Encouraged by the "12th Five-Year Plan" strategy for mainland enterprises to go global, an increasing number of mainland enterprises are transforming and upgrading through investments in high technology, intellectual property, and brand development, applying their expertise to the domestic market. This trend is not limited to state-owned enterprises; more and more private enterprises are actively engaging in investment activities across various fields to maintain competitiveness in the global market. These fields include industrial and manufacturing technology, clean technology and new materials, sales networks, consumer brands, and modern business solutions.
During the investment process, mainland enterprises have a strong demand for relevant information and services, ranging from understanding the overseas investment environment to risk assessment, from formulating investment strategies to legal and professional support. Hong Kong's extensive international network of service providers can assist mainland enterprises in conducting cross-border investments more effectively and finding suitable partners, as well as further supporting post-merger business and brand management.
The "China's Outward Foreign Direct Investment Statistical Bulletin" released by the Ministry of Commerce shows that by the end of 2011, China's total outward foreign direct investment reached USD 424.8 billion, ranking 8th in the world. Although the accumulated share of outward foreign direct investment globally is relatively small, it is noteworthy that the amount of China's outward investment has been growing significantly for eight consecutive years. It is expected that China's outward foreign direct investment will reach USD 150 billion by 2015, with an average annual growth rate of 17% during the "12th Five-Year Plan" period.
Over the years, mainland enterprises have invested in various industries overseas, including energy and power, metals, finance, real estate and construction, transportation, agriculture, technology services, and chemicals.
Hong Kong: The Ideal Partner for Mainland Enterprises Investing Overseas
During the rapid development of the national economy, Hong Kong, as an international financial center, has played a key role in global economic activities. Mainland enterprises can leverage Hong Kong's mature and excellent intermediary and service industries to meet their development needs in financing, legal, accounting, and brand development, thereby expanding into the global market.
Hong Kong boasts a superior business environment, with fluid capital information, an open market, and a free and orderly system, gathering talents from around the world, complemented by comprehensive infrastructure, an independent legal system, and low tax rates, making it an ideal platform for mainland enterprises to "go global." Cumulative figures show that approximately 60% of China's overseas investments flow into Hong Kong or are routed through Hong Kong to overseas markets.
Hong Kong has ranked first as the world's freest economy for 20 consecutive years, alongside New York and London, being recognized as one of the three major financial capitals of the world and a financial center in Asia, as well as one of the safest, wealthiest, and most prosperous regions globally. Warren Buffett has stated that Hong Kong and New York are the two regions in the world most worthy of permanent investment. According to the "2014 China Investment Immigration White Paper" released by Hurun Research Institute, Hong Kong ranks seventh among the most favored immigration destinations.
As the renowned Pearl of the Orient, Hong Kong not only offers a comfortable living environment, high-quality educational resources, good medical services, and excellent social welfare, but also enjoys "world citizen" treatment with visa-free or visa-on-arrival access to over 150 countries and regions, allowing for free entry into developed countries in Europe and America for study or business, while retaining Chinese nationality, making it more convenient to return to the mainland for development. In addition to the conveniences brought by Hong Kong residency, many investors are attracted by Hong Kong's superior investment environment. Statistics show that as of September 30, 2014, the total number of applications for Hong Kong investment immigration has reached 40,392; the industry generally expects that before the Hong Kong government's policy report is submitted in 2015, there will be another rush to apply in the upcoming fourth quarter. WorldWay Immigration experts remind that the investment threshold of HKD 10 million may soon become a thing of the past, and prospective applicants should seize the opportunity to submit their applications early to avoid being affected by price increases.
