ENG-2010 — Page 140

98 Commerce and Industry

2

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 2009 amounted to US$52.4 billion. According to the 'World Investment Report 2010' released by the United Nations Conference on Trade and Development, Hong Kong was the second largest recipient of FDI in Asia in 2009.

At the end of 2009, the position of inward direct investment at market value amounted to $7,262.1 billion (Chart 2). Chart 3 shows source countries or territories of the inward direct investment. The Mainland was the largest, accounting for 36.4 per cent of the total position as at end-2009. Chart 4 shows the major economic activities of enterprise groups in Hong Kong2. Those engaged in investment holding, real estate, professional and business services took up the largest share, at 65.9 per cent of the total position at end-2009.

Chart 2

Position of Inward Direct Investment in Hong Kong at

Market Value at end of 2000-2009

HK$Billion

10,000

9,187

9,000

8,000

7,000

6,000

7,262

6,326

5,772

5,000

4,056

4,000

3,551

3.522

3,270

3,000

2,960

2,622

2,000

1,000

0

2000

2001

2002 2003

2004

2005

2006

2007

2008

2009

An enterprise group may consist of a parent company, its subsidiaries, associates and branches.