No.9 December, 2009  
   
  Direct investment inflow up 9.5%  
     
  New figures have revealed direct investment inflow to Hong Kong rose 9.5% to HK$464.3 billion (A$66.3 billion) last year while direct investment outflow fell 17.3% to HK$393.9 billion (A$56.3 billion), resulting in a net inflow of HK$70.4 billion (A$10 billion).

At the end of last year, the stock of Hong Kong's inward direct investment fell 31.1% from a year earlier, to HK$6.326 trillion (A$903 billion) at market value. Its ratio to GDP stood at 377%.

China accounted for the largest share of the total stock at 36.5%. The British Virgin Islands and Bermuda took up another 32.3% and 5.7% of the total stock.

Meanwhile, the stock of Hong Kong's outward direct investment fell 25.1% from a year earlier, to HK$5.91 trillion (A$844 billion) at market value. Its ratio to GDP was 352%.

Analysed by immediate destination of investment, the Mainland was the most important destination for Hong Kong's outward direct investment, occupying 44.4% of the total stock.

The Census & Statistics Department said the notably lower stocks of inward and outward direct investment last year were due to the global financial turmoil, which led to falls in market values of the firms concerned.

Yet the high ratios of inward and outward direct investment to the size of the Hong Kong economy continued to underline the city's status as a regional business hub and an international financial centre.

China continued to feature prominently in Hong Kong's external direct investment, both as a source and a destination. The investment links between the two places should continue to go from strength to strength amid their rapid economic integration.
 
     
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