China, Hong Kong, and the Greater Bay Area: why you should pay attention!

Published On - 10 diciembre, 2024

Valentin Moriceau China, Hong Kong

“Dear Clients, Partners and Friends,

While Europe and North America tend to turn away from China, it’s worth remembering that Greater China remains the world’s second-largest economy. With 1.3 billion inhabitants and a growth rate many envy, the region’s importance cannot be overstated.

In the wake of the pandemic, many decisions were made hastily, driven by uncertainty. There was a wave of doubt about Hong Kong, with some businesses looking to Singapore as an alternative. However, these decisions often failed to account for the significant jurisdictional differences, making comparisons less meaningful.

Others turned to the Emirates, seen as a “promised land.” Yet, the region remains in its early stages of development, and its long-term appeal is uncertain.

Why Hong Kong Remains a Top Jurisdiction

Now is the time to step back, breathe, and think strategically. As I always advise my clients:

Unless there are compelling reasons otherwise, Hong Kong remains one of the best jurisdictions in Asia—and beyond—for trading and setting up SPVs.

Objectively, Hong Kong’s advantages are hard to challenge. Its regulatory framework is open and flexible, offering businesses the stability they need to thrive in a competitive global market.

Future Growth: Why Not China?

When considering future growth, is there any region more promising than China?

India often comes up in discussions, but have you ever set foot there? Well I have and honestly, so far, my conclusion is that unless you can build your own road from your company to the airport, don’t think about it. Setting up in India is probably as challenging as competing with American Players on American soil; not impossible, but you’d better know what you’re doing and come in strong.

Don’t overlook the world’s largest market in the world, China, with a business ecosystem designed to welcome international players—especially through Hong Kong.

The Greater Bay Area: A Hub for Opportunity

Hong Kong’s integration into the Greater Bay Area (GBA) – linking Guangzhou, Shenzhen, Macau, and Hong Kong – is a game-changer. This economic zone is one of the largest and most dynamic globally, offering:

  • Thriving manufacturing and innovation hubs.
  • Booming trade and entertainment
  • An impressive consumer base at the heart of Asia.

New Opportunities Through Hong Kong

Did you know? You can now:

  • Set up a Wholly Foreign-Owned Enterprise (WFOE) in Mainland China.
  • Hire qualified local talent and transact in RMB.
  • Export in any convertible currency while benefiting from Hong Kong’s tax-friendly policies.

With these advantages, you pay only Hong Kong taxes on eligible income—a significant edge in global trade.

Before making any decisions, take the time to carefully evaluate your options. Hong Kong remains a standout jurisdiction for businesses seeking access to China, the GBA, and beyond.”

Ready to explore the opportunities? Call us today!

Vincent de Saint-Exupéry, Co-Founder and Director