23 August 2022
Those undertaking a global investment strategy today must consider investing in Hong Kong and China. Just recently, Hong Kong celebrated the 25th anniversary of the return of sovereignty to the People's Republic of China. While it is safe to say that opinion was mixed at the start, the economic and financial success of Hong Kong speaks for itself.
Consequently, it is almost inconceivable that international investors will not at least consider Hong Kong/Chinese-based companies as part of their global investment strategy.
When looking at global investment, there are several factors to consider, one of which is trust in the markets in which you are investing. Over the last 25 years, the figures speak for themselves, with Hong Kong having seen:-
• The economy double in size to more than HK$1.37 trillion
Undoubtedly, increased international and domestic interest in the Hong Kong stock market has attracted those putting together a global investment strategy. Moreover, the connect trading system allows Chinese companies to put in place a secondary listing on the Hong Kong market, opening the door to international investment.
The fact that some technology companies are looking to return to China, with primary and secondary listings on the Hong Kong stock market, can only make the region more attractive. Two-way business between international investors and Chinese-based companies, via the Connect trading system, has seen a significant increase in liquidity. Existing and future listed technology companies will require access to capital, creating the perfect platform for global investment.
Many people are unaware, but the Chinese government gave its formal support to the development of Hong Kong as a global innovation and technology hub. This was part of the Chinese government's 14th Five-Year Plan (2021-2025), with the Chinese president recently visiting the Hong Kong Science Park.
The Hong Kong Science Park is the largest research and development/business incubation hub in Hong Kong. The high-tech hub houses more than 1100 enterprises and 17,000 innovators, with one resident already listed on the Hong Kong stock exchange, SenseTime. The park already consists of 23 high-tech buildings with a total footprint of more than 4000 m². However, this is just the start, with further expansion already underway!
Historically, China has played a major role in the technology market, attracting significant global investment in recent years. When you bear in mind that innovative and forward-thinking companies such as Tesla have a substantial presence in China, this validates global investment in the Chinese technology market.
International investors will know that Hong Kong is a growing influence in the Far East and as part of a global investment strategy. While the technology sector tends to grab the headlines, Hong Kong is also extremely strong in ethical investment, carbon-neutral business goals and green technology. Consequently, it is no surprise that global investment in the area is expected to rise significantly in the short, medium and longer term.Back to News