ALLEN AU-YEUNG
ALLEN.AUYEUNG@SCMP.COM
PUBLISHED : Monday, 26 October, 2015, 3:59pm
UPDATED : Monday, 26 October, 2015, 5:40pm
Simon Galpin pointed to accommodation costs and school places being problems in attracting firms. Photo: Nora Tam
The number of non-local companies which have set up offices in Hong Kong has grown 4.2 per cent to a record 7,904 as of June amid uncertainty over the global economy, according to the government.
The growth was led by mainland firms, with their number jumping 14 per cent to 1,091, according to the annual survey conducted by Invest Hong Kong and the Census and Statistics Department in June.
READ MORE: Hong Kong to reap benefit from growth of neighbours
The US continued to rank first with 1,368 companies in Hong Kong, followed closely by Japan.
Simon Galpin, director general of investment promotion, said the sharp jump in the number of mainland enterprises reaffirmed Hong Kong’s role as the major springboard for going global and a destination for mergers and acquisitions.
“We have to wait and see if [the state of the mainland economy] will have an impact on the number of companies investing in Hong Kong,” he said.
“The fact that China is signing high-profile agreements, most recently with the UK, is not a threat to Hong Kong,” Galpin added.
The survey showed Hong Kong was favoured for its low and simple tax regime, a free port and free flow of information.
However, the survey found the city lagged behind in areas like a shortage of international school places and high accommodation costs.
Just 17 per cent of the surveyed companies considered the availability of international school places to be a favourable factor for Hong Kong.
Moreover, about 42 per cent considered the availability and cost of residential accommodation to be an adverse factor.
http://m.scmp.com/news/hong-kong/economy/article/1872175/number-overseas-firms-setting-shop-city-hits-new-high-says
