HK GUANGDONG COOPERATION

In recent years, rising labour and production costs across the mainland have prompted a number of foreign-invested and domestic enterprises to adjust their business strategies. Among the steps taken was the relocation of production and sourcing activities to lower-cost regions on the mainland. A number of businesses also opted to set up production facilities in Southeast Asia and other countries along the Belt and Road routes or to source various products and raw materials from such locations. More

The Guangdong Free Trade Zone (GDFTZ) streamlines foreign investment management by way of implementing the negative list and record filing system. Coupled with CEPA concessions, the GDFTZ will deepen liberalisation of trade in services between Guangdong, Hong Kong and Macau, and will provide more scope for Hong Kong companies to enter both the Guangdong and the entire mainland markets. More

Although China has determined to speed up its integration with the international financial market, there are still differences in financing costs between the mainland and international markets. As Hong Kong’s offshore renminbi market matures, coupled with the establishment of a mechanism channelling renminbi back to the mainland, it could be easier for mainland enterprises to gain access to cost-efficient capital through Hong Kong, thus enhancing their capital management capability. More

Driven by the vast industrial production demand of China, the business prospects for competitive suppliers engaging in equipment production are bright. While focusing on domestic sales, most of these enterprises also develop overseas markets through international trade channels. To further improve their overseas sales network, many have been in recent years seeking merger and acquisition (M&A) targets through Hong Kong in an attempt to invest directly in businesses overseas. More