Business Opportunities

in Hong Kong

Paula Kant

Head, Investment Promotion

YOUR!

Athens, 14th of March 2017

The three topics of today

1. InvestHK: Who we are and What we do

2. HK: ideal place in Asia for biz

3. How can InvestHK help you?

1. HK: ideal place in Asia for business

2. How can HKTDC and InvestHK help you do business?

3. Spotlight on 2 sectors: F&B and Fintech

HK: Gateway to China, and Asia Biz-hub

1) Geographic location– 5 hrs plane ride to half the world’s population

– Proximity to Pearl River Delta (PRD), population: 64 M

2) Business friendly environment, low taxation

and a trusted legal system

3) Rigorous IP protection

4) Social media from mainland and overseas

5) World-class universities and talent

6) Fundraising:

– Top 5 stock exchange for IPOs

– 142,000 High Networth Individuals

BUSINESS-TO-

CONSUMER

5.1Min Asia Pacific

142,000 HNWIs in HK,

up 281% (2009-2015)

42.8Mfrom Mainland

56.6 million visitors

in 2016

84%of the world’s

leading luxury and

fashion retailers

are in HK

US$63bnsales

600people

One restaurant every

BURGEONING STARTUP

ECOSYSTEM

Funding SupportNumber of Co-work Spaces /

Incubators / Accelerators

2010

2016

48

3

Number of Startups in 2016

24%

1,926

from 2015

Source: Startup Profiling Survey, InvestHK, 2015

What can HKTDC and InvestHK offer you?

Creating opportunities for

international trade.

Assist companies with potential to

contribute to HK’s economy to set

up a company and expand in HK.

Hong Kong Trade Development Council.

Invest Hong Kong

7

HOW HKTDC CAN HELP

A Hong Kong statutory body established in 1966

Helps international businesses explore opportunities in and through Hong Kong

Promotes Hong Kong as Asia’s business platform and services hub

More than 40 offices globally, including 13 on the Chinese mainland

Assists international companies and investors to explore and enter new markets on the Chinese mainland and throughout Asia

Facilitates Chinese outbound investment in both mature and emerging markets

Connects businesses worldwide with Hong Kong partners, including product suppliers and services providers

Provides market intelligenceTel: (852) 1830 668

Email: hktdc@hktdc.org

www.hktdc.com

https://www.linkedin.com/company/hong-kong-trade-development-council

@hktdc

San Francisco

Mexico City

Bogotá

Toronto

New York

London

Brussels

Paris

Berlin

Milan

Istanbul

Jerusalem

Dubai

Moscow

Gothenburg

Mumbai

Chengdu

Bangkok

Seoul

Wuhan

Guangzhou

Shanghai

Osaka

Tokyo

Beijing 1

Taipei2

Kuala LumpurSingapore

Rio de Janeiro

Sydney

Hong Kong

Investment Promotion Units inHong Kong Economic and Trade Offices

Consultants

Note:1 Beijing Office2 Hong Kong Economic, Trade and Cultural Office (Taiwan)

Office locations are subject to change. For the latest version, please refer to InvestHK’s website.

INVESTHK’S WORLDWIDE

NETWORK

• InvestHK Overseas: 30 country offices

• InvestHK HQ: 9 sector teams

• InvestHK’s services are free!

PRIORITY AREAS COVERED BY NINE SECTOR TEAMS

Nine Sector Teams Priority Sub-sectorsFour Traditional Pillar

Industries

Business & Professional Services (BPS)

• Education •Professional services

Creative Industries (CI) • Digital marketing

Consumer Products (CP) • E-retail •Trading & logistics

(trading)

Financial Services (FS) • Asset management •Financial services

Financial Technology (FinTech)

Innovation & Technology (I&T) • Internet of Things (IoT)

Information & Communications Technology (ICT)

• Fintech

Transport & Industrial (T&I) • Maritime•Trading & logistics

(logistics)

Tourism & Hospitality (T&H) • Food trading •Tourism

HOW WE CAN HELP

Expansion

Launch

Planning

Set up

Everything you can do before actually going to HK,….get in touch

with InvestHK re. sector-specific opportunities, tax and business

regulations, relevant meetings in HK, visit programme, etc.

