The number of companies in Hong Kong with parent companies outside the city grew by 10% to reach 9,960 last year, a record high, according to a recent Hong Kong SAR Government survey.
The 2024 Annual Survey of Companies in Hong Kong with Parent Companies Outside Hong Kong, jointly conducted by Invest Hong Kong and the Census and Statistics Department, also showed that the number of people employed by these companies increased by 5% year-on-year to reach 493,000.
The findings enhance Hong Kong’s status as a global hub for business and investment, noted Algernon Yau, the Hong Kong SAR Government’s Secretary for Commerce and Economic Development.
“While global economic uncertainties, a shift in market behaviour after the epidemic and geopolitics have hindered enterprises' global expansion plans, Hong Kong's business-friendly environment has maintained its unique advantages and attractiveness.”
There were 2,620 Mainland China-owned companies operating in Hong Kong last year, underscoring Hong Kong’s pre-eminence among mainland companies as a stepping stone to expand into international markets.
At the same time, the number of companies with overseas parents continued to grow, strengthening the growth impetus for Hong Kong’s trade and economic development, Mr Yau highlighted.
In 2024, there were 1,430 Hong Kong-based companies from Japan, 1,390 from the US, 720 from the UK and 520 from Singapore, the survey showed.
“Businesses remain pragmatic about business expansion and are sensibly choosing Hong Kong as their base to expand in Asia,” Mr Yau added.
Chief Executive John Lee pledged to actively promote Hong Kong’s headquarters economy in last year’s Policy Address to entice more strategic enterprises to set up operations in Hong Kong.
This included measures to make mainland travel easier for foreign staff and to strengthen financial services for mainland companies expanding overseas.
New companies with owners outside Hong Kong continue to open their doors in the city to help them seize new opportunities. Notable recent examples include:
- TalkingData, a data intelligence service provider from Mainland China, which has set up its regional headquarters in Hong Kong. The company plans to leverage Hong Kong’s vibrant innovation and technology ecosystem and business-friendly environment to help it expand overseas.
- Paragon Capital Management, an asset management firm from Singapore, which has opened its first overseas office in Hong Kong. The company sees Hong Kong’s strategic position as a bridge that can connect with clients across North and Southeast Asia.
- OptimaTech, an IT solutions provider from New Zealand, which has established a regional office in Hong Kong. The company chose Hong Kong for the city’s dynamic business environment, world-class infrastructure and status as an international hub.
- Pal Zileri, a menswear fashion brand from Italy, which opened two stores in Hong Kong at the end of last year. The company, which runs more than 30 stores worldwide, sees Hong Kong as a launchpad to enter the mainland market and expand its international clientele.
- Galaxy, a financial and investment management service provider from the US, which has expanded its operations in Hong Kong. The company, which specialises in digital assets, stepped up investment in Hong Kong because of the city’s favourable regulatory environment and infrastructure for digital finance, among other areas.
