How Hong Kong government initiative entices fintech, AI, data science and advanced manufacturing businesses
- Over 30 strategic enterprises expected to invest US$3.8 billion in city after launch of Office for Attracting Strategic Enterprises
- Smart retail solution provider Dmall will use Hong Kong presence as springboard to expand software-as-a-service platform in Asia and across world
Hong Kong remains an attractive regional location for foreign direct investment (FDI), two recent government studies reveal.
Last year there were 9,039 companies based in Hong Kong with parent companies overseas or in mainland China – showing a recovery back to the high level from before the Covid-19 pandemic – December’s “2023 Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong” says. These businesses employ about 468,000 people in the city.
A second study shows that start-ups are continuing to flourish in Hong Kong, with 4,257 new businesses beginning to operate in the city last year – an increase of 272 compared with 2022’s total – the “2023 Startup Survey”, also published in December, reveals. These start-ups now employ 16,453 people in various industries, such as financial technology (fintech), e-commerce, supply-chain management and logistics technology, the report says.
The findings of these surveys come as the government initiative, the Office for Attracting Strategic Enterprises (Oases), revealed that it has attracted over 30 strategic enterprises to establish a foothold in Hong Kong since it was launched in December 2022.
It says these businesses are focused on industries of strategic importance to the city, including life and health technology, artificial intelligence (AI) and data science, fintech, advanced manufacturing and new-energy technology. They are expected to invest a total of more than HK$30 billion (US$3.8 billion) in the city in the next few years, and will create over 10,000 jobs, with most in research and development or senior management positions.
One of those businesses is Dmall, an omnichannel, smart retail solution provider and software-as-a-service (SaaS) platform, which can help retailers improve their customer experience and efficiency. Its technology is already used by more than 150 retailers throughout China, including the Wumart supermarket chain established by the same founder, Zhang Wenzhong, and many retail operations the group has acquired. Now, the company is looking to expand its reach worldwide.