2009 SCoRPP. 1

2009 Annual Survey of Companies in Hong Kong

Representing Parent Companies

Located outside Hong Kong

政 府 統 計 處Census and Statistics Department

2009 SCoRPP. 2

(i) To enumerate number of RHQs, ROs and LOs in HK representing parent companies located outside HK

(ii) To obtain basic information of these companies

(iii) To seek their views on HK as a location for setting up RHQs/ROs and LOs

Survey Objectives

2009 SCoRPP. 3

Covers companies in HK taking charge of business/operations in HK or in the region on behalf of parent companies located outside HK

Does not cover companies in HK which are funded by investment from outside HK and manage the business in HK or in the region independently but not on behalf of investors

Survey Coverage

2009 SCoRPP. 4

Survey Coverage

• RHQs + ROs + LOs ≠

Total no. of companies in HK with investment from outside Hong Kong

2009 SCoRPP. 5

Survey Targets

Parent companies located outside HK

Companies in HK representing parent companies located outside HK

>

( > 6397) ( 6397)

2009 SCoRPP. 6

First working day in June

Survey Reference Date

1 June 2009

2009 SCoRPP. 7

How is a company classified as an RHQ, RO or LO?

Taking charge of

business/operations on behalf of

its parent company

located outside HK?

Non-RHQ/RO/

LO

No

Yes Geographical responsi

bility?

LO

HK only

RHQ

Yes

In the region

Any managerial control over offices in the

region?

RO

(i.e. only coordinates offices and/or operations in the region)

No

2009 SCoRPP. 8

6 612

1 298

2 584 2 730

1 252

2 328

6 397

2 817

1 000

2 000

3 000

4 000

5 000

6 000

7 000

RHQs ROs LOs RHQs+ROs+LOs

20082009

No. of RHQs, ROs and LOs in HK Representing Parent Companies Located Outside HK

No.

of

Com

pan

ies

2009 SCoRPP. 9

100

200

300

400

500

600

700

USA Japan MainlandChina

UK

RHQ

RO

LO

0

1159%

968%

22418%

28923% 213

9%1276%

44719%

52623%

1967%

52719%

44716%

45816%

Country/Territory of Location of Parent Companies

No.

of

com

pan

ies

Note : Top 4 countries/territories shown in terms of total no. of RHQs, ROs and LOs.

2009 SCoRPP. 10

500

1 000

1 500

2 000

2 500

MainlandChina

Taiwan Singapore Korea Japan

RHQ

RO

0

29323%

32126%

40833%

41533%

1 07986%

54423%

56624%

70830%

78934%

1 89882%

Geographical Responsibility of RHQs and ROs

in the Region (other than HK)

No.

of

com

pan

ies

Note : Top 5 countries/territories shown in terms of total no. of RHQs and ROs having responsibility for the business/operations there.

2009 SCoRPP. 11

250

500

750

1 000

1 250

1 500

RHQ

RO

LO

0IE trade, wholesale

and retailProfessional

and businessservices

Financeand banking

ManufacturingTransportation,storage and

courier services

726%

20416%

62750%

12810%

12910%

1858%

1 18851%

39517% 261

11%803%

29611%

105738%

45616%

55120%

813%

Major Line of Business of RHQs, ROs and LOs

Note : Top 5 major lines of business shown in terms of total no. of RHQs, ROs and LOs engaged in the lines of business concerned.

No.

of

com

pan

ies

2009 SCoRPP. 12

250

500

750

1 000

1 250

1 500

RHQ

RO

LO

0Manufacturing IE trade,

wholesale andretail

Financeand banking

Professionaland business

services

Transportation,storage and

courier services

12210%

43235%

44836%

13411%

15913%

2069%

29913%

78734%

87938%

1828%

29611%

76127%

78828%

57921%

2639%

Major Line of Business of Parent Companies

No.

of

com

pan

ies

Note : Top 5 major lines of business shown in terms of total no. of RHQs, ROs and LOs with parent company engaged in the lines of business concerned.

250

500

750

1 000

1 250

1 500

RHQ

RO

LO

0IE trade, wholesale

and retailProfessional and business

services

Financeand banking

ManufacturingTransportation,storage and

courier services

726%

20416%

62750%

12810%

12910%

1858%

1 18851%

39517% 261

11%803%

29611%

105738%

45616%

55120%

813%

No.

of

com

pan

ies

2009 SCoRPP. 13

Views on Importance of Factors for Choosing a Location for Setting up

RHQs/ROs and LOs

*In descending order of importance

RHQs/ROs*

1. Simple tax system and low tax rate2. Free flow of information

3. Corruption free government

4. Political stability and security5. Rule of law and independent judiciary

LOs*

1. Simple tax system and low tax rate2. Free flow of information

3. Corruption free government

4. Political stability and security

5. Absence of exchange controls

2009 SCoRPP. 14

Views on Importance of Factors for Choosing a Location for Setting up

RHQs/ROs and LOs

*In descending order of importance

RHQs/ROs*

1. Simple tax system and low tax rate2. Free flow of information

3. Corruption free government

Amongst the top three since 2004

LOs*

1. Simple tax system and low tax rate2. Free flow of information

3. Corruption free government

2009 SCoRPP. 15

FactorFavourable Unfavourab

le

Views on Favourable Factors for HK as a Location for Setting up RHQs/ROs

• Simple tax system and low tax rate• Free flow of information

• Corruption free government• Absence of exchange controls

74%72%70%70%

1%

<0.5%<0.5%1%

• Communication, transport and other infrastructure

68%

1%

• Political stability and security

67%

1%• Rule of law and

independent judiciary67%

1%• Free port status 67

%1%

2009 SCoRPP. 16

FactorFavourable Unfavourab

le

Views on Unfavourable Factors for HKas a Location for Setting up RHQs/ROs

• Availability and cost of residential accommodation

• Availability and cost of business accommodation

14%

19%

35%

33%

2009 SCoRPP. 17

FactorFavourable Unfavourab

le

Views on Favourable Factors for HK as a Location for Setting up LOs

• Simple tax system and low tax rate• Free flow of information

• Corruption free government• Absence of exchange controls

• Rule of law and independent judiciary

72%70%68%68%

65%

<0.5%<0.5%1%

1%

1%

• Political stability and security

64%

1%

• Communication, transport and other infrastructure

64%

2%

2009 SCoRPP. 18

FactorFavourable Unfavourab

le

Views on Unfavourable Factors for HKas a Location for Setting up LOs

• Availability and cost of business accommodation

• Availability and cost of residential accommodation

18%

14%

33%

33%

2009 SCoRPP. 19

Views on Overall Business Environment in HK

as a Location for Setting up RHQs/ROs and LOs

Deteriorated 34%

No comment 11%

Improved 6%

Same 49%

Deteriorated 31%

No comment 12%

Improved 7%

Same 50%

RHQs/ROs LOs

Comparing June 2009 with June 2008

2009 SCoRPP. 20

Views on Effect of CEPA Implemented since January 2004 on RHQs/ROs and LOs

Very much beneficial

2%

Negatively affected

1%

To some extent

beneficial25%

Not affected

61%No

comment11%

RHQs/ROs LOsVery much beneficial

3%

Negatively affected

1%

To some extent

beneficial23%

Not affected

61% No comment

12%

2009 SCoRPP. 21

Effect

Setting up new

business expansion

plans

Advancing business

expansion plans

No comment

11%

No77%

Yes11%

Views on Effect of CEPA on Investment Activities of RHQs/ROs and LOs

Whether investment activities affected ?

No comment

12%

Yes8%

No80%

RHQs/ROs LOs

Questions & Answers