Global recovery boosts increases in inward, outward DI

Total inward and outward direct investments went up by 17% and 12.1%, respectively.

A government spokesman revealed that Hong Kong’s total direct investment (DI) inflow and outflow rose to 17% and 12.1%, respectively in 2021, partly linked to the visible recovery of the global and local economies during 2021.

In 2021, a net DI inflow of $340.1b was recorded, up 29% in 2020.

The Census & Statistics Department also reported that the total stock of inward DI grew by almost 6% over a year earlier to $16t. 

Its ratio to the gross domestic product (GDP) stood at 586% in 2021. The increase in 2021 was “mainly attributable to the positive DI inflow to Hong Kong during the year.”

On the total stock of Hong Kong's outward DI, it increased by 4.5% over 2020 to over $17t. Its ratio to economy was 598% in 2021. The growth in 2021 stemmed from the positive DI outflow to enterprises outside Hong Kong during the year.

In terms of immediate source of investment, the British Virgin Islands and China were the two largest sources of the market’s inward DI, with a share of 30.9% and 27.7%, respectively, at end-2021. The two locations were also the largest destinations for outward DI, with a share of 49.3% and 30.3%, respectively, at end-2021.

When it comes to major economic activity of Hong Kong enterprise groups which had received inward DI, “those engaged in investment and holding, real estate, professional and business services took up the largest share, at 63.9% at end-2021. This was followed by banking, at 13.2%; and import/export, wholesale and retail trades, at 11.5%."