This document provides information about Hong Kong's position as a global connector and hub for business, trade, and innovation. Some key points: - Hong Kong has a simple tax system and has signed tax treaties with 37 jurisdictions to avoid double taxation. It also offers concessionary tax rates for corporate treasury centers. - Hong Kong has strong transportation links as Asia's busiest air cargo and passenger airport, and high-speed rail will soon connect it to other Pearl River Delta cities like Shenzhen and Guangzhou. - Hong Kong has a large startup ecosystem with over 1,900 startups in 2016, especially in areas like fintech, retail tech, and smart cities due to its business environment and

2. HEART OF
ASIA
Hong Kong

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 1,100 flights daily,
linking the Hong Kong International Airport to 190
destinations worldwide, including 47 Mainland cities
GLOBAL SUPER
CONNECTOR
The busiest air cargo airport in the world – 4.52 million
tonnes of cargo handled in 2016
(Airport Authority Hong Kong)

4. ONE COUNTRY TWO SYSTEMS

5. 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 37 jurisdictions.
Negotiations with
13 jurisdictions are in progress.
25%
45%
37%
11%
17%
17%
20%
16%
20%
7%
16.5%
15%
5%
5%
0% VAT
(as of Mar 2017)

6. CORPORATE TREASURY CENTRES
(CTCS)
Profits tax concession to qualifying corporate treasury centres
16.5%
8.25%
Prevailing profits tax rate for
corporations
Tax rate on qualifying profits of a
qualifying CTC derived from
qualifying corporate treasury
activities
http://www.ird.gov.hk/eng/ppr/iro.htm
http://www.ird.gov.hk/eng/ppr/dip.htm

7. Zhaoqing Foshan
Guangzhou
Dongguan
Huizhou
ShenzhenZhongshan
Jiangmen
Zhuhai
Macau
GREATER PEARL
RIVER DELTA
POPULATION
68mn
>UK, Italy, South Africa
GDP
US$1,328bn
>Indonesia, Netherlands, Turkey
LAND AREA
56,000km2
<Ireland, Latvia, Panama,
West Virginia (US)
Hong Kong
Source: CBRE Research

8. MOBILE CONNECTIVITY
Asia’s second fastest speed
for internet access
(Akamai Technologies, Q4 2016)
for smartphone
penetration rate
>235%
(OFCA, November 2016)
Household broadband
penetration rate
86.4%
(OFCA, November 2016)
in Asia

9. SOCIAL MEDIA – EAST MEETS WEST

10. BUSINESS-TO-
CONSUMER
5.1M
in Asia Pacific
142,000 HNWIs in HK,
up 281% (2009-2015)
42.8M
from Mainland
56.7 million visitors
in 2016
HK is ranked as
the 2nd most
attractive global
destination for
luxury retailer
(Jones Lang LaSalle,
2016)
US$56bn
Total retail sales in value
(Hong Kong Retail Management Association,
2016)
61Michelin-starred
restaurants in HK
(Apr 2017)

11. PRIME CONDUIT FOR FDI
Rank FDI Inflows (2015) US$ bn
1 USA 380
2 Hong Kong 175
3 China 136
4 Ireland 101
5 Netherlands 73
6 Switzerland 69
7 Singapore 65
8 Brazil 65
9 Canada 49
10 India 44
7,986 companies of which
3,731 are RHQs and ROs in
2016
Source: 2016 Annual survey, HKSAR
Government’s Census & Statistics Department
Source: World Investment Report 2016, UNCTAD

12. BUSINESS-
TO-BUSINESS
HK
SHENZHEN
STOCK
CONNECT
1,002
listed Mainland enterprises
Launched in
Nov 2014
RMB hub
Launched in
Dec 2016
RMB deposits in HK
Source: HKMA
63.3%
of market capitalisation
Source: HKEX
522bn
Jan 2017
33bn
2007

13. BELT & ROAD
Hong Kong:
the Super-Connector between
Mainland China and the world
Hong Kong
21st Century Maritime Road
Silk Road Economic Belt
TURKEY
IRANIRAQ
CHINA
INDIA
SRI LANKA
INDONESIA
THAILAND
Beijing
Urumqi
Basra
Khambhat
Kollam
Banda Aceh
Guangzhou
Quanzhou
Xi’an
South China sea
Bay of Bengal
Andaman sea
Arabian sea
Indian Ocean Belttung
OMAN
BANGLADESH
ITALY
RUSSIA
KENYA
Sources: China-US Focus, Xinhua Finance Agency

14. HONG KONG
THE GLOBAL
CONNECTOR FOR
STARTUPS

15. 2016 STARTUP ECOSYSTEM
SURVEY HIGHLIGHTS
5,229
staff (including founders)
employed by startups
1,926
startups
(+24%)
from 2015
(+41%)
from 2014
Source: Startup Profiling Survey, InvestHK, 2016
62%
HK
locals
35%
From
overseas,
Mainland or
Taiwan
3%
HK returnees
(50% in 2015) (7% in 2015)
(43% in 2015)
Origins of Founders

