External Investment

The Government is committed to enhancing the attractiveness of Hong Kong as a premier investment destination. Invest Hong Kong is a new government department established on July 1, 2000 to spearhead Hong Kong's efforts to attract external direct investment. Its Head Office in Hong Kong works closely with the 10 overseas Economic and Trade Offices in North America, Europe, Asia and Australia to offer solution-oriented investment promotion, facilitation and after-care services to prospective and existing external investors.

    A Census and Statistics Department survey shows that Hong Kong had 9 255 enterprise groups¹ with external direct investment in Hong Kong at the end of 1999, comprising 576 in the manufacturing sector and 8 679 in the non-manufacturing sector. The market value of all the external direct investments amounted to $3,149.8 billion. Chart 3 shows the economic activity of these enterprise groups whilst Chart 4 shows source countries/territories of the investments. Regarding employment, more than two-thirds of them were enterprise groups employing fewer than 20 persons (Chart 5).

Chart 3: External Direct Investment in Hong Kong by Economic Activity (Market Value as of end-1999)

Chart 4: External Direct Investment in Hong Kong by Country/Territory (Market Value as of end-1999)

Remarks: British Virgin Islands, Bermuda and Cayman Islands are important offshore financial centres commonly used by investors to channel inward direst investment funds to Hong Kong.

    Another Census and Statistics Department survey showed that, on June 1, 2000, there was a total of 3 001 regional headquarters and regional offices established by overseas companies in Hong Kong.

    The Government practises an open and liberal investment policy, and has concluded bilateral investment promotion and protection agreements with 14 of its major investment partners: Australia, Austria, Belgium/Luxembourg, Denmark, France, Germany, Italy, Japan, Republic of Korea, the Netherlands, New Zealand, Sweden, Switzerland and the United Kingdom. A primary objective of these agreements is to assure overseas investors of the stable investment environment in Hong Kong.

Chart 5: Enterprise Groups (EGs) with External Direct Investment by Employment Size in mid-1999

Employment Size