Hong Kong is an ideal place to invest or to do business. It is characterised by –
- free trade and investment policy
- level-playing field
- upholding firmly the Rule of Law
- complete freedom of capital movement
- clean and efficient government
- low and simple taxation
- robust and efficient financial market
- international lifestyle
- close proximity to markets in Asia
- state-of-the-art infrastructure with sophisticated support services
- highly skilled workforce
- excellent law and order.
Gateway to China
Hong Kong is located at the mouth of the Pearl River Delta (PRD), the largest and most productive manufacturing region in China.
Hong Kong is China's most important entrepôt, handling about 15.3% of the Mainland's foreign trade in 2011.
Hong Kong was the Mainland's largest source of realised foreign direct investment, accounting for 45.1% of the national total, with a cumulative value of HK$4,090.4 billion (US$526.7 billion) in 2011.
Over 100,000 Hong Kong enterprises operate in the PRD region, employing over 10 million people. Over 7,000 enterprises from Mainland China and overseas are based in Hong Kong.
Hong Kong also acts as a key platform and facilitator in the internationalisation of Renminbi (RMB) currency. RMB business in Hong Kong started in 2004, with banks initially offering deposit-taking, currency exchange, remittance, debit/credit card services primarily to personal customers. Scope of business has been expanding over the years, notably with the introduction of RMB bond issuance in 2007 and RMB trade settlement in 2009. Banks in Hong Kong are now offering a range of RMB services to personal and corporate customers, e.g. insurance policies, investment funds, structured deposits, certificates of deposits, etc.
Since August 2011, cross-border trade settlement in RMB has been expanded to cover the entire nation. In 2011, RMB trade settlement handled by banks in Hong Kong amounted to RMB 1,915 billion (about 92% of the total amount of Mainland China's external trade settled in RMB). As at the end of 2011, there were 116 RMB bond issuances in Hong Kong with a total value approaching RMB 180 billion. In 2011, RMB deposits in Hong Kong amounted to nearly RMB 590 billion, representing an increase of nearly 90% compared with 2010.
More details about Renminbi business in Hong Kong can be found here.