1. Asia’s World City for Business
Hong Kong:
Asia’s World City for Business
Hong Kong Economic and
Trade Office (Toronto)
September, 2013

2. Hong Kong Economic Updates
GDP growth in real terms
1st quarter 2013: 2.9%
2nd quarter 2013: 3.3%
2013 forecast: 2.5% to 3.5%
Underlying consumer price inflation
1st quarter 2013: 3.8%
2nd quarter 2013: 3.9%
2013 forecast: 4%
External trade (exports growth in real terms)
Exports of goods: 6.2% in the 2nd quarter 2013
Exports of services: 8.1% in the 2nd quarter 2013
Labour market
Unemployment rate at 3.3%

3. Hong Kong: an international financial centre
3rd in the Global Financial Centre Index (after London and New York)
1st in Financial Development Index (World Economic Forum)
Financial services sector contributing to 16% of GDP

4. Hong Kong: an international financial centre
Banking sector
Global ranking: 7th in the world and 2nd in Asia (in terms of outstanding amount of external transactions)
201 authorized institutions (156 licensed banks) and 61 local representative offices from 35 economies
70 of the world’s 100 top banks operating in Hong Kong

5. Hong Kong: an international financial centre
Securities
1,575 companies listed on the Stock Exchange of Hong Kong
6th in the world and 2nd in Asia in terms of market capitalization (USD 2,773 billion in end July 2013)
IPO funds raised: 1st from 2009 to 2011, among the top five for the past decade
1st in terms of cross-border listings and capital raised by offshore companies (2012)

6. Hong Kong: an international financial centre
Asset management (as at end 2012)
Combined fund management business: HKD12,587 billion, 39.3% growth from 2011
Asset management business:HKD8,246 billion ,1st in Asia
Insurance sector
13 of the world’s top 20 insurers operate in Hong Kong
Highest concentration of insurers in Asia (153 authorized insurers as at end July 2013)

7. Hong Kong: an international financial centre
RMB trade settlement in HK
RMB 1,980 billion (Jan – July 2013). More than 80% of Mainland’s total trade settlement in RMB
Liquidity pool of RMB in HK
RMB 695 billion of deposits and RMB billion of certificates of deposit, totaling RMB billion (as at end of July 2013)
RMB bond issuance cumulative total of 297 batches with outstanding amount of RMB 296 billion (as at end August 2013) 7

8. Hong Kong as a premier logistics hub
World’s number one air cargo hub in terms of total air cargo handled in 2011
World’s 3rd busiest port in terms of total container throughput in 2012
Trading and logistics industry accounting for 26% of Hong Kong’s GDP

9. Recent development to support Hong Kong’s logistics and related business
Central Government indicated support for Hong Kong’s development into a high value goods inventory management and regional distribution centre
New lands allocated and reserved for construction of modern logistics facilities
Cross border infrastructure development for more efficient flow of goods and people between Hong Kong and Mainland China

10. HK-Zhuhai-Macao Bridge General Layout
HZMB Whole Project (14km link road + 23km bridge + 7km tunnel + 12km link road)
Hong Kong Boundary Crossing Facilities
30km
廣珠西線 Guang-Zhu West Expressway
14km
Deep Immersed Tunnel
Hong Kong Link Road (12 km)
12km
Zhuhai Link Road (14 km)
The total length of the entire HZMB project is about 56 km consisting of three major components:
- Zhuhai Link Road of about 14 km long, together with an artificial island housing the boundary control facilities for Zhuhai and Macao;
- the Main Bridge of about 30 km long, including 23 km bridges and 7 km tunnel; and
- HK Link Road of about 12 km length and the HKBCF.
The Main Bridge is located within Guangdong waters and jointly funded by 3 governments of Guangdong Province, Hong Kong SAR and Macao SAR. Each government will be responsible for construction of its own boundary crossing facilities (BCF) and local link roads.
The 30 km Main Bridge will straddle across 5 navigational channels with 3 cable-stayed bridges to the west and an immersed tube tunnel to the east.
Cable Stayed Bridge
Zhuhai and
Macao BCF

