Hong Kong: Your business platform in Asia Miss Gloria Lo Director Hong Kong Economic and Trade Office 5 September 2012 1 Hong Kong Economic and Trade Office

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Hong Kong: Your business platform in

AsiaMiss Gloria Lo

Director

Hong Kong Economic and Trade Office5 September 2012

Hong Kong Economic and Trade Office (Toronto)

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Hong Kong: economic highlights

•Real GDP growth: 1.1% in Q2 2012, 1-2% for 2012

(forecast)

•Inflation: 4.2% in July 2012

•Unemployment rate: 3.2% for May-July 2012

•Fiscal reserves: HKD 648 billion as at 31 July 2012

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Hong Kong: international trading centre

•10th largest trading entity in merchandise trade in

2011 (ranked 6th with EU as a single trading entity)

•14th largest trading entity in commercial services

(ranked 8th with EU as a single trading entity)

•10th largest trading entity in merchandise trade and

commercial services

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Hong Kong: bilateral trade with Canada

•Total trade in 2011: USD 5 billion (7.2% increase over 2010)

•10th largest export market of Canada (3rd largest for

beef and 4th largest for fish and seafood)

•8.8% (USD 4.2 billion) of trade between Canada and

Mainland China through Hong Kong•2nd largest destination in Asia for Canadian Foreign

Direct Investment (FDI)

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Hong Kong: strategies for economic development

Four traditional pillar industries:

•Financial services•Trading and Logistics•Professional services•Tourism

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Hong Kong: strategies for economic development

Six new growth industries and wine trading:

•Innovation and technology

•Culture and Creativity industries

•Environmental industries

•Education services

•Medical services

•Testing and Certification services

•Wine trading and distribution

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Hong Kong: platform for business in Mainland China and South East Asia

Premier gateway to Mainland China

•Close proximity to the Mainland Strategically located to tap into the fast growing Pearl River Delta Region Close economic cooperation with neighboring Guangdong province

•Closer Economic Partnership Arrangements Bilateral free trade agreement with the Mainland Zero tariff on goods and products of Hong Kong origin Preferential treatment for Hong Kong companies in 48 service sectors in Mainland market

•Renminbi offshore business centre Mainland’s external trade settlement in RMB through Hong Kong amounted to RMB

2,081 billion in 2011 (more than 90% of the total) More than 160 RMB bonds issued in Hong Kong Effective platform for RMB trade settlement and financing

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Cross-boundary Infrastructure

•Guangzhou-Shenzhen-Hong Kong Express Rail Link 26 km high-speed railway linking Hong Kong and major Mainland

cities, Hong Kong section to complete in 2015 More efficient transportation between Hong Kong and the Mainland

(e.g. 48 minutes from Hong Kong to Guangzhou)

•Hong Kong-Zhuhai-Macao Bridge 29.6 km dual 3-lane carriageway linking Hong Kong, Zhuhai and

Macao Operational in 2016, cities in West Pearl River Delta Region within 3-

hour commuting radius of Hong Kong

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Development trend following the 12th National Five-Year Plan

•Upgrading and restructuring of operations in moving up the

value chain

•Growing importance of the service sector

•Expansion of domestic market/internal consumption

•Development of strategic sectors such as environmental

protection, information technology, bio-technology, advanced

manufacturing, new energy and materials

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Opportunities arising from the 12th National Five-Year Plan

Closer cooperation between Hong Kong and Guangdong

•Framework Agreement on Hong Kong/Guangdong

Cooperation in April 2010

•Cooperation in various areas such as cross-boundary

infrastructure, finance, modern service industries,

manufacturing and hi-tech innovation, education, medical

services, etc.

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Further development of the Pearl River Delta Region

•Fastest growing region covering nine southern provinces in the

Mainland

•Rapid upgrading and restructuring of the industrial sector

•Relocation of the labor intensive industries to less-developed

regions

•Progressing up the high-technology and high-value chain

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Funding support for Hong Kong enterprises

•Dedicated fund set up in June 2012: assist Hong Kong companies in

exploring and developing the Mainland market through developing brands,

upgrading and restructuring operations, promoting domestic sales in the

Mainland

•Enterprise support program: for all non-listed companies registered in Hong

Kong with substantive business operations in the city

•Organization support program: for non-profit distributing bodies such as

industrial and trade bodies, professional and research institutions

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Platform for business with other parts of Asia:

•ASEAN: Hong Kong’s 2nd largest trading partner

in 2011

•ASEAN’s bilateral trade with Hong Kong: increased

by 10% in 2011

•ASEAN’s bilateral trade with Mainland China: 12.2%

of total routed through Hong Kong in 2011

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Hong Kong: an excellent place for business and investment

•Strategically located: within five-hour flight from half of the world’s

population

•Sound legal system: common law, independent judiciary, protection of

intellectual property rights

•Freest economy in the world: free flow of capital, unfettered flow of

news and information, etc.

•Simple and low tax rates: profits tax at 16.5%, salary tax capped at 15%

•Level playing field for all businesses: local and foreign owned

companies compete on equal footing

•Hardware and software for business efficiency: superb infrastructure

and communication system, strong professional services

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•Home to 6,948 overseas companies (55.5% up on 2001) 1,340 regional headquarters 2,412 regional offices 3,196 local offices

•Inflow of foreign direct investment to Hong Kong:

grew by 17.2% year-on-year to reach USD 83.2

billion in 2011

•Latest trend: more multinational companies

moving their global headquarters to Hong Kong (e.g.

General Electrics, Nissan’s Infiniti)

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•Strong social links and trade relations with

Canada

•Safe and easy to do business

•Fundamental strengths and advantages to

leverage upon for business success in Asia

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Think Hong Kong for your overseas venture !

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Thank you

Documents

Hong Kong: Your business platform in Asia Miss Gloria Lo Director Hong Kong Economic and Trade Office 5 September 2012 1 Hong Kong Economic and Trade Office