The total stock of foreign direct investment in Hong Kong increased by 9.1% year-on-year at the end of 2024

The Zhitong Finance App learned that on December 9, the Statistics Department of the Hong Kong Government published Hong Kong's OFDI statistics for 2024. At the end of 2024, Hong Kong's total foreign direct investment stock (i.e. Hong Kong's direct investment debt position) rose 9.1% from the end of the previous year to HK$20.496 billion, equivalent to 631% of the gross domestic product in 2024. The increase in 2024 was mainly due to positive direct investment inflows into Hong Kong during the year.

In terms of Hong Kong's total outward direct investment stock (that is, Hong Kong's direct investment asset position), it rose 6.7% from the end of 2023 to HK$18.89 billion, equivalent to 595% of the gross domestic product in 2024. The increase in 2024 was mainly due to positive direct investment outflows to overseas companies during the year, while the decline due to exchange rate fluctuations offset part of the increase. The reason is that some direct investment assets are denominated in other currencies.

According to the analysis of direct sources of investment, Mainland China (Mainland) and the British Virgin Islands are the two largest sources of Hong Kong's foreign direct investment, accounting for 32.7% and 30.4% respectively at the end of 2024. According to an analysis of the main economic activities of Hong Kong enterprise groups receiving foreign direct investment, Hong Kong enterprise groups engaged in investment and holding, real estate, professional and commercial services accounted for the largest share, reaching 68.2% at the end of 2024. This was followed by banks, accounting for 11.0%; and import/export trade, wholesale and retail, accounting for 10.5%.

According to the first destination analysis, the Mainland and the British Virgin Islands are also the two largest destinations for Hong Kong's outward direct investment, accounting for 52.1% and 27.6% respectively at the end of 2024. According to an analysis of the main economic activities of Hong Kong enterprise groups that make outward direct investments, Hong Kong enterprise groups engaged in investment and holding, real estate, professional and commercial services accounted for the largest share, reaching 78.8% at the end of 2024. This was followed by import and export trade, wholesale and retail, accounting for 8.6%.

Total direct investment inflows in 2024 were HK$982.4 billion, up from HK$954.9 billion in 2023. On the other hand, the total outflow of direct investment in 2024 was HK$629.2 billion, which is less than HK$752.9 billion in 2023. Taking inflows and outflows together, a net direct investment inflow of HK$353.2 billion was recorded in 2024.

According to the analysis of direct sources of investment, mainland China was the main source of direct investment inflows to Hong Kong in 2024, amounting to HK$466 billion. The British Virgin Islands was followed by HK$237 billion. According to an analysis of the main economic activities of Hong Kong enterprise groups receiving direct investment inflows, Hong Kong enterprise groups engaged in investment and holding, real estate, professional and commercial services absorbed the largest direct investment inflows in 2024, amounting to HK$588 billion.

According to the first destination analysis, mainland China accounted for the largest share of direct investment outflows from Hong Kong in 2024, amounting to HK$372.9 billion. The British Virgin Islands was followed by HK$198.9 billion. According to an analysis of the main economic activities of Hong Kong enterprise groups that have made direct investment outflows, Hong Kong enterprise groups engaged in investment and holding, real estate, professional and commercial services had the largest outflow of direct investment, amounting to HK$452.9 billion.

A Hong Kong government spokesman said that Hong Kong remains one of the world's major OFDI destinations and sources, and will continue to record huge total direct investment inflows and outflows in 2024, reaching HK$982.4 billion and HK$629.2 billion respectively. The total stocks of foreign direct investment and outward direct investment also increased, reaching HK$20.496 billion and HK$18.89 billion respectively (equivalent to 631% and 595% of GDP) by the end of 2024. This confirms Hong Kong's status as a major international financial and commercial center, as well as a preferred base for multinational enterprises, and reflects the confidence of global investors in Hong Kong's economic prospects.

Hong Kong's OFDI covers a broad geographical area and various economic activities. Among them, the Mainland is an important source and destination for Hong Kong's OFDI. This highlights Hong Kong's important role as a “super contact” and “super value-added person”.

The Hong Kong Government will continue to use Hong Kong's unique advantages to play the role of “internal and external communication”, continue to deepen Hong Kong's international ties in all aspects, and actively take measures to attract more mainland enterprises to use Hong Kong as a platform to go overseas. The Hong Kong Government will also strengthen policies to attract more strategic enterprises to settle in Hong Kong and promote high-quality development.