HK – Best Place to International Investors from BMI Research

BMI concluded in its most recent survey that China's Hong Kong Special Administrative Region (HKSAR) is a low-risk place for company formation
, with no single substantial barrier to foreign investors. Hong Kong, as one of the world's main international commerce, investment, and finance hubs, has consistently provided one of the most favorable operating environments of any country on the planet.

Hong Kong's reputation as a popular investment destination is bolstered by a number of characteristics, including a huge pool of trained workers, a well-developed logistics network, an open economy with few fiscal, financial, or trade barriers, and a low crime rate.

Labor
Foreign investors in all sectors of the economy should expect a robust supply of highly skilled workers with basic skills and advanced qualifications, and there are few risks associated with finding acceptable personnel. With a long statutory working week and a low statutory requirement for annual leave, Hong Kong has a flexible workforce that poses little danger of company disruption.

On the other hand, Hong Kong's unemployment rate is extraordinarily low, at just 3%, implying near-full employment, putting upward pay pressure. Importing foreign specialists may be important, especially in the science and engineering industries, which require professionals with advanced technical backgrounds and qualifications, which are in short supply in Hong Kong. In light of these factors, Hong Kong receives a score of 72.1 out of 100.

Overall Scores
With an overall score of 81.6 out of 100, Hong Kong ranks first among 201 nations in the BMI Operational Risk Index, making it the most appealing investment destination.

Logistics
Hong Kong's highway network is of high quality and broad, while its utility infrastructure provides widespread coverage and extremely reliable supply. In the long run, however, Hong Kong's role as a major global commerce hub will be challenged by neighbouring ports, particularly mainland Chinese ports. These factors contributed to Hong Kong's high score of 77.2 out of 100 in the BMI Logistics Risk Index, which placed it fourth out of 38 Asian countries in a regional comparison.

Taxation
Hong Kong has enacted a highly favorable tax structure that allows enterprises to increase profit margins while reducing administrative burdens. As a result, Hong Kong received a score of 87.9 out of 100 in the BMI Trade and Investment Risk Index, placing it in second position.

Safety
Because Hong Kong is a dynamic democracy with no history of internal terrorism or insurrection, crime rates are low, and terrorism does not constitute a substantial danger. Companies in Hong Kong, on the other hand, face the most specific and significant threat from cyber-terrorism since they work with data-sensitive systems.

Hong Kong has terrorist attack contingency plans, a counter-terrorism strategy, and highly trained operational security and counter-terrorism teams, all of which help to reduce the threat. The HKSAR is additionally secured by the military might of its parent country, China, assuring that any external attack will be greeted with fierce retaliation. As a result, Hong Kong obtains an overall score of 89.1 out of 100 on the BMI Crime and Security Risk Index, putting it in third place.

Conclusion
Because of its open economy, low fiscal and trade barriers, and low red tape, Hong Kong has become one of the world's most desirable investment destinations. Reduced costs, as a result of a transparent legal system, limited corruption, and an independent court, will encourage investors in all sectors. Financial products are readily available for both enterprises and consumers because to the presence of deep and sophisticated financial markets as well as significant foreign banks with strong international ties.