Invest Hong Kong Expands China Presence

by Mary Swire, Tax-News.com, Hong Kong

29 March 2007

As interest in Hong Kong from entrepreneurial Mainland companies continues to rise, Invest Hong Kong has opened another branch in China, this time in Chengdu, the capital of the Sichuan province.

The new centre is part of the Hong Kong government department’s strategy to promote the advantages of Hong Kong as a business location and to support Mainland companies interested in setting up in the city.

The Invest Hong Kong Chengdu facility will be staffed by three inward investment professionals and will provide a range of free services including market research, advice on office rental, staff hiring, visa issues and networking opportunities.

Speaking at the opening ceremony, Invest Hong Kong’s Director-General of Investment Promotion, Mike Rowse, said, “A larger presence in Sichuan Province is a logical response to the rapid growth in demand for our services from companies in China’s western regions. We look forward to being able to better promote Hong Kong’s advantages to the local business community, as well as offering tailored services to individual companies.”

In 2006, 282 Mainland companies invested in Hong Kong, injecting more than US$2 billion into the Hong Kong economy, China’s Ministry of Commerce (MOFCOM) reported recently. Mainland companies are attracted by Hong Kong’s international business environment, attractive tax rates and fund-raising capabilities.

368 Mainland-related companies are now listed on the Hong Kong Stock Exchange Main Board and GEM markets. Last year alone, these companies raised HK$384.9 billion, a 94 percent increase on 2005. Twenty-two companies originate from Sichuan, Yunnan, Guizhou, Hunan and Shaanxi, as well as Chongqing.

Rowse added that cooperation between the Mainland Government and Hong Kong was essential to success. “We see a strong trend towards more companies expanding into Hong Kong and we’re fortunate that the Central Government, not least the Ministry of Commerce, is so supportive of our efforts to promote the advantages, opportunities and services Hong Kong has to offer,” said Rowse.

“We have a solid track record of helping ambitious, internationally-minded, Mainland companies to move outside their domestic market. Over the past three years we’ve helped 114 Mainland companies and the trend is for this to increase substantially over the next five years,” states Rowse.

One such company is Tanyutou, the popular spicy hot pot restaurant chain from Sichuan Province, which has invested more than HK$15 million and employed some 70 staff in Hong Kong.

The Chairman of Chengdu Tanyutou Investment Co Ltd, Tan Changan, said, “Hong Kong, as an international city, is a strategic base for Tanyutou to go international. We hope this investment will pave the way for other brands from the Mainland to enter the Hong Kong market. We envisage that Tanyutou will become a role model for other Mainland companies to expand into Hong Kong,” added Tan.

The establishment of the Invest Hong Kong Chengdu service centre is part of a long-term China strategy. In 2006 Invest Hong Kong’s Guangzhou office was almost doubled in size, and new offices in Beijing and Shanghai were opened in 2007.

Recommended