Page 500 - 2020 White Paper on the Business Environment in China
P. 500
amounted to US$116b in 2018, ranked 3rd globally, and behind only the Chinese mainland
(US$139b) in Asia. In terms of outflows, Hong Kong ranked 3rd in Asia with US$85b, after
2020 White PaJpaepr oannth(Ue BSu$si1ne4s3s bEn)vairnondmtehnet iCn Chhininease mainland (US$130b). Most of these investment flow,
remarkably, is due to its position as a portal to investment flows into and out of the
Mainland. Thanks partly to this proxy position, Hong Kong was the world’s 2nd largest host
in FDI stock in 2018, after the United States.
Fig 11 Hong Kong is a hub for both inbound and outbound direct investments
Fig 10 Hong Kong is a hub for both inbound and outbound direct investments
Top 10 direct investment hubs
300
250
200
150
USD b100
50
0
-50
-100
US Mainland China HK Singapore Netherlands UK Canada France Germany Japan
Inflow Outflow
Note: As of 2018
SouNrcoe:tUeN:CATsADof 2018
HoSnogurKcoen: gUNalCsToAbDenefit from being a financial center. According to the Bank for International
Settlements, Hong Kong is the largest foreign exchange market in Asia and the 3rd largest
in the world in April 2019, with the net daily average turnover of forex transactions reaching
US$691b1. This is in part due to Hong Kong’s position as a hub for offshore RMB.
According to SWIFT, Hong Kong is the largest RMB clearing center in 2019, sharing about
Rec7e6n%toPf toheliwcoierlds’saRnMdB Rcleeafriongrmactsivities2.
resolution services to the Asia-Pacific region;
and (vii) forge an international metropolis with
GuOaMlcuanortemgglaiedpnnsawoetnhinnioielegtsfh,-tleHiHshwoteoenodngrDlodgKenoivnHKnetgKoel'Esornmxpsg4stmo-aocMnfkedmnamtatcharerakPkeotelotattcnawGalapfrmsioetaarralarikztnteahketteiecrodantphaitesal3oizeprfdanArtohliuaopgarnogunoesscfetsetH2sdi0onic1nnoA9ngms3oKi.avpoTaeanhttngeiivdt'rsieevtshewmtenoeeec6rkaesthssm2.u,Sa4repr2kse7ectaifiimcainllgy,
the Outline
at the joint
BayrAearcehaed US$3.82 trillion. In more recent years, the size odfeHveonlogpKmoenngt’soafsHseotnmgaKnoangge:ment
market has been rising, particularly with the help of a growing number of high-net worth
Asinadnividinutaelsrnseatttiloinngainl fHinonagncKioanl,gs. hInip2p01in8g, ,thteratodteal asset un-dSepr meeadnaguepmtehnet (AdUeMve) loof pment of advanced
centecfuronmadnpsdarreaignbitsleetergnreraodtwifotohnr aasmal laeovsnigaintkiHoeynonchgautKebgo,onHrgieomsnogsduKecrohantaegsdebqyu6ity.m0, %baonYnoudYf,aatocntdUuSmrDiinx2eg.d1-tia5ns,dsweuittshfturnidess. and support Hong
has a highly international and rule-of-law business Kong to explore "re-industrialization" in its
envirHoonnmg eKnotnganfodlloawgsloabfraelebtruasdienepsoslicnyeatnwdohreknacnedmaintaiandsvbaanstiacaglelyonuos bsaercrtieorrsst.o trade:
is retghaerredeadre anso counsetomofs ttahreiffsfroenegsot oedcsoimnopmortieeds ininto or exported from Hong Kong. Import
the waleonadrvledex.HpOoonnrtgFliKceeobnnrsguinaagrnydar1we8hk,ee2rpe0t1lti9oc2ea0n1sme9isn, itomhruenmoC.teifMincotarstaitolpnrsodaurectrse-qduoSirnpeodet,entdheeedyuaplicreeanonsndelysditnoeteevnnedteleordpotor modern service
ComfmulfiitlltoebeligoaftiotnhseuCndPeCr vaanridoutshineteSrntaattieonCaloaugnreceilments,inodr utosmtraieinstaainndpusbulipc phoeartlthH, osanfgetKy ong to become a
jointolyr sisescureitdy. Tthhere“Ofouret,liwnheileofmtuhceh oDfeHvoenlgopKmonegn’st indigemnoouvsiemaannduftaeclteuvrisnigoncaepxapcoityhhuabs.
