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Hong Kong:
Your Best Business Partner and
Risk Manager in China

Jenny Koo
Director, Service Promotion

4 September 2012
The China Opportunity

         2002 – 2011
         GDP     : 10.7% growth per annum
         Trade   :   22.6% growth per annum
Economic Model (Products)




3
Economic Model (Investment)
    Old Economic Model (Investment flow)




4
New Economic Model (Products)




5
New Economic Model (Investment)




6
The China Opportunity
No longer ―just‖ a production base:
• Growing middle class –230 million
• Rising consumption –↑17.1% in 2011

• Urban population – 1 billion by 2030
The China Opportunity
Growing consumer market
• 1 billion+ mobile phone users

• 500 millions+ internet users
• World’s Largest car market

• Purchase 44% of world’s luxury goods by 2020

• 100 million Chinese tourists expected by 2020
The China Opportunity

Moving Up the Value Chain

●   9 million mainland private enterprises

● Growing demand for business services

● Require technologies to go green
Hong Kong Advantages


       Ideal Location


     Sound Fundamentals


      Dynamic People
Why Hong Kong?
                   Ideal Location
                                                                       Harbin
                                                                          Changchun

                                                                       Shenyang
                            Shijiazhuang       Beijing
                                                                 Dalian
                                                Tianjin                    Seoul
                        Taiyuan
                                                           Jinan                    Tokyo
                                   Zhengzhou                 Nanjing
                                   Xian                    Hefei                      Osaka
                      Chengdu               Wuhan                               Fukuoka
                                                                 Shanghai
                               Chongqing                        Hangzhou
                                  Changsha
                                                           Nanchang

     Delhi
                       Kunming
                                      Guilin
                                               Guiyang        Fuzhou
                                                         Guangzhou                            All of Asia’s key
                                                                                              markets within
                    Dhaka                                       Taipei

                                      Haikou    Hong Kong
                              Hanoi

Mumbai
                                Bangkok                          Manila
 Chennai
     Bangalore                             Ho Chi Minh City


         Colombo
                                               4 hours
                                Kuala Lumpur

                                                                                                        from half the
                                   Singapore



                                               5 hours                                                  world’s population
                                           Jakarta
Why Hong Kong?

     Ideal Location

Economic integration with China
• 45% of overseas-funded
  projects in China tied to Hong Kong
• 56% of China’s outbound FDI goes
  through Hong Kong
• Largest overseas investor in most
  Chinese cities
Why Hong Kong?

  Ideal Location

 Immediate market — the Pearl River Delta

                                        ●56 million people

                           ●24% of China’s imports/exports
                   Bohai
                                   ●9.9% real GDP growth
                      Yangtze
                      Delta




                            ● 50,000 Hong Kong companies
Why Hong Kong?

 Strong Fundamentals

● World’s freest economy

● 1st in the World Economic Forum’s
  Financial Development Index 2011

● 1st   in IPO equity funding

● 1st   in EIU’s Globalization Index 2010
● Well-regulated banking system
● Low, simple tax system
Why Hong Kong?

Strong Fundamentals
Rule of Law
•   Strong, independent legal system
•   Intellectual property rights protection
•   Free flows of information, people, goods & capital
•   Open & transparent government
Why Hong Kong?
Dynamic People
Hong Kong is the
Chinese city that speaks
your language …
Generations of entrepreneurial spirit

Unrivalled China market and international
business experience

Diverse international workforce

           ... the language of
      international business!
HongKong: Asia’s Lifestyle Trendsetter and
Hong Kong: Lifestyle Trendsetter and
Marketing Hub
Marketing Hub

• ―Shop Window‖ for China and Rest of Asia

• Distribution Hub & Testing Ground for New
  Products & Services
Hong Kong Design x International Brand


   The Ferrari with the Dragon Tattoo
Hong Kong: A hub of Technology

Technology marketplace
  - Selling and sourcing high-tech products
  - International experience in technology trade
  - A partner for foreign companies in meeting China’s demand
HKTDC Stands Ready to Help

Creating opportunities in international trade
• Established in 1966 as the marketing arm of
  Hong Kong products and services

• Create opportunities for Hong Kong companies
  by connecting the world’s SMEs through the
  Hong Kong business platform
HKTDC Stands Ready to Help


11 offices in China, more than 40      worldwide
              Stockholm

             Frankfurt
                     Beijing
                               Tokyo               New York

           Dubai
                           Hong Kong
              Bangkok
HKTDC Stands Ready to Help

30+ International Trade Fairs
Three Fairs – the largest in the world
Nine Fairs – the largest in Asia
All Fairs – Connecting Buyers and Sellers
HKTDC Stands Ready to Help
Platforms for Design and
Creativity
Platforms for Technology

