Nearly 80 percent of Chinese mainland enterprises have chosen Hong Kong as their launchpad for global expansion, with their investment and fundraising activity in the special administrative region expected to grow significantly over the coming year, according to Deloitte.

"As Chinese enterprises accelerate their global expansion, Hong Kong is strengthening a model in which enterprises are nurtured on the mainland, enhanced through Hong Kong's value-added services and then extended to global markets,” said Robert Lui Chi-wang, southern region offering services leader of Deloitte China’s capital market services group, on Wednesday.

The global consulting agency released a handbook on the day, outlining the latest outbound trends of mainland companies and analyzing Hong Kong’s institutional and functional advantages in helping them tap international markets.

More mainland firms have been striving to pave the way overseas in recent years. Official data shows that China’s net outbound foreign direct investment reached more than $192 billion in 2024, up 8.4 percent from the previous year.

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By the end of 2024, China’s domestic investors had established about 52,000 enterprises across 190 countries and regions. Direct investments in countries participating in the Belt and Road Initiative surged by over 20 percent.  

Deloitte said the Hong Kong SAR accounts for about 60 percent of China’s annual outward direct investment, given to its “unique advantages” of being closely linked with international markets and having strong support from the country.

The city can also help mainland enterprises cut “hidden costs” in building a global foothold, particularly in tax expenses, financing activities, and holding structures, according to Anthony Lau Ming-young, a tax and business advisory leader at the agency.

Lau said mainland enterprises can use Hong Kong as an offshore holding platform and treasury center to extend loans to overseas subsidiaries, as the city imposes no foreign exchange controls.

When profits return to Hong Kong through dividends or interest payments, they can be reinvested abroad, enabling enterprises to expand internationally while reducing costs, he added.

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Deloitte expects mainland enterprises’ investment and fundraising activity in Hong Kong to see significant growth in the next 12 to 18 months, as many companies are still preparing to debut on the city’s equity market.

“After listing, many firms will not only use the capital to expand their global business, but also leverage it to establish investment centers and scale up their presence in Hong Kong,” said Polly Lee Po-chi, Deloitte China’s deputy audit and assurance leader.

In October, the SAR government launched the GoGlobal Task Force, a specialized team aiming to better support mainland enterprises by pooling resources and fostering greater synergy.

The task force has amassed resources from multiple government bureaus and departments, while partnering with chambers and professional bodies across industries including law, accounting, financial services and banking.

Secretary for Commerce and Economic Development Algernon Yau Ying-wah, who heads the task force, said last month he will submit a work plan to Chief Executive John Lee Ka-chiu by year-end.

The plan is expected to prioritize assisting mainland enterprises in expanding overseas to regions such as the Association of Southeast Asian Nations and the Middle East, according to Yau.

Contact the writer at gabylin@chinadailyhk.com