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2015 China Inbound FDI Recorded RMB 781.35 billion (US$ 126.27 billion)

However I believe HK domestic wealth is also a key constituent, after all:
  1. HK has among the wealthiest households in the world. According to BCG survey, 9.4% of households own more than US$1 million worth of financial assets (excluding real estate).
  2. HK Government has huge financial reserves, and HKMA (HK Monetary Authority) is managing one the world's largest sovereign welfare funds.
  3. HK is a creditor economy, has one of the best NIIP (Net International Investment Position) exceeding +US$1 trillion, ranking 4th in the world only after Japan, Germany and China Mainland.

Yep man, our Hong Kong government has one of the largest currency reserves in the world, larger than most major countries. :woot:

Anyway it's always been true that the majority of FDI into Mainland China has come from Hong Kong, Taiwan and Singapore. Because our ancestors came from Mainland China, and we have the same culture/language (albeit different dialects), so it makes sense that most of the investment will come from these places.
 
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Yep man, our Hong Kong government has one of the largest currency reserves in the world, larger than most major countries. :woot:

Anyway it's always been true that the majority of FDI into Mainland China has come from Hong Kong, Taiwan and Singapore. Because our ancestors came from Mainland China, and we have the same culture/language (albeit different dialects), so it makes sense that most of the investment will come from these places.


Yes bro, Hong Kong is amazing. Hong Kong is one of the world’s largest net creditors with net assets worth almost 3 times the size of its annual gross output (GDP). A major contributing factor to its large net asset position is the sharp increase in net portfolio investment over the past decades. While banks in Hong Kong invest heavily in overseas debt securities, the non-bank entities (largely corporations) in Hong Kong invest mainly in overseas equity securities. Hong Kong also enjoys a significant net asset position in other investment (consisting primarily of loans and currency and deposits). This clearly reflects Hong Kong’s status as an international banking center.

The significant accumulation of net assets by Hong Kong residents over the years may be largely explained by two factors: (1) cumulative trade surplus, and (2) investment returns (including valuation changes). Based on data on Hong Kong’s trade balance dating back to 1961, it is estimated that cumulative trade surpluses account for only
around 1/4 of Hong Kong’s overall net asset position. This would imply that the remaining portion of the overall net assets can be attributed to productive investment overseas.

In contrast, China Mainland despite being a trade surplus economy suffers net loss in investment over the years. As per latest current account data, primary income receivable for 2015 was US$230.1 billion, increase 8% YOY, but primary income payable was US$289.3 billion, increase 17% YOY, net primary income was -US$59.2 billion (net loss), increase 74% YOY. Another is forex reserve management, valuation changes was -US$170.3 billion (net loss). These very disappointing losses suggest that PBOC (People's Bank of China) / SAFE (State Admin of Foreign Exchange) urgently need to reform and improve productivity. So yes bro, I wish PBOC/SAFE work closer with HKMA as well as the industry to improve China Mainland's financial management.

Data source:
欢迎访问国家外汇管理局网站!

Really Nice Graphic, bro @Shotgunner51 :enjoy:
The Top 3 is Hongkong S.A.R, Singapore, and China Taipei (Taiwan).

Hope someday in the Future, there is somekind of Economic Union Partnership between China, Hongkong S.A.R, China Taipei (Taiwan), and Macau S.A.R.


Thanks bro!

Yes East Asia integration is much needed, like @Nihonjin1051 and @TaiShang have suggested. Mainland-Taiwan integration on electronics, industrial integration with Japan/Korea, closer financial integration with Hong Kong, leisure integration with Macau.

So far China is doing well in industrialization, results are obvious, top patent, largest infra, largest industrial base, top high-tech exports. However the financial industry is still backward, so primitive that sometimes we in the business make fun of ourselves that even Zimbawe is better! Anyway we must expedite reform, and expedite integration with Hong Kong in this regards.
 
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