Advantages of Hong Kong
Hong Kong is strategically located for companies to do business with Mainland China and Asia. The city enjoys close proximity to many of the region’s most exciting business markets.
- Beijing, Shanghai, Singapore, Taipei, Manila, Kuala Lumpur and Perth are in the same time zone as Hong Kong
- Bangkok, Jakarta, Seoul and Tokyo are within one hour’s difference
Easy and efficient regional travel is key to Hong Kong’s success as a regional centre.
- Over 100 airlines offer flights to about 180 locations
- All Asia’s key markets are less than four hours’ flight away
- Half the world’s population is within five hours’ flight time
- About 1,000 daily flights connect Hong Kong with the rest of the world in pre-COVID times
Gateway to Mainland China
Hong Kong offers easy access – commercially and geographically – to Mainland China business opportunities. The Pearl River Delta (PRD) region is immediately to the north of Hong Kong and business people commute regularly and easily between the two. The PRD is China’s largest and most productive manufacturing region, which is also home to tens of thousands of factories owned or managed by Hong Kong and overseas companies.
Low, Simple and Competitive Tax System
Businesses and individuals in Hong Kong enjoy one of the most tax-friendly systems in the world. Only three direct taxes (profits tax, salaries tax, property tax) are imposed and there are generous allowances and deductions which can reduce their taxable amounts.
A Leading Financial Centre
Hong Kong has long been the region’s leading financial hub. It offers a highly transparent and robust regulatory regime for financial services industries such as banking, securities and futures, insurance and retirement schemes. These industries adhere to the best global practices and standards, giving confidence to everyone looking to do business in Hong Kong.
The city is also home to the world’s largest offshore hub in Renminbi settlement. Businesses can easily enjoy a wide variety of Renminbi services on offer from banks and financial institutions. Stock Connect and Bond Connect have given investors in Hong Kong direct access to Mainland China whilst further cementing the city’s status as an international financial centre. The city is also positioning itself as a leading regional FinTech hub.
Rule of Law
Hong Kong’s commitment to the rule of law and judicial independence is key to the city’s prosperity and stability as an international financial centre. The common law system continues to be practised as constitutionally guaranteed, making the city the only common law jurisdiction within China. Local and international companies compete on equal footing and intellectual property rights are rigorously protected. Laws against unfair trade practices covering goods and services offer consumers greater protection.
Latest initiatives and plans
Guangdong-Hong Kong-Macao Greater Bay Area
The Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area) is a vibrant city cluster that comprises the Special Administrative Regions of Hong Kong and Macao, as well as nine municipalities in Guangdong Province, including Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing. The development of the Greater Bay Area is a major long-term initiative taken forward by the Chinese national government, and is designed to promote coordinated regional economic development by fully leveraging the unique advantages of the involved regions and municipalities. Being the most open and international city in the Greater Bay Area, Hong Kong is known for its status as international financial, transportation, trade centres and aviation hub as well as its renowned professional services. Enjoying the dual advantages of “one country, two systems”, Hong Kong plays an important role in the development of the Greater Bay Area. On the one hand, Hong Kong will facilitate and support the economic development of the region, with a view to enhancing the role and functions of the Greater Bay Area in the country’s two-way opening up; on the other hand, we will facilitate the development of industries in which Hong Kong’s strengths lie in the Greater Bay Area, capitalising on Hong Kong’s strengths to serve the country's needs.
Please refer to the dedicated website for more information on the Guangdong-Hong Kong-Macao Greater Bay Area, as well as the Hong Kong Trade Development Council’s portal for important business and trade information about the Greater Bay Area.
The Belt and Road Initiative
The Silk Road Economic Belt and the 21st Century Maritime Silk Road (the Belt and Road Initiative) is an important national development strategy which promotes co-operation among countries and regions in areas of policy co-ordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bond. As a key link and the prime platform for the Belt and Road Initiative, and with the Central Government’s support, Hong Kong can capitalise on its unique advantages to connect the Mainland with other Belt and Road regions, in areas such as international project financing, offshore Renminbi (RMB) business, professional services, as well as economic and trade co-operation.
Dedicated website for more information on the Belt and Road Initiative, as well as the Hong Kong Trade Development Council’s Belt and Road Portal for key insights and up-to-date developments on the opportunities available in the Belt and Road Initiative.
The Closer Economic Partnership Arrangement
The Closer Economic Partnership Arrangement (CEPA) is a free trade agreement signed between the Mainland China and Hong Kong in 2003, covering trade in goods, trade in services, investment protection and facilitation, and economic and technical co-operation. Throughout the years, the Mainland and Hong Kong have continuously expanded the scope and content of CEPA. CEPA provides a wide range of benefits manufacturers, service suppliers, and professionals in Hong Kong, as well as investors from and outside Hong Kong.
Please visit the Trade and Industry Department’s website for more information.