Mainland Chinese enterprise expansion via Hong Kong

Surveys conducted by the Hong Kong Trade Development Council (HKTDC) indicate that mainland Chinese enterprises are increasingly utilizing Hong Kong as a strategic hub for international expansion, particularly into the ASEAN region.

Initial findings showed that 91% of surveyed mainland firms planned to expand into ASEAN markets within two years, with over 80% intending to use Hong Kong as a launch pad. These companies are focusing on sectors such as artificial intelligence, semiconductors, and new energy, while seeking professional services in legal, accounting, and risk management. Malaysia was identified as a primary destination for semiconductor and AI-driven investment.

Subsequent data reinforced Hong Kong’s position as a preferred services platform, with 83% of enterprises selecting it as their first choice for professional services, outperforming both mainland China and Singapore. Recent HKTDC survey results involving over 2,000 internationalized mainland enterprises confirm this trend, with 83% preferring Hong Kong as their service platform due to its expertise in financial and professional services, including legal, accounting, risk management, and ESG support.

While expansion efforts remain heavily concentrated on ASEAN countries like Singapore, Vietnam, and Thailand, there is growing interest in the Middle East and Latin America. Notably, 94% of respondents cited Belt and Road markets as key destinations. Despite these ambitions—with 82% planning to expand existing overseas operations and 63% intending to launch new ventures—businesses identified several hurdles, including market uncertainty, intensified overseas competition, and funding shortages required for supply-chain or operational adjustments.