11. Connectivity of HZMB to Major Cities at Pearl River West
Beijing
現存道路 EXISTING ROAD
計劃中 / 興建中道路 ROAD UNDER PLANNING / CONSTRUCTION
往北京
To BEIJING
珠三角環形高速 Ring Expressways in Pearl River Delta
Guangzhou
廣惠高速 Guanghui Expressway
Destinations
Distance
Travel Time
Zhuhai/ Macao –
HK Airport
Over 200km
About
4 hrs
廣州市 GUANGZHOU SHI
廣深高速 Guangshen
Expressway
往廣西梧州
To WUZHOU, GUANGXI 肇慶
ZHAOQING
增莞深高速 Zengguanshen Expressway
潮莞高速 Chaoguan Expressway
廣梧高速 Guangwu Highway
常虎高速
Changhu
Expressway
West of China
汕頭市
SHANTOU SHI
廣明高速 Guangming Expressway
珠三角外環線 Outer-ring Expressways in Pearl River Delta
虎門 大橋
Humen Bridge
東莞市 DONGGUAN SHI
深汕高速 Shenshan Expressway
佛山市 FOSHAN SHI
廣珠西線 Guangzhu West Highway
機荷高速 Jihe expressway
江羅高速 Jiangluo Expressway 鹽田
YANTIAN
Guangshen Coastal
廣深沿江高速
Expressway
深圳市 SHENZHEN SHI
江中高速 Jiangzhong
Expressway 江門
JIANGMEN
京珠高速 Jingzhu Highway
香 港 國 際 機 場 HONG KONG INTERNATIONAL AIRPORT
中山 ZHONGSHAN
廣湛高速 Guangzhan Expressway
Jiangzhu Expressway
江珠高速
HZMB will improve connectivity to west of the PRD, and even to the southwest area of China, the provincial capital of Guangdong, western part of China and also to Beijing, the capital.
The future road network will significantly reduce transportation costs and time for travellers and goods using the roads. For example, currently using land transport, it will take about 4 hours travelling over 200 km from Macao to HK International Airport. However, via the HZMB, the travel time and distance will be greatly reduced to about 45 mins and 42 km respectively, which means a reduction by as much as 80%.
The HZMB will facilitate further economic development of HK, Macao and the Western PRD region. With the connection by the HZMB, the Western PRD will fall within a reachable 3-hour commuting radius of HK. This would enhance the attractiveness of the Western PRD to external investment, which is conducive to the upgrading of its industry structure. HK will benefit from this new economic hinterland. The vast human and land resources in Western PRD will provide ample opportunities for HK businessmen to expand their operation in the Mainland.
The connectivity brought about by the HZMB will also benefit various sectors such as tourism, finance, commerce. In particular, it will enhance HK’s position as a trade and logistics hub since goods from the Western PRD, Western Guangdong and Guangxi, etc, can make better use of the airport and container ports in HK. 香港
HONG KONG
Xintai Expressway
新台高速
珠海 ZHUHAI
Hong Kong
HZMB
Southwest of China
Zhuhai / Macao 澳門
MACAO
Destinations
Distance
Travel Time
Zhuhai/ Macao –
HK Airport
About 42km
About
45 mins (>80% reduction)
往湛江市 To ZHANJIANG SHI
西部沿海高速 Western Coastal Highway
陽江 YANGJIANG

12. Benefits to be brought by the HKZMB
The Hong Kong-Zhuhai-Macao Bridge -
Improve connectivity to west of Pearl River Delta
Accelerate the integration of Guangdong, Hong Kong and Macao
Support the continuous economic growth in PRD
Enhance HK’s position as a trade and logistics hub
Upon completion in 2016, the HZMB will become the longest bridge-cum-tunnel sea crossing in the world. HK can be more effectively connected with the road networks of the Mainland. The connectivity brought about by the HZMB will accelerate the integration of Guangdong, Hong Kong and Macao, and support the continuous economic growth in PRD. It will enhance HK’s position as a trade and logistics hub.

13. Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) Alignment
HK Section
26km
Mainland Section
116km
Hong Kong Route Journey
to Futian 30 km 14 mins
to Guangzhou 142 km 48 mins
South
2017/4/16
As mentioned, the Express Rail Link is the first high-speed rail line in Hong Kong. At the national level, the Hong Kong Section of the XRL will become part of the 16,000 km national high-speed rail network.
26 km long Hong Kong section in an underground railway corridor to the boundary of Hong Kong and links to the 116 km long Mainland Section with a terminus at Guangzhou South Station.
The train journey times between Hong Kong and various major Mainland cities will be greatly shortened. For example, XRL journey time from Hong Kong to Guangzhou would be reduced from 100 minutes to 48 minutes.
Upon completion, the XRL will foster closer economic ties between Hong Kong and the Mainland extending Hong Kong’s reach into the Mainland hinterland and help strengthen the strategic position of Hong Kong as the southern gateway to the Mainland.
The XRL will also enable better connection with the major cities in the Pearl River Delta region of China and realise the concept of one-hour living circle. The time savings due to more efficient cross boundary travels will enhance the value of Hong Kong and its role as a hub in the region.

14. XRL Benefits Enhance Hong Kong status as the Southern Gateway of China
Promote various sectors of industry including convention and exhibition, catering and retail and tourism etc.
Materialize the idea of “one hour living circle” between Hong Kong and the Pearl River Delta region
Attract more visitors for “one-trip multi-stops” by the XRL
Average time saving: 40 million hours / year 14 14

15. Hong Kong: strong professional services
High quality workforce, common use of English which is one of HK’s official languages
8,200 local lawyers and over 1,350 registered foreign lawyers, 1,600 qualified mediators from legal and non-legal sectors
Over 32,000 certified public accountants
Over 5,300 chartered company secretaries

16. Hong Kong: regional centre for disputes resolution
Strong legal services, the only city within China with common law legal system
Presence of international legal organizations: e.g. the Asia Pacific Regional Office of the Hague Conference on Private International Law, the Secretariat of the International Court of Arbitration of the International Chamber of Commerce
Arbitration order awarded by courts of Hong Kong enforceable in over 140 jurisdictions including Mainland China

17. Hong Kong: regional centre for disputes resolution
The new Arbitration Ordinance took effect in June 2011, in line with the latest and best international practice
The new Mediation Ordinance came into operation in January , providing legal framework for the conduct of mediation
The Hong Kong Mediation Accreditation Association Limited established in August 2012 to perform accreditation and disciplinary functions

18. New growth areas: innovation and technology
Research centres
Five R&D centres set up by government to facilitate technology transfer and commercialization of research projects
Focus areas: ICT, nanotechnology, logistics and supply chain management enabling technologies, textiles and clothing, automotive parts and accessory systems
Extensive network with local and overseas research institutions as well as with industries in the Pearl River Delta Region

19. New growth areas: innovation and technology
R&D Funding Support
Small Entrepreneur Research Assistance Programme (SERAP)
HK registered companies < 100 staff
Up to $6m matching-grant/interest free loan for in house R&D
for max 2 years
Application process: up to 2 months
Innovation and Technology Support Programme (ITSP)
Through Government’s 5 R&D Centres
Grant of up to 50% project cost
for exclusive IP ownership
Application process: 3~6 months
University-Industry Collaboration Programme (UICP)
Through 6 local research-based universities
50/50 matching grant
IP goes to the company
Application window: twice a year
R&D Cash Rebate Scheme for up to 30% of cash rebate for R&D investments

20. New growth areas: innovation and technology
Hong Kong Science Park
Provides 20 state-of-the-art buildings with offices, fully-equipped laboratories and engineering services
Currently home to over 390 technology companies developed in five clusters: information technology and telecommunications, electronics, biotechnology, precision engineering, green technology (renewal energy and environmental technology)
Nurtures technology start-ups through incubation program
Phase 3 development is underway to provide space for up to 150 more technology companies

