During the past two decades, Hong Kong has established itself as a two-way platform for business between mainland China and the rest of the world. In particular, it has been the natural business hub in the Greater Pearl River Delta (GPRD). The complementary strengths of Hong Kong and the rest of the GPRD have combined to produce substantial growth and excellent opportunities for future business development.

Why invest in GPRD?

The GPRD – including Hong Kong, Macao and the Pearl River Delta Economic Zone portion of Guangdong Province – has particular appeal to investors. It accounts for some 25% of all FDI in Asia and for 20% of China’s GDP, placing it among the top 20 economies in the world. With a population of 48 million with the highest capita income in the mainland, the GPRD is a very attractive consumer market.


The region is unsurpassed as a production base for exports to overseas markets, accounting for one-eighth of China’s gross industrial output. It provides 5% of the world’s exports and operates the world’s busiest container port and international air cargo terminal.

The advantages

Hong Kong provides an ideal base for companies operating in the GPRD. Advantages include:

  • A natural business hub. Hong Kong is a leading centre for management, logistics, information, co-ordination, finance and professional services.


  • Geographical advantage. The city flanks the mouth of the Pearl River Delta, with easy access to the major cities there. All major delta cities are within one-to-three hours’ driving distance from Hong Kong


  • Unrivalled expertise. Hong Kong has traded with mainland China successfully for 160 years; its companies are involved with 180,000 joint ventures there.


  • Skilled and experienced workforce. The concentration of business and professional people strengthens the city’s role as the gateway to the delta and elsewhere on the mainland. Hong Kong people understand how China works and know how to deal with its business people.


  • Rule of law. There is a robust common law legal system to protect business interests and intellectual property.


  • A producer services hub. 80% of Hong Kong companies operating in the delta have set up offices in Hong Kong to perform financial management functions and to serve as regional headquarters.


  • CEPA. The Closer Economic Partnership Arrangement between Hong Kong and the mainland offers exciting opportunities to leverage tariff-free access to China’s markets and first-mover advantage in services sectors. And this year, CEPA II has extended benefits to considerably more products and service sectors.


Asian dragon

All of these factors have helped to make the GPRD the “fifth Asian dragon”. The partnerships among Hong Kong, the Pearl River Delta and neighbouring provinces will strengthen even further and offer new and expanded opportunities for foreign investors.

And businesses do not have to do this alone. Invest Hong Kong is in business to help them do business. It can supply a step-by-step guide to setting up in Hong Kong and can help link investing companies with business partners. It can guide them through the government regulations and requirements and can provide sector-specific expert advice. Once firms are up and running, Invest Hong Kong will always be available to lend a helping hand.