Abstract:The important strategic goal of China’s outwards FDI, is to realize the domestic industrial upgrading resorting to the external market and resource. In recent years, the scales of outwards FDI from China’s to Hong Kong grows rapidly, Hong Kong has become the largest destination of China’s outwards FDI. Thus, study on the China’s outwards FDI to Hong Kong and domestic style of economic growth as well as domestic industrial upgrading has realistic meaning. Proceeding from reality of China’s industrial upgrading, this paper builds benchmark requirement of China’s outwards FDI to Hongkong, and analyzes its industrial layout and development trend from the perspective of industrial distribution. Based on the above analysis, this paper conducts empirical analysis and puts forward relative policy advice.