21. New growth areas: innovation and technology
Cyberport
Provides state-of-the-art ICT facilities
Currently home to over 100 ICT and digital content companies
Specific program to provide enterprises with technology, training opportunities, business matching and networking support
Flexible program for companies to rent readily-built office at highly competitive all-inclusive monthly rate

22. New growth areas: innovation and technology
Information and communication technology (ICT)
Broadband networks cover nearly all commercial and residential buildings. Household broadband penetration rate of 85% (May 2013), among the highest in the world.
Mobile penetration rate at 231% (May 2013). Smartphone penetration rate of 63% (Q1, 2013), among the second highest in the world.
Telecommunication charges are among the lowest in the world.
Average peak internet connection speed (63.6 Mbps), the fastest worldwide and the average internet connection speed (10.9 Mbps), is among the fastest in the world.

23. New growth areas: innovation and technology
Information and communication technology (ICT)
Strong pool of ICT professionals engaged in various areas including software design and development
Active IT outsourcing policy by the government, adoption of cloud-based services
Good test-bed for new solutions and a solid base for ICT companies to service Mainland
Advantages under CEPA: Hong Kong suppliers can set up wholly-owned companies in the Mainland to provide software implementation and data processing services, can establish joint ventures with not more than 50% in shareholding to operate six types of value-added telecommunications services

24. New growth areas: innovation and technology
Hong Kong as the prime location for data centres
Robust telecommunications infrastructure
Reliable power supply and comparatively low tariff
Proximity to Mainland China
Effective protection of data privacy and information security
More land for data centres: a one-hectare site open for tender until 4 October 2013

25. New growth areas: intellectual property trading
IP creators
Universities
R&D labs
Products development
(in-house)
Inventors
IP users
Any company
IP intermediaries
IP brokers/agents
IP publications
Exhibitions
Online platforms
Trading centres
Professional IP support services
IP valuation, accounting, intelligence, consulting, risk management, financing, training, enforcement and litigation

26. New growth areas: intellectual property trading
Hong Kong has long been a regional marketplace for IP activities like copyright trading, licensing and franchising, design services and technology transfer, IP modification
Hong Kong exported US$1 billion in technology to China in 2010 – 6th in the world in taking technology to China

27. New growth areas: environmental industry
Vision: use less and waste less
Strategy: develop a comprehensive waste management
plan & promote a new social contract with the community
to conserve resource & reduce waste
Overall Target: reduce the municipal solid waste disposal rate by 40% on
a per capita basis by 2022

28. New growth areas: environmental industry
Target for sustainable use of resources
Per Capita Municipal Solid Waste Disposal Rate down 40% by 2022
To reduce from 1.27 kg per day (2011 level) to 0.8kg per day by 2022.
By 2022: recovery rate (55%); landfill (22%); and incineration (23%)

29. New growth areas: environmental industry
Landfill Extensions
Sludge Treatment Facility (STF)
Organic Waste Treatment Facilities (OWTF)
Integrated Waste Management Facilities (IWMF)

30. New growth areas: environmental industry
Increasing opportunities in Mainland China
Energy conservation
Waste air/water treatment
Automation of production plant (green manufacturing)
Product design/development for higher value-added (green) products
Testing and certification, e.g. for food & product safety
Demand for financial services; funding of such projects
Demand for technology/equipment from domestic enterprises/oversea

31. New growth areas: environmental industry
CEPA Advantages:
“Hong Kong companies” may set up wholly-owned enterprises on the mainland to provide architectural design services and engineering services (including environmental protection design and engineering services)
“Hong Kong companies” may set up wholly-owned enterprises on the mainland to provide various environmental protection services:
Sewage services;
Solid waste disposal services;
Waste gas clear-up services;
Noise abatement services;
Nature and landscape protection services;
Other environmental protection services;
Sanitation services

