Index. Opportunities for China and achievements

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2 Index The One Belt One Road Initiative Opportunities for China and achievements B&R Projects Advantage for Hong Kong Opportunities for Hong Kong Conclusion 2

3 In 2013 President Xi Jinping proposed the One Belt One Road (B&R) initiative during his visit to Kazakhstan and Indonesia In 2014, Premier Li Keqiang called for accelerating the Belt and Road Initiative in his government work report presented to the annual meeting of the country's legislature. In 2015, China's State Council outlined the principles, framework, key areas of cooperation and cooperation mechanisms with regard to the initiative 3

4 What is B&R The initiative comprises of two routes These two projects are known collectively as One Belt One Road or the New Silk Road 4

5 Countries along B&R 5

6 B&R Initiative Coverage The 21st Century Maritime Silk Road is planned to create connections among regional waterways. More than 60 countries, with a combined GDP of $21 trillion, have expressed interest in participating in the B&R action plan. 6

7 The Aim of B&R Initiative Through building infrastructure and networks, from high-speed railways to university accommodation, China aims to boost free trade and development in regions traversed by B&R. 7

8 Opportunities for China 8

9 Logistics Infrastructure Different types of logistics infrastructure will become priority projects in B&R initiative, Most project bidding winners are Chines companies. Railway construction Project Name: Sino Lao Railway (Yuxi Mohan - Vientiane) Location: China Lao People's Democratic Republic Constructor: Companies under China Railway Bureau Port construction: Project Name: KUMPORT Port Location: Istanbul TURKEY Constructor: COSCO Pacific Limited, China Merchants International Limited CITIC Overseas Direct Investment Limited 9

10 Most countries along "Belt & Road" Initiative are booming industrialization and urbanization, Many China companies make good opportunities of B&R initiative to expand business to these countries Project Name: Yanbu Aramco Sinopec Refining Company Ltd. Location: Yenbo Saudi Arabia Constructor: SINOPEC (China Petrochemical Corporation) Project Name: China Myanmar natural gas pipeline project Location: China the Republic of the Union of Myanmar Constructor: CNPC (China National Petroleum Corporation) 10 Yanbu Aramco Sinopec Refining Company Ltd.

11 International Trade China has been the main import and export market along B&R countries. In 2016 China's export to the countries along B&R reached to billion US dollars, accounting for 27.8% of China's total exports. The increasing booming of international trade under B&R initiative will bring even huge opportunities for China import and export companies as well as industries behind them 11

12 Finance Huge among of capital and large scale financial integration are required in B&R initiative. It is a great opportunities for financial institutions and financial services in China to broaden business in the international level. As of August 12018, the Asian Investment Bank, which proposed by China, expanded its membership to 87 and has invested 28 projects with a total investment of $5.43 billion for B&R initiative projects As of the end of June 2018, the Bank of China has followed up more than 600 major projects in the B &R and achieved a total credit of about US$115.9 billion in the B& R countries. RMB internationalization plays a very important role in B&R initiative. China has established a RMB 300 billion overseas fund to support the construction of currency swaps, settlement centers, RMB offshore centers, and RMB cross-border payment systems along R&B countries. 12

13 B&R Achievement 2018 is the 5th year after " One Belt One Road" initiated. Great achievements have been made for the initiative. International co-operation As of August 2018, China has signed 118 cooperative agreements with 103 countries and international organizations for " One Belt One Road" initiative International trade As of June 2018 trade between countries along "Belt and Road" and China exceeded 5 trillion dollars Investment China's Direct investment in countries along "Belt and Road" exceeds 70 billion dollars Employment One Belt One Road" initiative has created hundreds of thousands of jobs for the countries along 13

14 One Belt One Road Projects 14

15 Moscow-Kazan High-speed Rail Railway length: 700 km, Structure: through Russia, Kazakhstan and China. Benefit to local country: Run time reduced from 14 hours to 3 hours passing Benefits to the local country:

