Hong Kong has long been the gateway for foreign companies seeking to do business in China. Now, the balance of economic power is shifting, and the city is adapting to help Chinese corporates do business with the rest of the world.
Hong Kong is one of Asia-Pacific’s largest financial centres and consistently ranks highly in global competitiveness surveys. In 2017, it was named as the world’s freest economy by the Heritage Foundation for the 23rd consecutive year. Hong Kong is one of the world’s pre-eminent IPO fundraising centres, and has a very active foreign exchange market, including the deepest and most liquid renminbi market outside of mainland China. It also offers established rule of law, low corporate and personal taxes, and a currency pegged to the US dollar. Combined, these factors make Hong Kong an ideal platform for Chinese MNCs, as well as start-ups based across the Pearl River Delta, to base their forays into global markets.
References: New Financial Sector Dynamics Re-Shape Hong Kong’s Office Market