Facilitating the actual set up of your business in HK,…advice re.

service providers: accountants, lawyers, recruitment firms, real

estate agents, etc.

Helping to make your launch a success: PR events, press

releases, featuring your company in the bimonthly InvestHK

Newsletter, etc.

• Even when you are up and running, InvestHK is still there

when you need us

5 STEPS to set up in Hong Kong

1) Select Company Type and Company Name

2) Register and Incorporate a Company- Shareholders can be foreigners, company secretary must be HK resident

3) Open a bank account

4) Choose a business premises

5) Immigration and Visas

,…………………InvestHK can help every step of the way!

Success story:

Diamanti per Tutti

• Unique jewellery designs, 18K gold plated sterling

silver, hand-set with real diamonds

• From Antwerp, with shops all around Europe

• HK office is regional HQ for Asia

• Why HK? Cosmopolitan culture, and Asia’s

centre for diamand and jewellery trade

• DPT explored various retail models; pop-up shop,

next step 2015: shop in PMQ, 2 permanent retail

locations in HK. 3 new shops opened in 2016!

• InvestHK helped with:

- Company set-up

- Info re. government regulations, latest HK

retail trends, additional perspectives for

growing the business.

Success story: MosquitNo

Mosquito repellent

• Insect repellent using nano

technology + R3535 active

ingredient (no DEET)

• Clothes and homes mosquito-free

for up to 3 months

• HK office is regional hub for all

business in Asia

• Important potential in Asia in view

of threat of Dengue fever

• InvestHK helped with:- Company set-up

- Marketing & PR; “Marketing Pitch”,

major event where InvestHK invites

journalists

Success story 2016: GreenPeak

Technologies

• A world leading Internet of Things

and Smart Home technology

system provider.

• GreenPeak is based in Utrecht, The

Netherlands and has offices in

Belgium, France, Korea, Japan,

Hong Kong, China, India and USA.

• Why office in HK Science &

Technology Park? commits to the

Chinese Smart Home market to

support large service providers

• InvestHK helped with:- Company set-up

- Intro and contacts with HKSTP which

wants to attract cutting edge companies

Sector in the spotlight: F&B

F&B RETAIL

SALES

RESTAURANT

SALES

REAL GDP

FORECAST

POPULATION

FORECAST

F&B IMPORT

40% 37%

24%

3%p.a. 0.8%p.a.

2010-2015 2010-2015

2010-2015

2017-2020 2011-2021

DEMAND FOR F&B IS

TREMENDOUS

Source: Census and Statistics Department Photo credit: Hong Kong Tourism Board

GREAT VARIETY OF

IMPORTED FOOD

Source: Census and

Statistics Department

Food

Imports

US$27.1bn

Others (US$1.6bn)

8%

Sugars (US$0.4bn)

2%Feeding Stuff for Animals

(US$0.1bn)

1%Meat (US$6.1bn)

29%Vegetables and Fruits (US$4.9bn)

23%Seafood (US$3.5bn)

17%

Dairy Products and Eggs (US$2bn)

9%

Cereals (US$1.1bn)

5%

Coffee, Tea, Cocoa (US$0.6bn)

3%Live Animals (US$0.6bn)

3%

39%2010-2015

Imports of major

food items are

skyrocketing

28%2010-2015

58%2010-2015

17%2010-2015

124%2010-2015

Live Animals and Meat Vegetables and Fruits Seafood Dairy Products and Eggs

Ageing population in HK that 1/3 of population will be

aged 60+ in 2040

Government promotes healthy eating and less

wasteful habit

Consumers continue to eat out but consume more

plant-based and healthier food

Foodservices emphasize on using fresh, quality and

natural if not organic ingredients

Importance of traceability from “farm to fork”

