Hong Kong courts Indian companies as gateway to China expansion

Hong Kong: The Hong Kong government has started exploring ways to attract Indian companies to set their base in Hong Kong as a gateway to expand into Mainland China, top officials at the local investment promotion department said.

InvestHK, the dedicated department for investment promotion, is in talks with an Indian insurance company, King Leung, global head of financial services, fintech and sustainability at the department told ET on the sidelines of Hong Kong Fintech Week and StartmeupHK Festival. he said that the department has had meetings in Mumbai and New Delhi earlier in the year to this end.

As many as 1400 overseas and Chinese companies establish or expand their businesses in Hong Kong over 2023 and 2025, having brought in more than $24 billion in foreign direct investment during this period, Hong Kong chief executive John Lee said, in his keynote address at the summit which hosted over 37000 executives, 800 speakers and 700 exhibitors from over 100 economies.

Lee said that the special administrative region of China is now home to more than 1200 fintech companies, reflecting a 10% rise from last year. "Our fintech sector is expected to exceed $600 billion in total revenue by 2032, with a growth rate exceeding 28% a year," he said.

Amid the global uncertainties, IPO fundraising in Hong Kong surpassed $23 billion in the first nine months of the year.

"Hong Kong is made for collaboration. Built for innovation, for companies, entrepreneurs, investors and professionals," he said. Hong Kong is also positioning itself to offer the platform to connect Mainland and international markets like never before.

On the sidelines, InvestHK director general Alpha Lau said that Hong Kong, which acts as a gateway to the mainland, is committed to remain a free trade zone while the US protectionism has changed the global trade orders.

The reporter is in Hong Kong at the invitation of the Hong Kong Government.