Hong Kong serves as strategic launchpad for ASEAN enterprises expanding into global markets

HONG KONG, 08 September 2026 (TATOLI) — As trade and investment corridors between Southeast Asia and East Asia deepen, Hong Kong is aggressively positioning itself as the premier “super-connector” and “super-value-adder” for Association of Southeast Asian Nations (ASEAN) businesses aiming to tap into Mainland China and scale globally.

Speaking on Hong Kong’s role as a springboard under the Belt and Road Initiative, Loretta Lee, Associate Director-General of Investment Promotion at InvestHK, highlighted the city’s unique economic structure, robust financial markets, and unmatched proximity to Mainland opportunities through the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

“Hong Kong is the only city where global and China advantages converge, offering an ideal ecosystem for international businesses to thrive under ‘One Country, Two Systems’,” Loretta Lee, Associate Director-General of Investment Promotion at InvestHK, said in her presentation delivering for the international journalist in Fairmont House, Admiralty, Hongkong today.

Hong Kong’s economic momentum is highlighted by strong key macroeconomic and sectoral indicators. Real GDP expanded by 5.9% year-on-year in Q1 2026, accelerating from a 3.5% full-year growth recorded in 2025.
In foreign direct investment during the first half of 2026, InvestHK completed 413 direct investment projects—a 9% increase year-on-year, which generated over HK$53 billion (~US$6.8 billion) in FDI (up 36%) and created more than 8,600 new jobs (up 6%). The city’s total annual merchandise trade reached HK$9.5 trillion (~US$1.22 trillion), underpinned by a dominant services sector that accounts for 94% of total GDP.

Furthermore, Hong Kong serves as the premier entry point to the broader Guangdong-Hong Kong-Macao Greater Bay Area (GBA) ecosystem, connecting businesses to a population market of 88.3 million with a combined regional GDP of US$2.22 trillion. This environment is further complemented by a record-high local startup ecosystem of 5,221 active startups employing nearly 20,000 professionals across key innovation areas such as FinTech, healthtech, and green technology.

Strong growth and economic acceleration signal global investor confidence

InvestHK achieved strong growth in the first half of 2026, successfully completing 413 direct investment projects — a 9% increase compared to 1H 2025. These projects generated over HK$53 billion in foreign direct investment (up 36%) and created more than 8,600 new jobs (up 6%) across Hong Kong.

This corporate expansion mirrors Hong Kong’s broader macroeconomic acceleration. The city recorded a 5.9% year-on-year real GDP growth in the first quarter of 2026, its strongest quarterly expansion in nearly five years, building upon a 3.5% full-year growth performance in 2025. Total annual merchandise trade stands at HK$9.5 trillion (~US$1.22 trillion), supported by a high-value tertiary services sector accounting for 94% of GDP.

While Mainland China accounted for 246 completed InvestHK projects (60%), ASEAN and wider international markets showed significant expansion. Singapore ranked second among overseas places of origin with 26 completed projects (6%), followed by the United States (21 projects, 5%), the United Kingdom (18 projects, 4%), France (11 projects, 3%), and Italy (11 projects, 3%).

The leading sector attracting direct investment in 1H 2026 was Innovation and Technology (23% /93 projects), followed by Financial Services and FinTech (22% / 89 projects), Tourism and Hospitality (13% / 55 projects), Transport, Logistics and Industrials (11% / 44 projects), and Business and Professional Services (9% / 39 projects).
At the same time, the local startup ecosystem reached a record high of 5,221 startups employing nearly 20,000 professionals, underscoring the rapid growth in FinTech, healthtech, and green tech sectors.

“Our 2026 first-half performance reflects sustained confidence from foreign investors who see Hong Kong not just as a stable market, but as an essential launching pad into the Greater Bay Area and broader global trade routes,” Lee stated.

Hong Kong maintains top global and regional rankings across several key economic indicators. According to the Fraser Institute’s Economic Freedom of the World report, the city ranks as the world’s 1 freest economy. In financial sector performance, the Global Financial Centres Index published by Z/Yen and the China Development Institute ranks Hong Kong as the #3 global financial centre. This international standing extends to cross-border capital attraction, with UNCTAD’s World Investment Report placing the city at 3 globally for inward foreign direct investment (FDI) inflows.

