ENG-2015 — Page 118

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Commerce and Industry

Services

Hong Kong is one of the world's most service-oriented economies. The services sector has continued to grow in the past decade. Its share of GDP rose from 91.3 per cent in 2005 to 92.7 per cent in 2014, and accounted for 88.4 per cent of total employment in 2015.

In 2015, Hong Kong's total services trade amounted to $1,540.0 billion, making it the world's 16th largest services trading entity in value. The territory traded and exported $1,053.6 billion worth of services, contributing to 43.9 per cent of GDP. It ranked fifth in the region after China, Japan, India and Singapore in total value of services exported, and 14th in the world.

The main components of Hong Kong's exports of services in 2015 were in travel and transport, accounting for 34.4 per cent and 28.6 per cent respectively of the total value. The territory is a net exporter of services and had an overall surplus of $233.9 billion in 2015, recording surpluses of $100.5 billion and $93.6 billion in travel services and transport services respectively.

Inward Direct Investment

According to the United Nations Conference on Trade and Development's World Investment Report 2015, Hong Kong was the second largest recipient of foreign direct investment (FDI) flow in the world in 2014, after the Mainland of China. The External Direct Investment Statistics of Hong Kong 2014 released by the Census and Statistics Department indicated Hong Kong's FDI inflow in 2014 amounted to $1,006.8 billion. At the end of 2014, the position of direct investment liabilities' amounted to $12,714.5 billion. Chart 2 shows selected major investor countries/ territories of the inward direct investment. The British Virgin Islands was the largest, accounting for 35.5 per cent of the total as at the end of 2014. Chart 3 shows the major economic activities of Hong Kong enterprise groups?. Those engaged in investment and holding, real estate, professional and business services took up the largest share, at 67.0 per cent of the total at the end of 2014.

As at June 2015, Hong Kong was host to 7,904 overseas, Mainland and Taiwanese companies, with 3,798 of these companies having regional headquarters or regional offices here.

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

2

A Hong Kong enterprise group consists mainly of a Hong Kong parent company, its Hong Kong subsidiaries, associates and branches.

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