PlanmfoovredthtoethGe umaaningladnodnsgin-cHeothneg19K8o0ns,git-Mremacaainos a trade hub with a significant share of
GreamteerrcBhaanydAizrinega,”tr(athnsesh“Oipumtelinnte, a”)n,dptrroadpeofsainciglitattoio:n in the r-egSiounp. p o r t H o n g K o n g t o g i v e p l a y t o i t s
(i) consolidate and promote Hong Kong’s status innovation and research strengths in basic sectors
as a1nhtitpnst:/e/wrwnwa.tbiiso.onrga/sltaftiisnticas/nrpcfixa19l_, fxn_aanvniegx.apdtfion and of the maritime economy.
trade2 hcttepns:/t/ewrwwa.sswwifte.clolma/fsilea/6n46i5n1t/deorwnnalotaido?ntoakel na=vh9iaxZtuioKGn4
hub;3(hiit)tpss:t/r/feoncugst.whoerlnd-eitxschasntgaetsu.osrg/aisssuae/sgelpotebmableor-2ff0s1h9/omraerket-statistics- Strengthen Hong Kong’s status as a global
4 https://www.hkex.com.hk/eng/services/trading/securities/securitieslists/ListOfSecurities.xlsx
Chin5ahtYtpus:a//nww(wR.msfcb.h)k/beduisstriinbuetisonsWheub/bgataewnady/EitNs/nreowsl-eanad-sannouncoemffesnhtso/nreewsC/dhoicn?raefYNuo=a1n9PRb7u3siness hub and its role as
an international asset and risk management an international asset management center, and
center; (iii) push the development of its financial, support Hong Kong’s development as a service
commercial, logistical and professional services center for settling disputes regarding construction
in a high-end and high value-added direction; project investment and commercial practices
(iv) make great efforts to develop innovation under the "Belt and Road Initiative".
and technology undertakings; (v) cultivate
emerging industries; (vi) develop Hong Kong as a - Give full play to Hong Kong in the operation
center providing international legal and dispute of AIIB.
500
(US$139b) in Asia. In terms of outflows, Hong Kong ranked 3rd in Asia with US$85b, after
2020 White PaJpaepr oannth(Ue BSu$si1ne4s3s bEn)vairnondmtehnet iCn Chhininease mainland (US$130b). Most of these investment flow,
remarkably, is due to its position as a portal to investment flows into and out of the
Mainland. Thanks partly to this proxy position, Hong Kong was the world’s 2nd largest host
in FDI stock in 2018, after the United States.
Fig 11 Hong Kong is a hub for both inbound and outbound direct investments
Fig 10 Hong Kong is a hub for both inbound and outbound direct investments
Top 10 direct investment hubs
300
250
200
150
USD b100
50
0
-50
-100
US Mainland China HK Singapore Netherlands UK Canada France Germany Japan
Inflow Outflow
Note: As of 2018
SouNrcoe:tUeN:CATsADof 2018
HoSnogurKcoen: gUNalCsToAbDenefit from being a financial center. According to the Bank for International
Settlements, Hong Kong is the largest foreign exchange market in Asia and the 3rd largest
in the world in April 2019, with the net daily average turnover of forex transactions reaching
US$691b1. This is in part due to Hong Kong’s position as a hub for offshore RMB.
According to SWIFT, Hong Kong is the largest RMB clearing center in 2019, sharing about
Rec7e6n%toPf toheliwcoierlds’saRnMdB Rcleeafriongrmactsivities2.
