In this Aug 16, 2023 photo, the skyline of Hong Kong Island can be seen across Victoria Harbour as tourists throng the Avenue of Stars in Tsim Sha Tsui to enjoy a sunny afternoon. (SHAMIM ASHRAF / CHINA DAILY)
Financial Secretary Paul Chan Mo-po is upbeat about Hong Kong’s ability to attract more strategic enterprises and family offices to the special administrative region to bolster the local economy.
“Last week, the HKSAR government signed agreements with the second batch of strategic enterprises establishing or expanding their businesses in the city,” Chan wrote in his Sunday blog.
“Together with the first batch introduced last year, the two batches of nearly 50 enterprises are expected to invest more than HK$40 billion ($5.12 billion) in Hong Kong, creating more than 13,000 jobs, primarily in scientific research and management positions.”
Financial Secretary Paul Chan Mo-po pledged that Hong Kong will continue to approach more cutting-edge technology firms from different regions, and he expects their number to increase
The finance chief noted that nearly half of these companies are focused on life and health technology, leveraging Hong Kong’s robust foundation in basic scientific research, world-class medical schools, and top-notch experts.
Other enterprises are engaged in fields like artificial intelligence and data science, financial technology, advanced manufacturing, and new energy technology. The Office for Attracting Strategic Enterprises, which began operating in December 2022, is part of the SAR government’s efforts to draw enterprises from industries of strategic importance to Hong Kong. The businesses include life and health technology, AI and data science, financial technology, advanced manufacturing and new-energy technology.
“About one-fifth of the first two batches of key enterprises are from Europe and the United States,” Chan noted. He pledged that Hong Kong will continue to approach more cutting-edge technology firms from different regions, and he expects their number to increase.
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A bus passes by commercial buildings in Central, Hong Kong, on Jan 8, 2024. (GARY CHIU / CHINA DAILY)
Chan also shed light on the rapid growth of family offices in Hong Kong, following the government’s policy statement released in March last year. “As of February, InvestHK has assisted 58 family offices in setting up or expanding their businesses in the city, with more than 100 others in the pipeline.”
Market research commissioned by InvestHK showed that about 2,700 single-family offices were operating in Hong Kong by the end of last year, with nearly 900 of them worth more than $100 million.
The SAR government is considering setting up economic and trade offices in Riyadh, Saudi Arabia, and Kuala Lumpur, Malaysia. InvestHK also plans to open consultant offices in Cairo, Egypt and Izmir, Türkiye, this year to ramp up investment promotion efforts in regions involved in the Belt and Road Initiative
“These figures, which exclude joint family offices, underscore Hong Kong’s appeal as an international financial center for wealth management businesses,” Chan said, adding that Hong Kong’s sophisticated financial infrastructure, coupled with its strategic location and access to Chinese mainland markets, make it an ideal platform for family offices to thrive.
ALSO READ: Family office sector seen driving HK's economic growth
Besides strategic enterprises, InvestHK had helped about 380 mainland and overseas companies to set up and expanding their businesses in Hong Kong last year, representing a 30-percent surge over that of the previous year. In the first two months of this year, the government investment agency has assisted 100 mainland and overseas firms in building a presence in Hong Kong - a 74-percent increase compared to the same period last year.
The SAR government is considering setting up economic and trade offices in Riyadh, Saudi Arabia, and Kuala Lumpur, Malaysia. InvestHK also plans to open consultant offices in Cairo, Egypt and Izmir, Türkiye, this year to ramp up investment promotion efforts in regions involved in the Belt and Road Initiative.
Concerning the legislation of Article 23 of the Basic Law, Chan said the financial and business sectors agree that a stable and secure social environment is crucial for investment and their operations in Hong Kong.
READ MORE: National security bill comes into law on March 23
With the Safeguarding National Security Ordinance taking effect on March 23, the barrier to protecting national security has been further strengthened, he said. “Moving forward, let us unite as a society and focus our efforts on boosting the economy, seeking development, and improving people’s livelihoods.”
