Pedestrians walk past a Bank of Communications Co branch in Hong Kong. Mainland companies are the largest investment source for the city, according to Invest Hong Kong. Jerome Favre / Bloomberg

InvestHK aims to woo 330 overseas companies to operate in HK in 2013

Invest Hong Kong (InvestHK) said it assisted 316 overseas companies, including 62 from the mainland, to establish their operations in the city in 2012, representing a 4.3 percent hike compared to a year earlier.

According to an annual survey released by InvestHK and the Census and Statistics Department on Thursday, the total number of business operations in Hong Kong with overseas parent companies including the mainland reached a historical high of 7,250. The mainland was the largest single source of direct investment in Hong Kong in 2012.

The 316 InvestHK completed projects were derived from 34 countries. "The mainland continued to be the largest single source of investment with a total of 62 projects, followed by the US (54 projects), the UK (29 projects), Japan (27 projects) and Germany (17 projects)," InvestHK said.

These companies planned to hire 2,937 people in Hong Kong for their first-year operation, up 8 percent from a year earlier.

"2012 is another record year for InvestHK in terms of completed projects. The positive results show that Hong Kong continues to attract overseas and mainland investors because of its enduring advantages and new business opportunities," InvestHK Director-General Simon Galpin said at the Thursday press conference.

"We will remain cognizant of global economic trends and to identify to attract more multinationals and start-up businesses, as we target to lure another 330 companies to establish their operations in the city in 2013," Galpin reckoned.

The top three sectors in terms of number of completed projects were "transport and industrial" (48 projects), "tourism and hospitality" (46 projects) and "innovation and technology" (43 projects). There were also an increasing number of companies from fashion apparel and asset management industries, reflecting the city's status as the mainland's international business and financial center.

Looking ahead, the investment promotion agency projected that it will focus its publicity work in those mainland second-tiered inland cities such as Zhengzhou, Wuxi, Wuhan and Harbin.

"We will target those state enterprises and private companies in those mainland second-tiered cities. The mainland companies will remain our promotional work's priority as Hong Kong is the best platform for mainland corporations to embark their international expansions," said Victoria Tang, associate director-general of InvsetHK.

The ASEAN countries will be another priority for InvestHK in 2013, as the increasing trade ties between China and the ASEAN nations will also elevate Hong Kong's status as the intermediary platform between Chinese and ASEAN companies.

The investment promotion agency will target those conglomerates, transportation enterprises, banks and financial institutions from the ASEAN region to expand into Hong Kong in this year.

Established in 2000, InvestHK a department of the Hong Kong government, which has the responsibility to attract investment and support overseas and mainland companies to set up in the city, has as of December 2012, completed over 2,750 investment projects creating 32,000 new jobs in the first year of operation or expansion and attracted over HK$70 billion of investment.

According to the Commerce and Development Bureau, HK$647 billion was invested in Hong Kong in 2011, making the city the world's fourth largest capital recipient, representing a 17 percent increase over 2010.

oswald@chinadailyhk.com

(HK Edition 01/25/2013 page2)