Hong Kong Sees Record Growth in Startups and Multinational Firms
Hong Kong's business environment is thriving, with record-breaking growth in both multinational companies and startups. The 2024 surveys reveal that the number of companies in Hong Kong with overseas or Mainland parent companies has reached 9,960—up 10% from the previous year. Meanwhile, the number of startups has surged to a new high of 4,694, also reflecting a 10% annual increase.
This growth underscores Hong Kong's enduring status as a global business hub, drawing businesses seeking to expand regionally and access the Mainland Chinese market. The city's economic resilience and business-friendly environment continue to attract investment despite global uncertainties.
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Growth in Employment and Foreign Investment
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The number of employees in foreign and Mainland-owned companies in Hong Kong hit 493,000, up 5% year-on-year, while startups employed 17,651 people, marking a 7% increase. Mainland China remains the largest source of foreign investment, followed by Japan, the United States, the UK, and Singapore. Hong Kong's ability to bridge global markets with Mainland opportunities is a key factor in its appeal.
Secretary for Commerce and Economic Development, Mr. Algernon Yau, highlighted that Hong Kong's “one country, two systems” framework positions it as the ideal platform for both Mainland firms going global and overseas companies entering China.
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A Flourishing Startup Scene
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Hong Kong's startup ecosystem is booming, particularly in fintech, IT, e-commerce, and data analytics. Notably, the health and green tech sectors have seen substantial growth, with year-on-year increases of 54% and 82%, respectively. These sectors align with global trends and Hong Kong's focus on fostering innovation and sustainability.
The government's ongoing support for startups is helping to create an environment conducive to growth, further solidifying Hong Kong's reputation as a hotbed for entrepreneurship.
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Policy Support and Strategic Initiatives
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Hong Kong's position as the world's freest economy, as ranked by the Fraser Institute, and its fourth-place ranking for foreign direct investment in the 2024 World Investment Report, highlight the city’s appeal. Recent policy initiatives, including the liberalization of trade services under the CEPA agreement, the extension of land leases, and visa facilitation measures, have reinforced Hong Kong's status as an attractive investment destination.
Mr. Yau emphasized that these policies, alongside the successful attraction of 66 key enterprises with plans for regional or global headquarters, will continue to fuel the city’s growth as a business hub.
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A Thriving Business Future
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With its strategic location, supportive policies, and robust infrastructure, Hong Kong is poised to remain a vital business center in Asia. Whether for multinational companies or startups, the city offers unparalleled opportunities for expansion, innovation, and access to global markets.
As Hong Kong's business ecosystem grows stronger, it continues to offer a dynamic platform for companies seeking to thrive in the world's most promising markets.
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The Road Ahead
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China's 2025 agenda paints a dynamic future where private enterprises take center stage. By resolving systemic hurdles and unleashing innovation, policymakers are creating fertile ground for sustainable growth. For global investors, strategists, and business leaders, this is not just policy—it's opportunity.
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