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



Your advisors at the Chamber of Commerce

Na Shi

Contact us: China@cc.lu


Key indicators

Area
1,108 km2
Population
7,263,234 (July 2021 est.)
Government type
presidential limited democracy; a special administrative region of the People's Republic 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
$346.586 billion (2020 est.)
Growth rate
-6% (2020 est.)
HDI
N/A
Capital
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 descriptor 2018 2019 2020 2021 2022

Gross domestic product, constant prices

Percent change

3.002

0.346

1.464

2.461

2.656

Gross domestic product, current prices

Percent change

(Billions)

362.721

372.989

385.274

402.464

421.507

Gross domestic product per capita, current prices

Percent change

(Units)

48,450.607

49,334.347

50,460.390

52,407.802

54,571.088

Inflation, average consumer prices

Percent change

2.408

3.000

2.600

2.600

2.500

Volume of imports of goods and services

Percent change

4.607

-6.297

2.404

3.197

3.406

Volume of exports of goods and services

Percent change

3.846

-5.057

2.733

3.112

3.243

Unemployment rate

Percent change

2.809

2.944

3.040

2.963

2.886

Current account balance

Percent change

(Billions)

15.569

20.689

19.491

18.951

18.537

Current account balance

Percent change

4.292

5.547

5.059

4.709

4.398

Estimates

Source: IMF Statistics - Hong Kong


Relationships with Luxembourg

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
Peaople's Republic of China

Tel.: +86 10 8588 0900
Fax: +86 10 6513 7268
E-Mail: pekin.amb@mae.etat.lu

 

Honorary Consul

Honorary Consul with Jurisdiction over Hong Kong:

Ms Sophie LEUNG

13th floor Queen's Centre
58-64 Queen's Road East
Wanchai
Hong Kong

Tel.: (+852) 3621 0979
E-Mail: conluxhk@gmail.com 

Source: Ministry of Foreign Affairs of Luxembourg

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

 

Other Useful Links


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