china lunch club - invest hk where business goes to grow
TRANSCRIPT
Where BusinessGoes to Grow
Simon GalpinDirector-General of Investment Promotion
2
Heart of Asia
3
Proximity to China
4hoursMost of Asia’skey marketswithin four hours’flight time
5hoursFrom halfthe world’spopulation
Greater Pearl River Delta4
Population64 mn> UK, Italy, South
Africa
ExportsUS$527 bn> UK, Italy
GDPUS$962 bn> Indonesia,
Netherlands, Turkey
Land Area56,000 km2
< Ireland, Latvia, Panama, West Virginia (US)
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One Country Two Systems
16.5
17
25
15
20
45
5
16
37
5
20
11
0
7
17
Hong Kong
Singapore
Shanghai*
Corporate Income Personal Income Employer Social Security Employee Social Security VAT
• VAT/GST/Sales tax• Capital Gains Tax• Withholding tax on investments• Estate duty• Global taxation• Wine duty
Low and Simple Tax System6
NO* There is no standard rate across the Mainland China. Shanghai is used as an example
Percentage
World Class ICT Infrastructure7
2nd in Asia Global Innovation Index (INSEAD 2014)
2nd in AsiaNetworked Readiness Index(The Global Information Technology Report 2014, World Economic Forum)
2nd in Asia ICT Development Index (ITU Oct 2013)
The safest place in Asiafor setting up data centres(Data Centre Risk Index, Cushman & Wakefield, 2013)
Mobile phone penetration rate >237%(OFCA, Jun 2014)
The world’s fastest speed for Internet access (Akamai Technologies, 2014)
Human Capital - Quality Education8
x2x2
x49x49
Two universities in the world’s top 100
(Times Higher Education World University Rankings 2013/14)
HKUST MBA – 1st in Asia and 8th in the world
(Financial Times Global MBA Ranking 2013)
World’s Top EMBA 2013: Kellogg – HKUST EMBA
Programme(Financial Times 2013)
49 International schools Hong Kong students rankedfirst in reading literacy
globally(Progress on International Reading
Literacy Study 2011)
Business-to-Consumer Gateway to 4.3 million HNWIs in Asia-Pacific
with wealth totalling US$14 tn
Wealth growth the strongest in Asia-Pacific at 18%
Asia-Pacific expected to lead robust global HNWI wealth growth. HNWI wealth expected to reach US$18.8 tn by 2016
From 2008 to 2013, Hong Kong achieved the highest compound annual growth rate in HNWIs.
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Source: Capgemini World Wealth Report 2014
+235%124,000 HNWIs
+246%Wealth amounted
US$627 billion
3.88.5
12.5 13.615.5
18.022.5
28.1
34.9
40.7
9.37
10.811.7
12.711.6
13.5
13.8
13.7
13.6
0
10
20
30
40
50
60
2000 2003 2005 2006 2007 2009 2010 2011 2012 2013
Million
Number of visitor arrivals
Mainland China Rest of the World
Source: Hong Kong Tourism Board
+12%54.3 million visitors
+16% +4%Spending US$44.1 billion US$1,044 per capita
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Total Retail Sales US$64 Billion +11%11
84%of the world’s leading luxuryand 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
2,264 new investment projects approved;investment amountUS$43.7 bn (as of 2013)(Source: MOFCOM)
RMB deposits in Hong Kongof RMB1,053 bn (~US$173 bn)(as of Dec 2013)(Source: HKMA)
Business-to-Business12
797 listed Mainland enterprises on the HKEx; total market cap US$1.76 tn (as of Dec 2013)(Source: HKEX)
20002013
% of mainlandcompanies
% of mainlandcapitalisation
49%
57%
18%
27%
7,585 companies of which 3,784 are RHQs and ROs in 2014(Source: 2014 Annual survey, HKSAR Government’s Census & Statistics Department)
Prime Conduit for FDI
Rank FDI Inflows (2013) US$ bn FDI Outflows (2013) US$ bn
1 USA 188 USA 338
2 China 124 Japan 136
3 Russia 79 China 101
4 Hong Kong 77 Russia 95
5 Brazil 64 Hong Kong 92
6 Singapore 64 Switzerland 60
7 Canada 62 Germany 58
8 Australia 50 Canada 43
9 Spain 39 Netherlands 37
10 Mexico 38 Sweden 33
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Source: World Investment Report 2014, UNCTAD
Markus KramerPresident, Dispersions and Pigments Division
(Global headquarters)
Global Operations in Hong Kong
John RiceVice Chairman(Global operations)
Jean-PascalTricoire
Global CEO
Jeff UrwinGlobal Head of
Investment Banking
Roland KrügerPresident
(Global headquarters)
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Christophe RousselInt’l Sourcing Director
Karen FiferGlobal Managing
Partner, Consumer Markets Practice
Emma SherrardMatthew
Global CEO
www.startmeup.hk15
startmeuphkwww.facebook.com/startmeuphk
Burgeoning Co-work Spaces
startup commune
20103
2014
35
Number of co-work spaces in HK
>2,800 spaces
16
Startup Ecosystem in Hong Kong17
1,065in their 30s
<2 Years
Establishment
Full-time staff
≤5
• Information, computer & technology; e-commerce / supply chain management; professional or consultancy services; fintech; education and learning, etc
Business Sectors
including incubatees located in
About startupsFounders
53%HK locals
40%from Overseas,
Mainland or Taiwan
7%HK returnees
2,381
Employment
staff employed by startups
How We Can Help18
Networking events,introduction to service
providers
PR and marketing supportfor launch/expansion
Facilitation of visaapplications, schooling
Information to aidplanningand evaluation
Get in Touch:www.investhk.gov.hk
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InvestHKwww.linkedin.com/company/invest-hong-kongwww.youtube.com/user/investhkwww.flickr.com/photos/investhk
Mr Luca De LeonardisEmail: [email protected] Tel: 61 – 2- 9283 3222