Hong Kong – the Gateway to China - Invest in Norrbotten

							Welcome to Hong Kong




   Hong Kong: The Gateway to China
     Hong Kong’s Role in Growing Your Business in Asia
    Norrbotten Delegation to London, Thursday April 26th 2012


   David Parker
About InvestHK
The Department for Foreign Direct Investment

 Our aim is for companies to make an informed choice and put the
  right part of your business in Hong Kong for the right reasons
  in order to be more competitive and make more profit
 Part of Economic Trade Office London (covering UK, Baltics, Russia
  & SCANDINAVIA).
 Provide free advice and customized services to help businesses
  succeed in setting up operations in Hong Kong.

                                                       Public relations
      Relevant      Facilitation of    Matchmaking
                                                         support for
     up-to-date        set-up /       and networking
                                                          launch /
    information      expansion           support
                                                         expansion
3 Markets, 3 Opportunities for Businesses


1. Three (3) Markets
    • Hong Kong > A dynamic consumer market
    • Hong Kong + Mainland China
    • Hong Kong + Asia
2. Business or Operational Functions - E.g.
    • Sales and Marketing
    • Research & Development
    • Sourcing and Procurement
    • Regional Office/Regional HQ Management
    • Treasury Functions
3. Low Tax… or No Tax
One Country, Two Systems
Hong Kong – Dynamic consumer market

•   Free port – no import or export tariffs on most goods
•   No sales tax – maximise consumer business opportunities
•   Hong Kong loves to shop – total retail sales in 2010 at HK$324.9 billion, an 18.3%
    increase over 2009
•   Maximise brand and product exposure to more than 40 million (and growing!) visitors
    to Hong Kong
•   With over 28 million Mainland Chinese visitors, Hong Kong is the shop window for
    Mainland consumers
•   World-class logistics, infrastructure and financial services to support and help develop
    consumer activities in Hong Kong and Asia
•   Large pool of tri-lingual and capable talent with international experience to help your
    consumer business
•   Hong Kong a testing ground before entering Mainland China – minimising risk
              China’s Global Financial Centre
• Global leader in IPOs since 2009
                                                   Ranking          City
• Asia’s asset management hub with funds           1                London
  under management in excess of US$1 trillion      2                New York
                                                   3                Hong Kong
• First and largest offshore RMB platform –        4                Singapore
  handles 86% of China’s global RMB trade          5                Shanghai, Tokyo
                                                   7                Chicago
• World’s largest securitised derivatives market
                                                   8                Zurich
  in 2011
                                                   9                Geneva
• Home to 70 of the world’s 100 largest banks      10               Sydney, Toronto

• Pool of financial expertise (more CFAs than
  anywhere else in Asia Pacific)                   The Global Financial Centres Index (GFCI) 9, The
                                                   Z/Yen Group, March 2011
   World Class ICT - Connecting People
• Ranked 4th in the world and 2nd in Asia
  in the Global Innovation Index Report
  INSEAD, 2009-2010

• Mobile phone penetration rate 193.2%
  OFTA Feb 2011

• 7th most e-ready economy in the world
  EIU 2010

• 3rd highest average broadband
  connection speed
  US-based network provider Akamai Technologies
  2009
Quality Education

• Home to Asia’s leading universities and
  business schools
   – HKU 2nd and in the world’s Top 50
     Times Higher Education World University Rankings
     2011-12

   – World’s Top eMBA in 2010: Kellogg - HKUST
     EMBA Programme
   – MBA run by HKUST ranked 1st in Asia and 6th
     in the world in 2011
     Rankings by the Financial Times

• 48 international schools serving students
  of more than 30 nationalities
Heart of Asia and Gateway to China
                         • World's busiest cargo airport
                         • Third busiest international
                           passenger airport
                         • Connections to about 160
                           destinations worldwide
                         • 900 daily flights by over 95
                           airlines
                         • 23 minutes to Central
                           Business District from Airport
                         • One hour from GPRD, the
                           “factory of the world”
Greater Pearl River Delta
• Population          55.26Mn         > Spain, Canada
• Exports             US$387Bn        > Italy, UK, Canada (more than 27% of China’s exports)
• GDP                 US$665Bn        > Indonesia, Sweden, Saudi Arabia
• Land area           56,000 sq. km   < Ireland, Panama (less than 1% of China’s land area)



