Core Summary
This year, Hong Kong has performed outstandingly as a key platform for mainland Chinese companies to expand their business overseas: it has attracted 413 overseas and mainland enterprises (60% of which are from the mainland), bringing in over HK$53 billion in direct investment (a 36% increase year-on-year), with innovation and technology companies accounting for the largest proportion (93 out of 413). The Hong Kong government has established a dedicated team to assist mainland enterprises in their overseas expansion, providing a three-step service package that includes attracting companies, preparing them professionally, and helping them establish connections abroad. Cooperation between Shanghai and Hong Kong is also strengthening; nearly 200 Shanghai-based companies have listed in Hong Kong, and trade volume between the two cities is growing by 30% annually. Enterprises from the Yangtze River Delta region are also accelerating their overseas expansion through Hong Kong, with its supportive services playing a crucial role in this process.
Detailed Analysis
1. Hong Kong's Investment Attraction: Strong Figures, Innovation and Technology at the Forefront
In the first few months of this year, Hong Kong’s success in attracting businesses exceeded expectations, with 413 companies setting up operations in the city and bringing in HK$53 billion in investment (a 36% increase from last year), of which 246 were mainland enterprises (60%). Notably, innovation and technology companies made up nearly a quarter of these new businesses (93 out of 413), indicating a growing interest from this sector. This reflects two trends: firstly, mainland companies are increasingly willing to use Hong Kong as a gateway to the international market; secondly, Hong Kong’s appeal is expanding beyond its role as a financial center, with its attractiveness in the tech sector also on the rise.
2. Innovation and Technology Companies Choosing Hong Kong: Solving Challenges in Overseas Expansion
For companies in hard technology fields (such as robotics and semiconductors), the biggest challenges when going global are often related to understanding international regulations—things like foreign laws, tax considerations, and intellectual property protection, as well as finding market channels. The head of a Shanghai robotics incubator noted that Hong Kong’s services address these needs effectively. Instead of simply providing a pile of policy documents, they ask companies where their business plans to go and what kind of assistance is required, then connect them with lawyers, accountants, and overseas partners. This personalized approach is more practical than offering general incentives.
3. Government’s “Overseas Expansion Team”: Three Steps to Help Companies Succeed
Last year, Hong Kong established a dedicated team to assist mainland enterprises in their overseas expansion, providing a comprehensive support system:
- Step 1: Attracting companies—inviting potential innovation and technology firms to set up operations in Hong Kong.
- Step 2: Providing thorough preparation—launching the “Overseas Expansion Global Gateway” platform, which offers a range of professional services including legal, accounting, and certification assistance to address companies’ specific issues.
- Step 3: Helping establish overseas connections—organizing company visits to target markets and facilitating meetings with local partners. For example, if a company wants to enter the Southeast Asian market, the team will help them understand the business environment and connect them with potential customers.
4. Deepening Cooperation between Shanghai, Hong Kong, and the Yangtze River Delta
The partnership between Shanghai and Hong Kong has reached a stage where both cities are mutually reinforcing each other’s development. Nearly 200 Shanghai-based companies have listed in Hong Kong, and trade volume between the two regions is expected to reach over HK$240 billion by 2025 (a 30% annual increase). Hong Kong serves as a bridge for Shanghai companies to access international capital and markets. Enterprises from the Yangtze River Delta region (including Anhui, Shandong, and Zhejiang) are also accelerating their overseas expansion through Hong Kong. This year, Hong Kong’s local offices in Shanghai held promotional events in Hefei, Jinan, and Hangzhou to help these companies leverage Hong Kong’s resources to enter international markets more efficiently.
5. Case Study: How Hong Kong Helps Hard Technology Companies
A robotics incubator from Shanghai is building a “World Robotics Super Accelerator” in the Hong Kong Science and Technology Park (announced in August/September). This initiative aims to accelerate the development of both domestic and international robotics companies by facilitating the exchange of technology and talent. The reason for choosing Hong Kong is its ability to quickly connect with global capital and resources, along with the government’s supportive services that reduce the need for companies to navigate international regulations on their own.
Conclusion
Hong Kong is transforming from a traditional financial center into a comprehensive platform that integrates technology, finance, and services for overseas expansion. For mainland enterprises, it serves not only as a stepping stone but also as a valuable partner that addresses practical challenges, providing everything from policies and resources to professional support and market access. Especially for innovation and technology companies, Hong Kong helps them avoid common pitfalls in international markets and gain access to global resources more quickly. With the deepening cooperation between the Yangtze River Delta region and Hong Kong, more companies are expected to use this platform to expand their business globally in the future.