Page 132 - 2022 Special Report on the State of Business in South China
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g Kong
The Economy of Mainland China93. As for FDI stock, Hong Kong
was the world’s 4th largest host with US$1,884.9
Situated at the southeastern tip billion, after the US, the UK and the Mainland
of China, Hong Kong China, and the world’s 7th largest investor with
is at the center of East Asia. Since its return to US$1,953.9 billion in 202094.
Mainland China in 1997, it has followed the “One
Country, Two Systems” policy under the Basic Law. Hong Kong is the world’s freest economy, which
Hong Kong is considered one of the world’s freest follows a free trade policy and hence maintains
economies, and under its laissez-faire system basically no barriers to trade: there are no customs
its financial sector has developed into a regional tariffs on goods imported into or exported from
center. In addition, Hong Kong continues to play Hong Kong. Import and export licensing is kept to
a significant role as a portal for Mainland China’s a minimum. Most products do not need licenses
merchandise and capital flows. to enter or leave Hong Kong and where licenses or
notifications are required, they are only intended
In 2020, the GDP of Hong Kong decreased to fulfill obligations under various international
by 6.5% with total of US$344.7 billion, but its agreements, or to maintain public health, safety
recovery became entrenched in the third quarter or security. According to World Trade Organization
of 2021, with GDP expanding further by 5.4% (WTO), in 2020, Hong Kong was the world's 6th
YoY alongside the continued revival of global largest exporter and 8th largest importer of
economic activity and stable local epidemic merchandise trade with amount of US$549 billion
situation. Considering the latest internal and (accounting for 3.0% of global) and US$570 billion
external situations as well as the stimulus effect (accounting for 3.2% of global) respectively95. In
of the fiscal measures, Hong Kong’s GDP growth the first 9 months of 2021, the merchandise trade
for 2021 is forecast around 5.5% - 6.5%92. in Hong Kong has been rebounding continuously,
with the export and import seeing 27.3% and 26.5%
Market Highlights YoY growth, respectively96.
Hong Kong remains a strategic position in the Hong Kong is not only an important banking
global investment flows. According to the UNCTAD and financial center in the Asia Pacific, but also
World Investment Report 2021, global FDI inflows the 3rd leading financial center globally, according
to Hong Kong amounted to US$119 billion in 2020, to the Global Financial Centre Index97. According
ranking 3rd globally and behind only US (US$156 to SWIFT’s latest tracking report in September
billion) and Mainland China (US$149 billion). In
terms of FDI outflows, Hong Kong ranked 4th with 93 UNCTAD World Investment Report 2021,
US$102 billion, after Mainland China (US$133 https://unctad.org/webflyer/world-investment-re-
billion) and Japan (US$116 billion) in Asia. Most of port-2021
these investment flows, remarkably, are due to its 94 HKTDC, https://research.hktdc.com/en/article/
position as a portal to investment flows into and out MzIwNjkzNTY5
95 World Trade Statistical Review 2021, https://
92 Government site of Hong Kong, https://www. www.wto.org/english/res_e/statis_e/wts2021_e/
hkeconomy.gov.hk/en/situation/development/index. wts2021chapter05_e.pdf
htm 96 HKTDC, https://research.hktdc.com/en/article/
MzIwNjkzNTY5
132 97 The Global Financial Centers Index 30, https://
www.longfinance.net/publications/long-finance-re-
ports/global-financial-centres-index-30/
The Economy of Mainland China93. As for FDI stock, Hong Kong
was the world’s 4th largest host with US$1,884.9
Situated at the southeastern tip billion, after the US, the UK and the Mainland
of China, Hong Kong China, and the world’s 7th largest investor with
is at the center of East Asia. Since its return to US$1,953.9 billion in 202094.
Mainland China in 1997, it has followed the “One
Country, Two Systems” policy under the Basic Law. Hong Kong is the world’s freest economy, which
Hong Kong is considered one of the world’s freest follows a free trade policy and hence maintains
economies, and under its laissez-faire system basically no barriers to trade: there are no customs
its financial sector has developed into a regional tariffs on goods imported into or exported from
center. In addition, Hong Kong continues to play Hong Kong. Import and export licensing is kept to
a significant role as a portal for Mainland China’s a minimum. Most products do not need licenses
merchandise and capital flows. to enter or leave Hong Kong and where licenses or
notifications are required, they are only intended
In 2020, the GDP of Hong Kong decreased to fulfill obligations under various international
by 6.5% with total of US$344.7 billion, but its agreements, or to maintain public health, safety
recovery became entrenched in the third quarter or security. According to World Trade Organization
of 2021, with GDP expanding further by 5.4% (WTO), in 2020, Hong Kong was the world's 6th
YoY alongside the continued revival of global largest exporter and 8th largest importer of
economic activity and stable local epidemic merchandise trade with amount of US$549 billion
situation. Considering the latest internal and (accounting for 3.0% of global) and US$570 billion
external situations as well as the stimulus effect (accounting for 3.2% of global) respectively95. In
of the fiscal measures, Hong Kong’s GDP growth the first 9 months of 2021, the merchandise trade
for 2021 is forecast around 5.5% - 6.5%92. in Hong Kong has been rebounding continuously,
with the export and import seeing 27.3% and 26.5%
Market Highlights YoY growth, respectively96.
Hong Kong remains a strategic position in the Hong Kong is not only an important banking
global investment flows. According to the UNCTAD and financial center in the Asia Pacific, but also
World Investment Report 2021, global FDI inflows the 3rd leading financial center globally, according
to Hong Kong amounted to US$119 billion in 2020, to the Global Financial Centre Index97. According
ranking 3rd globally and behind only US (US$156 to SWIFT’s latest tracking report in September
billion) and Mainland China (US$149 billion). In
terms of FDI outflows, Hong Kong ranked 4th with 93 UNCTAD World Investment Report 2021,
US$102 billion, after Mainland China (US$133 https://unctad.org/webflyer/world-investment-re-
billion) and Japan (US$116 billion) in Asia. Most of port-2021
these investment flows, remarkably, are due to its 94 HKTDC, https://research.hktdc.com/en/article/
position as a portal to investment flows into and out MzIwNjkzNTY5
95 World Trade Statistical Review 2021, https://
92 Government site of Hong Kong, https://www. www.wto.org/english/res_e/statis_e/wts2021_e/
hkeconomy.gov.hk/en/situation/development/index. wts2021chapter05_e.pdf
htm 96 HKTDC, https://research.hktdc.com/en/article/
MzIwNjkzNTY5
132 97 The Global Financial Centers Index 30, https://
www.longfinance.net/publications/long-finance-re-
ports/global-financial-centres-index-30/
