10% RISE IN NON-LOCAL FIRMS HAILED

According to the latest annual survey jointly conducted by Invest Hong Kong (InvestHK) and the Census & Statistics Department, this year Hong Kong hosted 9,960 firms with parent companies located outside of the city, a record high number and a 10% increase on the previous year. Meanwhile, the number of people employed by such firms reached nearly 500,000, an increase of 5% year on year.

Speaking to news.gov.hk, Director-General of Investment Promotion Alpha Lau said the figures demonstrate that Hong Kong's business environment has fully regained its strong growth momentum following the COVID-19 pandemic. 

She highlighted that due to uncertainty in the global economic situation, many companies are taking a cautious approach to expansion, but added that the latest numbers indicate Hong Kong is a pragmatic choice of location as it remains a very good place to do business.

“Facts speak louder than words. Companies expand their business here and use Hong Kong as a springboard to enter into Mainland China, into Asia, or for Chinese companies to go out and expand into the rest of the world.”

Analysed by parent company location, the top five sources of firms from outside Hong Kong are Mainland China (2,620), Japan (1,430), the US (1,390), the UK (720) and Singapore (520).

Moreover, the top 10 locations all recorded increases in 2024. These include traditional markets in the Americas and Europe, as well as Asian markets.

Notably, the number of regional headquarters in Hong Kong increased to 1,410, representing a 5.5% rise.

These impressive figures not only reflect Hong Kong's attractiveness but also indicate that InvestHK’s efforts to draw investment to the city are bearing fruit.

As of November, InvestHK had assisted over 500 companies in setting up or expanding their operations in Hong Kong in 2024, an increase of more than 50% year on year. 

Companies that have established their headquarters in Hong Kong believe that the city's advantages as a hub for capital, talent and technology are self-evident.

KN Group Hong Kong Treasury Centre General Manager Lucas Kong highlighted that the city maintains its status as one of the world's leading financial centres, boasting a mature and open financial market environment.

“As a fintech company leveraging artificial intelligence in the financial sector, establishing our headquarters in Hong Kong significantly facilitates the expansion of our international operations,” he explained.

Mr Kong also stressed that the robust economic incentives provided by the Hong Kong Government have been instrumental both in attracting businesses and fostering technological innovation.

He added that while the company’s expansion has led to its liquidity structure becoming more decentralised, resulting in increased management costs, establishing a global corporate treasury centre in Hong Kong has allowed the business to centralise fund management and allocation, thereby reducing costs and enhancing efficiency.

“This move is made possible by Hong Kong's transparent and open business ecosystem, coupled with its favourable tax regime.”

Many family offices are also zeroing in on Hong Kong as the Government’s various high-value talent attraction schemes make the city an enticing choice for such operations.

One example of such a firm is the family office Glory, which engages in insurance and trusts.

Glory's Global CEO, Gao Yang, explained that while it operates in both Hong Kong and Singapore, many of its clients favour Hong Kong, due to the Government's introduction of a range of flexible and practical talent admission policies for Chinese high-net-worth individuals. She said these initiatives provide a variety of pathways, enhancing Hong Kong's appeal as a premier financial hub.

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