Selective eaters on the rise e.g. vegan, dairy free, nuts

free, gluten free etc

Green concerns centre on self and family- consume

sustainable produce and use recyclable products

Growing emphasis on Halal-certified

OPPORTUNITIES AND TRENDSHEALTHY FOOD AND SUPERFOOD

FACTORS SUPPORTING

F&B GROWTH

Source: CBRE Research, Q3 2016

F&B SECTOR EVENTS –

To target

traditional

food trading

prospects

To target

healthy

and

superfood

trading

prospects

To target

restaurant and

food startup by

food

entrepreneurs

workshops &

awards eventsYEAR

2017

8 – 11 MAY Date TBC - JUN 30 AUG – 1 SSEP Date TBC - SEP

InvestHK

Reception

2017

MARKETING RESOURCES

AVAILABLE TO INVESTORS

1. Tourism & Hospitality

Monthly Newsletter

2. Sector Flyers x 8- Food Trading and Distribution

- Foodservice Companies

- Wine

- Beauty & Wellness Services

- Cruise

- Hotel Operators

- MICE

- Travel Service Companies

http://www.investhk.gov.hk/publications-resources.html

3. Case Study Booklet

4. Euromonitor Market Research Report

Sector in the spotlight: Fintech

Asia’s Largest Financial Center and Gateway to China

Hong Kong

Global Fintech hubs

24

Source: Global Fintech Hub overview, Connecting Global Fintech: Hub Review 2016, Deloitte

17.6%of

HKG GDP

6%of HK

workforce

12%export

Fundamentals of Financial Services

in HK economy.

Fundamentals

• China Global Financial

Center leading in Asia

• Fast growing FinTech Hub

with major growth stage

Fintech.

• 75 of World's Largest 100

Banks in HK

• #1 Asset Management hub

in Asia. USD2.19Tr in 2015

• Offshore RMB CenterRMB22Tr transaction settled in 2015

• China In / Outbound Gateway

• Financial Services

Renovation

+ Innovation

• Mature & Stable Regulations

• Smart City Initiatives

• CEPA Regional Trade

Agreement

• Regional Connectivity

• One Belt One Road initiatives

Government Initiatives

• FinTech in Hong Kong is private sector led

• Government supports the sector via :

• FSTB Fintech Coordination Group and initiatives

• InvestHK / SFC / HKMA / IA / CyberPort / Science Park / ASTRI

FinTech Contact Points – Poles of excellence

• FinTech Week + Fintech Finals networking events Series

• FinTech R&D funding schemes / FinTech Labs

FinTech Sector Priorities

Cyber Security

RegTech

WealthTech

BlockChain

InsurTech

GET IN TOUCH

Tel: (32) 473 97 81 96

www.investhk.gov.hk

Email: paula_kant@hongkong-eu.org

Hong Kong Economic & Trade Office

Brussels

Rue d'Arlon 118

B-1040 Brussels

BELGIUM

www.flickr.com/photos/investhk

www.linkedin.com/company/invest-hong-kong

#InvestHK

www.youtube.com/user/investhk

https://be.linkedin.com/in/paulakant

THANK YOU!

Zhaoqing Foshan

Guangzhou

Dongguan

Huizhou

ShenzhenZhongshan

Jiangmen

Zhuhai

Macau

GREATER PEARL

RIVER DELTA

POPULATION

64mn

>UK, Italy, South Africa

EXPORTS

US$527bn

>UK, Italy

GDP

US$962bn

>Indonesia, Netherlands, Turkey

LAND AREA

56,000km2

<Ireland, Latvia, Panama,

West Virginia (US)

Hong Kong

XRL – Express Rail Link

XRL

HZMB

HZMB – Hong Kong-Zhuhai-Macao Bridge

Creating opportunities in international trade

Hong Kong TradeDevelopment Council

Providing Information

MatchingBusinessPartners

Connecting Customers

33

HKTDC: Global Network

46 offices worldwide

Beijing

Hong Kong

TokyoNew York

Bangkok

Dubai

London

Frankfurt

Sydney

L.A.

