Hong kong for business

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Very good synopsis of why Hong Kong is still a very important centre of business


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