UK-based Hanover has picked Hong Kong to set up its Asia-Pacific headquarters, as the passenger information systems provider plans to use the city to market its LED products in the region.
Hanover is one of 19 UK-based companies that have either set up shop or expanded their operations in the city in the first half, according to InvestHK, which is responsible for attracting foreign direct investment (FDI).
Overall, 322 firms established their business or boosted their presence in the city in the first half, according to InvestHK. The UK was the third-largest source of cross-border investment after mainland China and the US.
Other UK companies that have expanded into Hong Kong are content production network Casual, engineering consultancy Cranborne Group, financial services firm GC Partners, and health products and supplements marketer Lify Wellness.
“We have received very positive feedback from our seminar series from 250 companies in the UK,” said Daisy Ip, head of investment promotion at InvestHK London. “Many of them were optimistic about the opportunities in Hong Kong and we are hopeful to achieve or exceed the achievement we had last year.”
In 2023, the UK was the second-largest FDI contributor to Hong Kong, with 48 companies from Europe’s second-largest economy establishing or boosting their presence in the city, according to InvestHK.
Ip said many of the UK companies are keen on Hong Kong, owing to opportunities in the local market and proximity to mainland China, particularly the Greater Bay Area. The bay area is Beijing’s scheme to link Hong Kong, Macau and nine cities in southern mainland China into an integrated economic and business hub.
Other reasons include plans to expand into Southeast Asia, as well as the ease of doing business in Hong Kong.
“Typically, UK companies would initially ask InvestHK for market updates and information, and this is the purpose of our seminar series,” Ip said, adding that the agency gives them a holistic view of Hong Kong and assists them with applications and licences.
Hanover Far East, the Hong Kong unit of the UK-based firm, holds more than 95 per cent market share of all LED displays and signages on buses in Hong Kong. The company has increased its headcount from one to four, with the city now serving as its regional headquarters.
“We would like to explore some other high-end markets like Japan, Korea or Taiwan,” he said. “Next, we would also like to provide better support to Chinese builders of electric buses because they are really going strong in that segment in recent years.”
Kwan said that along with the expansion, the company is planning to add five to 10 more staff within the year.