16. United States, 20.7%
United Kingdom,
13.0%
Mainland
China, 11.3%
France, 10.3%
Australia, 4.8%
Germany, 4.7%
Canada, 3.2%
Netherlands, 3.0%
Singapore, 2.8%
India, 2.2%
Italy, 2.2%
Japan, 2.2%
Taiwan, 1.8%
Korea, 1.5% Other countries /
territories, 16.3%
COUNTRY OF ORIGIN:
INTERNATIONAL FOUNDERS

17. SECTOR DISTRIBUTION
217 (195)
39 (36)
26 (21)
40
44 (26)
104 (57)
200 (48)
86 (74)
124
137 (77)
142 (106)
273 (273)
282
7
13
17
25
25
28
32
35
54
76
128
138
158
180
249
401
0 50 100 150 200 250 300 350 400 450
Others / don't know
Robotics
Retail technology
Biotechnology
Gaming
Smart city
Sustainable technology / Green technology
Data Analytics
Social innovation / venture
Health & Medical
Education & Learning
Hardware (IoT, 3-D printing, prototypes, wearables)
Financial Technology (FinTech)
Design
Professional or Consultancy Services
E-commerce / Supply chain management / Logistics technology
Information, Computer & Technology
2016*
2015 (2014)
Note:
“E-commerce” and “Supply Chain Management /
Logistics Technology” are separate categories in 2016
survey. They are combined here for year-on-year
comparison purpose
* Some startups engage in more than one sector
2014 figures, if available, are set out in brackets

18. CO-WORK SPACE, INCUBATORS
& ACCELERATORS LOCATIONS
© Copyright Invest Hong Kong, HKSAR
Locations by district
Number
(2014)
Number
(2015)
Number
(2016)
YoY
Change
Hong Kong Island 23 27 34 +7
• Sheung Wan / Western District 9 11 10 -1
• Central 5 5 5 0
• Wanchai / Causeway Bay / Tin
Hau
5 5 8 +3
• Other districts on Hong Kong
Island
4 6 11 +5
Kowloon 8 10 11 +1
New Territories 4 3 3 0
Total number of locations 35 40 48 +8

19. NEXTGEN CO-WORK SPACES
The Work Project, Causeway Bay WeWork, Causeway Bay
Fashion Farm FoundationGarage Collective, Sai Ying Pun

20. ACCELERATORS & INCUBATORS

21. PUBLIC FUNDING
Startups
(1) VC Matching Fund - 2017 Q2
(2) Technology Voucher Scheme (matching funds)
(3) Soft Landing Programme
(US$65/week/workstation)
(4) Incubation Programmes
(5) Design Incubation Programme
(6) Creative Micro Fund – HKTSP companies
(7) Microfinance Scheme
(8) Technology Start-up Support Scheme for
Universities (TSSSU)
(9) Corporate Venture Fund (CVF) – HKTSP
companies
R&D
(1) Enterprise Support Scheme (ESS) – US$1.4M/project
(2) University-Industry Collaboration Programme (UICP)
(3) Innovation & Technology Support Programme (ITSP)
• R&D Cash Rebate Scheme
• Public Sector Trial Scheme
• SME Development Fund
(4) Internship Programme
(5) Patent Application Grant
(6) Innovation and Technology Fund for Better Living
Financing
(1) Export Credit Insurance
(2) SME Financing Scheme
(3) SME Loan Guarantee Scheme
Design
Branding
Market development
(1) Design Smart
(2) Design-Business Collaboration Scheme
(1) BUD (Enterprise Support Programme)
(1) SME Marketing Fund

22. STARTMEUPHK FOCUS AREAS
Retail/logistics Tech
• HK has along history of being a
trading hub with many companies still
in this business
• Retailers more open to new
technology since downturn
• Largest e-commerce market next
door
Hardware/IOT
• Hardware capital Shenzhen next
door, with good business
infrastructure, IP protection & rule of
law in HK
• High speed rail ready in ‘18 Q3,
journey time from HK to Shenzhen –
14 mins, HK to Guangzhou – 24 mins
Fintech
• Deep experience and wealth of talent
in HK (FS sector employs 220K
people in HK)
• Regulatory support: sandbox,
innovation hub, fintech contact points
at regulators
• Area of interest for many investors
here
Smart City
• OGCIO will commission a report on
the smart city blueprint for the city
(results ‘17 Q3), currently
crowdsourcing ideas
• Several mega projects in
planning/development that will
showcases for smart city technology

23. HOW WE
SUPPORT
Networking events,
introduction to
service providers
Facilitation of visa
applications, schooling
PR and marketing
support for launch/
expansion
Information to aid
planning and evaluation

24. STARTMEUPHK
FESTIVAL 2017
16-20 JAN 2017

25. STARTMEUPHK VENTURE
FORUM

26. RETAIL’S CUTTING EDGE

27. FASHIONTECH ASIA

28. THE CONNECTED CITY

29. FINTECH FINALS 2017

30. HEALTHTECH ASIA