[Hong Kong version of the National Security Law] US direct investment in Hong Kong has more than 600 billion yuan in companies in all walks of life

Macro interpretation

Written by: He Jingxi

2020-05-30 15:00

US President Trump announced that he will cancel special treatment for Hong Kong and sanction officials who weaken Hong Kong ’s autonomy. The market is concerned about whether the change of US attitude towards Hong Kong will affect the investment of American companies in Hong Kong.

Looking up the latest figures from the Office of the US Trade Representative Office, the United States' foreign direct investment (FDI) in Hong Kong in 2018 was US $ 82.5 billion (about HK $ 640 billion). According to statistics from the Hong Kong Trade and Industry Department, as of the end of 2017, US foreign direct investment in Hong Kong reached US $ 41.7 billion. The United States is an important source of direct investment in Hong Kong's financial industry (excluding banks, investment and holding companies), import and export, wholesale and retail trade industries.

As of June 1, 2018, of the Hong Kong companies in the US, the parent company has 290 regional headquarters, 434 regional offices, and 627 local offices. Among the foreigners in Hong Kong, there are many Americans. As of the end of December 2018, approximately 20,758 American nationals lived in Hong Kong and 1.3 million visitors from the United States visited Hong Kong.

The United States is an important source of direct investment in Hong Kong's financial and trading industries. (Reuters)

Bank of America's total assets in Hong Kong account for about 5% of the industry

Finance is a major industry for US funds to invest in Hong Kong. According to government statistics, as of the end of 2018, 9 of 152 licensed banks in Hong Kong, 5 of 18 restricted license banks, and 1 of 48 representative offices All of them are US-funded institutions. Bank of America's total asset value and customer deposits in Hong Kong are approximately US $ 148 billion and US $ 79 billion, respectively, accounting for approximately 5% of the overall Hong Kong banking industry figure.

These U.S. banks include Bank of America, Citibank, JPMorgan Chase Bank, Wells Fargo Bank, Morgan Stanley, Goldman Sachs, etc. .

Foreign insurance company ranked third in the United States

Among the foreign-funded insurance companies operating in Hong Kong, the number of US companies ranks third. Of the 161 recognized insurance companies in Hong Kong, 10 are US companies and 12 are known to be controlled by US capital. US-funded insurance companies include companies under the American International Group, Chubb Group, and MetLife Group.

American companies are also actively involved in securities and futures trading activities, providing investment advisory, fund management and credit rating services, including Standard & Poor's and Moody's.

Hong Kong Disneyland is jointly owned by an associate company established by the Hong Kong Government and The Walt Disney Company. (Profile picture)

U.S.-funded companies in all walks of life

In addition to the financial industry, tourism is also an important part of Hong Kong's economy. Hong Kong Disneyland Resort is jointly owned by an associate company established by the Hong Kong SAR Government and The Walt Disney Company.

U.S.-funded companies are found in various industries. Other well-known U.S. companies in Hong Kong include 3M, Amazon, Deloitte, Estee Lauder, Expedia, ExxonMobil, Facebook , Fedex, Google, Johnson & Johnson, Marriott International, Nike, Oracle, PayPal, Pfizer, P & G, etc.

American Chamber of Commerce in Hong Kong: Time to digest subsequent impact

Tara Joseph, the president of the American Chamber of Commerce in Hong Kong, described it as a tragic day when the United States announced that it would cancel special treatment for Hong Kong. It also means that for Americans in Hong Kong, whether it is a business or a family, it takes time to digest the subsequent impact. She emphasized that the Chamber of Commerce will continue to work with its members to maintain Hong Kong's status as an important business center.

Hong Kong version of National Security Law