2016 CEA-China: A Focus on internationalization in China (CEA-China 2016)

4 / 2015-12-04 09:18:33

The Research for Motivation, Characteristics and Effects of Direct Investment from Mainland to Hong Kong

Mainland and Hong Kong,Regional Cooperation,External direct investment

Based on the analysis of background and motivation of the Mainland investing directly to Hong Kong, this essay, with some measurement methods, aims to explore the economic effects of these investments. The results showed that, in recent years, investment scale of the Mainland to Hong Kong has expanded rapidly. Hong Kong has become the largest destination of mainland investment and, the Mainland has become Hong Kong's largest source of foreign investment. On the one hand, maintaining a smooth transition and prosperity and stability of Hong Kong, enhancing the utilization of advantages of Hong Kong's service, improving the competitiveness of the manufacturing sector, acting as an intermediary platform to expand the international market, are the main motivations for Mainland enterprises investing in Hong Kong. On the other hand, investing in Hong Kong has contributed to economic growth in the Mainland, and promotion of economic and trade exchanges between the Mainland and Hong Kong. Focusing on some existing problems, the essay proposes on how to promote investments, including the optimization of the investment industry layout, promoting the expansion of investment in inland provinces and autonomous regions, encouraging private enterprises to expand investment in Hong Kong, and improving system of foreign investment promotion and service.