HONG KONG RIGHT PLACE RIGHT TIME RIGHT NOW European Investment in China via Hong Kong Charles Ng Associate Director-General of Investment Promotion 22 May 2012
Agenda Changing Trends in the type of companies setting up in Hong Kong Opportunities for Companies across various sectors and functions Key benefits of investing in China via Hong Kong
Agenda Changing Trends in the type of companies setting up in Hong Kong Opportunities for Companies across Sectors and functions Key benefits of investing in China via Hong Kong
Foreign Direct Investment 3,752 overseas/Mainland companies with regional headquarters and offices USD bn FDI Outflows Rank FDI Inflows USD bn 1 USA 228.2 USA 328.9 2 China 105.7 Germany 104.9 3 Hong Kong 68.9 France 84.1 4 Belgium 61.7 Hong Kong 76.1 5 Brazil 48.4 China 68.0 6 Germany 46.1 Switzerland 58.2 7 UK 45.9 Japan 56.2 8 Russia 41.2 Russia 51.7 9 Singapore 38.6 Canada 38.6 10 France 33.9 Belgium 37.7 (2 011 Annual Survey, Hong Kong SAR Government's Census & Statistics Department)
From MACRO… • Global operations office • Construction and mining equipment • Energy management • Global sourcing office • US$300 million data centre
… to Micro • First flagship store in Hong Kong • Product design and international sales • Start-up entrepreneur • Wine production • Vintage & contemporary textile design
Agenda Changing Trends in the type of companies setting up in Hong Kong Opportunities for Companies across Sectors and functions Key benefits of investing in China via Hong Kong
Opportunities for companies across various sectors & different functions Financial Service Professional Health Service service Education Opportunities Retail Innovation and Transport and Technology Industrial Tourism and ICT Hospitality • GHQ/ RHQ • Sales/ Marketing/ Business Development • Treasury • Relationship management • R&D • Data Centre
Agenda Changing Trends in the type of companies setting up in Hong Kong Opportunities for Companies across Sectors and functions Key benefits of investing in China via Hong Kong
Low and Simple Tax System Corporate Income Personal Income Employer Social Security Employee Social Security VAT 23 17 45 49 China 25 20 14.5 20 7 17 Singapore 15 5 5 0 16.5 Hong Kong • VAT/GST/Sales tax • Capital Gains Tax • Withholding tax on investments NO • Estate duty • Global taxation • Wine duty Source: Forbes Tax Misery Index 2009, Inland Revenue
Double Taxation Agreements Confirmed Double Taxation Relief Agreements with 24 trading partners: • Austria • Japan • Netherlands • Belgium • Jersey • New Zealand • Brunei • Kuwait • Portugal • Czech Republic • Liechtenstein • Spain • France • Luxembourg • Switzerland • Hungary • Mainland of China • Thailand • Indonesia • Malaysia • UK As of 30 April 2012 • Ireland • Malta • Vietnam *Not yet entered into force • Bangladesh • India • Malaysia In negotiations: • Canada • Italy • Mexico • Finland • Korea • Saudi Arabia • Guernsey • Macau • the United Arab Emirates
Close ser Ec Econom omic c Partners ership hip Ar Arrangem ngemen ent Uniq ique e CEPA adv dvantage ges: Mainland China’s first bilateral free trade ag agree eemen ent Easie ier Chin ina acces ess s for HK-made de pr produ ducts ts and d HK-base HK ased d ser ervic ice e compa pani nies es Avail ilabl ble e to pe peopl ple e and b d busin ines esses es reg egis ister ered ed in in H Hong g Ko Kong of g of all natio ionalit itie ies
CEPA – The Free Trade Pact Trade in Goods Trade in Services • Over 1,500 categories of • 46 service sectors CEPA applies to: products (Click here for details) (Click here for details) • Exported direct from Hong Kong to the Mainland • Removes all export duties • Greater market access: Benefits: • “Made in Hong Kong” • Companies must have Eligibility: “substantive operations” in HK products, under specified ‘Rules of Origin’ • Trade Certificates of Goods • Service Supplier Certificates Applications approved (as at 30 81,826 1,596 April 2012) :
China National 12 th Five Year Plan - with a Dedicated Chapter on HK SAR • Three key points: – consolidating and enhancing Hong Kong's competitive advantages as an international financial, trade and shipping centre with support for Hong Kong's development into an offshore renminbi (RMB) business centre and an international asset management centre – supporting Hong Kong in nurturing emerging industries and developing the six industries where Hong Kong enjoys clear advantages – deepening the economic co-operation between the Mainland and Hong Kong; continuing the implementation of the Closer Economic Partnership Arrangement (CEPA)
China National 12 th Five Year Plan - Mainland – Hong Kong Financial Cooperation Announced by Vice Premier Li Keqiang on 17 August 2011: • RMB Qualified Foreign Institutional Investors (RQFIIs) allowed to invest in Mainland’s securities markets; initial size is RMB20 billion • Pilot projects for foreign banks to replenish capital with RMB • Hong Kong enterprises will be allowed to make direct investment in the Mainland in RMB • Cross-border trade settlement in RMB extended to the whole country
Offshore Renminbi banking in Hong Kong • First launched in 2004 • Currently over 130 authorised institutions offering Renminbi (RMB) services RMB Trade Settlement Handled By 2009: RMB 1.9 billion Banks in Hong Kong 2010: RMB 369.2 billion 2011: : RMB 1.9 trillion lion RMB Deposit in Hong Kong Up to March 2012 – RMB 554.3 billion Bond Issues and Combined Value Up to April 2012 – 156 RMB bonds issued Combined ined values s at RMB 218.4 billion
Invest Hong Kong What we do
How InvestHK Helps Investors Information to Facilitation of visa aid planning and applications, evaluation schooling InvestHK Networking events, PR and marketing introduction to support for service providers launch/ expansion
Get in touch www.investhk.gov.hk Email: enq@InvestHK.gov.hk Tel: (852) 3107 1000
Recommend
More recommend
