There was a time not long ago when the prevailing wisdom said going through Hong Kong was the best way to enter the Chinese market. Hong Kong, although geographically a part of China, is a modern, developed international city-state, a Special Administrative Region of China whose business people speak English, understand Western laws, processes and customs, and can act as an interpreter for any Western organization that wants to work in mainland China.
In addition, currency transfer from China’s renminbi (formally called yuan) into Hong Kong dollars is easier than any other foreign-currency exchange. The obvious decision was to open an office in Hong Kong to serve as a beachhead to China.