Number Of Foreign Firms Grew Despite Covid: Survey

Hong Kong has seen a rebound in the number of foreign companies and startups in the past year despite the ongoing pandemic and travel restrictions, according to a survey by Invest Hong Kong.

The department found that the total number of foreign firms in Hong Kong has reached a record high of 9,049, ten percent up from 2017. There was also a 68 percent increase in the number of startups in the SAR.

Stephen Phillips, Invest Hong Kong's Director-General of Investment Promotion, said on Monday that the rise came despite challenges posed by Covid-19 restrictions.

“We see this continual growth of companies. We watch closely changes year on year... Obviously we got this dynamic zero Covid policy, inevitably it has presented challenges to the companies and indeed to its staff. But what we have seen is that companies are adapting to those challenges. At the end of the day, businesses respond to the challenges that they face. They find a way to work around the challenges,” he said.

But according to data released last October by the Census and Statistics Department, the number of US companies with regional headquarters in Hong Kong dropped to 254 - a record low in 18 years. There was also a 7 percent drop in Japanese headquarters in Hong Kong.

Commenting on the figures, Phillips said there were lots of underlying reasons behind the drop.

He said there was no evidence to suggest the decreases were related to the national security law.

"There are many reasons why the number of companies change, they may well relate to the economic challenges largely the companies have faced because of Covid. We don't see any tangible evidence that it relates to the national security law," he said.

He added that the department expects to see a steady growth in mainland enterprises in Hong Kong, with many mainland investors wanting to leverage on the SAR to raise capital.