Why HK is the ideal platform for mainland GBA firms seeking global expansion
HKTDC, ACCA list services HK can offer for businesses expanding in RCEP markets.
Hong Kong has been chosen as the “port of call” for mainland Chinese businesses in the Guangdong-Hong Kong-Macao Greater Bay Area which are seeking to expand their business internationally using the Regional Comprehensive Economic Partnership (RCEP) Agreement.
This was revealed by the Hong Kong Trade Development Council (HKTDC) and the Association of Chartered Certified Accountants (ACCA) in a joint report.
The report found that half of the mainland companies seeking expansion prefer Hong Kong as their source for professional services they need for expanding such as product development and design (31%), banking, financing, and project valuation (30%), brand design and marketing strategies (30%), and related legal and accounting services (30%).
"Given the city's strengths in financial, legal, accounting, and other professional services, Hong Kong can help mainland companies in the GBA minimise risks during overseas expansion," HKTDC Director of Research Nicholas Kwan said.
ACCA Hong Kong Head Jane Cheng, for her part, said HK has professional project evaluation and sustainability assessment services which mainland businesses can utilize when raising funds for investment in RCEP countries.
Kwan said that while HK has yet to become a member of the RCEP, the city can “play a key role in the latest round of mainland outbound investment into other RCEP markets.”
Kwan underscored that 58% of outbound foreign direct investments in the mainland in 2020 were channelled through HK.
The HKTDC director added that HK can expect to play a larger role in trade between RCEP members, particularly in electronic products and other industrial items, as the agreement strengthens intra-regional supply chain ties.