1. What role does the government of Hong Kong play in approving and regulating foreign direct investment?
Hong Kong is always rated as one of the world’s freest economies, one of the reasons being that the government has always adopted the approach of nonintervention.
Hong Kong strives to attract more foreign investors to set up their investment vehicles and even regional headquarters here by introducing various policies to minimize the hurdles of foreign investors setting up business in Hong Kong.
Besides some restrictive business such as electricity supply, transportation services, banking and telecommunication business, which require special permits or licenses, foreign investment corporations can carry on business of any nature they desire in Hong Kong through various types of business vehicles without restrictions. Indeed, the restrictions imposed on the restrictive business aforementioned are generally applicable equally to both Hong Kong residents and foreign investors.
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