HK Economy- Highlight
9 Feb 2018
Hong Kong as the world’s freest economy is renowned for its straightforward business environment. Its low tax regime and free flows of capital and information all combine to effectively lower overall operational costs, while ultimately facilitating rapid access to international market opportunities. Hence, mainland enterprises often see Hong Kong as their preferred service platform when pursuing Belt and Road opportunities.
Chinese enterprises are devoting greater efforts to developing their business worldwide. Notably, some are seeking investment opportunities in Asian and African countries under the Belt and Road Initiative. But investors must acquire an in-depth understanding of the business environment of their investment destinations in order to ensure that their investment projects can be implemented smoothly.
Hong Kong and the Chinese mainland inked two new agreements on 28 June 2017, namely the Investment Agreement and the Economic Technical Cooperation Agreement (Ecotech Agreement) to progressively enrich the CEPA content over the years. The Ecotech Agreement does not cover market access commitments or substantive liberalisation measures, but set forth the direction for closer future co-operation between Hong Kong and the Chinese mainland.