Human capital also remains a primary competitive advantage, as IMD’s World Talent Ranking positions Hong Kong as the 1 talent hub in the Asia-Pacific region. Together, these economic strengths support Hong Kong’s access to the broader Guangdong-Hong Kong-Macao Greater Bay Area (GBA) market footprint, which encompasses a population exceeding 88.3 million and a combined GDP of US$2.22 trillion according to HKTDC Research and regional data.
Unrivalled Advantages: Capital, Taxation, and Connectivity

Hong Kong operates a simple, two-tiered profits tax regime, charging 8.25% on the first HK$2 million (~US$256,400) of profits and 16.5% thereafter. The city imposes no value-added tax (VAT), no capital gains tax, no withholding tax on dividends, and no sales tax or estate duty. Free capital movement, a US dollar-pegged currency, and a common law legal framework with robust intellectual property protections further cement its status as an international business venue.

“From a simple tax structure and free flow of capital to common law legal protections, Hong Kong offers ASEAN companies a seamless operational environment to set up regional headquarters,” Lee noted.

For ASEAN firms seeking capital, Hong Kong’s stock exchange raised over HK$285 billion (~US$36.6 billion) in IPOs during 2025. The city also hosts over US$5.4 trillion in asset and wealth management funds, serving as Asia’s leading cross-border wealth management center. Through mechanisms like Stock Connect, Hong Kong remains the sole bridge where global issuers can tap simultaneously into both international funds and Mainland Chinese capital.

Strategic gateway to ASEAN and Belt & Road Expansion

Hong Kong’s official investment promotion strategy places ASEAN at the core of its global outreach along the Belt and Road. InvestHK actively connects Southeast Asian enterprises with partners across the region and Mainland China.

“ASEAN is a core priority for Hong Kong’s Belt and Road strategy, and we are actively matching Southeast Asian businesses with strategic partners in Mainland China,” Lee emphasized.

Hong Kong’s strong economic value proposition is clearly demonstrated by several prominent Southeast Asian corporate success stories across diverse industries. Leading Thai energy group Bangchak Corporation Public Co. Ltd. established Hong Kong as its regional commercial and trading hub following a $270 million acquisition of Chevron Hong Kong Limited, which included taking over 31 Caltex-branded service stations.

In the financial sector, Cambodia’s major banking institution, Canadia Bank, established a physical presence in the city to facilitate cross-border trade, support regional business expansion, and leverage Belt and Road financial flows. Additionally, Philippine fast-food multinational Jollibee accelerated its store expansions throughout Hong Kong, effectively utilizing the city as a strategic springboard for broader regional growth.

“Whether assisting Cambodian institutions in setting up financial nodes or supporting Thai giants like Bangchak in regional energy expansion, our bespoke services pave the way for smooth operations,” Lee explained.

End-to-End One-Stop platform for overseas businesses

InvestHK provides free, tailored assistance across every phase of business setup and scaling. During the initial Planning stage, the agency offers strategic guidance, market entry advisory, and detailed insight into tax and regulatory sectors. When moving into the Set-Up phase, businesses receive support with licensing facilitation, visa processing, and direct introductions to banks, legal specialists, and key government departments.
To ensure a smooth Launch, InvestHK assists with business matching, PR and marketing efforts, and connects companies to chambers of commerce and strategic service partners. Finally, for long-term Expansion, the department provides ongoing promotion, guidance for sustainable growth, and scaling assistance to expand business networks.

Supported by 114 Consulates-General, 9 Free Trade Agreements covering 21 economies, and 59 Comprehensive Double Taxation Agreements, Hong Kong links Southeast Asian corporate networks directly to the 88-million population and US$2.22 trillion economy of the Greater Bay Area.

“InvestHK serves as an end-to-end partner for ASEAN companies, walking them through every step of planning, establishment, and long-term scaling in Hong Kong and across Mainland China,” Lee concluded.

TATOLI