“World Investment Report 2025 (WIR)” released! Hong Kong's foreign direct investment inflows rise to third place in the world in 2024

The Zhitong Finance App learned that the United Nations Conference on Trade and Development (UNCTAD) recently released the “World Investment Report 2025 (WIR)”. The report shows that Hong Kong's foreign direct investment (FDI) inflows in 2024 rose one place to third in the world. According to statistics, FDI inflows into Hong Kong reached US$126 billion in 2024, up 2.6% year on year. Hong Kong's total foreign direct investment stock also climbed to US$2.35 trillion, making it the fifth largest foreign direct investment destination in the world.

As a “super contact” for mainland China and the international market, Hong Kong is the first stop for many foreign investors to enter the mainland China market and a “super window” for observing opportunities in the mainland China market. Next, I will give you a detailed introduction to the distribution of foreign capital inflows into Hong Kong.

I. Accelerated inflow of foreign capital into the Hong Kong market

1. The flow of foreign capital into Hong Kong

According to media reports, in addition to directly purchasing Hong Kong securities assets, overseas investors will also enter mainland China's capital market through Hong Kong's financial services. Among them, in April of this year, Bond Connect's “Northbound Connect” turnover reached 1,08.9 billion yuan, a record high this year; from January to April of this year, foreign investors purchased mainland Chinese bond assets through Hong Kong reached 3,7399 billion yuan, continuing to attract more investment from global capital.

2. Structure of overseas investors entering the Hong Kong market

Since September of last year, more capital from Europe and the US, especially long-term capital, has flowed into Hong Kong, partly due to being attracted by valuations in the Hong Kong stock market and the fact that capital has stayed in Hong Kong to seek safe haven. In addition, Middle Eastern Capital is also accelerating the layout of the Hong Kong market: in the primary market, most of the Middle Eastern capital flowing into the Hong Kong market is long-term strategic capital, hoping not only to obtain financial returns, but also to diversify the economy through joint ventures with mainland Chinese companies to build digital and logistics infrastructure; in the secondary market, the Hong Kong Stock Exchange has successively included the Saudi Exchange, the Abu Dhabi Stock Exchange, and the Dubai Financial Market in the past two years. The exchange of related products and funds with each other is constantly increasing.

With its unique “one country, two systems” and status as an international financial center, Hong Kong has become a hot spot for global capital to pour in. So why can Hong Kong continue to attract foreign investment?

II. Hong Kong's unique advantages in attracting foreign investment

1. Hong Kong's economic development is stable

According to data released by the Statistics Department of the Hong Kong Government, Hong Kong has been in a steady development trend, mainly benefiting from the good performance of exports of goods and services. Hong Kong's economy expanded steadily in the first quarter of 2025. In fact, Hong Kong's gross domestic product increased by 3.1% year on year. It is expected that Hong Kong's GDP will grow by 2% to 3% in real terms throughout 2025, and will continue to grow.

2. Global strategic position

Hong Kong ranks among the highest in the world in various fields, fully reflecting Hong Kong's status as an international center:

Financial aspects

As an important banking and financial center in the Asia-Pacific region, Hong Kong ranked third in the world in the newly released “Global Financial Centers Index” report; as of November last year, the Hong Kong stock market ranked fifth in Asia and eighth in the world; the 2024 initial public offering also ranked fourth in the world in terms of capital raised.

In terms of air transport

Hong Kong International Airport was ranked as the world's busiest international air cargo airport in 2024, and the Hong Kong International Shipping Center Development Index also ranked fourth in the world; at the same time, Hong Kong is one of the busiest and most efficient ports in the world.

In terms of innovation and technology

According to the 2024 Global Innovation Index published by the World Intellectual Property Organization (WIPO), Hong Kong is rapidly developing into an innovation and technology center, ranking 18th in the world.

3. Intranet and external communication trade system

As one of the most open economies in the world, Hong Kong actively promotes global free trade and economic cooperation, and enjoys the status of a separate customs area. As a founding member of the World Trade Organization (WTO), since the establishment of the Hong Kong Special Administrative Region, it is still possible to participate in the WTO as a separate member under the name “Hong Kong, China” and carry out foreign trade. In addition, Hong Kong has also signed the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) with mainland China. The latest amendments have been upgraded to cover the four categories of “trade in services”, “trade in goods”, “investment” and “economic and technological cooperation”, bringing huge benefits to the promotion of trade and economic development between the two places.

4. Close economic ties with mainland China

In 2024, the total bilateral trade between mainland China and Hong Kong reached US$309.7 billion, accounting for 5% of mainland China's total foreign trade. Among them, the value of mainland China's exports to Hong Kong reached US$291.14 billion, making Hong Kong the second-largest export market in mainland China.

Looking forward to the future, Hong Kong will continue to optimize its business environment and welcome more domestic and foreign companies to choose Hong Kong. With its unique advantages, Hong Kong will continue to play a role as a bridge to help foreign investors seize China's economic development opportunities, achieve mutual benefit and win-win situation, and jointly promote the prosperity and progress of the regional economy.