This file photo taken on June 27, 2017 shows the scenery on both sides of the Victoria Harbour in Hong Kong SAR. (PHOTO / XINHUA)

HONG KONG – Hong Kong saw an increase in the number of companies from overseas and the Chinese mainland setting up shop in the city in 2023, according to the results of two annual government surveys released on Thursday.

The 2023 Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong showed that there were 9,039 firms in the special administrative region with parent companies overseas or on the mainland, up by 61 from last year and indicating a recovery to pre-pandemic high levels.

The 2023 Startup Survey, on the other hand, showed 272 new start-ups in Hong Kong, bringing their total number to a record high of 4,257. These start-ups also engaged 16,453 persons, up by 10 percent compared to last year's figure.

In terms of origin, the Chinese mainland ranked the first with 2,177 companies, followed by Japan (1,403), the United States (1,273), Britain (641) and Singapore (477)

The surveys were jointly conducted by InvestHK, an investment-promoting department of the Hong Kong SAR government and the Census and Statistics Department.

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“The results of the two surveys demonstrated fully the favorable business environment in Hong Kong and that Hong Kong is an ideal destination for enterprises big and small to set up or expand their businesses,” said a spokesman for the Commerce and Economic Development Bureau.

“They also showed that overseas and mainland enterprises are fully confident about Hong Kong and have therefore chosen Hong Kong for setting up and expanding their businesses,” he added.

In terms of origin, the Chinese mainland ranked the first with 2,177 companies, followed by Japan (1,403), the United States (1,273), Britain (641) and Singapore (477).

Analyzed by their major line of business, import/export trade, wholesale and retail sector topped the list (4,388), followed by financing and banking sector (1,659) and professional, business and education services sector (1,304).

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In the first 11 months of this year, InvestHK attracted 351 overseas and mainland enterprises to set up or expand their businesses in Hong Kong, a substantial increase of 30 percent compared to the same period last year.

These enterprises included a French semiconductor company setting up their regional headquarters in Hong Kong and a large catering group from the mainland opening various restaurants in the city.

The spokesman said that, due to the pandemic, a small number of multinational companies had temporarily moved their offices in Hong Kong to other regions.

However, the survey results this year showed that the number of overseas and mainland companies in Hong Kong "already returned to the high level in 2019”, he added.

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And since its establishment in December last year, the Office for Attracting Strategic Enterprises has attracted over 30 strategic firms to establish a foothold in Hong Kong, including the SAR's first research and development (R&D) center set up by one of the world's leading pharmaceutical companies.

These enterprises are expected to invest a total of over HK$30 billion ($3.84 billion) in the city, and create over 10,000 employment opportunities with a majority of them being R&D or senior management positions.