By LIANG TAO, CRI Correspondent

A survey conducted by Hong Kong Census & Statistics Department suggests that Hong Kong continues to be the preferred base for international companies to oversee their regional operations.

The number of regional operations and local offices in Hong Kong operated by overseas and Mainland companies reached its highest-ever level this year, topping 6,350.

The department released the results of the 2006 Annual Survey of Companies in Hong Kong Representing Parent Companies Located Outside Hong Kong.

There were about 1,200 regional headquarters, 2,600 regional offices and 2,500 local offices in Hong Kong representing their parent companies located outside Hong Kong as at June 1.

Speaking at a press conference, Invest HK's Director-General of Investment Promotion Mike Rowse noted that was a 5% increase in regional headquarters, despite the half a percent dip in regional offices.

Among the factors affecting the choice of location for setting up regional headquarters or offices, 71% of companies considered a low and simple tax system most important.