2009 scorp p. 1 2009 annual survey of companies in hong kong representing parent companies located...
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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