HONG KONG RIGHT PLACE RIGHT TIME RIGHT NOW

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HONG KONG

RIGHT PLACE

RIGHT TIME

RIGHT NOW

Business Opportunities in Hong Kong

Charles Ng

Associate Director-General of Investment

Promotion

Hong Kong & China: Seminar & business Luncheon

Bristol, 11 September 2012

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RIGHT PLACE

Heart of

Asia

Gateway to

China

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Greater Pearl River Delta

• Population

55.3 mn

> Canada

• Exports

US$387 bn

>

UK, Canada (more than 27% of China’s exports)

• GDP

US$665 bn

> Sweden, Saudi Arabia

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16.5 17 25

15

20

45

5

14.5

49

5

20

23

17

0

7 Hong Kong

Singapore

China

Corporate Income Personal Income Employer Social Security Employee Social Security VAT

Source: Forbes Tax Misery Index 2009, Inland Revenue

Low and Simple Tax System

NO

• VAT/GST/Sales tax

• Capital Gains Tax

• Withholding tax on investments

• Estate duty

• Global taxation

• Wine duty

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World Class ICT - Connecting People

• 4

th

_{in the Global Innovation Index Report}

(INSEAD 2011)

• 6

th

_{most advanced ICT economy}

(ITU Sept 2011)

• 7

th

_{most e-ready economy}

(EIU 2010)

• 2

nd

_{in Asia Cloud Readiness Index}

(Asia Cloud Computing Association, Sept 2011)

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Human Capital - Quality Education

• Four universities in the world’s top 200

(Times Higher Education Magazine)

• HKUST MBA 1

st

_{in Asia and 6}

th

_{in the world}

• World’s Top eMBA in 2010: Kellogg -

HKUST eMBA Programme

(Financial Times 2011)

• 47 international schools

• Pool of financial expertise (most CFAs in

Asia Pacific)

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Business-to-Consumer

• Gateway to

3.37 million

HNWIs in Asia-Pacific

with

wealth totalling

US$10.7 tn

> North America the first

time

• HNWIs in Mainland China reached

c.

562,400, or

+5.2%

• China (including Hong Kong) overtook the U.S. as the

world’s largest market for art and antiques

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28.1

12.7

11.6

13.5

13.8

22.5

18.0

15.5

13.6

12.5

8.5

3.8

2.4

11.7

10.8

7.0

9.3

8.9

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00 1997

2000

2003

2005

2006

2007

2009

2010

2011

Source: HKTB

Million

42 million visitors; +

16%

US$32 bn spending; +

20%

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Total retail sales

US$52 bn; +25%

Per capita retail spending

>USD8,900

84%

of the world’s leading luxury and fashion retailers

and

41%

of all international retail brands are in Hong Kong

11 shops in London;

17 in Hong Kong

6 shops in Milan;

13 in Hong Kong

4 shops in Milan;

10 in Hong Kong

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• 645 listed Mainland enterprises on

the HKEx; total market cap

US$1.37 tn

(as of Jan 2012)

• 1,086 new investment projects

approved; investment amount

US$35 bn

(MOFCOM, 2011)

• RMB deposits in Hong Kong of

RMB588 bn

+

87%

(as of Dec 2011)

Source: HKEx and MOFCOM

27% 55% 18% 43% % of mainland companies % of market capitalisation

2000

2011

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Foreign Direct Investment in 2011

• 3,752

overseas/ Mainland companies with

regional headquarters and offices

(Source: 2011 Annual Survey, Hong Kong SAR Government's Census & Statistics Department)

Rank

FDI Inflows (2011)

US$ bn

FDI Outflows (2011)

US$ bn

1 USA

226.9 USA

396.7

2 China

124.0 Japan

114.4

3 Belgium

89.1 UK

107.1

4 Hong Kong

83.2 France

90.1

5 Brazil

66.7 Hong Kong

81.6

6 Singapore

64.0 Belgium

70.7

7 UK

53.9 Switzerland

69.6

8 Russia

52.9 Russia

67.3

9 Australia

41.3 China

65.1

10 France

40.9 Germany

54.4

Source: World Investment Report 2012 (UNCTAD)

Latest preliminary figure from HKSAR Government’s Census and Statistics Department: FDI Inflows (2012 Q1) into Hong Kong – US$23.8 bn

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From Micro …

• California-themed wine bars

• Leading Japanese stationery company

• Innovative design and printing from Russia

• Italian branding and design agency

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… to MACRO

• Global operations

• Global CEO

• Global headquarters

• Global Chairman

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HK’s opportunities in diversified economy

Business and

Professional Services

• Law firms • Accounting firms • Consultants • NGOs • Educational

Creative Industries

• Art & Culture

• Design/ Architectural firm

• Media/ Multimedia - Entertainment

Consumer Products

• Trading • Retail • Supply Chain

Financial Services

• Bank, Insurance • Asset Management • VC, PE, etc.

Innovation and

Technology

• Green Trade

• Renewable energy (EV, etc.)

• Bio Tech (Life Science, etc.)

• Electronics (Nanotech, etc.)

Information &

Communications

Technology

• Software/Hardware

& Cloud Solution

• Data Centre

Transport and Industrial

• Transport related (Sea, Land & Air)

• Commodities (Mining, etc.)

• Industrial products

(Supply Chain, Trading, etc.)

Tourism and Hospitality

• Food/ Beverage (wine, etc.)

• Restaurants/ Hotels

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Invest Hong Kong

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How InvestHK Helps Investors

Information to

aid planning and

evaluation

Facilitation of visa

applications,

schooling

PR and marketing

support for

launch/ expansion

Networking events,

introduction to

service providers

InvestHK

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22 Get in touch !

www.investhk.gov.hk

Email:

enq@InvestHK.gov.hk

Charles Ng:

cng@InvestHK.gov.hk

Tel: (852) 3107 1000

David Parker

Head, Investment Promotion (London Office)

Email:

david_parker@hketolondon.gov.hk