International Business Environment Expands

International companies continue to establish operations in Hong Kong, as evidenced by the recent opening of numerous major headquarters, retail and commercial facilities by businesses from around the world.

Recent months have seen German company Bayer MaterialScience AG establish a new regional headquarters; international trade boutique law firm Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt establish its first full-service office outside the United States. in Hong Kong; the Australia-based Spotlight open its first store in Hong Kong; the move from New Zealand of Vancouver-based Methanex’s marketing and logistics operation; and the opening of a 5th and 6th centre for The Executive Centre. 

The New Jersey company, Weichert Relocation Resources Inc, established its first Asian office in Hong Kong and the Geneva-based testing services provider, SGS, expanded its bases in both Hong Kong and Guangzhou.

In addition, the largest European-headquartered advisor on telecoms, software and IT services, Ovum, opened its Hong Kong operation, while the Singapore-based Recruit Express Group expanded its Hong office so as to become Hong Kong’s largest recruitment company by the end of 2007. 

Meanwhile, the Mainland has proved to be one of the largest contributors to Hong Kong’s direct investment inflow in 2004. A report by the Census and Statistics Department shows a 63% increase in this investment inflow compared with 2003, amounting to $62 billion.

According to statistics released by the Hong Kong Exchange, some 211 Mainland enterprises have listed on the Hong Kong stock market. Their total market value of $3.36 trillion represents about 38% of the total overall market value in Hong Kong. 

To provide more comprehensive coverage in the Mainland, Invest Hong Kong will strengthen its presence in the Beijing Office and the Hong Kong Economic and Trade Office (HKETO) in Guangdong with locally-based investment promotion staff, and set up investment promotion units in new HKETOs due to open in Chengdu and Shanghai later this year. 

The strong links between Hong Kong and the Pearl River Delta are encouraging promotional partnerships. In April, for instance, Hong Kong and Zuhai partnered to organize a seminar in Florence, Italy.

This was the 3rd joint initiative by the two cities and it welcomed 100 senior executives who joined in discussions concerning the business environments and opportunities in Hong Kong and Zuhai. 

The seminar was co-organized by the Hong Kong Economic and Trade Office in Brussels and the Hong Kong Trade Development Council, supported by the Italian business association Sviluppo Cina (Italy-China Association) and Banca Monte dei Paschi di Siena. 

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