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In this page: FDI in Figures | Why You Should Choose to Invest in Hong Kong | Procedures Relative to Foreign Investment | Investment Opportunities


FDI in Figures

According to the “World Investment Report 2013" published by the UNCTAD, Hong Kong was the 3rd largest recipient of FDI in the world in 2012, and it has kept its second place in Asia after China. It is also the the third supplier of FDI outflows from Asia.

The flows of FDI, which had slowed down due to the global recession, began to increase again since 2010. In 2012, FDI influx to Hong Kong more than doubled compared to 2011, reaching USD 6.12 billion. Therefore, Hong Kong surpassed Singapore in the ranking of FDI recipients. This trend will continue due to the key role which the Asian region will play in global growth. According to the classification Doing Business 2014 issued by the World Bank, Hong Kong ranks second for its business climate.

Hong Kong's attraction is due to its several assets: its strategic position which makes the island the access gate to the Chinese market, its status as a free port, its simple and very incentive tax regime, its efficient infrastructures and its legal security.


Country Comparison For the Protection of Investors

  Hong Kong East Asia & Pacific United States Germany
Index of Transaction Transparency* 10.0 5.0 7.0 5.0
Index of Manager’s Responsibility** 8.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 6.0 9.0 5.0
Index of Investor Protection**** 9.0 5.4 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 96,12574,88876,633
FDI Stock (million USD) 1,184,5111,355,9141,443,947
Performance Index*, Ranking on 181 Economies 1--
Potential Index**, Ranking on 177 Economies 40--
Number of Greenfield Investments*** 237241194
FDI Inwards (in % of GFCF****) 164.4107.8110.3
FDI Stock (in % of GDP) 476.2515.0548.5

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

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Why You Should Choose to Invest in Hong Kong

Strong Points
Hong Kong is an international leader in terms of export and as a services center. The country is also the bridgehead to one of the largest production bases in the world, China. Hong Kong has a sound economy and an efficient financial and banking system.
Favorable tax measures, the transparency of local institutions, political stability, freedom of information, availability of qualified human resources as well as its advantageous geographical location in Asia, all constitute to make Hong-Kong a preferred place for company establishment, as witnessed by the million of companies registered on the territory. In 2003, the Capital Investment Entrant Scheme (CIES) was launched by the Hong Kong Special Administrative Region (SAR) Government. This scheme aims to facilitate the entry for residence for Foreign investors through capital investment into permissible assets without the need to establish or join in a business.
Weak Points
Hong Kong has few, yet  consequential, negative points against setting up:
- High cost of real estate and work space (offices, shops, etc.);
- High cost of salaries, compared to other Asian countries such as Mainland China and India;
- The question of Hong Kong's future, especially when the town will be completely integrated with the People's Republic of China;
- The excessive importance of the financial sector.
Furthermore, on the whole of the 2008-2009 year, the Hong Kong stock market was highly disturbed. The stock market's main indicator fell by 45%, the lowest in 34 years.
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 favorable 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 resident of Hong Kong.
Bilateral Investment Conventions Signed By Hong Kong
Hong Kong has signed bilateral agreements for investments with 15 countries.
To see the list of countries, click here.
To see the agreements, click here.
Hong Kong is currently negotiating agreements with the following countries: Chile, Singapore, Russia.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Yes. For more information, consult InvestHK.
Acquisition of Holdings
Acquisition is authorized, except in certain sectors of activity.
Obligation to Declare
A registration certificate should be requested from Inland Revenue Department (IRD). Foreign Investment Agency in the country keeps you informed about the authorizations necessary for the establishment.
Competent Organization For the Declaration
Companies Registry
Tax authority of Hong Kong (IRD)
Requests For Specific Authorizations
Only some sectors are closed for foreign investors, like communications or other areas of activity considered for public utility.

Learn more about Foreign Investment in Hong Kong on, the Directory for International Trade Service Providers.

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Investment Opportunities

Investment Aid Agency
Invest in HK
Tenders, Projects and Public Procurement
HK Government, E-Tender Box (ETB)
Tenders Info, Tenders in Hong Kong
DgMarket, Tenders Worldwide

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Learn more about Investing in Hong Kong on, the Directory for International Trade Service Providers.

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Last Updates: October 2014