Where BusinessGoes to Grow

Charles NgAssociate Director-General of Investment Promotion

LOCATION – at heart of Asia Great Connectivity

2

4hours

Most of Asia’skey markets within 4 hours’ flight time

5hours

From halfthe world’spopulation

Greater Pearl River Delta3

Population64 mn> UK, Italy, South

Africa

World’s 4th largest trading economy> UK, Italy

GDPUS$ 1 tn> Indonesia,

Netherlands, Turkey

Land Area56,000 km2

< Ireland, Latvia, Panama, West Virginia (US)

Regional Connectivity4

Hong Kong

Macao

GuangzhouEast Station

Guangzhou South Railway Station

Guangzhou Baiyuan International Airport

Hong KongInternational Airport

MacaoInternational Airport

Shenzhen Bao’an International Airport

Zhuhai Jinwan Airport

Zhuhai Gaolan Port

Mawan PortShekou Port

Nansha Ferry Terminal

Nansha Terminal

HZMB

Shenzhen

Guangzhou

Zhuhai

Source: CBRE, SCMP

Nansha

Hengqin

Guangzhou-ShenzhenRailway

Hangzhou-Fuzhou-

Shenzhen

Passenger Line

HK-SZWestern Corridor

Guangzhou-Shenzhen-Hong KongExpress Rail Link

Beijing-ZhuhaiExpressway

Qianhai

Within the PRD region and Guangdong province• High-speed railways to Nanning,

Guiyang, Xiamen, and Maoming • Intercity Railways linking cities and

major towns • Metros or Urban Transits in

Guangzhou, Shenzhen, and Dongguan

Cross-boundary links in the GPRD region• Guangzhou-Shenzhen-Hong Kong

Express Rail Link • Hong Kong-Shenzhen Western Express

Line• Hong Kong-Zhuhai-Macao Bridge

(HZMB)

International and external connectivity• Three further runways at Guangzhou

Baiyun International Airport • Third runway at Hong Kong

International Airport• Third runway at Shenzhen Bao’an

International Airport• Phase three of Nansha Port in

Guangzhou• Expansion of Yantian Port and phase

two of Dachanwan Port in Shenzhen

• 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 19 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

One Country Two Systems 5

Hong Kong

Singapore

Shanghai*

16.5

17

25

15

20

45

5

16

37

5

20

11

0

7

17

Corporate Income Personal Income Employer Social Security Employee Social SecurityVAT

• VAT/GST/Sales tax• Capital Gains Tax• Withholding tax on investments• Estate duty• Global taxation• Wine duty

Low and Simple Tax System6

NO* There is no standard rate across the Mainland China. Shanghai is used as an example

Percentage

World Class ICT Infrastructure7

7th in the Global Innovation Index Report(INSEAD 2013)

2nd in AsiaNetworked Readiness Index(The Global Information Technology Report 2014, World Economic Forum)

2nd in Asia ICT Development Index (ITU Oct 2013)

The safest place in Asiafor setting up datacentres(Data Centre Risk Index, Cushman & Wakefield, 2013)

Mobile phone penetration rate >237%(OFCA, Sep 2013)

The world’s fastest speed for Internet access (Akamai Technologies, 2014)

Human Capital - Quality Education

8

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 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)

Business-to-Consumer Gateway to 3.7 million HNWIs in Asia-

Pacific with wealth totalling US$12 tn Wealth growth the strongest in Asia-Pacific

at 12% Hong Kong – HNWIs up 36% 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

9

Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Global Wealth Databook 2011

2000 2003 2005 2006 2007 2009 2010 2011 2012 20130

10

20

30

40

50

60

3.88.5

12.5 13.615.5

18.022.5

28.1

34.9

40.7

9.37

10.8 11.712.7 11.6

13.5

13.8

13.713.6

MillionNumber of visitor arrivals

Mainland China Rest of the World

Source: Hong Kong Tourism Board

+12%

54.3 million visitors

+16%

+4%Spending US$44.1

billionUS$1,044 per capita

2,264 new investment projects approved;investment amountUS$43.7 bn (as of 2013)(Source: MOFCOM)

RMB deposits in Hong Kongof RMB1,053 bn (~US$173 bn)(as of Dec 2013)(Source: HKMA)

Business-to-Business11

797 listed Mainland enterprises on the HKEx; total market cap US$1.76 tn (as of Dec 2013)(Source: HKEX)

20002013

% of mainland

companies

% of mainland capitalisation

49%

57%

18%

27%

7,449 companies of which 3,835 are RHQs and ROs in 2013(Source: 2013 Annual survey, HKSAR Government’s Census & Statistics Department)

