Miss Alice Choi Deputy Representative, Hong Kong Economic and Trade Office, Brussels

Miss Alice ChoiDeputy Representative, Hong Kong Economic and Trade Office, Brussels

Greece, January 2014

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Overview of HONG KONGOverview of HONG KONG

OutlineOutline

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•Introduction of HKETO, BrusselsIntroduction of HKETO, Brussels

•Hong Kong and GreeceHong Kong and Greece

•Key facts about Hong KongKey facts about Hong Kong

IntroductionIntroduction

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•Hong Kong Economic and Trade Office, Brussels

•The official government representation to the European Union and 15 European countries, including Greece.

•Bilateral relations between Hong Kong and the EU, as well as governments of the 15 European countries.

•Promote Hong Kong's economic and trade interests, as well as cultural and social exchanges with European countries.

Hong Kong and GreeceHong Kong and Greece

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• Gateway to Europe vs Gateway to Asia.

• Export from HK to Greece 2013 (Jan – Nov): Around EUR 92 million (+1.7% compared to 2012)

• Export from Greece to HK 2013 (Jan – Nov): Around EUR 53 million (+5.8% compared to 2012)

• Total bi-lateral trade 2013 (Jan – Nov):Around EUR 145 million (+3.2% compared to 2012)

Hong Kong and GreeceHong Kong and Greece

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• Major Greek export to HK:

• Telecommunications equipment (38.9%);

• clothing (8.8%);

• watches and clocks (7.9%);

• plastic waste and scrap (5.4%);

• perfumery and cosmetics (4.6%).

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Key Facts about HONG KONGKey Facts about HONG KONG

• A Special Administrative Region of China under the 'one country, two systems' principle since 1997.

• High degree of autonomy under the Basic Law, the “mini-constitution”.

• Separate political and legal system from the Mainland China.

• Separate immigration, customs, police and anti-corruption authorities and jurisdictions.

1. One Country, Two Systems1. One Country, Two Systems

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• Rule of law upheld by a legal system based on the British Common Law system, with a fully independent judiciary.

• The fundamental rights of residents protected by law.

• Legal and official regulations available in English and Chinese.

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2. Rule of Law2. Rule of Law

• The ‘World’s Freest Economy’ by the Heritage Foundation in the US and the Fraser Institute of Canada.

• No trade barriers• No restrictions on investments inward or outward.• No foreign exchange controls.• No nationality restrictions on corporate ownership.

• Level-playing field for all.

• The second easiest place in the world to do business, according to the World Bank’s Doing Business Report 2013.

• Constitutionally-guaranteed free press and freedom of speech. Unrestricted access to the internet.

• Sound regime for the protection of intellectual property rights. 9

3. World’s freest economy3. World’s freest economy

Source: Forbes Tax Misery Index 2009, Inland Revenue

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

• NO estate duty

• NO global taxation (offshore income allowed/only HK-sourced income is taxable)

• NO wine duty

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4. Low and simple tax regime4. Low and simple tax regime

• The most globalised economy in the Ernst&Young Globalization Index 2012.

• 3 883 international companies set up their regional headquarters and offices in Hong Kong.

• English as the language of business.

• The best international airport for eight of the past 11 years, with Flights to more than 160 cities.

• International cargo hub.

• Top choice by international exhibitions and conferences.

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5. International connection5. International connection

6. Gateway to China6. Gateway to China

• Pearl River Delta - China’s largest and most productive manufacturing region

• Guangzhou-Shenzhen-Hong Kong Express Rail Link scheduled for completion in 2015 – 45 mins to Guangzhou.

• Hong Kong-Zhuhai-Macao Bridge scheduled for completion in 2016.

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7. HK-China Business Links7. HK-China Business Links

• HK handles about one-fifth of China’s foreign trade.

• Hong Kong is the single largest source (47%) of foreign capital for Mainland enterprises.

• Hong Kong is the world’s largest and most efficient offshore renminbi (RMB) business hub, with the world’s largest offshore pool of RMB liquidity.

• CEPA – A special free trade pact offering Hong Kong products tariff-free entry to the Mainland Chinese market and preferential treatment in Hong Kong service trades.

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8. Upbeat economic data8. Upbeat economic data

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• World’s 9th largest trading economy in 2013.

• Standard & Poor has assigned its highest rating (AAA) to Hong Kong’s long-term foreign currency and local currency ratings, with a stable outlook.

• Number of business operations in Hong Kong with parent companies overseas and in Mainland China in 2012: + 4.3% (compared with 2011)

• Latest GDP growth rate (Q3 2013): 2.9%

• Latest Inflation rate (Nov 2013): 4.3%

• Latest Unemployment rate (Nov 2013): 3.3%

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Thank you and Thank you and see you in Hong Kong!see you in Hong Kong!

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