Use Hong Kong to Improve

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Hong Kong Gateway to China
Use Hong Kong to Improve Your Competitiveness Si
mon GALPIN Director-General of InvestHK 28 August
2009
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Whats Stayed the Same?
Hong Kongs Enduring Advantages

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Hong Kongs Strategic Location

• New Markets Customers
• Easy access to
• high-growth economies
• High demand for foreign products services
• Low-Cost Production Sourcing
• Major production centres
• in China, Vietnam etc.

Half the worlds population within five hours
flight time!
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Major Tourism Projects
One Country, Two Systems A Stable Society

• Hong Kong retains its advantages
• Rule of law
• Level playing field
• Currency convertibility, separate from Renminbi
• International business practices
• Free flow of information
• Negotiates and signs own economic/trade
  agreements
• Hong Kong is a full, separate member of WTO and
  APEC
• At the same time, Hong Kong is an integral part
  of China

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Forbes Tax Misery Index 2009
Stable, Low Simple Tax System
Stable, Low Simple Tax System
Forbes Tax Misery Index 2009
Hong Kong 3rd from bottom, score 41.5 Singapore
eight positions higher, score 78.5
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Freest Economy
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International Financial Centre
Source World Federation of Exchanges
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Popular Foreign Direct Investment Destination

• Hong Kong is the worlds seventh and Asias
  second largest FDI recipient. It has the highest
  FDI stock in Asia
• In 2007, Hong Kong attracted more FDI than the
  next 3 highest recipients in Asia Singapore,
  India Thailand
• Ranked top of UNCTADs FDI Performance Index
• Hong Kong is also the second biggest outward
  investor in Asia, after Japan

Source Annual World Investment Reports released
by UNCTAD United Nations Conference of Trade
Development
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Cosmopolitan Lifestyle
Easy Living Environment

• Arts/culture world-class venues major events
  and annual festivals
• Education Some 56 international schools offer
  variety of curricula
• Food local, regional, international
  restaurants/supermarkets
• Healthcare Private doctors/clinics, plus major
  teaching hospitals
• Religion Catholic, Christians, Buddhists,
  Hindus, Jews, Muslims Sikhs and Taoists
• Sports mix of Asian and Western sports, plus
  calendar of international events

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Asias Most Popular City for International
Business
Asias Most Popular City for International
Business
No. 1 in Asia for international companies3,882
regional offices and headquarters
Source 2008 Annual Survey of Companies in Hong
Kong Representing Parent Companies Located
outside Hong Kong, Census Statistics Dept,
HKSARG
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Major Tourism Projects
Whats Changed ?
New Trends Opportunities
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Major Tourism Projects
Mainland Companies in HK

• Of the 1,267 companies listed in HK, 470 or 37
  originated from Mainland (April 2009, HKEx)
• Of the US1,469 bn market capitalization, US864
  bn or 59 from Mainland (April 2009, HKEx)
• As at end 2008, 3,858 Mainland companies with
  subsidiaries in HK, involving a total investment
  amount of US2.07bn (MOFCOM)
• 95 Mainland companies with regional headquarters
  in Hong Kong 128 companies with regional offices
  in Hong Kong to oversee business activities in
  the region (June 2008, Census Statistic Dept.)
• 691new investment projects approved in 2008, with
  an investment amount of US10.34 bn (MOFCOM)

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Closer Economic Partnership Arrangement (CEPA)

• Mainlands and Hong Kongs first free trade
  agreement
• Covers trade in goods and services
• Provides easier access to Mainland for HK-made
  products and HK-based service companies
• Available to people and businesses of all
  nationalities

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Major Tourism Projects
Renminbi (RMB) businesses in HK

• HK has been allowed to conduct RMB business for
  individuals, including RMB deposits, remittances,
  exchange business and RMB bank cards in the
  territory since early 2004.
• RMB deposits in HK increased to RMB 77 billion as
  of May 2008.
• Hong Kong is the first place outside Mainland
  that possesses a RMB bond market.
• Qualified Domestic Institutional Investor (QDII).
• Mainland to launch a pilot program for Hong Kong
  and five Mainland cities to settle cross-boundary
  trade in RMB
• Potential for Hong Kong as a regional Renminbi
  clearing center

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Increasing visitor arrivals
Source HKTB
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Future Tourism Outlook

• Projected visitor arrivals to reach 57 million
  per year by 2020 with Hong Kong becoming the 5th
  most frequently visited tourist destination in
  the world
• Ocean Park redevelopment, new cruise terminal
  facilities at Kai Tak and West Kowloon Cultural
  District will further enhance Hong Kongs
  position as Asias No. 1 city destination
• Increasing opportunities in Mainland China
  through Closer Economic Partnership Arrangement
  (CEPA)
• Major stop-over point for Shanghai World Expo
  2010 and Guangzhou Asian Games 2010

World Tourism Organization
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InvestHK Department for FDISupporting
businesses to set up and expand in Hong Kong

• Our missionTo attract and retain in Hong Kong
  economically and strategically important direct
  investment
• Our offerFree and confidential facilitation
  services to ensure that investors smoothly
  establish or expand their operations in Hong Kong

Public relations support for launch / expansion
Relevant up-to-date information
Facilitation of set-up / expansion
Matchmaking and networking support
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Thank You! www.InvestHK.gov.hk
Ms Nese Yahya Principle Consultant
Istanbul nyahya_at_invsethk.com.hk Tel [phone]
59 33