City becomes 3rd largest FDI recipient
Updated: 2011-07-28 07:25
By Emma An(HK Edition)
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Buildings in Central. For the 13th consecutive year, Hong Kong retained its position as the second largest FDI recipient in Asia after the Chinese mainland. Mike Clarke / AFP |
2010 sees record $68.9b inflow, up 31.5% YoY
Hong Kong became the world's third largest recipient of foreign direct investment (FDI) in 2010 as investment inflows climbed 31.5 percent to $68.9 billion, with the growing momentum extending to the first quarter of this year, according to data released on Wednesday.
With $68.9 billion of foreign direct investment over the year, Hong Kong leapfrogged France into third place in the latest FDI global rankings after finishing fourth in 2009, a UN report released on Wednesday shows.
The top two spots again were held by the US and the Chinese mainland, with investment inflows of $228.2 billion and $105.7 billion respectively.
For the 13th consecutive year, Hong Kong retained its position as the second largest FDI recipient in Asia after the Chinese mainland.
"Hong Kong's status within the global economy is reflected in its record high ranking as the third largest recipient of global FDI flows. With Hong Kong positioned at the heart of Asia and as the gateway to the mainland, it is clearly benefiting from the shift in economic interest to the East," Simon Galpin, director-general of investment promotion at Invest Hong Kong, a government body responsible for facilitating foreign direct investment, told reporters on Wednesday.
According to the report, FDI inflows worldwide grew 5 percent to $1.2 trillion in 2010, some 15 percent below the pre-crisis level, after plunging 37 percent and 16 percent in 2009 and 2008 at the height of the financial crisis.
Hong Kong's archrival Singapore came ninth in the latest rankings, after investment into the city-state more than doubled to $39 billion in 2010. In terms of FDI inflows, Hong Kong will likely retain its edge, said T.J. Wong, dean of the Faculty of Business Administration at the Chinese University of Hong Kong.
"Hong Kong will remain an attractive FDI destination, thanks to its investor friendly climate and the city's role as a global financial center," Wong said.
And the fast economic growth of the mainland will help increase the appeal.
"That Hong Kong is serving as the gateway to the mainland will bring Hong Kong many opportunities," Wong noted.
The large number of tourist arrivals and the growing list of mainland companies seeking to expand via Hong Kong were cited by Galpin as the developments that have made the city even more attractive as an FDI destination.
"I don't see a shortage of mainland companies coming into Hong Kong," said Galpin. Increasingly, the city has been used as "a command and control center" by mainland companies looking to invest elsewhere, he added.
However, Wong warned that the bull-run in Hong Kong's housing price may jeopardize FDI inflows into the city, while the debt crisis in Europe and the lackluster economic recovery in the US could also have a harmful impact.
emmaan@chinadailyhk.com
China Daily
(HK Edition 07/28/2011 page2)