Market Trends of Hong Kong Capital Industry Exchange Ecosystem
Investment and Holding, Real Estate, Professional and Business Services are Major FDIs in Hong Kong
At the end of 2021, the two main sources of Hong Kong's inward DI were the British Virgin Islands (BVI) and the Chinese mainland (the mainland), with a share of 30.9% and 27.7%, respectively. There is no legal or practical separation in Hong Kong between investments made by companies controlled by foreign interests and those made by local ones. Without facing prejudice or excessive restrictions, foreign businesses and individuals are free to register branches of their overseas operations, incorporate their operations in Hong Kong, and establish representative offices.
The ownership of such operations is unrestricted. Hong Kong residents or nationals are not necessary to serve as company directors. The standards for reporting are simple and unburden some. A significant portion of foreign direct investment has gone towards holding and investing in real estate, business services, and professional services.
Increasing Number of Registered Companies in Hong Kong Stock Exchange (HKEX)
The stock exchange rose to become one of the world's most important trade centres. The largest number of new issues in recent memory occurred in Hong Kong in 2022, when almost ninety new firms went public. This is partly because Hong Kong has a more business-friendly climate than mainland China, but many companies that still want to trade with China are drawn to Hong Kong because of its proximity to China. The Hong Kong Stock Exchange maintains close ties with mainland Chinese exchanges. The Hong Kong Stock Exchange is connected to the exchanges in Shanghai and Shenzhen through the cross-border investment route known as Stock Connect. Trade heading north has increased dramatically in recent years. Hong Kong investors were especially fond of Kweichow Moutai, the most valuable stock in China.
