106 Commerce and Industry
Inward Direct Investment
Hong Kong's attraction as a place to do business is evident from the inflow of foreign direct investment (FDI) and the number of regional headquarters and regional offices in Hong Kong set up by companies outside Hong Kong.
Census and Statistics Department data show that Hong Kong's FDI inflow in 2010 amounted to US$71.1 billion. According to the 'World Investment Report 2011' released by the United Nations Conference on Trade and Development, Hong Kong was the second largest recipient of FDI in Asia in 2010.
At the end of 2010, the position of inward direct investment at market value amounted to $8,473.2 billion (Chart 2). Chart 3 shows source countries or territories of the inward direct investment. The Mainland was the largest, accounting for 36.9 per cent of the total position as at end-2010. Chart 4 shows the major economic activities of enterprise groups in Hong Kong1. Those engaged in investment and holding, real estate, professional and business services took up the largest share, at 66.5 per cent of the total position at end-2010.
Chart 2
Position of Inward Direct Investment in Hong Kong at Market Value at end of 2001-2010
HK$Billion
10,000
9,000
8,000
7,000
6,000
5,000
4,056
4,000
3,270
3,522
2,960
3,000
2,622
2,000
1,000
0
9,187
8,473
7,262
6,326
5,772
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
1
An enterprise group may consist of a parent company, its subsidiaries, associates and branches.