Hong Kong Economic and Trade Office, LondonHong Kong Economic and Trade Office, London10 November 2010 10 November 2010

Hong Kong: Asia’s World City

• Why Hong Kong for SMEs?• rule of Law•effective management with strategic

location reaching to Mainland China and Asia

• truly understand “West” and “East”•quality of life

One Country, Two Systems

• Rule of law and independent judiciary, International arbitration centre

• Level playing field and no foreign ownership restrictions

• Political stability and pro-business governance

• Near zero corruption

• The World’s Freest Economy for 16 consecutive years

• Free flow of information

Heart of Asia and Gateway to China

• The world's 4th busiest international passenger airport

• One of the world’s busiest container ports

• 23 minutes from central business districts to Airport by high-speed train

• Less than an hour from Greater Pearl River Delta -“factory of the world”

No. of International Airlines operating in the airport

No. of International flights per week

Hong Kong 95 6,127

Guangzhou 30 837

Quality of Life

Quality of Life

• Financial Services

• Business and Professional Services

• Trade & Logistics (consumer trade/ supply chain/ retail/ industrial products)

• Tourism

Four Pillar industries

• Testing and Certification• Medical Services• Innovation and Technology• Cultural and Creative Industries• Environmental Industry (in

particular solar energy and R&D)• Educational services

Opportunities in 6 New Areas:

Other Opportunity:

• Wine

• Examples of opportunities to Norwegian companies-

1. Innovation Technology2. Green Industries3. Shipping Industries

World Class ICT - Connecting People

• Asia’s most innovative economy Global Innovative Index

• Mobile phone penetration rate 171%

• 8th most e-ready economy in the world EIU

• 3rd highest average broadband connection speedUS-based network provider Akamai Technologies

Hong Kong Science and Technology Park Home to over 300 companie

s Phase 3

Work to be commenced in 2011

Expenditure: HKD 4.9 billion

Additional 4,000 R&D related jobs

Biotech

HKSTP – Biotech Cluster

基因港 (香港 )科技有限公司GeneHarbor (Hong Kong) Technologies Limited

HKSTP – Green Tech Cluster

Green Tech

Vedback Concept Ltd

Hong Kong Port• World’s third busiest port in 2009, handled 21 million TEUs• Major modes of operations:

– Container terminals;– River Trade Terminal;– Public cargo working areas; and– Mid-stream operations

• About 400 sailings per week to 480 destinations worldwide

Efficient port operation

Nine container terminals at Kwai Tsing A total of 24 berths operating

round-the-clock

36-40 crane movements per hour

average turnaround time for each container vessel is around 14 hours

Hong Kong: a green city …

GREEN opportunities in HK

– An investment of US$6.4 billion on infrastructural projects in Hong Kong directly related to our environmental initiatives, including a district cooling system at the Kai Tak Development, a sludge treatment facility, Harbour Area Treatment Scheme etc.

GREEN opportunities

• Environmental consultancies/ services for

•Cleaner production •Green transportation, e.g. EV•Building energy efficiency

Gateway to Mainland China to tap green opportunities

• Massive business opportunities

– About 40% of the approved Clean Development Management (CDM) projects are being carried out in the Mainland, involving an investment of more than US$10 billion and major technology transfer.

– Eligible Hong Kong enterprises can participate in CDM projects in the Mainland

Most Competitive Finance Centre in Asia

• Home to 69 of the world’s 100 largest banks

• Asia’s 2rd largest stock market and 6th

in the world

• Total market capitalisation as at end of Jun 2010 - US$2.2 trillion

• World’s 6th largest foreign exchange centre

• 1st globally in IPOs in 2009, US$31 billion raised

Source: HKEx, HKTDC, World Federation of Exchanges, Time Magazine

Ranking City

1 London, New York

3 Hong Kong

4 Singapore

5 Tokyo

6 Chicago

7 Zurich

8 Geneva

9 Shenzhen, Sydney

10 Shanghai

11 Toronto

…

15 Beijing, San Francisco

The Global Financial Centres Index (GFCI) 7, City of London Corporation, March 2010

CEPA – The Free Trade Pact between China & Hong Kong

Trade in Goods Trade in Services

CEPA applies to: • Over 1,500 categories of products • Exported direct from Hong Kong

to the Mainland

• 42 service sectors

Benefits: • Removes all export duties • Greater market access:

– Lower market entry criteria (capital, trading history etc.)

