Press Release - October 20, 2004

Hong Kong’s position as a preferred location for overseas companies has been further strengthened with an all-time high number of regional headquarters and regional offices operating there, while business confidence in this “Asia’s World City” has climbed to a four-year high.

The Director of the Hong Kong Economic and Trade Office (Canada), Mr Bassanio So, said today (Wednesday) that a recent survey done by the Hong Kong Special Administrative Region (HKSAR) Government showed that a record high of 1,098 regional headquarters and 2,511 regional offices were operating in Hong Kong as at June 1, 2004.

He said the survey by the Census and Statistics Department of the Hong Kong Special Administrative Region (HKSAR) Government indicated that Hong Kong offers competitive edge for foreign direct investments in the region.

“With CEPA (Closer Economic Partnership Arrangement) smoothly implemented this year, foreign companies are taking the unique advantage of using Hong Kong as the gateway to access the growing China market. Hong Kong’s importance as a two-way platform for both China and foreign companies will continue to grow,” said Mr So.

Under the Hong Kong-China free trade agreement, foreign investors establishing or expanding their Hong Kong operations will enjoy the preferential treatment that China offers for Hong Kong companies. “We expect that there will be a 40% year-on-year increase for Hong Kong’s inward investment this year,” added Mr So.

The annual survey on regional offices representing overseas companies in Hong Kong shows that the United States, with 256 companies having their Regional Headquarters in Hong Kong, has topped the list in 2004. It is followed by Japan with 198 companies, and the Mainland China with 106 companies.

Among all the factors affecting the choice of location for setting up Regional Headquarters/Offices, free flow of information was considered as the most important one, followed by low and simple tax system, corruption free government and absence of exchange controls.

Echoing the Government’s survey result is the 2004 Business Confidence Survey conducted by the British Chamber of Commerce (BCC) in Hong Kong. The survey indicates that the confidence of the Chamber’s members in the short to medium term business outlook is at a four-year high, with overall satisfaction with Hong Kong’s business environment standing at 93% this year.

Mr So said that the Chamber members’ satisfaction is boosted by an increase in Hong Kong’s regional competitiveness, and increased satisfaction with the stability of the Hong Kong SAR Government, its political systems, management of inflation and improved government leadership.



For further information, please contact Stephen Siu, Assistant Director (Public Relations) at (416)924-5544, email [email protected] or
Elison Chu, Senior Information Officer, [email protected]

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