations Conference on Trade and Development's World Investment Report 2014.

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According to the latest survey by Invest Hong Kong, the total number of businesses in Hong Kong with parent companies overseas and in the mainland reached 7,449 in 2013, up 2.7 percent from a year ago.

Among these companies, 3,835 served as regional headquarters or regional offices.

Ho said Hong Kong's enduring attractiveness to investors lies in a series of factors, such as the simple tax system and low tax rate, free flow of information, geographical location, free port status and its rule of law and independent judiciary.

For mainland companies aiming to go global, they often face problems such as financing difficulties and a lack of understanding about international business environment, Ho said.

As an international financing and trade center, Hong Kong offers many advantages such as credit funds and privately offered funds for investors from the mainland.

The special administrative region also boasts of a skilled workforce with international business know-how and a good understanding of the international and mainland business culture, Ho said.

Against the backdrop of the country's economic growth and the national policy of encouraging enterprises to go global, Hong Kong offers a wide range of top quality professional services in financing, law, accounting, insurance, and brand marketing.

This also highlights the strength of Hong Kong in assisting investors from the mainland to expand their businesses abroad, Ho said.

This year marks the 13th consecutive year that Invest Hong Kong is a part of the Hong Kong Pavilion at CIFIT.

The exhibition showcased a wide spectrum of Hong Kong services and how the SAR can assist mainland enterprises in expanding their overseas operations through its business and trade platform.

Invest Hong Kong is the department of the Hong Kong Special Administrative Region government, that is responsible for foreign direct investment and for supporting overseas, mainland and Taiwan businesses to set up and expand in Hong Kong.