Hong Kong is often hailed the "gateway to China" for
foreign investors – but doors open both ways, says our HK
Recently rated the freest economy in the world by the Index of
Economic Freedom for the 17th consecutive year, Hong Kong is
certainly one of East Asia's jewels. Among the world's
leading international finance centres, it offers investors low
taxation, free trade and minimum government interventions.
And it's not just foreign multinationals making the most of
Hong Kong: there are almost 800 listed mainland enterprises on the
Hong Kong Stock Exchange with a total market capital of US$1.76tn,
and renminbi deposits in Hong Kong of 1,053bn. China, too, sees the
gateway and is making the most of it.
Hong Kong is the prime jurisdiction for Chinese mainland
businesses looking to expand into the international business
community: around 60% of Chinese outbound investment was directed
to or channelled through Hong Kong, says the Hong Kong Trade
Development Council, adding that Hong Kong's world class
services providers play a crucial role in enabling cross-border
deals and partnerships for Chinese enterprises. (http://www.hktdc.com/mis/coi/en/s/overview.html)
The volume of Chinese outbound investment has been growing
substantially for almost a decade; in its 12th five-year plan,
issued in 2011, the Chinese government target is a 17% average
annual growth in outbound investment, reaching US$150bn by
Sectors of interest have traditionally been in the energy and
metals markets, with finance a distant third. Today, as state-owned
enterprises are no longer the only players going outbound, more and
more Chinese mainland private enterprises are investing in
industrial and manufacturing technologies, clean technology and new
materials, distribution network, consumer brands and modern
business solutions – they want to see what the world is up
to, and ensure China remains competitive in the world market.
A launch pad to markets across Asia, as well as beyond, Hong
Kong is one of the world's largest trading economies and was
ranked No 2 for both ease of doing business and trading across
borders in the World Bank's 2014 rankings. Its regional
openness and high level of internationalisation have contributed to
its economic stability, creating an environment where Chinese and
Western influences fuse – and thus providing the perfect
gateway for traditional Chinese companies to meet the world.
Tightened monetary policies leading to limited capital inflow to the securities market, its low liquidity and significant decrease in stock price partly contribute to the low attractiveness of Vietnam's stock exchange.
Unbelievably, the calendar has somehow advanced to September, the month in which we celebrate National Day. For families, it also marks the end of the summer holiday season and the start of the new academic year.
This Q&A gives an overview of key recent developments affecting doing business in Turks and Caicos Islands as well as an introduction to the legal system; foreign investment, including restrictions, currency regulations and incentives; and business vehicles and their relevant restrictions and liabilities.
For those investors and international school operators looking at the K-12 sector in Dubai recently, the investment landscape has been in a state of flux.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).