More local and foreign businesses will establish their base in Hong Kong in 2024
As Hong Kong sees considerable growth in the number of local and foreign businesses, the city retains its status as a global business hub more than ever. According to the most recent data from Invest Hong Kong (InvestHK), in 2024, the city hosted 9,960 foreign-owned enterprises, a 10% year-on-year growth, and 4,694 startups, a record high for both categories.
Local businesses, particularly startups, have enjoyed significant growth, particularly in health, medicine, and environmentally responsible technology. The number of startups’ employees has increased by 7% this year and by an astounding 65% since 2020. In 2024, startups will hire 18,000 people.
According to Alpha Lau, the Director-General of Investment Promotion, proactive government policies play a role in such expansion that encourage innovation and create an atmosphere beneficial to business. Furthermore, the Hong Kong government has made efforts to promote emerging sectors and companies, which has resulted in a remarkable growth in the total number of local and foreign businesses.”
Foreign Businesses on the Rise
As for the rise in foreign businesses establishing their base in Hong Kong, the city hosts foreign-owned companies from Mainland China, Japan, the United States of America, the United Kingdom, and Singapore. Hong Kong’s location is a pragmatic choice for foreign businesses as it is the gateway for Mainland Chinese companies to reach out to other markets and the rest of the world to springboard into Mainland China. The appeal of Hong Kong is its developed financial system and favourable tax rules, leading to an increase of regional offices in the city by 5.5% to 1,410. Additionally, the number of people employed by such firms reached nearly 500,000, an increase of 5% yearly.
To ensure this expansion continues, InvestHK has assisted more than 500 businesses in establishing new operations or expanding existing ones in 2024, a fifty per cent increase from the previous year. In 2025, a new office in Turkiye will open, and the department continues to connect with investors from all over the world through its 34 offices located all around the world. Along with this expansion, Hong Kong will establish ties with nations along the Belt and Road and recruit a diverse range of businesses aligned with this expansion.
Emergence of Family Offices
The emergence of family offices and developing sectors has fuelled the number of local and foreign businesses in Hong Kong. To further reinforce Hong Kong’s status as a leading financial hub, businesses like Glory have capitalised on government regulations that target individuals with high net worth.
The city’s attractiveness lies in its open and accessible business ecosystem, its pool of world-class talent, and the government’s initiatives to encourage innovation. These elements have increased the number of local and foreign businesses and employment prospects.
Hong Kong is well-positioned to be a global centre for innovation and investment. Its business community will be lively and diverse for many years to come, primarily due to the city’s advantageous location, strong startup environment, and robust infrastructure.
