Download - Hong kong for business
Where Business Goes to Grow
Andrew Davis Associate Director-General 2 May 2014
Using Asia's Premier City to Access Opportunities Across the Region
Australian Trade and investment in HK
• The Australian business community has always played a leading role in HK, with an estimated 90,000 Australians and over 600 Australian companies
• There were 32 regional HQ, 43 regional offices and 78 local offices set up by Australian companies as at Jun 2013
• Australia is 2nd largest source of wine import (16.2% of total wine import volume)
• The memorandum of Understanding on Co-operation in wine-related business between Hong Kong and Australia was signed in April 2009
• Other major import items from Australia: Telecommunications; non-ferrous metals; meat
• Healthy growth in bilateral trade in services between HK and Australia at 5% on average from 2008-2012 Wine of fresh grapes
Source: Census and Statistics Department
Hong Kong: Host of Many Australian Companies
Business & Professional Services
Creative Industries
Consumer Products
Financial Services
Innovation & Technology
Tourism & Hospitality
Transport & Industrial ICT
• Australia and New Zealand Banking Group (ANZ)
• ASF Group • Clayton Utz • Chandler
Macleod Group • Commonwealth
Bank of Australia
• Laservision • LHD Group • National
Australia Bank • Qantas Airways • Talent2 HK Ltd • Telstra • The Ambition
Group • UGL Rail
Services Pty • Westpac
Banking Corp.
On-off Ltd
More Successful Cases
A variety of sectors are keen to capture the opportunities in Hong Kong, including for example • Business and
professional services
• Consumer products
• Financial services
• Mining companies
Mallesons Stephen Jaques (Law firm) • Merged with Mainland law
firm titan King & Wood in March 2012 and now forms one of the largest legal networks in the Asia-Pacific region
• “In terms of where our business genuinely intersects, Hong Kong is the centre of that connection,” Stuart Fuller Global Managing Partner
Aesop (Skincare brand) • First opened an office in
Sheung Wan in late 2010 • It then started to create a
separate regional group to provide support to business development, marketing, retail training and planning and development
• “There are many reasons to place a regional support team in Hong Kong: efficient transport connections, excellent local advisers and a strong market for international-standard retailing and premium consumer goods,”
Nicholas Mulcahy General Manager, Asia Pacific
Heart of Asia
Connectivity to the World
4hours Most of Asia’s key markets within four hours’ flight time
5hours From half the world’s population
Connectivity to the World • HKIA is the world's busiest cargo gateway and one of the
world's busiest passenger airports. • In 2013, 59.9 million passengers used HKIA and 4.12
million tonnes of air cargo passed through Hong Kong. HKIA is connected to about 180 destinations, including 44 in the Mainland, through over 1,000 daily flights by more than 100 airlines.
• Rule of law and independent judiciary • Level playing field and no foreign ownership restrictions • Political stability and pro-business governance • The World’s Freest Economy for 20 consecutive years • Hong Kong negotiates and signs its own economic and trade agreements
and is a full and separate member of the WTO and APEC • Free flow of information
One Country Two Systems
• VAT/GST/Sales tax • Capital Gains Tax • Withholding tax on investments • Estate duty • Global taxation • Wine and beer duty
Low and Simple Tax System 9
NO * There is no standard rate across the Mainland China. Shanghai is used as an example
Percentage
World Class ICT – Connecting 8th in the Global Innovation Index Report (INSEAD 2012)
2nd in Asia Cloud Readiness Index (Asia Cloud Computing Association, Sept 2011)
Fastest broadband globally 65.4 Mbps
The safest place in Asia for setting up data centres (Data Centre Risk Index, Cushman $ Wakefield, 2013)
Highest mobile internet usage rate in Asia Pacifc (96% users online daily) (Google) Mobile phone penetration rate >238.2% (Dec 2013, OFCA)
Human Capital - Quality Education
x 2
x 49
Two universities in the world’s top 100
(Times Higher Education World University Rankings 2013/14)
HKUST MBA – 1st in Asia and 8th in the world
(Financial Times Global MBA Ranking 2013)
World’s Top EMBA in 2013: Kellogg – HKUST EMBA
Programme (Financial Times 2013)
49 International schools 3rd in the Global Index of Cognitive Skills
and Educational Attainment (Economic Intelligence Unit 2012)
Hong Kong students ranked first in reading literacy
globally (Progress on International Reading
Literacy Study 2011)
Latest: Chicago Booth First EMBA Starts in Hong Kong (June 2014)
Unique advantage: Global Financial Centre
Ranking City
1 New York
2 London
3 Hong Kong
4 Singapore
5 Zurich
6 Tokyo
7 Seoul
8 Boston
9 Geneva
10 San Francisco
The Global Financial Centres Index (GFCI) 9, March 2014
Most Competitive Financial Centre in Asia • Pillar of the Hong Kong economy –
16.1% of GDP
• Asia’s 2nd largest stock market
• World’s 2nd largest IPO centre (expected ranking by E&Y)
• 1st and largest off-shore RMB platform
• Base for 70 of the world’s 100 largest
banks
• Asia’s asset management hub
• World’s largest securitized derivatives
market in 2012
Greater Pearl River Delta
Population 64 mn > UK, Italy, South
Africa
Exports US$527 bn > UK, Italy
GDP US$962 bn > Indonesia,
Netherlands, Turkey
Land Area 56,000 km2
< Ireland, Latvia, Panama, West Virginia (US)
Closer Economic Partnership Agreement (CEPA) Opens the door to mainland China
• For trade in Goods: Set up production lines in HK
to produce goods that meet the CEPA Rules of origin to enjoy zero tariff on importation into mainland , and rigorous protection of intellectual property in HK
• For trade in Services: Incorporate and set-up in HK, and make use of preferential arrangements to start business in mainland :
� Allow wholly-owned operations � Lower entry criteria � Relax equity control and more • Professionals enter mainland market via increasing no.
