This is the reason why Hong Kong plays an important role as a facilitator of business cooperation between the World and China:
1. More than 60% of foreign direct investment (FDI) or investments abroad in China are channeled through Hong Kong. At the same time, Hong Kong also moves as an intermediary for 2/3 of all FDI that flows to China. This is what makes Hong Kong the right facilitator, to bridge investment from China to the World, or World companies that want to enter the Chinese market, for more information : https://www.onlinecompanyregister.com/
2. Under the “One Country, Two Systems” scheme, Hong Kong has a free flow of capital and a tax-free port, effective legal and information technology (IT) systems, and world-class financial institutions. Therefore, investors from China can invest in strategic sectors in the World, while Hong Kong can support in other sectors such as project financing, project management, architectural design, risk management, logistics, and legal services.
3. Hong Kong can be a facilitator of technology transfer from China to the World. Through the “Belt and Road Initiative”, technology giants in China such as Tencent and Alibaba have begun investing in the World. This investment will encourage the transfer of technology from China to the World, where Hong Kong is a bridge in terms of funding between the two parties.
4. In Hong Kong, global investors can freely access the Chinese consumer market, while at the same time gaining legal certainty and business regulation. This is because Hong Kong is a country that is very strict in implementing legal compliance. With this advantage, business people in the world can penetrate the Chinese market more easily. In addition, Hong Kong is also connected to countries included in the Belt and Road Initiative. Accumulatively, these countries contribute 30% of global GDP and 30% of total world trade.