16 Bangladesh Bladma bridge Bridge length: 6.15 km Structure: two-way four-lane highway and a lower-level single-track railway. Construction starting time: August 2016 Benefits to the local country: Ending the history of ferry crossing between the southern Bangladesh and the capital

17 China-Belarus Industrial Park Location: Republic of Belarus Coverage: 91.5 square kilometers Benefit to the local country: It is the engine of Belarusian economic development and represents the future of the Belarusian economy. 17

18 Hong Kong s Advantages in B&R 18

19 Superior Geography Location Hub of Maritime Silk Road Hong Kong s geographical position as a gateway between the East and West has made it an attractive centre for international trade. A. Hong Kong posses world's busiest international airport, with highest volume of both passenger and freight in the world B. Hong Kong is located on world's busiest international shipping line, enjoying developed port economy. C. Various road infrastructures connects Hong Kong and mainland like modern railway, highway 19

20 Guangzhou-Shenzhen-Hong Kong Express Rail Link Open time: 23 September 2018 Length: The 26-kilometer Benefit: Connects Hong Kong with the high-speed rail network on the mainland. Reduces the time for a train journey to major provincial cities such as Beijing, Shanghai, Guangzhou, this will facilitate the connecting of B & R initiative.

21 nations from September 23. Photo: Sam Tsang Hong Kong Macao Zhuhai Bridge, the world's longest sea-crossing bridge Open time: 23 October 2018 Length: 50-kilometer Benefit: Making Hong Kong an importation hub integrating with Southern China enhancing the cost effectiveness and higher efficiency 21

22 Financial Advantage Hong Kong is the leading financial hub in Asia, the largest offshore RMB business centre, handling nearly three-quarters of all RMB payments. Hong Kong has the second largest equity fund market and the seventh largest stock market in the world. This could help solve fund raising issues when the B&R initiative moving on. Hong Kong equipped with a sound financial system, professional financial division, standardized financial products, and rich financial professionals with international experiences 22

23 Professional Services Hong Kong has a strong pool of talent to help support Belt and Road business opportunities. More than 250,000 professional workforce in the areas such as legal, accounting and auditing, architecture and engineering, information technology, advertising and specialized design and other sectors The legal profession in Hong Kong is well experienced in serving multi-jurisdictional clients in complex cross-border matters, thus perfectly placed to provide the necessary support for the B&R projects. Hong Kong professional service industry can cover the Asia Pacific Region 23

24 Opportunities for Hong Kong 24

25 Integration with the Greater Bay Area Many Companies in GBYA set headquarters in HK with an aim to more conveniently doing business with B&R countries. HK enjoy a geography location and comment language with other GBA members. It will be easy for HK companies to cooperated with GBA to develop business into B&R countries together with HK s existing advantage. HK has rich talents who skillful in dealing with different international cases, such as legal, cross border projects and overseas real estate act.. Hk professional talents can provide proper consulting services for GBA companies to reduce/avoid overseas investment risks. 25

26 Supply Chain Transforming With the benefit of B&R initiative consumption power of B&R countries are getting stronger., global supply chain frame is transformed consequently. Eastern counties manufacturing Western countries consumption Global production, global consumption One Belt One Road Initiative HK s opportunities: Uniting other GBA members to become a community, leverage the advantages of supply chain of each GBA member, to work and engage business/production with governments and companies in B&R countries, reaching the Global production Global consumption goal

27 Connectivity with ASEAN In November 2017, Hong Kong and ASEAN signed a Free Trade Agreement and a related Investment Agreement. Trade between mainland and ASEAN that transit through Hong Kong account for 10%, and is on rise. Hong Kong will obtain unlimited opportunities in B&R initiative through ASEAN relationship 27

28 Conclusion B&R initiative provides a good opportunity for China to integrate with more countries, facilitating the common growth. Hong Kong could contribute more to the B&R Initiative with its unique advantage in geographical, wide range of talent people, mature financial and business environment. 28

29 Thank You! 29