of MRQ, facilitating registration, etc • By end-July 2013, CEPA had provided HK companies with
tariff savings of over US$595 million • 1,700 products and 47 service sectors are benefited
Riding on CEPA zero tariff preference, the
company set up a company plus small
factory in Hong Kong in 2012 for pearls
processing
Tai Lai Enterprise
Business-to-Business 2000
2013
% of mainland
companies
% of mainland capitalisation
49%
57%
18%
27%
To the regional markets
797 listed Mainland enterprises on the HKEx; total market cap US$1.76 tn (as of Dec 2013) (Source: HKEX)
2,264 new investment projects approved; investment amount US$43.7 bn (as of 2013) (Source: MOFCOM)
RMB deposits in Hong Kong of RMB1,053 bn (~US$173 bn) (as of Dec 2013) (Source: HKMA)
To mainland market
StartJG started cooperating with Chow Tai Fook (one of the world’s largest jeweler) and Suning (one China’s largest electronics retailers) after setting up in HK
Photo credit: StartJG; Suning: Chow Tai Fook
Business-to-Consumer
Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Global Wealth Databook 2011
Coach’s Regional HQ in HK drives expansion in Asia.
z Gateway to 3.7 million HNWIs in Asia-Pacific with wealth totalling US$12 tn
z Wealth growth the strongest in Asia-Pacific at 12%
z Hong Kong – HNWIs up 36%
z Asia-Pacific expected to lead robust global HNWI wealth growth. HNWI wealth expected to reach US$16 tn by 2015 Source: Capgemini World Wealth Report 2013
• Asia-Pacific accounted for 50% of the growth in global wealth since 2010
• By 2020, est. no. of millionaires in Mainland China & Hong Kong will reach 3.7 million, an accumulated wealth of US$14 trillion
HK is a strategic location for retail brand in Asia.
Being successful in HK has helped to build up brand awareness and
credibility in the region.
54.3 Million Visitors in 2013 +11.7%
Million
Number of visitor arrivals
Mainland China Rest of the World
Source: Hong Kong Tourism Board
Total Retail Sales US$64 Billion +11%
84% of the world’s leading luxury and fashion retailers are in Hong Kong
of all international retail brands are in Hong Kong
41%
18 in Hong Kong
12 in London
No. of Shops
13 in Hong Kong
5 in Milan
10 in Hong Kong
4 in Milan
Cosmopolitan Life
Unique City with Mountains, Harbors, Skyscrapers and Best Food All in One • The city has 5 of the World’s 100 Best
Restaurants • 5 Michelin starred restaurant ,with
the world’s cheapest starred restaurant – Tim Ho Wan
• Ozone Bar on 118th floor is the highest bar in the world
• People in HK eat out more often than anywhere else, there is one restaurant for every 600 people! • World’s top wine auction centre
• >47mn litres of wine imported in 2013 • HK has the most skyscrapers. HK
Skyline was crowned the best in the world in terms of visual impact (by Emporis in 2012)
• Mong Kok has world’s highest population density at 130,000/sq km
• Lamma Island - a population of only 5000, has 60 different nationalities living there
Source: The World’s Best Restaurants Awards, William Reed Media Census and Statistics Department; Photo Credit: The Ritz-Carlton, HK
What We Do?
How InvestHK helps investors
Networking events, introduction to service
providers
PR and marketing support for launch/expansion
Facilitation of visa applications, schooling
Information to aid planning and evaluation
Pharmaceutical & Clinical Development from Australia
From Micro…
Breakfast and Brunch restaurant set up by an Australian couple
Cosmetic distributor from Belgium
Creative agency from Denmark
Recruitment Services from Australia
Bluetooth Game Device from Germany
Markus Kramer President, Dispersions and Pigments Division (Global headquarters)
Global Operations in Hong Kong
John Rice Vice Chairman (Global operations)
Jean-Pascal Tricoire Global CEO
Johan de Nysschen President (Global headquarters)
Jeff Urwin Global Head of Investment Banking
Christophe Roussel Int’l Sourcing Director
Karen Fifer Global Managing Partner, Consumer Markets Practice
Michael Andrew Global Chairman
Startmeup.hk Aims to help innovative and high impact ventures launch and/or develop their global businesses
through Hong Kong
Startmeup HK Venture Programme
The “2014 StartmeupHK Venture Programme” will be launched in May 2014, for latest news: Website: www.startmeup.hk Facebook: www.facebook.com/startmeuphk Twitter: #startmeuphk
• 384 entries from 39 cities and economies were received
• 2013 Winners: � D’Arcy Polychrome Ltd (New Zealand) � Hanson Robotics (US) � Wifinity Ltd (HK)
www.investhk.gov.hk Andrew Davis Associate Director-General Tel: (852) 3107 1009 [email protected] 25/F, Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong Our Office in Sydney: Yin Robards Deputy Head, Investment Promotion (Australia and New Zealand) Tel: (61) 2 9286 2358 [email protected] Level 2, Hong Kong House, 80 Druitt Street, Sydney NSW 2000, Australia
Get in Touch