2015-10-26
Survey shows continued growth in overseas and Mainland companies with HK business operations
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The number of business operations in Hong Kong with parent companies overseas and in the Mainland climbed to a new record of 7,904 in 2015, an increase of 4.2 per cent on a year ago, according to a joint survey conducted by Invest Hong Kong (InvestHK) and the Census and Statistics Department (C&SD) released today (October 26).
The results of the "2015 Annual Survey of Companies in Hong Kong Representing Parent Companies Located Outside Hong Kong" show that the 7,904 respondent companies included 1,401 operating as regional headquarters (RHQs), 2,397 as regional offices (ROs) and 4,106 as local offices (LOs). The numbers of RHQs and LOs represent a record high.
In terms of jobs, the 7,904 companies combined employed about 422,000 people, an increase of 4.3 per cent compared to 2014 and also a record.
In terms of source country/territory, the US ranked first with 1,368 companies in Hong Kong, followed by Japan (1,358), Mainland China (1,091), the UK (631) and Taiwan (413). Among the top 10 source countries/ territories, Mainland China showed the strongest growth, rising by 14 per cent from a year ago.
By sector, import/export trade, wholesale and retail topped the list (3,482 companies, or 44.1 per cent of total), followed by finance and banking (1,438 companies, 18.2 per cent), and professional, business and education services (1,353 companies, 17.1 per cent). Of these three sectors, finance and banking showed the strongest growth with an increase of 9.8 per cent on a year ago.
Put in the context of a five-year period, the number of respondent companies with parent companies located in the Mainland, and companies engaged in the financing and banking sector saw even bigger growth, both climbing by 36 per cent from 805 and 1,059 respectively in 2011.
The Director-General of Investment Promotion, Dr Simon Galpin, welcomed the positive numbers, and in particular the surge in the number of Mainland companies and financing and banking firms in Hong Kong.
"The significant increase in the number of Mainland enterprises reaffirms Hong Kong's unique role as the major springboard for Mainland companies to go global. The growth in the last five years in the numbering of financing and banking companies demonstrates Hong Kong's position as an international financial hub in the world," Dr Galpin said.
He noted that as the Mainland continues to open up its economy and financial markets and on the back of the Belt and Road initiative, Hong Kong will continue to be the "super-connector" helping the nation in its gradual economic reform, which would also generate many new business opportunities in different economic segments for foreign investors in Hong Kong.
The annual survey aims to collect information on the profile of these companies and their views on the business environment of Hong Kong.
In terms of size, the majority of the respondent companies were of small and medium size, with 5,441 companies engaging fewer than 20 persons and 1,189 companies engaging 20 to 49 persons.
The top three factors that affected the choice of Hong Kong as an RHQ/RO/LO were: (1) simple tax system and low tax rate (68 per cent of the companies surveyed considered the factor as favourable for Hong Kong), (2) free flow of information (63 per cent), and (3) free port status (59 per cent).
Press release from HKSAR
Ends/Monday, October 26, 2015