Prime Conduit for FDI

Rank FDI Inflows (2012) US$ bn FDI Outflows (2012) US$ bn1 USA 168 USA 3292 China 121 Japan 1233 Hong Kong 75 China 844 Brazil 65 Hong Kong 845 British Virgin Islands 65 UK 716 UK 62 Germany 677 Australia 57 Canada 548 Singapore 57 Russia 519 Russia 51 Switzerland 4410 Canada 45 British Virgin Islands 42

12

Source: World Investment Report 2013, UNCTAD

Markus KramerPresident, Dispersions and Pigments Division(Global headquarters)

Global Operations in Hong Kong

John RiceVice Chairman(Global operations)

Jean-Pascal TricoireGlobal CEO

Jeff UrwinGlobal Head of Investment Banking

Johan de NysschenPresident(Global headquarters)

13

Christophe RousselInt’l Sourcing Director

Karen FiferGlobal Managing Partner, Consumer Markets Practice

Startmeup.HK14

Startup Ecosystem in Hong Kong

15

600-800in their 30s

80% of startup founders are non-local

<2 YearsEstablishment

Full-time staff

≤5

• Enterprise solutions & consumer internet, fintech, energy & environment, medical and education, etc

Business Sectors

including incubatees located inAbout startups

Burgeoning Co-work Spaces

startup commune

2010 3

2014

30

Number of co-work spaces in HK

>1,600 spaces

A Vibrant Community17

• and – Empowering Young Entrepreneurs Programme

• and – Accelerator Support Programme

• Open Data Hong Kong• HK$500 million Social Innovation and

Entrepreneurship Development Fund (launched in 2013)

Social Media – East Meets West

18

Hong Kong

where social media channels

intersect

How We can Help

Networking events,introduction to service

providers

PR and marketing support for

launch/expansion

Facilitation of visaapplications, schooling

Information to aidplanningand evaluation

Startups We’ve Supported20

77%Startups supported by InvestHK since

2010

StartmeupHK Venture Programme5 December 2013

Entries by Location (2013)22

Hong K

ong US

Israe

lIn

dia UK

Canad

a

Malays

ia

Franc

e

German

y

Austra

lia0

10

20

30

40

50

60

70

8069

5043

21 19 1915 14 12 12

UK - Top 5

Business Sectors

Information and Communi-cations Technology [ICT];

131; 34%

Creative Industries [CI]; 97; 25%

Innovation and Technology [I&T]; 53; 14%

Business and Professional Services [BPS]; 32; 8%

Consumer Products [CP]; 30; 8%

Tourism and Hospitality [T&H]; 19; 5%

Transport and Industrial [T&I]; 15; 4% Financial Services [FS]; 7; 2%

Information and Communi-cations Technology [ICT]

Creative Industries [CI]

Innovation and Technology [I&T]

Business and Professional Services [BPS]

Consumer Products [CP]

Tourism and Hospitality [T&H]

Transport and Industrial [T&I]

Financial Services [FS]

23

New Features24

Early to growth stage ventures with revenue

and/or significant users/customers

Category 1 Startups at the concept

and prototype stage with no revenue

9 winners 3 winners

3Grand Award Winners

Category 2 Special AwardsFin Tech and Smart

City

Target sectorsICT; Medical and healthcare;

Retail technology; Supply chain and logistics; Creative

industries; Hardware and electronics; Education

BenefitsGrand Award Winners will receive benefits worth

over US$500,000

Sponsored trip to Hong Kong Free work / retail space Media exposure

• Present to potential angel investors, business partners and startup community stakeholders

• Mentorship from prominent business leaders• Professional services from leading accounting,

legal, design, brand strategy and managed hosting firms in Hong Kong

• Partnership matching

Key Dates

Closing date for applications

31 Jul(12:00p.m. HK Time)

Interviews with semi-finalists

1stweek of

Sep

StartmeupHK Venture Forum

11 Nov

Applications open NOW!http://www.startmeup.hk

Get in Touch:www.startmeup.hk

For more information, please contact

Shammi Hattangdi, Principal Consultant (Mumbai) shattangdi@investhk.com.hk

12 Deccan Court, 259 S. V. RoadBandra (W), Mumbai – 400 050, IndiaTel: +91 22 65610754

startmeuphkwww.facebook.com/startmeuphk

www.youtube.com/user/investhk

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

Get in Touch:www.investhk.gov.hk

28

Tel: (852) 3107 1000sgalpin@investhk.gov.hk

InvestHK www.linkedin.com/company/ invest-hong-kong www.youtube.com/user/investhk www.flickr.com/photos/investhk

For more information, please contact:

Shammi Hattangdi, Principal Consultant (Mumbai) shattangdi@investhk.com.hk

12 Deccan Court, 259 S. V. RoadBandra (W), Mumbai – 400 050, IndiaTel: +91 22 65610754