Capital for foreign investment can be raised locally or imported. It imposes no exchange controls and very few restrictions on foreign investment. All forms of doing business are available to foreign investors Manufacturing and industry was the most important economic sector from the 1950s until mid 1980s. Because of the high rents, high labor cost, and the high overhead associated with the high standard of living, Hong Kong has lost its competitive position. However, it still remains one of the world's largest producers of toys and games, textiles, apparel, watches and clocks and many other consumer goods.
Clothing industry is the largest export earner of foreign exchange.
Hong Kong has 10 percent of the world market, which is second to Italy as the world's largest exporter of clothing. In recent year, many Hong Kong manufacturers have established their plants in China and other neighboring countries to take advantage of the low land costs and labor costs. As a result, employment is gradually shifting from the manufacturing to the services sector. Sevices sector accounted for 69 percent of Hong Kong's GDP and employed 71 percent of workforce in 1994. Hong Kong now ranks as the world's fifth- largest trading nation.