Premier Business Hub in Asia
Located in a premier business location, Hong Kong offers unparalleled access to Asian markets and serves as an ideal gateway to Mainland China. Its strategic position within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and its role in the Belt and Road Initiative make it a pivotal hub for businesses looking to expand in the region.
The Perfect Business Base
As an Asia business centre, Hong Kong’s proximity to all major Asian markets offers easy connectivity for the thousands of companies that choose it as their base. With half of the world’s population only five hours away by plane and over 100 airlines offering direct flights to 190 destinations, Hong Kong is not only an ideal location for regional headquarters, R&D centres, and corporate treasury functions – it is a leading choice for foreign investment.
CEPA: Strengthening Economic Ties
The Closer Economic Partnership Arrangement (CEPA) between Hong Kong and Mainland China is a cornerstone of economic collaboration. CEPA offers preferential treatment for Hong Kong goods, services, and investments entering Mainland China, bolstering Hong Kong’s status as an international financial centre. Recent amendments to CEPA and further liberalisation measures include:
- The removal of equity shareholding restrictions and relaxed qualification requirements for Hong Kong professionals
- Permission for Hong Kong-invested enterprises to adopt Hong Kong law and choose arbitration seated in Hong Kong
- The addition of commitments in domestic regulation that cut through red tape and lower trade costs when enterprises supply their services
- The removal of the requirement that Hong Kong service suppliers operate substantively in Hong Kong for three years in most services sectors, allows Hong Kong startups and foreign investors to benefit sooner
- Enhanced access for sectors like banking, insurance, construction, tourism, and film production
These measures not only facilitate trade but also attract foreign investors seeking to benefit from CEPA’s liberalisation policies. Learn more about CEPA HK and its provisions on the CEPA website.
Future-Driven Opportunities
Hong Kong plays a vital role in the Belt and Road Initiative, linking Asia with Europe, Africa, and the Middle East. Its robust legal system, free flow of information and capital, and sound regulatory framework position it as a leading partner for businesses leveraging Belt and Road opportunities. Additionally, the GBA’s integration of expertise across multiple cities creates a globally competitive city cluster in which Hong Kong serves as the economic anchor.
Free Trade Agreements: Expanding Global Reach
Hong Kong has signed nine free trade agreements (FTAs) with 21 economies, including Mainland China, New Zealand, the Member States of the European Free Trade Association (EFTA), Chile, the Macao Special Administrative Region, ASEAN, Georgia, Australia and Peru. These agreements strengthen its position as a global trading hub by securing favourable conditions for exports of goods and services. The city also actively negotiates new FTAs to expand its network further.
A Leading Financial Centre
As an international financial centre, Hong Kong offers a transparent regulatory regime for industries such as banking, securities, insurance, and FinTech. It is home to the world’s largest offshore Renminbi settlement hub and innovative financial platforms like Stock Connect and Bond Connect. In addition, the implementation of the Wealth Management Connect allows residents in Hong Kong, Macao and nine cities in Guangdong Province to invest in wealth management products distributed by banks in each other’s markets through a closed-loop funds flow channel established between their respective banking systems.
Moreover, Hong Kong Monetary Authority has issued eight digital bank licences that allow banks to deliver services exclusively or primarily through the internet or other electronic channels. The introduction of digital banks in Hong Kong is a key pillar supporting Hong Kong's entry into the smart banking era, promoting financial inclusion as they normally target the retail segment, including the small and medium-sized enterprises (SMEs).
Insurance Authority has also issued four virtual insurer authorisations. These initiatives provide seamless access to Mainland China’s markets while reinforcing Hong Kong’s leading financial centre status.
Hong Kong entered a new phase of virtual asset regulation in 2024, with a licensing system and regulatory requirements for Virtual Asset Service Providers (VASP) being issued and regulated by Securities and Futures Commission (SFC).
In conclusion, Hong Kong’s strategic location, integration through CEPA with Mainland China, robust participation in global trade agreements, financial innovation and role in initiatives like Belt and Road make it an unbeatable choice for businesses seeking opportunities in Asia. Whether you are exploring CEPA, planning investments under CEPA HK China, or leveraging its free trade environment, Hong Kong remains at the forefront of global commerce.
