Australian Business Forum helps Australian SMEs and businesses to understand the Chinese market and refine their China strategy.
http://abf.events/
ABOUT THE PRESENTATION BELOW
Hong Kong is your gateway to China. Though small, Hong Kong is Asia's centre for business and professional services, with over 92% of its GDP generated by this sector. This makes Hong Kong ideal for B2B, B2C and business growth with many Australian companies making their first foray into greater China via Hong Kong.
Originally presented by Luca de Leonardis, Head of Australia and NZ from InvestHK, at the Australia-China BusinessWeek series.
3. 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
6. 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
7. MOBILE CONNECTIVITY
The world’s second fastest
speed for internet access
>92.6Mpbs
(average peak connection)
Source: Akamai Technologies,Q12015
for smartphone
penetration rate
>232%
(OFCA, April 2015)
Household broadband
penetration rate
83.4%
(OFCA, Mar 2015)
in Asia
9. BUSINESS-TO-
CONSUMER
4.7M
in Asia Pacific
138,000 HNWIs in HK,
up 273% (2008-2014)
47.2M
from Mainland
60.8 million visitors
in 2014, up 12%
84%
of the world’s
leading luxury and
fashion retailers
are in HK
US$63bn
sales
600people
One restaurant every
10. PRIME CONDUIT
FOR FDI
ALL TIME HIGH –
7,585 companies of which 3,784 are
RHQs and ROs in 2014
Rank FDI Inflows (2014) US$ bn FDI Outflows (2014) US$ bn
1 China 129 USA 337
2 Hong Kong 103 Hong Kong 143
3 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
12. 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
13. GLOBAL
OPERATIONS
IN HONG KONG
Markus Kramer
President, Dispersions and
Pigments Division
(Global headquarters)
John Rice
Vice Chairman
(Global operations)
Roland Krüger
President
(Global headquarters)
Jeff Urwin
Global Head of
Investment Banking
Darrin Webb
Chief Operating Officer,
Global Enterprise & Services
Jean-Pascal
Tricoire
Global CEO
15. Trade in Goods
In 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 Services
In 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 Investment
At 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.
18. 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
19. 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
20. 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
21. 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
23. GET IN TOUCH
Tel: 02 9283-3222
www.investhk.gov.hk
Email: luca_de_leonardis@hketosydney.gov.hk
Level 1, Hong Kong House
80 Druitt Street
Sydney, NSW, 2000
Australia
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