Record Surge of Multinationals and Start-ups in Hong Kong: A Golden Era for Business!

In an exciting development for the business landscape, Hong Kong is witnessing an unprecedented spike in the number of multinational corporations and start-ups, according to recent government surveys released this Tuesday. This year, the number of overseas and mainland Chinese companies operating in the vibrant city soared to a record high of 9,960, representing a robust increase of 10% from the previous year.

Additionally, the burgeoning start-up ecosystem in Hong Kong has thrived, with the number of new ventures reaching 4,694—a remarkable ten percent growth. This surge underscores Hong Kong's vital role as a leading platform for businesses seeking to establish a foothold in Asia and beyond.

Secretary for Commerce and Economic Development, Algernon Yau Ying-wah, acknowledged Hong Kong’s competitive advantage, stating, “With our unique 'one country, two systems' framework, Hong Kong serves as the ideal dual-access gateway for foreign enterprises to enter the mainland market and for mainland businesses to launch themselves globally.” This attraction continues to draw businesses despite various global challenges.

The headcount of employees in firms backed by overseas parent companies rose to 493,000, marking a 5% year-on-year growth. The workforce encompasses diverse sectors, such as international trade (4,730 employees), finance and banking (2,020), and professional services (1,530).

Delving into the origins of these multinational firms, companies from mainland China dominated, contributing 2,620 firms, followed by Japan (1,430), the United States (1,390), the United Kingdom (720), and Singapore (520). Yau emphasized this trend, stating, “Companies from the mainland continue to favor Hong Kong, reinforcing the notion that our city is the launching pad for their global aspirations.”

An astoundingly 40% increase in start-ups since 2020 showcases the thriving entrepreneurial spirit in Hong Kong. These ventures have collectively employed 17,651 individuals, reflecting a 7% boost from last year as well. Notably, the health and medical start-ups saw a staggering 54% increase, while sustainable technology initiatives surged by an impressive 82%.

Yau attributed this growth to the government's strategic support in nurturing a conducive environment for entrepreneurs. “The continuous expansion of start-ups signifies that our proactive assistance has been pivotal in building an entrepreneurial ecosystem where innovation can flourish,” he asserted.

The 2024 Annual Survey of Companies was a collaboration between InvestHK, the investment promotion arm of the Hong Kong SAR government, and the Census and Statistics Department, while the Startup Survey involved partnerships with 56 co-working spaces, incubators, and accelerators, emphasizing a collective effort to foster business growth.

With the momentum showing no signs of slowing, all eyes are on Hong Kong as it fortifies its position as a global hub for business innovation and investment. The mix of a resilient business environment and a surge in entrepreneurial ventures paints a promising future for this dynamic economic landscape. Are you ready to discover the incredible opportunities awaiting in Hong Kong?