– Can establish WFOE

Eligibility: • “Made in Hong Kong” products, under specified ‘Rules of Origin’

• Companies must have “substantive operations” in HK

Applications approved (as at 31 May

2010) :

• Trade Certificates of Goods

55,541• Service Supplier Certificates

1,387

What others say“It is necessary for the Netherlands to have a strong pres

ence in HK.”

“It is possible to enter the very difficult Mainland Chinese market via this Western-based society. HK has its own reliable judiciary, freedom of opinion and a business friendly environment. It has a very liberal economy with almost zero corruption and an accessible legal system.”

Former Dutch Vice-Minister of Finance Steven van Eijck,Dutch CG Robert Schuddeboom

(reported in Algemeen Dagblad 28 Aug 2010)

What others say

“ In Asia Pacific, all our ships were based in Singapore. As a conservative company continually looking to spread our risk, we needed to have a second flag in the region

and Hong Kong was our only logical choice.”

Captain Henrik Uth, Managing Director of Maersk Shipping Hong Kong Limited.

What others say

“There are a number of reasons why we chose to base our Asian regional headquarters in Hong Kong.

The city is strategically located in the centre of the Asia Pacific region, there is a ready access to quality labour and it is easy to recruit staff if we need to expand. The city

also has an excellent infrastructure network.”

Mr Masaru Morioka, Director Human Resources and Finance, MOL (Asia) Ltd (a Japanese transport group operatin

g one of the world’s largest fleet )

Norwegian companies in Hong KongMore than 320 Nordic companies in Hong Kong. Total 122 Regional Headquarters/ Regional Offices.

• Det norske Veritas

• DnB Asset Management

• Fenwick Shipping Services

• Gard (HK) Ltd.

• Jotun Paints

• Kristian Jebsens

• Lorentzen & Stemoco

• Nordic Semiconductor ASA

• OSM Maritime Services

• Rodskog Shipbrokers

• Santana Lightships

• Skuld Ltd.

• Tandberg Telecom

• Wilhelmsen Ships Service

Ltd.

• Vizrt

• YARA China Ltd.

Snapshot of the Scandinavian businesses in Hong Kong…

Danish companies

Finnish companies

Swedish companies

Some Norwegian organizations in HK

• Norwegian Chamber of Commerce, Hong

Kong

• Royal Norwegian Honorary Consul

General

• Klubb Norge (Norwegian Club)

• Norwegian International School

How Hong Kong helps SMEs

• Level playing field big or small• Companies can outsource non core functions

to control costs• Widest selection of business service providers

in Asia with expertise all over the world• Good university and research capability• Strengths in multiple sectors e.g Creative

Industries, Tourism & Hospitality, Innovation & Technology, ICT which allows cross fertilization

• Incubator schemes available at Cyberport and Science Parks

I

Invest HK

Brand HK

CHINA OPPORTUNITIES+

GLOBAL OPPORTUNITIES=

HONG KONG ADVANTAGES

Hong Kong Economic & Trade Office

6 Grafton Street

London, W1S 4 EQ

Tel: (44)20 7499 9821

Fax: (44)20 7495 5033

Email: general@hketolondon.gov.hk

Websites:

Hong Kong Economic & Trade Office www.hketolondon.gov.hk

HKSAR Government www.gov.hk

InvestHK www.investhk.gov.hk

Hong Kong Trade Development Council www.hktdc.com

Hong Kong Tourism Board www.hktb.com

Thank you