As Hong Kong’s economic recovery gathers pace, bolstered by support at a national level, data from Invest Hong Kong (InvestHK) indicates that companies are accelerating their business expansion in the city.

In the first half of 2024, the department assisted 322 companies in setting up or expanding their operations in Hong Kong, representing a 43% increase compared to the same period last year.

The majority of the companies, or 150 in total, were from the Mainland, followed by 30 from the US, 19 from the UK, 18 from Singapore, and 15 from France.

In terms of sectors, financial services and fintech led the pack, with 77 companies. This was followed by innovation and technology, with 61 firms, and family offices, with 52.

Total investment reached $38.3 billion, representing a 6% year-on-year increase, with more than 3,500 job opportunities being created.

Associate Director-General of Investment Promotion Jimmy Chiang highlighted that Hong Kong gives unique business advantages as an international financial centre, whether to Mainland companies looking to go global or overseas firms aiming to enter the Mainland market.

“Hong Kong is Asia’s most important asset and wealth management centre, and also the world’s largest offshore renminbi service hub,” he said. “And also we are a leading transport and logistics hub in Asia as well.

“Hong Kong is the only jurisdiction within China that practises the common law system. Our common law system is familiar (to) a lot of global investors. Global investors have full confidence that in Hong Kong their properties and interests are well protected.”

Among the 322 companies assisted, 47, or roughly 15%, came from economies involved in the Belt & Road Initiative.

Of these, Singapore, with 18 companies, and South Korea, with eight, accounted for a majority, followed by Malaysia and the United Arab Emirates, with four companies each.

The companies from the Belt & Road economies are engaged in a variety of sectors led by innovation and technology, with 11, financial services and fintech, with 10, and the creative industries, with seven.

For the whole of 2024, the number of companies from Belt & Road economies is projected to reach 94, a 47% increase from last year.

Mr Chiang commented: “(Belt & Road) economies’ companies can utilise Hong Kong for fund-raising purposes. We have a very significant IPO (initial public offerings) centre in Hong Kong here and also a vast number of VC (venture capital) and PE (private equity) firms that are constantly looking for attractive investment opportunities.”

He added that companies locating in Hong Kong contribute to wider economic development, not least by creating demand for Hong Kong’s professional services. Firms’ employees and their families also have diverse needs that stimulate economic activity locally, he said.

The department said that last year it assisted a total of 382 companies to invest in Hong Kong. After assisting 322 firms in only the first six months of 2024, it expressed confidence that the city will surpass the target set in the 2022 Policy Address of attracting 1,130 companies within three years.