Hong Kong Chief Executive, Mr. Donald Tsang, highlighted two new market opportunities attracting companies to Hong Kong, at a reception organized by Invest Hong Kong (InvestHK) in July.

The annual Chief Executive Reception is an occasion to thank overseas and Mainland companies that have established or expanded their operations in Hong Kong during the past year.

Speaking to more than 200 top executives of these companies, Mr. Tsang said, “Traditionally, we have marketed our city as a place to do business at four distinct levels: first, as a market in its own right; second, as a co-ordination center for South China; third, as a base for the whole of China; and fourth, as a base for the region. But I also wish to highlight two emerging trends.”

Mr. Tsang pointed out that Hong Kong has become increasingly a springboard for Mainland companies out to global markets and a location where multinational companies perform global functions.

Mainland companies have increasingly recognized Hong Kong’s strategic role as the springboard to expand regionally and globally.

“Just six years ago, InvestHK did not have any Mainland clients. In the first six months of this year, Mainland companies accounted for almost 20 per cent of our completed investment projects,” said Mr. Tsang.

Leading multinationals, on the other hand, have begun to move worldwide business and functions and even relocate senior executives with global responsibilities to Hong Kong. This development suggests that Hong Kong is fulfilling a similar role in Asia to New York’s in North America and London’s in Europe – a trend depicted in the expression “Nylonkong” coined by Time Magazine earlier this year.

“This is a trend we welcome wholeheartedly and is set to continue and deepen as Hong Kong further develops its role as China's major international financial and business services center, and as a vital cog in the management of global financial flows,” Mr. Tsang remarked.

Mr. Mike Rowse, Director-General of Investment Promotion, noted these new opportunities would make Hong Kong even more attractive to the foreign direct investors, which was indicated by the high number of completed projects in the first half of this year.

As at the end of June, InvestHK assisted 148 overseas and Mainland companies to invest or expand in Hong Kong, achieving more than half of its annual target of 250. These companies came from a variety of sectors, including Hong Kong's pillar industries such as business and professional services and financial services, as well as transportation and technology.

The growing trend of Mainland companies using Hong Kong as a springboard to go overseas has continued, with one-fifth of InvestHK’s completed projects coming from the Mainland.

“With the overwhelming response to the ‘On Your Marks, Get-set Go’ nationwide marketing campaign, increasing numbers of projects from the Mainland is highly expected,” said Mr. Rowse. Last year, InvestHK launched a three-year marketing campaign in those seven economically developed provinces where privately-owned enterprises have a strong presence, promoting Hong Kong as an excellent launch pad to expand internationally.

Mr. Rowse concluded by saying InvestHK would strive to make the best use of these and other opportunities to attract even more companies around the world to invest and expand their presence in Hong Kong. “For those global CEOs, Hong Kong is a place where you can manage your regional and global operations effectively and efficiently,” he said.