A bird's-eye view of Hong Kong. [Photo/tidenews.com.cn]

Hong Kong is the largest source of foreign investment for Hangzhou.

According to the Hangzhou investment promotion bureau, as of the end of May, Hong Kong enterprises had invested a total of $257 billion in 8,355 projects in Hangzhou. From January to May alone, Hong Kong invested $4.97 billion in 168 new projects, a 17.5-percent increase, with actual utilized foreign capital reaching $3.14 billion.

Why is Hong Kong investing heavily in Hangzhou, and what does Hangzhou seek from Hong Kong?

Initially, Hong Kong investors were attracted to Hangzhou's commercial real estate market.

Since the establishment of the Hangzhou investment promotion bureau in 2017, a dedicated team has targeted Hong Kong, focusing on high-end commercial complexes and services. As Hangzhou's population and urban capabilities grew, major Hong Kong real estate firms, such as Kerry, Hang Lung, and New World, invested nearly 100 billion yuan ($13.76 billion) in 2019 alone. These investments include landmark projects like Westlake 66 and IFC, which are set to reshape Hangzhou's commercial landscape.

In recent years, the focus of Hangzhou-Hong Kong cooperation has shifted from commercial real estate to high-end services and technological innovation.

Hong Kong Trade Development Council CEO, Margaret Fong Shun-man, emphasized Hong Kong's role as a global investment and trade hub, encouraging Hangzhou enterprises to go international. This growing cooperation is exemplified by Hangzhou's global investment event, which kicked off in Hong Kong, and the participation of 14 Hangzhou enterprises in the Hong Kong Innovation & Technology Expo, securing orders from regions like Malaysia, the Middle East, and South America.

The Hong Kong Trade Development Council pays a branch directors' visit to Hangzhou on June 19. [Photo/tidenews.com.cn]