Hong Kong just got a substantial industry boost from investment deals signed by a business delegation from China. The group reportedly signed a total of 11 deals estimated to be worth around $1.45 billion.
The injection of new investments has been seen by some as a clear indication that Hong Kong still hasn't lost its appeal as a go-to destination for business and industry.
The 11 deals were signed at the recently held 2019 Hong Kong Economic and Trade Cooperation Symposium in the special administrative region this week. The event was organized by the delegation of businesses hailing from the Wuxi's Xishan district in the eastern Jiangsu province of China.
The deals involved various industries such as robotics, aviation parts manufacturing, real estate, and automotive technology.
Attending the event was Hong Kong's former chief secretary, Henry Tang Ying-Yen, who reportedly hailed from Wuxi prior to moving to the city-state. According to the former official, the Chinese delegation was very open to bilateral agreements that involved investments in Hong Kong as well as in Xishan and Wuxi.
Tang added that despite the turmoil in the city, the delegation was confident that Hong Kong will be able to cope with the situation and provide a stable platform to grow their investments.
Hong Kong is currently coping with civil unrest brought about by the introduction of a controversial bill. The move by the government has resulted in rallies and demonstrations across the city. The protests have so far resulted in the backing out of two mega listings in Hong Kong bourse, namely by EST Cayman and Budweiser Brewing Company APAC. However, the Chinese delegation seemed to be unaffected by the situation.
Most of the investments, including the companies involved and the exact amounts that will be put up, were not divulged to the public. However, the biggest deal that was struck during the event Tuesday was revealed to be a $300 million investment by Impro Precision Industries. The Xishan-based machine parts manufacturer is reportedly planning to put up an aviation parts facility in the city. The company recently raised more than $130 million in its listing in Hong Kong last month.
Meanwhile, Hong Kong is expected to gain yet another industry boost with reports of a $291 million deal between Wuxi Communications Industry Group and Hong Kong Airlines. Wuxi Communications along with a unit of Citic Group is reportedly in talks to purchase a controlling stake in Hong Kong Airlines, including a proposal to assume its debts.
