HONG KONG: Mainland companies were the biggest source of newcomers in Hong Kong in the past year, according to Invest Hong Kong, the government department responsible for helping overseas and Chinese companies set up or expand in the city.

The news came as Invest Hong Kong announced that it has helped 265 overseas, mainland and Taiwanese firms establish or expand their business presence in the city last year, which is a departmental record in attracting overseas direct investment to the city.

The 265 companies plan to create more than 6,000 new jobs within the first two years of their operation or expansion in Hong Kong. Of them, the Asia-Pacific Region accounted for 43 percent, Europe 35 percent and North America 18 percent.

The mainland continued to be the single largest market by source, followed by the US and the UK. By priority sector, the top three performers were business and professional services (including education services and design), technology (including renewable energy), and special projects (including environmental technology and the wine sector).

Simon Galpin, Director-General of Investment Promotion, said the figure shows investor confidence in the city despite the challenging global economic environment.

"In these times of economic uncertainty, the enduring advantages of Hong Kong, such as its rule of law, low and simple taxes, level playing field, free economy, world-class communications and transportation infrastructure, and available talent pool, have become increasingly important," said Galpin, adding, "They continue to enable the city to act as a stable and secure platform for companies looking to do business in the region."

He said the figures show Hong Kong remains the Asian base from which overseas, mainland and Taiwanese companies prefer to expand their business.

"Hong Kong's strategic location and international exposure make it an ideal two-way service platform for Mainland companies to go global and for foreign companies to access opportunities in the mainland," Galpin said.

He added the department has realigned its priority sectors and boosted its research and aftercare capabilities to encompass the six new growth industries where the city has a clear competitive advantage.

It will increase its activities to attract firms from emerging markets such as India, Latin America, the Middle East and Russia this year, as well as to promote the combined advantages of Hong Kong and the mainland, particularly regarding the Pearl River Delta region. Its target for this year is to achieve 270 completed investment projects.

China Daily

(HK Edition 01/23/2010 page2)