Hong Kong second least choice for new investments in Asia

More than half of  investors in Hong Kong stay on the sidelines.

China tops the chart of countries attracting greater new commitments this year, said a report by the Economist Corporate Network Asia.

"As the world’ssecond largest economy, and with growth ratesthat remain impressive, China’s gravitational pull appears undiminished. Nearly three-quarters of the companiesin oursurvey say they will increase their investment there in 2013."

Economist Corporate Network Asia points that this is islikely driven in part by the increasing geographical diversification of the China opportunity.

"Production centres are drifting inland, and new markets are rising rapidly in Tier Two, Three and Four cities, most of which lie inland from the established markets of China’s eastern and southern provinces. Foreign firms have many gripesin China, from rapidly rising wages, to entrenched favouritism towardslocal competitors. Butsuch gripes are not yet translating into reduced appetite for investing there.

Hong Kong results however were disappointing with only 21.4% of investors interviewed stating they will increase their level of investments - 58.8% of the investors already in the market will not increase; 30.4% have no plans to invest; and 3.2% will reduce investments.