Hong Kong-Mainland Investments
Since the opening of the Mainland in 1979, Hong Kong has been the Mainland’s foremost external investor. As mentioned before, Hong Kong has been the Mainland’s window to the world since the establishment of the People’s Republic in 1949, and the Mainland has invested heavily in Hong Kong. The Mainland and Hong Kong are increasingly intertwined through investment. While bilateral direct investments are huge, linkage through portfolio investment is only starting to develop, owing to the Mainland’s strict controls on its capital account. However, with the Mainland’s entry to the WTO and liberalization of its capital account, bilateral portfolio investment between the Mainland and Hong Kong is expected to soar.
KeywordsStock Market Historical Cost Foreign Loan Hong Kong Special Administrative Region Chinese Capital
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