This picture taken on Aug 3, 2019 shows a general view of residential and commercial buildings in the Kowloon district (foreground) with the skyline of Hong Kong Island past Victoria Harbour (center) in the distance. (ANTHONY WALLACE / AFP)

Hong Kong’s COVID-19 travel restrictions will not hurt foreign direct investment in the long term, said Stephen Phillips, director-general of Investment Promotion of InvestHK.

Hong Kong recently extended flight bans on eight countries until Feb 4 to battle the fifth wave of omicron variant outbreaks. Depending on the vaccination status and which country or region they come from, arrivals must be quarantined for between seven and 21 days. 

“(Investors) invest somewhere because of the long-term market potential, not because of its easier travel models. … They make decisions based on the potential of investment,” Phillips said, adding that Hong Kong has a promising investment future. 

The fact shows Hong Kong continues to have its vital role as an international financial center, and interplay its role between the mainland and the rest of the world.

Stephen Phillips, Director-general, Investment Promotion,InvestHK

He said the top sources of investment last year in the city were from the Chinese mainland, followed by Japan and the United States. The number of mainland firms with regional headquarters in Hong Kong increased by some 6 percent year-on-year to 252, according to the latest data from the Census and Statistics Department.  

Phillips also said Hong Kong showed “resilience” despite global headwinds, including the coronavirus. InvestHK completed 333 projects last year in supporting overseas and mainland businesses to set up and expand in the special administrative region, a 5 percent increase from 2020.  

The projects mainly included innovation and technology, fintech, financial services and family office sectors, and created more than 3,000 jobs last year. The participants in projects came from 42 economies worldwide.  

“The fact shows Hong Kong continues to have its vital role as an international financial center, and interplay its role between the mainland and the rest of the world,” Phillips said.  

InvestHK is rolling out a series of initiatives globally to attract talent, thus helping companies to get established in Hong Kong, he said. “Talent is such an important factor in success of companies, whether its homegrown talent or importing talent worldwide. … The potential for the future is very, very significant.” 

Established in 2000, InvestHK is a department of the Hong Kong Special Administrative Region government set up to attract foreign direct investment, as well as provide help for overseas and mainland businesses. 

Hong Kong had a record 9,049 mainland and foreign companies last year, among which over 1,450 used Hong Kong as regional headquarters. The number of startups reached 3,755, which represented 68.5 percent growth compared to the 2017 data, InvestHK said. 

Contact the writer at tianyuanzhang@chinadailyhk.com