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Hong Kong is the best anchor for Chinese firms seeking global waters

Last year, China’s outward direct investment climbed 7 per cent to US$174 billion while overseas mergers and acquisitions rebounded to over US$43 billion, up nearly…

By Samantha Johnson / May 24, 2026

Last year, China’s outward direct investment climbed 7 per cent to US$174 billion while overseas mergers and acquisitions rebounded to over US$43 billion, up nearly 40 per cent, according to EY data. Clearly, China’s appetite for global deal-making has returned.

But the approach has changed. A decade ago, outbound investment was largely asset-driven, shaped by relatively light regulatory constraints and limited oversight. The prevailing mindset was simple: enter the market at all costs and fix problems later.

Success today hinges on building a globally competitive brand, one that requires a strong bridge between Chinese companies and international markets. In this new phase of global expansion, Hong Kong and the Greater Bay Area are emerging as that critical connector.

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Long regarded as a threshold between East and West, Hong Kong is becoming an increasingly important gateway to global success, as the city can clear four major barriers in one move.

First, Hong Kong helps mainland Chinese companies tackle the intellectual property challenge, which emerges as firms move from contract manufacturing to brand-led expansion. With credible IP protection now a baseline requirement, Hong Kong’s common law framework, aligned with international standards such as the Trade-Related Aspects of Intellectual Property Rights (TRIPS), delivers enforceable trademark rights and transparent dispute resolution. This builds trust with foreign partners and customers.

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Second, the credibility problem. When it comes to important markets, Hong Kong lends credibility. Europe, the Middle East and Southeast Asia all view Hong Kong as a more “legible” jurisdiction, one that adheres to international accounting and corporate governance standards, enabling clear, comparable financial reporting.

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