(Yicai) Oct. 20 -- Alibaba Group Holding and its financial technology affiliate Ant Group are buying office space in Hong Kong for new headquarters, signaling renewed investment in the city by Chinese mainland tech firms as the local government steps up efforts to entice more mainland businesses.

The e-commerce giant and Ant will pay Mandarin Oriental International Group about HKD7.2 billion (USD925 million) for office space on several floors at One Causeway Bay in the largest office property deal in Hong Kong since 2021, the two Hangzhou-based companies jointly announced on Oct. 17.

The investment underscores Hong Kong’s status as an international business hub and global financial center, as well as its growing role in fostering technological innovation, the firms noted, adding that they aim to build on their long presence in the Chinese special administrative region as they expand internationally.

“For a global technology company, the city offers professional talent, robust capital markets, an innovative culture, and connectivity to the world,” Alibaba Chairman Joseph Tsai said.

Other mainland tech firms have also recently set up headquarters in Hong Kong. Hong Kong’s investment promotion agency announced on Oct. 16 that electric car startup Li Auto had set up its overseas HQ in the city earlier this year to oversee research and development, intellectual property, global supply chains, and international business development.

On Sept. 29, brain chip unicorn BrainCo announced the establishment of its Asia-Pacific R&D base in Hong Kong. The Hangzhou-based company said it aims to strengthen partnerships with local universities and research institutes, leverage Hong Kong’s talent advantages, and accelerate the development of next-generation brain-computer interface products.

As a link between the Chinese mainland and international markets, Hong Kong has long been an important gateway for mainland firms going global. The SAR’s government has also been taking more proactive steps to further enhance the city’s attractiveness to mainland firms.

In his policy address last month, Hong Kong Chief Executive John Lee said the government would set up the GoGlobal Task Force, a one-step platform integrating the global network of InvestHK, the Hong Kong Trade Development Council, and the SAR’s overseas offices to provide a seamless experience for mainland firms expanding overseas through Hong Kong.

GoGlobal Task Force will provide one-stop services tailored to the actual needs of mainland enterprises, including advice on tax, legal matters, financing, testing and certification, as well as environmental, social and governance compliance, and intellectual property protection, Algernon Yau, secretary for commerce and economic development, said at the platform’s launch ceremony on Oct. 6.

Editors: Dou Shicong, Futura Costaglione