Simon Galpin, Director General of Invest HK talks at the China Lunch Club Melbourne on how to carry the business over to Hong Kong and what the advantages are. www.abf.events

1. Where Business
Goes to Grow
Simon Galpin
Director-General of Investment Promotion

2. 2
Heart of Asia

3. 3
4hours
Most of Asia’s
key markets
within four hours’
flight time
5hours
From half
the world’s
population
Proximity to China

4. Greater Pearl River Delta 4
Population
64mn
> UK, Italy, South
Africa
Exports
US$527 bn
> UK, Italy
GDP
US$962 bn
> Indonesia,
Netherlands, Turkey
Land Area
56,000km2
< Ireland, Latvia,
Panama, West Virginia
(US)

5. 5 One Country Two Systems

6. Low and Simple Tax System 6
25
17
16.5
20
15
45
5
16
37
5
20
11
0
7
17
Shanghai*
Singapore
Hong Kong
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
• VAT/GST/Sales tax
• Capital Gains Tax
• Withholding tax on investments
• Estate duty
• Global taxation
• Wine duty
NO
Percentage

7. World Class ICT Infrastructure 7
2nd in Asia
Global Innovation Index
(INSEAD 2014)
2nd in Asia
Networked Readiness Index
(The Global Information Technology Report 2014,
World Economic Forum)
2nd in Asia
ICT Development Index
(ITU Oct 2013)
The safest place in Asia
for 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)

8. Human Capital -Quality Education 8
x2
x49
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 ranked
first in reading literacy
globally
(Progress on International Reading
Literacy Study 2011)

9. 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.
9
+235%
124,000 HNWIs
Source: CapgeminiWorld Wealth Report 2014
+246%
Wealth amounted
US$627 billion

10. +12%
54.3 million visitors
Million
3.8
8.5
Number of visitor arrivals
12.5 13.6
15.5
18.0
22.5
28.1
34.9
40.7
9.3
7
10.8
11.7
12.7
11.6
13.5
13.8
13.7
13.6
60
50
40
30
20
10
0
2000 2003 2005 2006 2007 2009 2010 2011 2012 2013
Mainland China Rest of the World
Source: Hong Kong Tourism Board
+16% +4%
Spending US$44.1 billion US$1,044 per capita
10

11. 11
Total Retail Sales US$64 Billion +11%84%
41%
of the world’s leading luxury
of all international retail
and fashion retailers are in
brands are in Hong Kong
Hong Kong
No. of Shops
18 in Hong Kong
12 in London
13 in Hong Kong
5 in Milan
10 in Hong Kong
4 in Milan

12. Business-to-Business 12
2,264 new investment projects
approved;investment amount
US$43.7 bn (as of 2013)
(Source: MOFCOM)
RMB deposits in Hong Kong
of RMB1,053 bn (~US$173 bn)
(as of Dec 2013)
(Source: HKMA)
2000
2013
797 listed Mainland enterprises
on the HKEx; total market cap
US$1.76 tn (as of Dec 2013)
(Source: HKEX)
% of mainland
companies
% of mainland
capitalisation
49%
57%
18%
27%

13. Prime Conduit for FDI
7,585 companies of which 3,784 are RHQs and ROs in 2014
(Source: 2014 Annual survey, HKSAR Government’s Census & Statistics Department)
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
13
Source: World Investment Report 2014, UNCTAD

14. Global Operations in Hong Kong
Markus Kramer
President, Dispersions
and Pigments Division
(Global headquarters)
John Rice
Vice Chairman
(Global operations)
Jean-Pascal
Tricoire
Global CEO
Jeff Urwin
Global Head of
Investment Banking
Roland Krüger
President
(Global headquarters)
14
Christophe Roussel
Int’l Sourcing Director
Karen Fifer
Global Managing
Partner, Consumer
Markets Practice
Emma Sherrard
Matthew
Global CEO

15. www.startmeup.hk 15
startmeuphk
www.facebook.com/startmeuphk

16. Burgeoning Co-work Spaces
startup commune
Number of co-work spaces in HK
2010
3
2014
35
>2,800
spaces
16

17. Startup Ecosystem in Hong Kong
17
1,065
in their 30s
About startups
Establishment
<2 Years
Full-time staff
≤5
Business Sectors
• Information, computer &
technology; e-commerce / supply
chain management; professional
or consultancy services; fintech;
education and learning, etc
including incubatees located in
Founders
53%
HK locals
40%
from Overseas,
Mainland or Taiwan
7%
HK returnees
Employment
2,381
staff employed by
startups

18. How We Can Help 18
Networking events,
introduction to service
providers
PR and marketing support
for launch/expansion
Facilitation of visa
applications, schooling
Information to aid
planning
and evaluation

19. Get in Touch:
www.investhk.gov.hk
19
InvestHK
www.linkedin.com/company/
invest-hong-kong
www.youtube.com/user/investhk
www.flickr.com/photos/investhk
Mr Luca De Leonardis
Email: luca_de_leonardis@hketosydney.gov.hk
Tel: 61 – 2- 9283 3222