SOURCE / ECONOMY
Chinese mainland’s use of FDI from HK up 30% from Jan-Oct
Published: Nov 24, 2021 09:33 PM
A concept photo of stock market of Hong Kong Illustration: VCG

A concept photo of stock market of Hong Kong Illustration: VCG



The Chinese mainland's use of capital from the Hong Kong Special Administrative Region (HKSAR) hit $109.15 billion from January to October in 2021, up 30 percent year-on-year, and investment opportunities will further increase, an official from the Ministry of Commerce (MOFCOM) said on Wednesday.

Capital from the HKSAR accounted for 76.9 percent of the foreign direct investment (FDI) in the mainland, making it the largest source. The mainland's non-financial direct investment in the city hit $44.79 billion, accounting for 50.9 percent of the mainland's overseas investment, according to MOFCOM data.

Since the beginning of 2021, trade between the mainland and the HKSAR has achieved rapid growth despite the adverse effects of the epidemic. From January to October, total trade hit $285.95 billion, a year-on-year increase of 33.5 percent.

The HKSAR needs to make full use of both the mainland and foreign markets, seize the policy opportunities of the mainland's further opening-up, optimize the business layout in the mainland and share the dividends brought by the mainland's stable development, Liang Haiming, chairman of China Silk Road iValley Research Institute, told the Global Times on Wednesday.

During the 14th Five-Year Plan (2021-25) period, the Chinese mainland will vigorously support the development of the Hong Kong and Macao SARs and improve their engagement in the dual circulation development paradigm, Ren Hongbing, vice minister of the MOFCOM, said at a press conference on Wednesday.

While the Hong Kong and Macao SARs are increasingly benefiting from various development plans on the mainland, firms from the island of Taiwan should also pursue similar opportunities, analysts said. 

Zhu Fenglian, spokesperson for the Taiwan Affairs Office of the State Council, said at a press conference on Wednesday that the mainland welcomes enterprises from the island to participate in the mainland's multi-level capital market system, which offers better potential and bigger opportunities, when asked about the listing of Taiwan-based enterprises at the new Beijing Stock Exchange.

However, Zhu said earlier this week that "we welcome Taiwan-based enterprises to invest and develop in the mainland and will continue to protect their legitimate rights and interests in accordance with the law. But we will never allow those that support Taiwan secession or undermine cross-Straits relations to make money on the mainland and those who bite the hands that feed them."

Global Times 


blog comments powered by Disqus