resolution services to the Asia-Pacific region;
and (vii) forge an international metropolis with
GuOaMlcuanortemgglaiedpnnsawoetnhinnioielegtsfh,-tleHiHshwoteoenodngrDlodgKenoivnHKnetgKoel'Esornmxpsg4stmo-aocMnfkedmnamtatcharerakPkeotelotattcnawGalapfrmsioetaarralarikztnteahketteiecrodantphaitesal3oizeprfdanArtohliuaopgarnogunoesscfetsetH2sdi0onic1nnoA9ngms3oKi.avpoTaeanhttngeiivdt'rsieevtshewmtenoeeec6rkaesthssm2.u,Sa4repr2kse7ectaifiimcainllgy,
the Outline
at the joint
BayrAearcehaed US$3.82 trillion. In more recent years, the size odfeHveonlogpKmoenngt’soafsHseotnmgaKnoangge:ment
market has been rising, particularly with the help of a growing number of high-net worth
Asinadnividinutaelsrnseatttiloinngainl fHinonagncKioanl,gs. hInip2p01in8g, ,thteratodteal asset un-dSepr meeadnaguepmtehnet (AdUeMve) loof pment of advanced
centecfuronmadnpsdarreaignbitsleetergnreraodtwifotohnr aasmal laeovsnigaintkiHoeynonchgautKebgo,onHrgieomsnogsduKecrohantaegsdebqyu6ity.m0, %baonYnoudYf,aatocntdUuSmrDiinx2eg.d1-tia5ns,dsweuittshfturnidess. and support Hong
has a highly international and rule-of-law business Kong to explore "re-industrialization" in its
envirHoonnmg eKnotnganfodlloawgsloabfraelebtruasdienepsoslicnyeatnwdohreknacnedmaintaiandsvbaanstiacaglelyonuos bsaercrtieorrsst.o trade:
is retghaerredeadre anso counsetomofs ttahreiffsfroenegsot oedcsoimnopmortieeds ininto or exported from Hong Kong. Import
the waleonadrvledex.HpOoonnrtgFliKceeobnnrsguinaagrnydar1we8hk,ee2rpe0t1lti9oc2ea0n1sme9isn, itomhruenmoC.teifMincotarstaitolpnrsodaurectrse-qduoSirnpeodet,entdheeedyuaplicreeanonsndelysditnoeteevnnedteleordpotor modern service
ComfmulfiitlltoebeligoaftiotnhseuCndPeCr vaanridoutshineteSrntaattieonCaloaugnreceilments,inodr utosmtraieinstaainndpusbulipc phoeartlthH, osanfgetKy ong to become a
jointolyr sisescureitdy. Tthhere“Ofouret,liwnheileofmtuhceh oDfeHvoenlgopKmonegn’st indigemnoouvsiemaannduftaeclteuvrisnigoncaepxapcoityhhuabs.
PlanmfoovredthtoethGe umaaningladnodnsgin-cHeothneg19K8o0ns,git-Mremacaainos a trade hub with a significant share of
GreamteerrcBhaanydAizrinega,”tr(athnsesh“Oipumtelinnte, a”)n,dptrroadpeofsainciglitattoio:n in the r-egSiounp. p o r t H o n g K o n g t o g i v e p l a y t o i t s
(i) consolidate and promote Hong Kong’s status innovation and research strengths in basic sectors
as a1nhtitpnst:/e/wrwnwa.tbiiso.onrga/sltaftiisnticas/nrpcfixa19l_, fxn_aanvniegx.apdtfion and of the maritime economy.
trade2 hcttepns:/t/ewrwwa.sswwifte.clolma/fsilea/6n46i5n1t/deorwnnalotaido?ntoakel na=vh9iaxZtuioKGn4
hub;3(hiit)tpss:t/r/feoncugst.whoerlnd-eitxschasntgaetsu.osrg/aisssuae/sgelpotebmableor-2ff0s1h9/omraerket-statistics- Strengthen Hong Kong’s status as a global
4 https://www.hkex.com.hk/eng/services/trading/securities/securitieslists/ListOfSecurities.xlsx
Chin5ahtYtpus:a//nww(wR.msfcb.h)k/beduisstriinbuetisonsWheub/bgataewnady/EitNs/nreowsl-eanad-sannouncoemffesnhtso/nreewsC/dhoicn?raefYNuo=a1n9PRb7u3siness hub and its role as
an international asset and risk management an international asset management center, and
center; (iii) push the development of its financial, support Hong Kong’s development as a service
commercial, logistical and professional services center for settling disputes regarding construction
in a high-end and high value-added direction; project investment and commercial practices
(iv) make great efforts to develop innovation under the "Belt and Road Initiative".
and technology undertakings; (v) cultivate
emerging industries; (vi) develop Hong Kong as a - Give full play to Hong Kong in the operation
center providing international legal and dispute of AIIB.
500