     Inno Design Tech Expo          World SME Expo




                      Solution-Focused


     Business
     of Design
       Week



                                ECO Expo Asia


25
Contact Stockholm Office
Madelene Kornfehl, Consultant
Tel: (46)-8-4115-690
Email: stockholm.consultant@hk-sweden.org

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Hong Kong your Gateway to China

  • 1. Hong Kong: Your Best Business Partner and Risk Manager in China Jenny Koo Director, Service Promotion 4 September 2012
  • 2. The China Opportunity 2002 – 2011 GDP : 10.7% growth per annum Trade : 22.6% growth per annum
  • 4. Economic Model (Investment) Old Economic Model (Investment flow) 4
  • 5. New Economic Model (Products) 5
  • 6. New Economic Model (Investment) 6
  • 7. The China Opportunity No longer ―just‖ a production base: • Growing middle class –230 million • Rising consumption –↑17.1% in 2011 • Urban population – 1 billion by 2030
  • 8. The China Opportunity Growing consumer market • 1 billion+ mobile phone users • 500 millions+ internet users • World’s Largest car market • Purchase 44% of world’s luxury goods by 2020 • 100 million Chinese tourists expected by 2020
  • 9. The China Opportunity Moving Up the Value Chain ● 9 million mainland private enterprises ● Growing demand for business services ● Require technologies to go green
  • 10. Hong Kong Advantages Ideal Location Sound Fundamentals Dynamic People
  • 11. Why Hong Kong? Ideal Location Harbin Changchun Shenyang Shijiazhuang Beijing Dalian Tianjin Seoul Taiyuan Jinan Tokyo Zhengzhou Nanjing Xian Hefei Osaka Chengdu Wuhan Fukuoka Shanghai Chongqing Hangzhou Changsha Nanchang Delhi Kunming Guilin Guiyang Fuzhou Guangzhou All of Asia’s key markets within Dhaka Taipei Haikou Hong Kong Hanoi Mumbai Bangkok Manila Chennai Bangalore Ho Chi Minh City Colombo 4 hours Kuala Lumpur from half the Singapore 5 hours world’s population Jakarta
  • 12. Why Hong Kong? Ideal Location Economic integration with China • 45% of overseas-funded projects in China tied to Hong Kong • 56% of China’s outbound FDI goes through Hong Kong • Largest overseas investor in most Chinese cities
  • 13. Why Hong Kong? Ideal Location Immediate market — the Pearl River Delta ●56 million people ●24% of China’s imports/exports Bohai ●9.9% real GDP growth Yangtze Delta ● 50,000 Hong Kong companies
  • 14. Why Hong Kong? Strong Fundamentals ● World’s freest economy ● 1st in the World Economic Forum’s Financial Development Index 2011 ● 1st in IPO equity funding ● 1st in EIU’s Globalization Index 2010 ● Well-regulated banking system ● Low, simple tax system
  • 15. Why Hong Kong? Strong Fundamentals Rule of Law • Strong, independent legal system • Intellectual property rights protection • Free flows of information, people, goods & capital • Open & transparent government
  • 16. Why Hong Kong? Dynamic People Hong Kong is the Chinese city that speaks your language … Generations of entrepreneurial spirit Unrivalled China market and international business experience Diverse international workforce ... the language of international business!
  • 17. HongKong: Asia’s Lifestyle Trendsetter and Hong Kong: Lifestyle Trendsetter and Marketing Hub Marketing Hub • ―Shop Window‖ for China and Rest of Asia • Distribution Hub & Testing Ground for New Products & Services
  • 18. Hong Kong Design x International Brand The Ferrari with the Dragon Tattoo
  • 19. Hong Kong: A hub of Technology Technology marketplace - Selling and sourcing high-tech products - International experience in technology trade - A partner for foreign companies in meeting China’s demand
  • 20. HKTDC Stands Ready to Help Creating opportunities in international trade • Established in 1966 as the marketing arm of Hong Kong products and services • Create opportunities for Hong Kong companies by connecting the world’s SMEs through the Hong Kong business platform
  • 21. HKTDC Stands Ready to Help 11 offices in China, more than 40 worldwide Stockholm Frankfurt Beijing Tokyo New York Dubai Hong Kong Bangkok
  • 22. HKTDC Stands Ready to Help 30+ International Trade Fairs Three Fairs – the largest in the world Nine Fairs – the largest in Asia All Fairs – Connecting Buyers and Sellers
  • 24. Platforms for Design and Creativity
  • 25. Platforms for Technology Inno Design Tech Expo World SME Expo Solution-Focused Business of Design Week ECO Expo Asia 25
  • 26. Contact Stockholm Office Madelene Kornfehl, Consultant Tel: (46)-8-4115-690 Email: stockholm.consultant@hk-sweden.org