Hong Kong's Direct Investment Stocks Rise Significantly in 2024, Reflecting Strong Global Investor Confidence

External Direct Investment of Hong Kong in 2024

Hong Kong's external direct investment (DI) statistics for 2024 were released today (December 9) by the Census and Statistics Department (C&SD).

Stocks of DI

At the end of 2024, the total stock of Hong Kong's inward DI (i.e. the position of Hong Kong's DI liabilities) increased by 9.1% over a year earlier to $20,049.6 billion. Its ratio to the Gross Domestic Product (GDP) stood at 631% in 2024. The increase in 2024 was mainly attributable to the positive DI inflow to Hong Kong.

As for the total stock of Hong Kong's outward DI (i.e. the position of Hong Kong's DI assets), it increased by 6.7% over 2023 to $18,890.0 billion. Its ratio to GDP was 595% in 2024. The increase in 2024 was mainly attributable to the positive DI outflow to enterprises outside Hong Kong, partly offset by the decrease resulting from exchange rate variations, as some DI assets are denominated in other currencies.

Analysed by immediate source of investment, Chinese Mainland (the Mainland) and the British Virgin Islands (BVI) were the two largest sources for Hong Kong's inward DI, with a share of 32.7% and 30.4% respectively at end-2024. Analysed by major economic activity of Hong Kong enterprise groups (HKEGs) which had received inward DI, those engaged in investment and holding, real estate, professional and business services took up the largest share, at 68.2% at end-2024. This was followed by banking, at 11.0%; and import/export, wholesale and retail trades, at 10.5%.

Analysed by immediate destination of investment, the Mainland and the BVI were also the two largest destinations for Hong Kong's outward DI, with a share of 52.1% and 27.6% respectively at end-2024. Analysed by major economic activity of HKEGs which had made outward DI, those engaged in investment and holding, real estate, professional and business services took up the largest share, at 78.8% at end 2024. This was followed by import/export, wholesale and retail trades, at 8.6%.

Flows of DI

In 2024, total DI inflow amounted to $982.4 billion, larger than that of $954.9 billion in 2023. On the other hand, total DI outflow in 2024 amounted to $629.2 billion, smaller than that of $752.9 billion in 2023. Taking the inflow and outflow together, a net DI inflow of $353.2 billion was recorded in 2024.

Analysed by immediate source of investment, the Mainland was the major source of Hong Kong's DI inflow in 2024, amounting to $466.0 billion. The BVI came next, at $237.0 billion. Analysed by major economic activity of HKEGs which had received DI inflow, those engaged in investment and holding, real estate, professional and business services attracted the largest amount in 2024, at $588.0 billion.

Analysed by immediate destination of investment, the Mainland accounted for a predominant share of Hong Kong's DI outflow in 2024, at $372.9 billion. The BVI came next, at $198.9 billion. Analysed by major economic activity of HKEGs which had made DI outflow, those engaged in investment and holding, real estate, professional and business services took up the largest amount, at $452.9 billion.

Commentary

A Government spokesman said that Hong Kong remains one of the world's major destinations for and sources of external DI. Total DI inflow and outflow continued to be significant in 2024, at $982.4 billion and $629.2 billion respectively. The stocks of overall inward and outward DI also increased further to $20,049.6 billion and $18,890.0 billion (631% and 595% of GDP) respectively at end-2024. These testify Hong Kong’s status as a prominent international centre for finance and commerce and a preferred base for multinational corporations, while also reflect strong global investor confidence in Hong Kong's economic prospects.

Hong Kong's DI covers a large geographical spread and a wide range of economic activities, with the Mainland featuring prominently both as a source and as a destination. This underscores Hong Kong's pivotal roles as a "super connector" and a "super value-adder".

The Government will continue to leverage on Hong Kong's unique advantages in fulfilling its role in connecting the Mainland with the world. Persistent efforts have been made in deepening Hong Kong's international connectivity on all fronts, and proactive measures have been taken in attracting more Mainland enterprises to use Hong Kong as a platform to go global. The Government will also strengthen its policies for bringing in more strategic enterprises to set up in Hong Kong, thereby promoting high-quality development.

Further Information

DI represents external investment in which an investor of an economy acquires a lasting interest and a significant degree of influence or an effective voice in the management of an enterprise located in another economy. For statistical purpose, an effective voice is taken as being equivalent to a holding of 10% or more of the voting power in an enterprise.

According to the international statistical standards, the total stocks and flows of DI presented above are compiled based on the "asset/liability principle", while detailed DI figures analysed by country/territory and by major economic activity of HKEGs are based on the "directional principle". Owing to the adoption of different presentation principles, the total stocks and flows of DI are different from the sums of the detailed DI figures by country/territory or by major economic activity of HKEGs. However, the overall direct investment balance compiled from figures based on these two presentation principles respectively is the same.

Tables 1 and 2 show the positions (i.e. stocks) and flows of inward DI in Hong Kong by selected major investor country/territory and by major economic activity of HKEGs respectively for 2023 and 2024. Similar statistics on outward DI from Hong Kong are presented in Tables 3 and 4.

