Hong Kong is the No1 Business Location
The latest Business Footprints press release from CB Richard Ellis has identified Hong Kong as the leading location for the world’s largest companies, with London being the only Western City making the top 5.
The study analyses 280 of the world’s largest companies and their choice for office locations across 232 major cities around the world.
Perhaps the unprecedented growth of China, and Asia’s prominent recovery from the world recession has led to 4 of the top 5 cities being represented by the continent, with Hong Kong benefiting from its reputation as being the principal link between the Eastern and Western markets. Singapore sits in second place, closely followed by Tokyo and London, with Shanghai making up the top 5.
Head of Research for Asia Pacific at CBRE, Nick Axford, described Hong Kong as the city “which holds a unique position from which international businesses can operate globally, due to its location, lack of foreign ownership restrictions, tri-lingual mix and international, highly-skilled workforce.”
Predictably, the US is the first placed country represented by the selected companies, with its diverse and numerous range of major cities making it a leading choice.
Tim Nicholas, CBRE’s Transaction Management Senior Director, said “location decisions were typically driven by corporate strategies designed to cut costs, access low cost or skilled workers, and reach new markets.”
“The extent of a company’s office presence, in terms of number of countries, varied widely between sectors.”
When it comes to financial services, New York and London share pole position, but with Hong Kong, Singapore and Tokyo closely behind could we be witnessing further evidence of a shift in power?
Conversely, Hong Kong’s status as the primary choice for business maybe at risk with the BBC recently reporting on the excessive levels of air pollution in the city. Central parks, modern skyscrapers and the unique harbours can make Hong Kong an impressive sight, but with the cities air pollution levels often above the levels set by the World Health Organisation, will the skilled work force consider migrating?