HONG KONG: Hong Kong came second in global foreign direct investment (FDI) flows for the first time, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2015.
According to the report, Hong Kong registered FDI inflows of 103 billion U.S. dollars in 2014, a year-on-year increase of 39 percent.
It puts Hong Kong second only after the Chinese mainland (129 billion U.S. dollars) and ahead of the United States (92 billion U. S. dollars), Britain (72 billion U.S. dollars) and Singapore (68 billion U.S. dollars).
In terms of outflows, Hong Kong also ranks second (143 billion U.S. dollars), following the United States (337 billion U.S. dollars) and ahead of the Chinese mainland (116 billion U.S. dollars), Japan (114 billion U.S. dollars) and Germany (112 billion U.S. dollars).
The report said that the increase of outflows from Hong Kong in 2014 was partly a result of booming cross-border merger and acquisition activity.
The Director-General of Investment Promotion Simon Galpin said on Thursday that the numbers highlight Hong Kong’s role as a ” super-connector” and a conduit for direct investment.
Foreign investors use Hong Kong as a base to then invest in the rest of China and the region, while mainland companies increasingly use Hong Kong as a platform to make global investments and acquisitions, he said.
