Hong Kong was the world's fourth largest foreign direct investment recipient last year, up from its ninth position in 2008, according to the World Investment Report 2010 published by the United Nations Conference on Trade and Development.

It was the first time Hong Kong had gained fourth place in the global rankings. For the twelfth consecutive year Hong Kong continued to be the second largest foreign direct investment recipient in Asia, after the Chinese mainland.

The report showed that, although the global financial and economic crisis drove global foreign direct investment inflows down by 37% in 2009, compared to the previous year, the impact on Asia was less profound. The USD48.4bn foreign direct investment into Hong Kong, for example, represented only a 19% drop. Hong Kong's share of foreign direct investment into Asia held up at about 21% in 2009, similar to 2008.

In terms of the stock of foreign direct investment, Hong Kong ranked the highest in Asia, with a share of 37%, or over USD910bn in 2009. This represented a 12% rise on 2008.

The report also highlighted Asia's rapid recovery in foreign direct investment inflows this year, compared to the more gradual improvement in global numbers. In the first quarter of 2010, foreign direct investment into Hong Kong, for example, amounted to USD20bn, representing significant growth of 72% on the same quarter last year.

Hong Kong’s Director-General of Investment Promotion, Simon Galpin, said that Hong Kong's status as an international economy is reflected in this record-high ranking.

"With Hong Kong positioned at the heart of Asia and as the gateway to China, it is benefiting from the region's economic recovery,” he continued "Foreign direct investment is important to Hong Kong's economy, bringing in new technology, transferring soft skills and creating jobs. We are committed to upholding the advantages of Hong Kong to maintain its competitive position as a business location.”

"Measures such as the Closer Economic Partnership Arrangement with China, the growing network of double taxation agreements and positioning Hong Kong as the offshore centre for renminbi trading, all support the city's role as the preferred investment destination for foreign and Mainland companies," he concluded.