32. New growth areas: environmental industry
Examples of Canadian cleantech in Hong Kong
Water and wastewater leakage detection
UV disinfection for water & wastewater
Odour control systems
Wind engineering services
Indoor air quality products
Low VOC wood coating products
Food waste recycling machine
Environmental and bioremediation consultancy
Laboratory analytical services
Waterproofing technologies/products for buildings
Architectural services

33. New Growth areas: life science and medical devices
Hong Kong: a world-class healthcare system with rising demand for advanced technologies and medical devices due to aging population
Continuous increase in healthcare spending by the government
Heavy reliance on imports of medical equipment and supplies
Gateway to Mainland China for distribution of medical devices

34. New growth areas: education
Quality education: ranked 3rd in the Global Index of Cognitive Skills and Educational Attainment
Three universities in Hong Kong among the top 50 world universities (2013 QS World University Rankings)
Platform for academic exchanges, recruitment of overseas students, program development etc.
Growing footprint of prestigious international teaching programs
Presence of Canadian universities in Hong Kong: University of Waterloo, University of Toronto, Western University of Ontario, University of British Columbia, Royal Roads University, etc.

35. New growth areas: culture and creativity
West Kowloon Cultural District (total site area of 40 hectares)
One of the largest arts and cultural infrastructure projects in the world
To house 13 core arts and cultural venues and over square meters of space for arts education
Ample green space, open areas and two kilometers of harbor-front promenade
To be commissioned in phases from 2018

36. New growth areas: culture and creativity
Support for film industry through:
Film Development Fund to provide financial support for small- to-medium budget film productions and other film-related projects
Other support for film production through the Film Services Office
MOU between Canada and Hong Kong to facilitate film and television co-production
Hong Kong-Canada co-production of Chinese language films may enter into Mainland China on a quota-free basis under CEPA

37. New growth areas: wine industry
Removal of all duty on wine since 2008
World’s largest wine auction centre and major wine trading and distribution centre for Asia
Market trend: growing popularity of New World Wine with increasing market shares
Advantages for export to Mainland China
Wines manufactured in HK enjoy zero tariff in entering the Mainland
Customs facilitate measures: pre-valuation of wine duty in HK and shorter customs clearance time at designated Mainland ports

38. Hong Kong’s fundamental strengths
Rule of law and independent judiciary
Clean government
Freest economy
Free flow of capital and information
Free port and efficient customs
Simple and low tax regime [profit tax: 16.5%, income tax: 15%]
Level playing field
Simple and transparent regulatory regime

39. Hong Kong: an excellent place for business
Ranked 1st as the world’s freest economy by the Heritage Foundation since 1995 and the Fraser Institute since 1970
Ranked 1st in the World Economic Forum’s Financial Development Index 2012
Ranked 1st in Asia in the 2013 Global Innovation Index
Ranked 1st in the Globalization Index 2012 by Ernst & Young and the Economist Intelligence Unit
Ranked 1st in Asia (3rd in the world) as the most competitive economy by the IMD World Competitiveness Yearbook 2013
Ranked 2nd in Asia in the 2013 Global Competitiveness Index of the World Economic Forum
Ranked 2nd as the easiest place to do business in the world in the 2012 World Bank’s Doing Business Report
Ranked 3rd global financial centre by the Global Financial Centres Index 14 (2013)
Ranked 1st as the most competitive city in China 2013 (The Chinese Academy of Social Sciences)

40. Hong Kong: ideal platform for business and investment
3rd in the world for foreign direct investment (USD 75 billion in 2012), after the US and Mainland China
4th in the world for outflow of investment (USD 328 billion in ), after the US, Japan, and Mainland China
7,250 overseas companies operating in Hong Kong, 3,883 being regional headquarters and regional offices

41. InvestHK is ready to help
Planning: information and advice on regulation, cost of business model, procedures, etc.
Setting up: connection with relevant government departments and other service providers in HK
Launching: generation of publicity
Expansion: ongoing support for business matching, information on grants and government schemes

42. Thank you Hong Kong Economic and September, 2013
Trade Office (Toronto)
September, 2013