Hong Kong Attracts Record Foreign Direct Investment

Release of U.N. Conference on Trade and Development’s World Investment Report 2009

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Melissa Ng / David Hsieh at 212-752-3320
Wing Yan Tong at 415-835-9315

September 18, 2009 - Hong Kong's status as one of the world's, and Asia Pacific's, leading destinations for foreign direct investment (FDI) has been reaffirmed by the World Investment Report 2009 today released by the United Nations Conference on Trade and Development (UNCTAD).

Hong Kong continues to be Asia's second largest, and the world's seventh largest, FDI recipient, attracting US$63 billion inward investment in 2008. This amount represented a 15.9 percent increase year-on-year in spite of the global financial and economic crisis. Hong Kong also continues to have the highest FDI stock in the region amounting to nearly US$835.8 billion.

The Mainland of China ranked first in Asia Pacific in FDI inflows and moved up four places to be the world's third largest FDI recipient, attracting US$108.3 billion FDI in 2008 – an increase of 29.7 percent compared to 2007.

Globally, FDI inflows declined 14.1 percent in 2008 from a historic high of US$1.98 trillion in 2007 to US$1.7 trillion.

Simon Galpin, Director-General of Investment Promotion at Invest Hong Kong, cautiously welcomed the results, saying: "We are delighted that Hong Kong continues to be one of the world's and Asia's most attractive destinations for FDI. However, we recognize that businesses are operating in very tough global economic conditions and that we have to work doubly hard to attract them to expand in these uncertain times."

Looking ahead, Mr. Galpin believed that overseas, Mainland and Taiwanese businesses would continue to set up and expand in Hong Kong because of its strategic location as well as its commitment to maintaining the rule of law, a low tax environment and the free flow of capital, goods and information.

Invest Hong Kong
Invest Hong Kong is the Hong Kong Special Administrative Region government department responsible for attracting and facilitating inward investment into the city, by providing free services and support to help overseas, Mainland and Taiwanese companies establish or expand their business presence.
Invest Hong Kong: www.InvestHK.gov.hk

United Nations Conference on Trade and Development (UNCTAD)
Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy.
UNCTAD: www.unctad.org