where business goes to grow

Where BusinessGoes to Grow

Simon GalpinDirector-General of Investment Promotion

All Companies Great and Small

Where BusinessGoes to Grow

Simon GalpinDirector-General of Investment Promotion

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All Companies Great and Small

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Heart of Asia

4hrMost of Asia’skey marketswithinflight time

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Heart of Asia

Proximity to China

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4hrMost of Asia’skey marketswithinflight time

5hrFrom halfthe world’spopulation

Greater Pearl River Delta6

Population55.3 mn> Canada

Exports US$387 bn> UK, Canada

(more than 27% of China’s exports)

GDPUS$665 bn> Sweden, Belgium

Land Area56,000 km2

> Panama (less than 1% of China)

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One Country Two Systems

• VAT/GST/Sales tax

• Capital Gains Tax

• Withholding tax on investments

• Estate duty

• Global taxation

• Wine duty

Low and Simple Tax System8

NO

World Class ICT – Connecting9

8th in the Global Innovation Index Report (INSEAD 2012)

2nd in AsiaCloud Readiness Index(Asia Cloud Computing Association,Sept 2011)

6th most advanced ICT Economy(ITU Sept 2011)

The safest place in Asiafor setting up datacentres(Data Centre Risk Index, Cushman $ Wakefield, 2012)

Mobile phone penetration rate >220%

Human Capital - Quality Education

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x 2x 2

x 48x 48

Two universities in the world’s top 100

(Times Higher Education World University Rankings 2012/13)

HKUST MBA – 1st in Asia

and 10th in the world (Financial Times Global

MBA Ranking 2012)

World’s Top EMBA in 2011:

Kellogg – HKUST EMBA Programme

(Financial Times 2012)

48 International schools 3rd in the Global Index of Cognitive Skills

and Educational Attainment (Economic

Intelligence Unit 2012)

Hong Kong people have the highest average IQ

in the world – 107 (IQ and the Wealth of Nations)

One of the Safest Cities in the WorldSource: Hong Kong Police 2011Note: Rate per 100 000 population

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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

HNWIs in Mainland China reached around562,400, or increased by 5.2% from last year

Mainland China (including Hong Kong) overtook the US as the world’s largest market for art and antiques

Among the 3.4 million HNWIs in Asia, 180,000 are in Hong Kong(Asia-Pacific Wealth Report 2012)

527,000 persons in Hong Kong held liquid assets of more than HK$ 1 million(Citibank Consumer Wealth Survey 2011)

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Rapidly Growing Wealth in Asia

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Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Global Wealth Databook 2011

Asia-Pacific accountedfor 50% of the growthin global wealthsince 2010

China, 2nd contributorto the growth in globalwealth after the US

In 2011, of the 30 millionmillionaires worldwide,20% were from Asia-Pacific

By 2020, est. no. of millionaires in Mainland China & Hong Kong will reach 3.7 million, an accumulated wealth of US$14 trillion

+16+16%%Million

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+17+17%%

+5+5%%

Number of visitor arrivals

Mainland China Rest of the World

Source: Hong Kong Tourism Board

Total Retail Sales US$57 Billion +10%

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84%of the world’s leading luxury and fashion retailers are inHong Kong

of all international retail brands are in Hong Kong

41%

18 in Hong Kong12 in London

No. of Shops

13 in Hong Kong5 in Milan

10 in Hong Kong4 in Milan

1,938 new investment projects approved; investment amountUS$46.5 bn (MOFCOM, 2012)

RMB deposits in Hong Kongof RMB677.2 bn (~US$110.6 bn)(as of Apr 2013)

Springboard for MainlandCompanies

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740 listed Mainland enterprises on the HKEx; total market cap US$1.62 tn (as of May 2013)

2000 2012

% of mainland companies

% of mainland capitalisation

47%

57%

18%

27%

Foreign Direct Investment in 20117,250 companies of which 3,883 are RHQs and ROsSource: 2012 Annual survey, HKSAR Government’s Census & Statistics

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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

From Micro…18

Russian technique for printing on glass

Authentic California wine

Innovative Japanese stationery

Italian branding and design

IC start-up from UK

Markus KramerPresident, Dispersions and Pigments Division(Global headquarters)

Global Operations in Hong Kong

John RiceVice Chairman(Global operations)

Jean-Pascal TricoireGlobal CEO

Johan de NysschenPresident(Global headquarters)

Michael AndrewGlobal Chairman

Jeff UrwinGlobal Head of Investment Banking

Wiebo VaartjesEVP & GM(Global headquarters of Philips Consumer LifeStyle)

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What We Do?

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??

How InvestHK helps investors21

Networking events,introduction to service

providers

PR and marketing support for

launch/expansion

Facilitation of visaapplications, schooling

Information to aidplanningand evaluation

www.investhk.gov.hk22

For more information,please contactTel: (852) 3107 1000Email: enq@investhk.gov.hk

25/F, Fairmont House8 Cotton Tree DriveCentral, Hong Kong

Get in Touch