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Commerce and Industry

The Services Sector

The services sector has continued to grow in the past decade. Its share of Hong Kong's Gross Domestic Product (GDP) rose from 89.8 per cent in 2003 to 93 per cent in 2012. In 2013, 88.3 per cent of total employment was in this sector. Hong Kong has become one of the most service- orientated economies in the world.

In 2013, Hong Kong's total services trade amounted to $1,531.2 billion, making it the world's 15th largest services trading entity in value, traded and exported $1,066 billion worth of services, contributing to 50.2 per cent of GDP. In 2013, Hong Kong ranked fourth in the region after China, India and Japan in total value of services exported, and 10th in the world.

The main components of Hong Kong's exports of services in 2013 were travel services and transportation services, accounting for 36.8 and 29.9 per cent respectively of the total value. Hong Kong is a net exporter of services and had an overall surplus of $225.6 billion in 2013, with the surplus for travel services and transportation services $139 billion and $103.1 billion. respectively.

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. Hong Kong was the second largest recipient of FDI flow in Asia in 2012 according to the United Nations Conference on Trade and Development's 'World Investment Report 2013: The 'External Direct Investment Statistics of Hong Kong 2012′ released by the Census and Statistics Department indicates that Hong Kong's FDI inflow in 2012 amounted to $580.9 billion. At the end of 2012, the position of direct investment liabilities' amounted to $10,509 billion. Chart 2 shows source countries or territories of the inward direct investment. The mainland of China was the largest, accounting for 37 per cent of the total as at the end of 2012. Chart 3 shows the major economic activities of enterprise groups in Hong Kong2. Those engaged in investment and holding, real estate, professional and business services took up the largest share, at 68.7 per cent of the total at the end of 2012.

1 According to the latest international statistical standards, the FDI inflow and the position of direct investment liabilities presented in this paragraph are based on the 'asset/liability principle, while detailed inward direct investment figures analysed by country/territory and by major economic activity presented in Chart 2 and Chart 3 respectively are based on the 'directional principle! Owing to the adoption of different presentation principles, the position of direct investment liabilities is different from the overall totals of the detailed inward direct investment figures by country/ territory or by major economic activity.

2

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

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Chart 2