HK’s overseas and mainland investments reached all-time high in 2012

But here’s why the government’s not resting on its laurels just yet.

According to Invest Hong Kong, the country’s overseas and mainland investors grew 4% from last year representing an all-time high. Overall, the government has assisted 316 companies, both overseas and Mainland, to set up or expand in Hong Kong in 2012.

Here’s more from Invest Hong Kong:

The Director-General of Investment Promotion, Mr Simon Galpin, was delighted to see the increase in completed projects but noted that global uncertainties vis-a-vis the euro debt crisis and American economy remained a concern.

“2012 was another record year for InvestHK in terms of completed projects. The positive results showed that Hong Kong continues to attract overseas and Mainland investors because of its enduring advantages and new business opportunities,” Mr Galpin said.

“In the year ahead, however, we will remain cognisant of global economic trends and continue to identify the sectors and markets which will reap the best benefits for Hong Kong. Our targets will include both multinationals and start-up businesses, which aspire to set up in our city,” Mr Galpin added.

The 316 completed projects derived from 34 countries. Mainland China continued to be the largest single source of investment into Hong Kong with a total of 62 projects, followed by the US with 54 projects, the UK (29), Japan (27) and Germany (17). The 316 companies planned to employ 2 937 people in Hong Kong for their first year of set up or expansion, up 8 per cent from a year previously.

By broad sector definitions, the top three in terms of number of completed projects were “Transport and Industrial” (48), “Tourism and Hospitality” (46) and “Innovation and Technology” (43). By subsector, there was an increasing number of companies from the fashion apparel and asset management industries. These reflect the role of Hong Kong as China’s international business and financial centre and its attractiveness to visitors and high net-worth individuals who are boosting the demand for retail and asset management.

Mr Galpin noted the rise in the number of German companies in InvestHK’s portfolio and said, “We are delighted to see that German companies are choosing to set up in Hong Kong in growing numbers.

“Our city is not only popular for multinationals with global functions but is also increasingly a magnet for entrepreneurs who are attracted by the business convenience and opportunities it has to offer,” Mr Galpin said.