Hong Kong is widely considered one of the finest places to do business on a global scale. As of December, Forbes ranked it as the third best location for business, falling behind only the UK (first) and Sweden (second). So, if you are looking to expand your blog presence, Hong Kong is definitely a good place to consider. Read on to discover all you need to know.
Why is Hong Kong a great place for business today?
It is of no surprise that Hong Kong is regarded as a premium business setting. The area is a leading international financial centre. It is the world’s freest economy, and has been for the past twenty years, boasting an economic freedom score of 90.2. Moreover, Hong Kong acts as a gateway to Mainland China, whilst offering low taxation and free port trade. The country is well regulated, exceptionally stable and the legal system is based on common English law.
Some vital facts and figures in relation to Hong Kong’s economic performance will establish the locality’s economic strength. The population of Hong Kong is 7.392 million, of which only 2.8 per cent are unemployed. To put this into perspective, the UK’s unemployment rate is 4 per cent, the rate in the U.S. is 4 per cent, New Zealand’s is 4.3 per cent, and Ireland’s is 5.6 per cent. As of 2017, GDP stood at $341.4 billion. GDP per capita is $46,193.
When you take all of these points into consideration, it is not difficult to recognise that Hong Kong is flourishing at present, and so it is only natural that an extensive number of leading global businesses are attracted to this location.
As stated, among Hong Kong’s chief benefits is its status as one of the world’s leading international finance centres. The World Economic Forum (WEF) has consecutively named Hong Kong as the world’s top financial centre. In short, this is due to Hong Kong’s favourable tax regime, world-class infrastructure and strong business environment. By the end of 2011, there were 19 restricted licensed banks, 17 deposit taking companies and 154 licensed banks in Hong Kong. These banking institutions incorporate 73 of the world’s 100 biggest banks.
Over the past few years, Hong Kong’s Foreign Direct Investment (FDI) has surged. In fact, the World Investment Report (WIR) ranked Hong Kong third in terms of global FDI, only falling behind the US and Mainland China. The area also remains a significant conduit for outbound investment, ranking fifth in the world, behind the US, Japan, the UK and Mainland China.
Why does Hong Kong attract considerable Foreign Direct Investment? There are several reasons. Firstly, it is a free port, presenting limited excise duties and no customs tax. US companies aiming to do business in Asia favour Hong Kong because of its strong rule of law and property rights. Furthermore, companies that are situated in Hong Kong enjoy efficient links to Mainland China and the rest of Asia.
It is not difficult to discern why Hong Kong attracts an abundance of global businesses. On the whole, this location presents a stable and well-regulated platform for companies, yet there is enough flexibility for significant growth – which is the ideal environment for any business intending to expand.
Establishing your business in Hong Kong
Hong Kong presents an exceptional platform for global businesses looking to expand in Asia. There are several reasons why this is the case. Not only is Hong Kong performing very well economically, but also it is the world’s freest economy and a stable location. Additionally, it boasts a strategic location next to Mainland China and some of the lowest taxes on a global scale. Therefore, it is of no surprise that there is a significant amount of interest in Hong Kong’s commercial property market. Consequently, this section provides you with all of the information you need to know about the current position of the market for those considering setting up an offshore development center here, as well as an outlook for the future.
Let’s begin by clarifying the state of the market at present. Recently, Hong Kong experienced consecutive positive net take-up in relation to the overall Grade A office leasing market. It is likely that the commercial property market will stabilise throughout the year and provide an ideal platform for significant growth throughout 2019. Many forecasters predict that this is the year whereby there will be a notable rise in rents in core districts, such as Central.
Yet, at present most demand is for non-core areas. This is because SMEs are more susceptible to economic factors, such as the recurring effects from the global recession, and therefore they seek lower priced rental solutions – which is what non-core districts can offer. This is why there is a predicted office rental growth in sub-markets. Nevertheless, demand for premium office space in core business districts will always be somewhat consistent. Large legal, financial and banking firms ensure this is the case, as they demand prestige office space.
If you are looking to expand your business overseas and move into a new area, there is no denying that Hong Kong is a place that is well worth considering. As you can see from all of the points that have been discussed above, this is a part of the world that presents a lot of opportunities for any business owner that is hoping to take their company to the next level.