Hong Kong enjoys an ideal location in Asia that enables businesses to tap into the multitude of opportunities in the Guangdong-Hong Kong-Macao Bay Area and throughout the rest of the region.
The Perfect Business Base
With all of Asia’s key markets less than four hours’ away, it is easy to see why over 8,000 businesses and companies have made Hong Kong their home. Many have placed their strategic functions, including sales, operations, research and development (R&D), distribution, regional headquarters and corporate treasury centres in the city. Over 100 airlines offer easy and efficient travel to 190 locations from Hong Kong whilst half of the world’s population can be reached within five hours by plane.
The Belt and Road Initiative is set to link Mainland China with countries across Asia, Europe and the Middle East. As an international finance centre, Hong Kong’s independent legal system, rule of law, free flow of information and capital, and sound regulatory regime, put it in a prime position to help businesses make the most out of the Belt and Road.
Another opportunity arises from the Guangdong-Hong Kong-Macao Bay Area . The economic integration will combine the expertise of more than ten cities throughout the region to create a world-class city cluster. Hong Kong will play a key role in ensuring the city cluster is internationally competitive, making it the ideal location for businesses and companies to reap the benefits of the city cluster.
Another benefit of setting up business in Hong Kong is its free trade policy. The city’s free port status and easy customs procedures makes it easier for businesses and companies to operate.
Trade and Economic Ties
The Economic and Trade Offices (ETOs) set up by the HKSAR Government in Mainland China and overseas will further promote economic ties and exchanges with Belt and Road countries. In the Mainland, liaison units were set up in Tianjin, Zhejiang, Guangxi and Shaanxi. In overseas countries, the Jakarta ETO was established in 2016. Preparatory work is also underway for setting up ETOs in other Belt and Road countries.
Hong Kong signed a Free Trade Agreement (FTA) with ASEAN in November 2017. FTA negotiation has also begun with other trading partners. Hong Kong has so far signed Investment Promotion and Protection Agreements with 20 economies and has concluded negotiations with Bahrain, Mexico, Myanmar and the United Arab Emirates. Negotiations will commence or continue with other Belt and Road countries.
A Leading Financial Centre
Hong Kong has long been the region’s leading financial hub. It offers a highly transparent and robust regulatory regime for financial services industries such as banking, securities and futures, insurance and retirement schemes. These industries adhere to the best global practices and standards, giving confidence to everyone looking to do business in Hong Kong.
The city is also home to the world’s largest offshore hub in Renminbi settlement. Businesses can easily enjoy a wide variety of Renminbi services on offer from banks and financial institutions.
Stock Connect and Bond Connect have launched in Hong Kong. They have given investors in Hong Kong direct access to Mainland China whilst further cementing the city’s status as an international finance centre.
The city is also positioning itself as a leading regional FinTech hub.