hong kong: where business goes to grow
TRANSCRIPT
October 2015
Luca De Leonardis Head, Australia and New ZealandInvestHK
HEART OF ASIA Hong Kong
Most of Asia’s key markets within four
hours’ flight time
From half the world’s population
Hong Kong
4hrs
5hrs
More than 100 airlines operate about 1,000 flights daily, linking the Hong Kong International Airport to 180 destinations worldwide, including 47 Mainland cities
GLOBAL SUPER CONNECTOR
The busiest air cargo airport in the world – 4.4 million tonnes of cargo handled in 2014
Zhaoqing Foshan
Guangzhou
Dongguan
Huizhou
ShenzhenZhongshan
Jiangmen
Zhuhai
Macau
GREATER PEARLRIVER DELTA
POPULATION
64mn>UK, Italy, South Africa
EXPORTS
US$527bn>UK, Italy
GDP
US$962bn>Indonesia, Netherlands, Turkey
LAND AREA
56,000km2
<Ireland, Latvia, Panama,West Virginia (US)
Hong Kong
ONE COUNTRY TWO SYSTEMS
LOW & SIMPLE TAX SYSTEM
• VAT/GST/Sales tax• Capital Gains Tax• Withholding tax on
investments• Estate duty• Global taxation• Wine duty
HONG KONG
SINGAPORE
SHANGHAI*
Corporate Income
Personal Income
Employer Social Security
Employee Social Security
VAT
* There is no standard rate across the Mainland China. Shanghai is used as an example.
Hong Kong has signed Comprehensive Double Taxation Agreements (CDTAs) with 32 jurisdictions.
Negotiations with 14 jurisdictions are in progress.
25%
45%
37%
11%
17%
17%
20%
16%
20%
7%
16.5%15%
5%5%
0% VAT
MOBILE CONNECTIVITY
The world’s second fastest speed for internet access
>92.6Mpbs
(average peak connection)
Source: Akamai Technologies,Q12015
for smartphonepenetration rate
>232% (OFCA, April 2015)
Household broadband penetration rate
83.4% (OFCA, Mar 2015)
in Asia
SOCIAL MEDIA – EAST MEETS WEST
BUSINESS-TO-CONSUMER
4.7Min Asia Pacific
138,000 HNWIs in HK, up 273% (2008-2014)
47.2Mfrom Mainland
60.8 million visitors in 2014, up 12%
84%of the world’s
leading luxury and fashion retailers
are in HK
US$63bnsales
600people
One restaurant every
PRIME CONDUIT FOR FDI ALL TIME HIGH –
7,585 companies of which 3,784 are RHQs and ROs in 2014
Rank FDI Inflows (2014) US$ bn FDI Outflows (2014) US$ bn1 China 129 USA 337
2 Hong Kong 103 Hong Kong 1433 USA 92 China 116
4 UK 72 Japan 114
5 Singapore 68 Germany 112
6 Brazil 62 Russia 56
7 Canada 54 Canada 53
8 Australia 52 France 43
9 India 34 Netherlands 41
10 Netherlands 30 Singapore 41
Source: World Investment Report 2015, UNCTAD
Source: 2014 Annual survey, HKSAR Government’s Census & Statistics Department
BUSINESS-TO-BUSINESS
HK SHENZHEN
STOCK CONNECT
896 listed Mainland enterprises
Launched in Nov 2014
RMB hub
Expect to be launched in 2015
RMB deposit in HK
Source: HKMA
US$1.75 tnaccounting 62.4% of market total
(Total market cap)
Source: HKEX
952bn2014
33bn2007
Business & Professional Services Sector
Its importance to Hong Kong….
1. Asia’s centre for business and professional services. 92.9% of Hong Kong’s GDP is derived from the services sector . The business professional sector accounts for 13.3% of total employment.
2. 18% of 7,449 foreign companies are from business & professional sector and education sector.
3. Education service contributes to 1.2% of GDP and takes up 2% (74,920 persons) of total employment in Hong Kong.
4. Home to 70 of the world’s top 100 international law firms.
5. Testing, inspection and certification: 209 laboratories, 21 certification bodies and 23 accredited inspection bodies account for HK$5.16 billion of GPD
7. More than 5,000 accounting, auditing, book-keeping and tax consulting firms employ over 29,000 professionals with exports amounting to HK$1.93 billion
GLOBAL OPERATIONS IN HONG KONG
Markus KramerPresident, Dispersions and
Pigments Division(Global headquarters)
John RiceVice Chairman(Global operations)
Roland KrügerPresident
(Global headquarters)
Jeff UrwinGlobal Head of
Investment Banking
Darrin WebbChief Operating Officer,
Global Enterprise & Services
Jean-Pascal TricoireGlobal CEO
AUSTRLIAN COMPANIES IN HONG KONG
Trade in GoodsIn 2014, Australia was Hong Kong’s 21st largest trading partner, our 8th largest market for domestic exports, 16th largest market for re-exports, and 23rd largest source of imports.
Trade in ServicesIn 2013, Australia was our 7th largest trading partner, 8th largest export market (3% of total exports of services), and 7th largest source of imports (4% of total imports of services).
From 2009 to 2013, the average annual growth rate of imports of services from Australia was 7%. In 2013, the top three components of services imports were travel services, transport services and other business services.
Direct InvestmentAt the end of 2013, Australia was the 6th major destination of outward direct investment (ODI) from Hong Kong.
As of June 2014, 37 regional headquarters, 47 regional offices and 89 local offices were set up by Australian companies in Hong Kong.
HONG KONG STARTUP ECOSYSTEM
1,065 startupsincluding incubatees located in
30%
Number of startups supported by InvestHK since 2010
77%
BURGEONING CO-WORK SPACES & ACCELERATORS
>402015
2010 3
> 2,800 spaces
STARTMEUPHK FESTIVAL
• Save the week: 23-30 January 2016!• First-of-its-kind startup event encompassing
healthtech, Internet of Things (IOT), Fintech & data analytics under one roof
• Main event: StartmeupHK Venture Forum on 26 Jan 2016
• Sign up for updates on www.startmeup.hk
HOTTEST SECTOR EVENTS• Fintech Finals 2016: startup
competition, key conference, startup village, side summits
• Launch Consumer IOT Summit: global competition, startup exhibition, end-to-end IoT workshops & conference
• HealthTech Asia bringing together IOT, data and medical expertise, Hong Kong is positioned to lead Asia into the health tech revolution
• Data Analytics & E-Commerce featuring domain experts on data analytics
Why Attend?• For Startups – apply to the competitions for
a chance to get funding and access to accelerator programs. Exhibit at sector specific events to reach out to other startups, potential partners, pitch to investors
• For Investors – latest trends on what’s happening in the hottest sectors in Hong Kong, China and the world. Connect with angel investors, VCs, family offices
• For the Startup Community – whether you’re a hardware manufacturer looking to move up the value chain, an industrialist looking to diversify your business, an academic teaching entrepreneurship or a corporate looking to bring some of that innovation in house, the StartmeupHK Festival will opportunities to connect, learn and be inspired
HOW WE CAN HELP
Networking events,introduction to service providers
Facilitation of visa applications, schooling
PR and marketing support for launch/ expansion
Information to aid planning and evaluation
INVESTHK’S WORLDWIDE NETWORK
Tijuana
GET IN TOUCH
Tel: 02 9283-3222
www.investhk.gov.hk
Email: [email protected]
Level 1, Hong Kong House80 Druitt StreetSydney, NSW, 2000Australia
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#InvestHK
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