More detailed statistics are given in the report "External Direct Investment Statistics of Hong Kong 2024". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1040003&scode=260).

Enquiries about the DI statistics may be directed to the Balance of Payments Branch (2) of the C&SD at 3903 7024.

Photo source: the official website of C&SD

InvestHK and HKCEA co-host Mainland Spring Reception and Mainland enterprises GoGlobal Forum

Invest Hong Kong (InvestHK) and the Hong Kong Chinese Enterprises Association (HKCEA) jointly organised a Mainland Spring Reception today (March 10), gathering representatives of Mainland enterprises and business leaders to celebrate the Chinese New Year. The two parties also held the GoGlobal Forum before the reception to explore development opportunities and discuss how enterprises can leverage Hong Kong as their home port to realise international expansion plans. Both events were attended by nearly 800representatives from Mainland enterprises.

The reception was officiated by the Financial Secretary, Mr Paul Chan; Deputy Director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region (HKSAR) Mr Zhang Yong; the Secretary for Commerce and Economic Development, Mr Algernon Yau; the Director-General of Investment Promotion at InvestHK, Ms Alpha Lau; and the Chairman of the HKCEA, Mr Wang Haimin.

In his speech, Mr Chan pointed out that this year marks the beginning of the country's 15th Five-Year Plan, and the next five years will be a crucial period for the country's development. Under the "one country, two systems" framework, Hong Kong possesses unique institutional strengths and serves as an international hub for finance, trade, shipping, and innovation and technology. It is essential for Hong Kong to leverage these strengths to accelerate its integration into the national development strategy. The Hong Kong Special Administrative Region Government looks forward to continuing to work closely with Mainland enterprises to promote Hong Kong's prosperity and stability, and to contribute to the nation's development.

Mr Chan also noted that Mainland enterprises have long been based in Hong Kong, actively supporting the Government in driving the city's economic development and playing a pivotal role across various industries. In recent years, Mainland enterprises have accelerated their global expansion, with many of them have been using Hong Kong as a platform for fund raising, showcasing their products and services, conducting R&D activities, and managing international operations. The Government will take a multipronged approach to welcome more Mainland enterprises to Hong Kong, enabling them to fully utilise the city's one-stop financial support and international advantages to strengthen their own development.

At the GoGlobal Forum, Mr Yau said that in the face of significant opportunities arising from the Global South markets and the Belt and Road Initiative, Hong Kong, as the preferred platform for Mainland enterprises going global, is fully prepared to provide one-stop support services in navigating them to go global. He said he looks forward to seeing more Mainland enterprises expanding globally via Hong Kong, working hand in hand to achieve mutual benefits and write a new chapter for Mainland enterprises going global.

Mr Wang said that the HKCEA has united a broad spectrum of Mainland enterprises setting up in Hong Kong. It has become a cornerstone in supporting Hong Kong's economic development and maintaining the city's long-term prosperity and stability, further inspiring Mainland enterprises to regard Hong Kong as their home and leveraging the city for growth with confidence and momentum. Looking ahead, the HKCEA is eager to strengthen co-operation with all sectors and move forward together, contributing to Hong Kong's transition from stability to prosperity and facilitating the steady and sustained implementation of "one country, two systems".

The Commerce and Economic Development Bureau established the Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) last October, integrating Hong Kong's overseas offices, including those under InvestHK, the Hong Kong Trade Development Council, as well as Hong Kong offices on the Mainland, to set up a one-stop platform. The GoGlobal Task Force also brings together Hong Kong's professional services ecosystem to provide one-stop support to Mainland enterprises expanding overseas via the city. It will continue to organise various activities to promote Hong Kong's unique advantages as a platform for Mainland enterprises to go global.

The annual spring reception is a flagship event jointly organised by InvestHK and the HKCEA to express gratitude to Mainland enterprises for their contributions to Hong Kong's socio-economic development. The GoGlobal Forum gathered representatives from Hong Kong's professional services sectors and Mainland enterprises to share insights on Hong Kong's unique advantages as a globally connected business hub, alongside successful case studies of going global via the city. InvestHK will continue to support the work of the GoGlobal Task Force.

InvestHK and HKCEA co-host Mainland Spring Reception and Mainland enterprises GoGlobal Forum Source: HKSAR Government Press Releases

InvestHK and HKCEA co-host Mainland Spring Reception and Mainland enterprises GoGlobal Forum Source: HKSAR Government Press Releases

InvestHK and HKCEA co-host Mainland Spring Reception and Mainland enterprises GoGlobal Forum Source: HKSAR Government Press Releases

InvestHK and HKCEA co-host Mainland Spring Reception and Mainland enterprises GoGlobal Forum Source: HKSAR Government Press Releases

InvestHK and HKCEA co-host Mainland Spring Reception and Mainland enterprises GoGlobal Forum Source: HKSAR Government Press Releases