Hong Kong SAR (Special Administrative Region of the People’s Republic of China) – market overview
East Asia’s highly developed island city of Hong Kong SAR (Special Administrative Region of the People’s Republic of China) has long been a hub for international trade, both as a major transshipment port and financial centre. Hong Kong’s high-income population of around 7.6 million speak Chinese (Mandarin), Cantonese and English.
Considered as a single market – it maintains distinct governing and economic systems to that of mainland China – Hong Kong SAR was world’s 35th largest economy in 2020. This is despite the negative GDP growth Hong Kong has experienced in recent times, largely due to social unrest, wrought in part by the new National Security Law, and the outbreak of the COVID-19 pandemic.
Hong Kong is a strong market for services in manufacturing, construction, financial services and (traditionally) tourism. On the goods side, Hong Kong is a strong global market for importing electronic components, telephony apparatus and gold. And Hong Kong relies on imports of food and raw materials, due to limited arable land and natural resources.
Hong Kong’s exports in technologies have showed strong growth in recent years.
Key domestic focus areas include housing, and innovation and technology, including biotechnology. As well, the Greater Bay Area (GBA) development aims to strengthen economic ties – and opportunities – between mainland China, Hong Kong and Macau. Hong Kong, a strong start-up environment, is already home to the Science and Technology Park and Cyberport, which host over 680 and 1,000 tech companies respectively. Additionally, the GBA will establish the Hong Kong-Shenzhen Innovation Park as an international IT hub in the Bay Area, supplementing Hong Kong’s existing sophisticated IT infrastructure.
Queensland and Hong Kong SAR
In 2020 Hong Kong was Queensland’s 29th largest merchandise trading partner, its 21st largest export destination. Chief among Queensland’s exports to the island city are food and agribusiness goods.
Additionally, over the decade to 2019, Hong Kong was Australia’s 11th largest source of direct foreign investment. More broadly, Hong Kong has a strong Australian presence as home to approximately 100,000 expats and over 600 Australian businesses.
The Australia–Hong Kong Free Trade Agreement (A-HKFTA) and associated Investment Agreement (IA) came into effect in January 2020. The agreements secure guaranteed access priority service sectors including:
- professional accounting
- engineering and construction
Hong Kong SAR opportunities
- Food and agribusiness
- Infrastructure, transport and logistics
- Education and training
- Advanced manufacturing
- Technologies and financial services
- Innovative technology
- Tourism investment
- Asialink, Doing Business in Hong Kong | Asialink Business
- Austrade, Doing Business – Hong Kong, Doing business – Hong Kong – For Australian exporters - Austrade
- Austrade, Market Information Package for Australian education institutions
- DFAT, Australia–Hong Kong Free Trade Agreement (A-HKFTA) and associated Investment Agreement (IA)
- DFAT, Hong Kong Market Insights 2021, Market Insights | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au)