The Hong Kong government’s investment promotion body has assisted more than 300 firms from mainland China and overseas to set up or expand their business in Hong Kong in the first half of 2024.
A total of 322 companies were facilitated by Invest Hong Kong (InvestHK) between January and June to develop business in the city, the government department responsible for foreign direct investment said in a statement on Tuesday.
Despite the number of companies representing a year-on-year increase of 43 per cent, the HK$38.3 billion total investment brought to the city’s economy represented a rise of only 6 per cent compared to the same period in 2023.
More than 3,500 job opportunities were created, 44 per cent more than last year, the department said.
The 322 companies came from 33 economies. As has been the case in recent years, most came from mainland China, with 150 entities setting up base in Hong Kong with the help of InvestHK, followed by 30 from the US, 19 from the UK, 18 from Singapore and 15 from France.
Their businesses covered financial services and fintech, innovation and technology, family offices, business and professional services, and consumer products.
Director-General of Investment Promotion Alpha Lau hailed the growth of InvestHK’s portfolio, which she said could be attributed to the gradual recovery of the global economy and the support of China. Such atmosphere prompted companies to speed up the expansion of their business to Hong Kong, she said.
“Hong Kong by many measures is the most sought-after global financial and business hub in Asia. For the second half of the year, we will continue to promote the city’s strengths according to our targets,” Lau said in the statement.
The city ranked fifth in the recently released 2024 World Competitiveness Ranking, an index produced by the business school International Institute for Management Development (IMD), while Singapore placed first.
Lau added that InvestHK would prioritise supporting companies working in financial services, innovation technology and family offices. The department would also step up promotions in strategic markets, including Association of Southeast Asian Nations economies, the Middle East, and North Africa, to leverage Hong Kong’s role as a “super value-adder,” she said.
Family office saga
In April, Chief Executive John Lee said Hong Kong should attract family offices provided that they were run by “legitimate businessmen” with “legitimate money.” His remarks came after a Dubai sheikh’s proposal to set up a family office drew suspicion.
Sheikh Ali Rashed Ali Saeed Al Maktoum, who said he was a nephew of the United Arab Emirates ruler Sheikh Mohammed bin Rashid Al Maktoum, announced in March his plan to set up a family office in Hong Kong to manage up to US$500 million in a Bloomberg interview.
However, Maktoum later said the family office’s opening had been delayed, citing urgent issues in Dubai. At around the same time, suspicion surrounding Maktoum’s identity and source of wealth arose as local media outlets reported that he resembled a singer who was popular in the Philippines.
A government spokesperson told HKFP at the time that Hong Kong had offered tax exemptions to family offices meeting asset requirements, but the government had not made any investment in family offices established in the city.
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