Inversió estrangera directa (IED) a Hong Kong SAR, Xina

FDI in Figures

According to the World Investment Report 2024 released by UNCTAD, Hong Kong received USD 112.6 billion in FDI inflows in 2023, up by 2.7% compared to the USD 109.6 billion recorded one year earlier, placing Hong Kong as the fourth receiver worldwide. At the end of the same year, the total stock of FDI stood at USD 2.1 trillion. As per the  Census and Statistics Department, at the end of 2023, the countries holding the highest shares of FDI stock in Hong Kong were China (31.1%), the British Virgin Islands (30.5%), the Cayman Islands (10.6%), and the UK (9.3%). In terms of the major economic activities of Hong Kong enterprise groups receiving FDI, investment and holding, real estate, and professional and business services accounted for the largest share, at (67.1%) of Hong Kong's inward DI by the end of 2023. This was followed by banking at (11.6%), and import/export, wholesale, and retail trades at (10.8%).

With advanced institutions and regulatory systems, Hong Kong's economy thrives on competitive sectors such as finance, professional services, trade, logistics, and tourism. Hong Kong maintains equality in law and practice between investments by foreign-controlled and local companies. Foreign entities can establish operations, register foreign branches, and set up representative offices in Hong Kong without facing discrimination or excessive regulation. Ownership of these operations faces no restrictions. Hong Kong generally adheres to a free-market philosophy with minimal government intervention in economic matters. Capital gains remain untaxed, and there are no withholding taxes imposed on dividends and royalties. Moreover, profits are freely convertible and can be remitted without restrictions. On the other hand, factors potentially impeding FDI in Hong Kong include the lack of innovation and diversification in the economy, vulnerability to slowdowns in mainland China, disparities in business cycles between the United States and China due to the HKD-USD peg, risks within the real estate sector, particularly concerning housing affordability, and the upward trend in income inequality. Hong Kong seeks to expand investment agreements (IAs) to enhance bilateral investment flows and strengthen economic growth. These agreements protect foreign investments in Hong Kong and provide similar safeguards for Hong Kong investors abroad. To date, 24 IAs have been signed with 33 foreign economies. Overall, Hong Kong has an excellent business climate, and it ranks 14th among the 180 economies on the Corruption Perception Index and 18th among the 133 economies on the Global Innovation Index 2024.

What to consider if you invest in Hong Kong SAR, China

Strong Points

Hong Kong is an international leader in terms of international trade, a services centre with high added value and the bridgehead to one of the largest production bases in the world, China. Hong Kong has a sound economy and a stable and efficient financial and banking system. Key strong points for FDI in Hong Kong include:

• Favourable tax measures
• The transparency of local institutions 
• Freedom of information 
• Availability of qualified human resources  
• Its advantageous geographical location in Asia

Weak Points

Disadvantages for FDI in Hong-Kong include:

• High cost of property and work space (offices, shops, etc.)
• High cost of salaries, compared to other Asian countries such as Mainland China and India
• The excessive importance of the financial sector in national economy

Government Measures to Motivate or Restrict FDI

Hong Kong is a free territory for investments, which are in fact encouraged by the government with a favourable taxation policy and light legislation. Foreign companies can be set up freely, register their brands and the director of the company doesn't have to be a citizen nor a resident of Hong Kong. The government has also put in place numerous initiatives to support business innovation.

Bilateral investment conventions signed by Hong Kong SAR, China

To see the list of investment treaties signed by Hong Kong, consult UNCTAD's International Investment Agreements Navigator.