FDI 2004-2010: $139.5 billion
Hong Kong is the number one destination for China's foreign investments - far eclipsing investments made in any country worldwide. China's interests in Hong Kong may not be surprising considering its proximity to the mainland, low tax rates and its status as a Chinese territory.
China's FDI in Hong Kong saw a huge jump in 2007 rising to $13.7 billion, nearly double the $6.9 billion in 2006. 2007 was the same year that the Chinese government started to allow mainland citizens to invest in the Hong Kong's stock market, which was the most significant move by authorities to date, to remove barriers that prevented most Chinese from making international investments. China's FDI in Hong Kong peaked at $38.64 billion in 2008 before falling to $38.5 billion 2010.
Beijing has supported Hong Kong's role as an offshore trading hub for the renminbi. Last August, Chinese authorities announced measures such as allowing mainland companies to raise up to $8 billion in dim-sum bonds in Hong Kong. It coincided with the Chinese government's issuance of $3.1 billion in dim sum bonds in Hong Kong.
Chinese investment in Hong Kong's real estate market has also been growing. Mainland Chinese buyers accounted for 25 percent of all prime market purchases in 2011, according to Knight Frank, despite recent curbs by the Hong Kong government.
Pictured: Hong Kong's Harbor
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