BVI RANKS FIRST IN FOREIGN INVESTMENT IN HONG KONG

British Virgin Islands companies were the largest source of external factor income entering the Hong Kong economy during the second quarter of 2005, according to statistics released last week by Hong Kong’s Census and Statistics Department.

According to the statistics, the BVI accounted for 29.2 percent of Hong Kong’s $4.8 billion external factor inflow, outranking China, the United Kingdom and the United States. The Territory was also an important destination of Hong Kong’s external factor outflow, ranking second behind China with 16.9 percent.

Chief Operations Officer of the BVI International Finance Centre Mr. Humphry Leue said the figures demonstrate Asian economies’ continued and growing demand for BVI financial services products. “For several years now we have been placing a strong marketing focus on Asia, and Hong Kong in particular,” he said. “We can now see that our efforts are paying dividends, as more and more Hong Kong businesses are taking advantage of BVI financial services products.”

Mr. Leue added that Minister of Finance Honourable Ronnie W. Skelton will lead a BVI delegation to Hong Kong in November for the second BVI Road Show there in as many years. Other members of the delegation will be Managing Director of the Financial Services Commission Mr. Robert Mathavious and representatives from financial service companies.

“In addition to Hong Kong, we will carry out a diplomatic mission to Beijing followed by a road show event in Shanghai, two leading financial centres in China. These events are all aimed at capturing an increasing share of the financial services market in Asian economies and demonstrate our continued commitment to building relationships in that region,” he said.

Chief Minister Dr. the Honourable D. Orlando Smith said the Territory’s performance in Hong Kong shows the growing importance of the BVI in the global economy. “This is good news for us because it places us in a position of prominence in one of the world’s most important international financial centres,” he said.

The Chief Minister commended the International Finance Centre for its ongoing marketing and promotion work around the world and also applauded the Territory’s financial services companies. “The success of our financial services sector relies on a strong public-private partnership,” the Chief Minister said.

This is not the first time that the BVI has ranked first among sources of external factor income inflow or outflow in Hong Kong. The BVI ranked first in inflow in fourth quarter 2004. It ranked first in outflow in the second and third quarters of 2004.

Hong Kong, a Special Administrative Region of China, is the world’s 11^th largest trading economy and has the sixth largest foreign exchange in the world. In 2004, Hong Kong had a gross national product of more than $1.3 trillion. It is located on the south-eastern tip of China, and is home to 6.8 million people.