Where Business Goes to Grow Simon Galpin Director-General of Investment Promotion All Companies Great and Small

Where Business Goes to Grow Simon Galpin Director-General of Investment Promotion 2 All Companies Great and Small

3 Heart of Asia

4hr Most of Asia’s key markets within flight time 4 Heart of Asia

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

Greater Pearl River Delta 6 Population 55.3 mn > Canada Exports US$387 bn > UK, Canada (more than 27% of China’s exports) GDP US$665 bn > Sweden, Belgium Land Area 56,000 km 2 > Panama (less than 1% of China)

7 One Country Two Systems

VAT/GST/Sales tax Capital Gains Tax Withholding tax on investments Estate duty Global taxation Wine duty Low and Simple Tax System 8 NO

World Class ICT – Connecting 9 8th in the Global Innovation Index Report (INSEAD 2012) 2nd in Asia Cloud Readiness Index (Asia Cloud Computing Association, Sept 2011) 6th most advanced ICT Economy (ITU Sept 2011) The safest place in Asia for setting up data centres (Data Centre Risk Index, Cushman $ Wakefield, 2012) Mobile phone penetration rate >220%

Human Capital - Quality Education 10 x 2 x 48 Two universities in the world’s top 100 (Times Higher Education World University Rankings 2012/13) HKUST MBA – 1st in Asia and 10th in the world (Financial Times Global MBA Ranking 2012) World’s Top EMBA in 2011: Kellogg – HKUST EMBA Programme (Financial Times 2012) 48 International schools3rd in the Global Index of Cognitive Skills and Educational Attainment (Economic Intelligence Unit 2012) Hong Kong people have the highest average IQ in the world – 107 (IQ and the Wealth of Nations)

One of the Safest Cities in the World Source: Hong Kong Police 2011 Note: Rate per population 11

Business-to-Consumer Gateway to 3.37 million HNWIs in Asia-Pacific with wealth totalling US$10.7 tn > North America HNWIs in Mainland China reached around 562,400, or increased by 5.2% from last year Mainland China (including Hong Kong) overtook the US as the world’s largest market for art and antiques Among the 3.4 million HNWIs in Asia, 180,000 are in Hong Kong (Asia-Pacific Wealth Report 2012) 527,000 persons in Hong Kong held liquid assets of more than HK$ 1 million (Citibank Consumer Wealth Survey 2011) 12

Rapidly Growing Wealth in Asia 13 Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Global Wealth Databook 2011 Asia-Pacific accounted for 50% of the growth in global wealth since 2010 China, 2nd contributor to the growth in global wealth after the US In 2011, of the 30 million millionaires worldwide, 20% were from Asia- Pacific By 2020, est. no. of millionaires in Mainland China & Hong Kong will reach 3.7 million, an accumulated wealth of US$14 trillion

+16% Million % +5% Number of visitor arrivals Mainland China Rest of the World Source: Hong Kong Tourism Board

Total Retail Sales US$57 Billion +10% 15 84% of the world’s leading luxury and fashion retailers are in Hong Kong of all international retail brands are in Hong Kong 41% 18 in Hong Kong 12 in London No. of Shops 13 in Hong Kong 5 in Milan 10 in Hong Kong 4 in Milan

1,938 new investment projects approved; investment amount US$46.5 bn (MOFCOM, 2012) RMB deposits in Hong Kong of RMB677.2 bn (~US$110.6 bn) (as of Apr 2013) Springboard for Mainland Companies listed Mainland enterprises on the HKEx; total market cap US$1.62 tn (as of May 2013) % of mainland companies % of mainland capitalisation 47% 57% 18% 27%

Foreign Direct Investment in ,250 companies of which 3,883 are RHQs and ROs Source: 2012 Annual survey, HKSAR Government’s Census & Statistics 17 RankFDI Inflows (2011)US$ bnFDI Outflows (2011)US$ bn 1USA226.9USA China124.0Japan Belgium89.1UK Hong Kong83.2France90.1 5Brazil66.7Hong Kong81.6 6Singapore64.0Belgium70.7 7UK53.9Switzerland69.6 8Russia52.9Russia67.3 9Australia41.3China France40.9Germany54.4

From Micro… 18 Russian technique for printing on glass Authentic California wine Innovative Japanese stationery Italian branding and design IC start-up from UK

Markus Kramer President, Dispersions and Pigments Division (Global headquarters) Global Operations in Hong Kong John Rice Vice Chairman (Global operations) Jean-Pascal Tricoire Global CEO Johan de Nysschen President (Global headquarters) Michael Andrew Global Chairman Jeff Urwin Global Head of Investment Banking Wiebo Vaartjes EVP & GM (Global headquarters of Philips Consumer LifeStyle) 19

What We Do? 20 ?

How InvestHK helps investors 21 Networking events, introduction to service providers PR and marketing support for launch/expansion Facilitation of visa applications, schooling Information to aid planning and evaluation

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For more information, please contact Tel: (852) /F, Fairmont House 8 Cotton Tree Drive Central, Hong Kong Get in Touch