• Exports would
  rank 7th globally
• GDP would rank
  18th globally
    Hong Kong + China
    Gateway to the Mainland


   “No other city in the
 world can help overseas
  investors manage the
risks inherent in entering
    Chinese Mainland
markets as well as Hong
          Kong”

Source: E.E. Scott, First Choice Hong
Kong – Your Asia Pacific Platform
China opportunities

• Supporting China’s development
   – Raising capital, upgrading corporate skills,
      international exposure, testing/tailoring products
• Leisure & business visitors
   – 40+ million visitors in 2011, fuelling retail, leisure,
      hospitality sectors – 22.7 million from mainland
      China
• Closer Economic Partnership Arrangement (CEPA)
• Double Taxation Agreement
• RMB trade settlement, RMB Banking and RMB bond
  issue
Hong Kong + Asia Opportunities
Hong Kong: How to use the Hong Kong Advantage

  Most common business activities by overseas businesses

  • Sales and Marketing
    e.g. local and region sales and marketing operation to promote your
    own products and services to international buyers
  • Research & Development
    e.g. HK Science Park, Cyberport, testing new retail product
  • Sourcing and Procurement
    e.g. access of most dynamic exhibitions, fairs, and events to obtain
    newest products
  • Regional Office/Regional HQ Management
    e.g. location to manage Far East agents, suppliers and manufacturing
  • Treasury Functions
    e.g. Regional or Global Financial and Foreign Exchange Management
Hong Kong offers “Business Freedom”
• Level playing field for all
• No foreign ownership rules
• Rule of law, low corruption
• Freely transferable currency
• Freedom of information
• Advanced infrastructure
• Low tax … or no tax!
Hong Kong Low Tax Regime
Corporate Tax Cut to 16.5%; Income Tax Cut to 15%
                  Hong Kong                Singapore                        Mainland China
Corporate tax     16.5% maximum rate       17% maximum rate                 Standard rate = 25%
                                                                            High/New Tech Enterprises
                                                                            (HNTE) = 15%
                                                                            HNTE some regions 0%
Income tax        15% maximum rate         20% maximum rate                 5 - 45%
                  (salaries)
VAT/GST           Nil                      7%                               17%
                                           Certain exemptions apply         Certain exemptions apply
Income not        Offshore income;         Certain remitted income;         All income subject to tax
subject to tax    dividends; capital       certain shipping income;         (certain preferential tax
                  gains; tax exemption     certain Singapore dividends;     treatments for foreign-invested
                  for interest income      prescribed income of foreign     enterprises)
                  from deposits placed     investors arising from certain
                  with authorised          funds; capital gains
                  financial institutions
Withholding tax   Nil for dividends,       Nil for dividends                10% for dividends
                  management fees,         10% for royalties                10% for royalties
                  interest, rent           15% for interest                 10% for interest
                  5.25% for royalties      20% for directors                10% for capital gains
InvestHK Sector Specialist Teams

•   Business & Professional Service
•   Consumer Products
•   Financial Services
•   ICT
•   Innovation &Technology
•   Creative Industries
•   Tourism & Hospitality
•   Transportation & Industrial
Invest Hong Kong: how we can help
Enjoy our free services
• Latest information on business environment and opportunities
• Personalised service from our European Office in London
• Contacts for all aspects of business establishment
• Arranging tailored visit programmes hosted by InvestHK
• Support and assistance with visa applications, trade
  regulations etc.
• Public relations services during your launch/expansion
• Advice on settling in Hong Kong – housing, schooling,
  healthcare
Thank you!



       InvestHK London

          David Parker
      +44 (0)207 290 8207
David_parker@hketolondon.gov.hk


      www.investhk.gov.hk