Chicago

Kuala Lumpur

Jakarta

Singapore

Ho Chi Minh City

28 along the Belt and Road, including

13 on Chinese mainland, 5 in ASEAN

Seoul

PRIME CONDUIT FOR FDI

Rank FDI Inflows (2015) US$ bn

1 USA 380

2 Hong Kong 175

3 China 136

4 Ireland 101

5 Netherlands 73

6 Switzerland 69

7 Singapore 65

8 Brazil 65

9 Canada 49

10 India 44

ALL TIME HIGH –

7,904 companies of which

3,798 are RHQs and ROs in

2015

Source: 2015 Annual survey, HKSAR

Government’s Census & Statistics Department

Source: World Investment Report 2016, UNCTAD

* Up from 103 US$ bn in 2014!

*

Fintech: A Definition

Fintech:Financial technology, also known as FinTech, is an industry composed of companies that use new technology and innovation to leverage available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services.

FinTech refers to new applications, processes, products or business models in the financial services industry.

35

Jul 14

First FinTechAccelerator

Sept 14

SecondFinTechAccelerator

Nov 14

StartmeUpHong Kong FinTech Day

Feb 15

GovernmentBudget Speech

Apr 15

FSTB paperFintech Liaison Offices

Fintech Journey

2014 2016-2017

2016HKMASandbox

SVFLicenses

SFC - NON face-to-face account

opening

HK Fintech week

Cyberport 4000m2 Fintech space

2017Policy Address : Fintech initiatives

Lok Ma Chau loop innovation node.

Growth

130+

FinTech

Start-ups

200+

FinTech Events

Leading

RegTech research

4

liaison offices

2

FinTech

Poles of excellence

Numerous FinTech successes & business milestones

SVF / Non face to face onboarding / SandBox / R&D labs

3

FinTech

Accelerators

Big 4 consulting

FinTech

leadership in HK

Research centers

Innovations labs

Growing

FinTech university

Programs

Services of InvestHK

Free & confidential services :

1. Bank accounts -Working visas - Office space -Schooling

2. Introduction to regulators : SFC, HKMA, Insurance Authorities

3. Introductions to HK innovation centers :

ASTRI / Cyberport / Science Park /LokMa ChauLoop

4. Networking opportunities

5. Business introductions

6. Government support schemes guidance

Government Supports examples :

• Tech vouchers Scheme: HKD 200,000 for SMEs to upgrade their business

• Internships Scheme : Employ a local graduate and receive up to HKD16K/month for

maximum 2 years to support your R&D efforts.

• R&D : Up to HKD 10,000,000 support by HK government for R&D projects

• Investment : HKD 5 billion fund for co-investing in start-ups

• Talents : Training financial services professionals - HKD7,000 per year per head

• Innovations : HKMA sandbox with banks, R&D supports

Hong Kong FinTech Week 2016

• 7 – 11 Nov 2016

• 2,500+ participants

• 100+ speakers

• 170+ media coverages

Hong Kong FinTech Week 2016

Pencil down your agenda :

Next FinTech week > October 2017

FinTech Finals 2017

18-19 January 2017, Hong Kong, PMQ

• 1,000 Attendees

• 200 CEOs & Founders

• 50 Nationalities

• 24 Live Start-ups Pitches

FF17 FINALISTS selected through

semi-finals in :

Sydney / Kuala Lumpur / Sao Paulo /

Shanghai / Singapore / Bangalore /

Melbourne / Seoul / Tokyo / Mumbai / NYC

http://ff17.nextmoney.org