Your partner for success

Hong Kong SAR of China
Chamber of Commerce Country Factsheet Last update: 19.06.2018

Your advisors at the Chamber of Commerce

  • Na Shi
    +352423939364
  • Violaine Mathurin
    +352423939481

Key Indicators

Area
1,108 km2
Population
7,191,503 (July 2017 est.)
Government type
special administrative region of China
Languages
Cantonese (official) 88.9%, English (official) 4.3%, Mandarin (official) 1.9%, other Chinese dialects 3.1%, other 1.9% (2016 est.)
GDP
$453 billion (2017 est.)
Growth rate
3.5% (2017 est.)
HDI
12
Capital
Hong Kong

 

Introduction

Occupied by the UK in 1841, Hong Kong was formally ceded by China the following year; various adjacent lands were added later in the 19th century. Pursuant to an agreement signed by China and the UK on 19 December 1984, Hong Kong became the Hong Kong Special Administrative Region of the People's Republic of China on 1 July 1997. In this agreement, China promised that, under its "one country, two systems" formula, China's socialist economic system would not be imposed on Hong Kong and that Hong Kong would enjoy a "high degree of autonomy" in all matters except foreign and defense affairs for the subsequent 50 years.

Source: The CIA World Factbook - Hong Kong

 

Macroeconomic indicators

Growth is set to soften somewhat in 2018-19, as exports ease and investment slows. The current account surplus is projected to stabilise. Infrastructure investment, a major growth driver in recent years, is projected to slow further amid tightening monetary conditions and a more rigorous approval process for local government investment.

The monetary policy stance will remain neutral with a tightening bias, as mitigating financial risks has appropriately become a key policy priority. Shadow banking activities are increasingly being reined in and credit growth is slowing, while capital outflows moderated in early 2018 following a surge and the exchange rate has stabilised. Fiscal policy will remain supportive, but less so than in recent years as unauthorised local government investment is subject to increased scrutiny, which will strengthen fiscal sustainability. A series of new tax cuts have been announced, but the headline fiscal deficit will be kept under control by streamlining government organisations to contain public spending. Imminent risks stemming from trade frictions have receded, but the large number of unresolved issues will keep tensions high.

Source: OECD - Economic Forecast

 IMF Statistics:

Subject Descriptor2007200820092010201120122013
GDP, constant prices, %6.3%2.3%-2.6%6.9%5.9%4.3%4.5%
GDP, current prices, $ (billions)207.1215.3209.2224.4246.9268.1289.5
GDP per capita, current prices, $ (units)29,785.130,727.529,620.631,514.234,393.237,051.139,690.7
Inflation, average consumer prices, %2.1%4.2%0.5%2.3%5.5%4.5%3.5%
Volume of imports of goods and services, %9.1%2.2%-8.9%17.2%

7.1%

7.1%8.1%
Volume of exports of goods and services, %8.2%2.5%-10.2%16.7%7.1%6.8%8.1%
Unemployment rate, % of total labor force4.1%3.5%5.2%4.2%3.6%3.6%3.7%
Current account balance, $ (billions)25.529.417.913.913.314.716.8
Current account balance, % of GDP12.3%13.6%8.5%6.2%5.4%5.4%5.8%


Source: IMF Statistics - Hong Kong

 

Luxembourg and the country

Existing conventions and agreements

Non double taxation agreement 

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourgish government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

  • Convention from 02.11.2007 (Memorial 2008, A No.202, p.3048)
  • Effective 01.01.2008 (Memorial 2008, A No.202, p.3084)
  • Amendment of the Convention from 11.11.2010 (Memorial 2011, A No.146, p.2031)
  • Effective as of 01.01.2012 (Memorial 2011, A No.146, p.2031)

Air Services agreement

  • Agreement from 03.06.1998 (Memorial 2003, A, no. 63, p. 1038 )
  • Effective as of 06.06.2003 (Memorial 2003, A, no. 97, p. 1971)

 Source: Administration des Contributions Directes

 

Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact points in Hong Kong SAR of China

Embassy of the Grand Duchy of Luxembourg in China

Ambassador with residence in Beijing: Mr Marc HÜBSCH

Unit 1701, Tower B, Pacific Century Place,
2A Gong Ti Bei Lu, Chaoyang District,
Beijing 100027, P.R.China
Tel.: +86 10 8588 0900
Fax: +86 10 6513 7268
Email: pekin.amb(at)mae.etat.lu

Honorary Consul

Honorary Consul with Jurisdiction over Hong Kong: Mrs Sophie LEUNG

Room B, 13/F, Queen Centre
58-64 Queen's Road East
Wan Chai
Hong Kong

Tél.: (+852) 3621 0979
Fax: (+852) 3747 4600
E-mail: conluxhk(at)gmail.com

Economic and Commercial Attachés (AWEX)

Economic and Commercial Attaché with jurisdiction in Hong Kong-MacaoMr Frédéric DELBART

St John's Building (9th floor)
33, Garden Road Central
Hong Kong SAR
Tel: +852-25-37.57.62
E-mail: hongkong(at)awex-wallonia.com

Source: Ministry of Foreign Affairs of Luxembourg
Source: AWEX

Country risk as defined by Office du Ducroire for Hong Kong SAR of China

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for Hong Kong

Luxembourg for Business market entry guide to Hong Kong SAR of China:

Market entry guides are brochure series published by the Ministry of the Economy and Foreign Affairs. The series focuses on worldwide markets, industries and business environments, providing comprehensive and in-depth analysis and guidelines. The brochures cover all aspects relating to a market entry including the economic, financial and legal frameworks. The brochures are a vast knowledge pool, compiled into a practice oriented document with many tips and important addresses.

Source: Luxembourg for Business

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