HONG KONG The Ideal Gateway to Asia Alice CHOI Deputy Representative Hong Kong Economic and Trade Office in Brussels 15 March 2017 1
Strategic Location Gateway to China Direct flight to about 40 cities in Mainland China Heart of Asia All of Asia s key markets within 4 hours Access to the World 5 hours from half of the world s population 2
One Country, Two Systems A Special Administrative Region of China under the one country, two systems principle since 1 July 1997 High degree of autonomy Separate political, economic, legal, customs and immigration systems from Mainland China 3
Hong Kong s Strengths World s freest economy Rule of law Clean and transparent government Efficient and sophisticated infrastructures Excellent connectivity Low and Simple Tax Regime Vibrant and cosmopolitan lifestyle 4
Hong Kong s Strengths World s freest economy Ranked as the World s Freest Economy by the Heritage Foundation for 23 consecutive years No trade barriers no tariffs, no quotas, no exceptions No restrictions on investments inward or outward No foreign exchange controls - Fully convertible Hong Kong dollar separate from the Renminbi (RMB) No nationality restrictions on corporate ownership Free movement of capital, talent, goods and information 5
Hong Kong s Strengths Rule of Law Rule of law upheld by a legal system based on the Common Law system, with a fully independent judiciary Court of Final Appeal in Hong Kong Comprehensive protection of intellectual property rights 6
Hong Kong s Strengths Rule of Law The Basic Law guarantees fundamental human rights: Equality before the law The right to vote and stand for election Private ownership of property Freedom of speech Freedom of the press Freedom of assembly Freedom of movement Freedom of religious belief Freedom of academic research No censorship on websites 7
Hong Kong s Strengths Clean and transparent government Information about government services easily available online, in English and Chinese One of the least corrupt economies in the world, according to the Transparency International s Corruption Perceptions Index 2016 Efficient public service with performance pledges 8
Hong Kong s Strengths Efficient and sophisticated infrastructures Efficient and extensive public transport system and road connections World-class convention and exhibition facilities Excellent IT and telecommunication infrastructures Fastest broadband download and easiest accessibility of public wifi spots in the world Mobile phone penetration rate >240% 9
Hong Kong s Strengths Excellent Connectivity The world s busiest cargo airport and third busiest passenger airport, with flights to some 190 overseas and Mainland destinations Named as the Airport of the Year at the Air Transport World Airline Industry Achievement Awards 2016 Received 70.5 million passengers and handled cargo throughput of 4.52 million tonnes in 2016. World s top five busiest container port, handling 20.1 million TEUs in 2015 10
Hong Kong s Strengths Low and Simple Tax Regime Corporate Income Personal Income Employer Social Security Employee Social Security VAT 25 45 49 23 17 China 17 20 14,5 20 7 Singapore 16,5 15 5 5 0 Hong Kong Only 3 direct taxes in HK: profits, salaries, property NO VAT/GST or sales tax NO Capital gains tax NO Withholding tax on dividends and interest Source: Forbes Tax Misery Index 2009, Inland Revenue NO Estate duty NO Global taxation (offshore income allowed/only HKsourced income is taxable) NO Wine duty 11
Hong Kong s Strengths Vibrant and cosmopolitan lifestyle English as the common language for business Over 7 900 overseas companies with around 3,800 regional offices and headquarters Multiculturalism 40% of the area is designated as country parks and nature reserves 12
Pillar Industries Trade and Logistics Financial Services Professional Services Tourism 13
Pillar Industries Trade and logistics One of the world's largest trading economy Total export of goods 2016 EUR 459 billion Total import of goods 2016 EUR 475 billion China's second largest trading partner (after the US) Most important entrepot for China. 14
Pillar Industries Trade and logistics International shipping centre Asia s logistics hub Free port and free flow of goods Provision of high-value added services 15
Pillar Industries Financial Services Hong Kong is one of the major international financial centers in the world enjoying high global rankings Rank Economic Freedom Index 2016 Global Financial Centres Index 20 WEF Financial Market Development 2015-16 World Bank Doing Business 2016 1 Hong Kong London New Zealand New Zealand 2 Singapore New York Singapore Singapore 3 New Zealand Singapore Hong Kong Denmark 4 Switzerland Hong Kong Canada Hong Kong 5 Australia Tokyo United States South Korea 6 Canada Zurich Finland Norway 7 Chile Washington DC Australia United Kingdom 8 Ireland San Francisco Norway United States 9 Estonia Boston Malaysia Sweden 10 United Kingdom Toronto Switzerland Macedonia 16
Pillar Industries Financial Services 75 out of the world s top 100 banks are operating in Hong Kong Ranked 1 st globally for IPOs in 2015 & 2016 Free flow of capital without any restrictions 17
Pillar Industries Professional Services Legal Accounting Architecture Engineering Planning Surveying Human resources Management consultancy Technical testing Product development and distribution Market research Conference and exhibition Information technology 18
Pillar Industries Tourism 56.6 million visitors in 2016 Greater China region s first Disneyland Ocean Park - winner of the prestigious 2012 Applause Award (the best theme park in the world) Kai Tak Cruise Terminal Year-round mega events in town 19
New Driving Forces Innovation & Technology and starts-up Strong support by the Government A dedicated Innovation & Technology Bureau A new EUR 230 million Innovation and Technology Venture Fund; and a EUR 60 million Innovation and Technology Fund for better living Expansion of Hong Kong Science Park Successful examples: Swedish Karolinska Institutet and Massachusetts Institute of Technology 20
Gateway to China Strategic Location Strategically located at the mouth of the Pearl River Delta, China s largest and most productive manufacturing region. Easy connection to major cities of China Beijing: 3.5 hour Shanghai: 2.5 hour Guangzhou: 2 hour Shenzhen: 0.5 hour 21
Gateway to China Preferential treatment The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) Tariff Free Goods trade Liberalisation of Trade in Services 22
Gateway to China RMB Business Largest Offshore RMB Centre Shanghai-HK Stock Connect & Shenzhen-HK Stock Connect Mutual Recognition of Funds 23
Gateway to China Belt and Road Initiative New Silk Road Economic Belt 21 st Century Maritime Silk Road Boosts economic, trade, cultural and people-to-people ties between the Mainland and 60 countries spanning three continents Hong Kong is actively participating in the Belt and Road Initiative by assuming three-fold role: International Financial Centre Trade and Logistics Platform Platform for Professional Services 24
Gateway to China Belt and Road Initiative 25
Successful Movers 26
Hong Kong welcomes you! 27