Encouraged by the '12th Five-Year Plan' strategy for mainland enterprises to 'go global,' an increasing number of mainland companies are undergoing transformation and upgrading through investments in high technology, intellectual property, and brand building, while applying professional expertise to the domestic market. This trend is not limited to state-owned enterprises; more and more private enterprises are also actively engaging in investment activities across various fields to maintain their competitiveness in the global market. These fields include industrial and manufacturing technology, clean technology and new materials, sales networks, consumer brands, and modern enterprise 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, and from formulating investment strategies to legal and professional support. The vast international network of Hong Kong service institutions is well-positioned to assist mainland enterprises in conducting cross-border investments more effectively, finding suitable partners, and further assisting with post-merger business and brand management.
The 'Statistical Bulletin of China's Outward Foreign Direct Investment' released by the Ministry of Commerce shows that by the end of 2011, China's total outward foreign direct investment reached 424.8 billion USD, ranking 8th in the world. Although the cumulative share of outward foreign direct investment globally is relatively small, it is worth noting that China's outward investment volume has grown significantly for eight consecutive years. It is projected that China's outward foreign direct investment will reach 150 billion USD in 2015, with an average annual growth rate of 17% during the '12th Five-Year' period.
Over the years, overseas investments by mainland enterprises have covered multiple industry categories, including energy and power, metals, finance, real estate and construction, transportation, agriculture, technical services, and chemicals.
Hong Kong: An Ideal Partner for Mainland Enterprises to Invest Overseas
In the process of rapid national economic development, Hong Kong, as an international financial center, has consistently 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, law, accounting, and brand building, thereby expanding into the global market.
Hong Kong boasts a superior business environment, free flow of capital and information, an open, free, and orderly market, and a concentration of global talent. Combined with its sound infrastructure, independent legal system, and low tax rates, it is an ideal platform for mainland enterprises to 'go global.' Cumulative figures show that approximately 60% of China's overseas investment flows to Hong Kong or through Hong Kong to the rest of the world.
Hong Kong has been ranked as the world's freest economy for 20 consecutive years. Together with New York and London, it is known as one of the world's three major financial capitals. It is the financial center of Asia and one of the safest, wealthiest, and most prosperous regions in the world. Warren Buffett once said that Hong Kong and New York are the two regions in the world most worthy of permanent investment. The '2014 China Investment Immigration White Paper' released by the Hurun Research Institute shows that Hong Kong ranks seventh among the most favored immigration destinations.
As the renowned 'Pearl of the Orient,' Hong Kong not only possesses a comfortable living environment, high-quality educational resources, excellent medical services, and superior social welfare, but also enjoys 'world citizen' status with visa-free or visa-on-arrival access to over 150 countries and regions. This allows for free travel to developed countries in Europe and America for study or business, without losing Chinese citizenship, making it more convenient to return to the mainland for development. Beyond the convenience brought by Hong Kong residency, more investors are attracted by Hong Kong's superior investment environment. According to statistics, as of September 30, 2014, the cumulative number of applications for the Hong Kong Capital Investment Entrant Scheme reached 40,392. The industry generally expects that before the Hong Kong government's 2015 Policy Address is submitted, there will be another rush to 'catch the last train' in the fourth quarter. Worldway Immigration experts remind applicants that the 10 million HKD investment threshold may soon become a thing of the past; interested applicants should seize the opportunity and submit their applications early to avoid the impact of potential price increases.