Trade: Hong Kong's Economic Relations with Mainland China

Hong Kong is an important entrepôt for Mainland China. According to the HKSAR Government statistics, in 2018, 57% of re-exports were of Mainland origin and 55% were destined for Mainland China.


According to China Customs statistics, Hong Kong is the fourth largest trading partner of Mainland China after the US, Japan, and South Korea, accounting for 6.7% of its total trade in 2018.

Hong Kong is the largest source of overseas direct investment in Mainland China. By the end of 2018, among all the overseas-funded projects approved in Mainland China, 46.3% were tied to Hong Kong interests. Cumulative utilized capital inflow from Hong Kong amounted to US$1,098.1 billion, accounting for 54.1% of the national total.

Hong Kong is also the leading destination for Mainland China’s FDI outflow. According to Chinese statistics, by 2017, the stock of FDI going to Hong Kong accumulated to US$981.3 billion, or 54.2% of the total outflow of FDI.

Mainland China, on the other hand, is a leading investor in Hong Kong. According to the HKSAR Government statistics, the stock of Hong Kong's inward investment from Mainland China amounted to US$496 billion at market value or 25.5% of the total at the end of 2017.

Hong Kong is a technology marketplace for Mainland China. According to the Ministry of Science and Technology, in 2017, Hong Kong was the 8th largest source of technology imports for Mainland China in terms of contract value (US$788 million), accounting for 2.4% of the total.

Hong Kong is a key offshore capital-raising center for Chinese enterprises. As of the end of 2018, 1,146 Mainland companies were listed in Hong Kong, comprising H-share, red-chip and private companies, with a total market capitalization of around US$2.6 trillion, or 68% of the market total. Since 1993, Mainland companies have raised more than US$800 billion via stock offerings in Hong Kong.

As of January 2019, there were 12 licensed banks and 7 representative offices, incorporated in Mainland China, operating in Hong Kong.

In November 2014, Shanghai-Hong Kong Stock Connect was launched to establish mutual stock market access between Hong Kong and Mainland China, a significant breakthrough in the opening of China’s capital markets.

In December 2016, Shenzhen-Hong Kong Stock Connect, with similar program principles and design, was launched to further facilitate two-way investment flows and consolidate Hong Kong’s development as the global offshore RMB business hub.

In July 2017, the mutual bond market access between Hong Kong and Mainland China (Bond Connect) was launched to promote the development of the bond markets in the two places.

In December 2017, the Arrangement between the National Development and Reform Commission (NDRC) and the Government of the Hong Kong Special Administrative Region for Advancing Hong Kong’s Full Participation in and Contribution to the Belt and Road Initiative (the Arrangement) was signed. The Arrangement serves as a blueprint for Hong Kong's further participation in the Belt and Road Initiative.