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HONG KONGYour Ideal Partner

Shirley LAM

Special Representative for Hong Kong Economic and Trade Affairs to the European Union

Hong Kong Economic and Trade Office in Brussels

14 March 2017

Strategic Location

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• 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

• 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

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One Country, Two Systems

• World’s freest economy

• Rule of law

• Clean and transparent government

• Efficient and sophisticated infrastructures

• Vibrant and cosmopolitan lifestyle

• Excellent connectivity

• Low and Simple Tax Regime

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Hong Kong’s Strengths

World’s freest economy

• Ranked as the ‘World’s Freest Economy’ by the HeritageFoundation 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

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Hong Kong’s Strengths

Rule of Law

• Rule of law upheld by a legal system basedon the Common Law system, with a fullyindependent judiciary

• Court of Final Appeal in Hong Kong

• Comprehensive protection of intellectualproperty rights

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Hong Kong’s Strengths

Clean and transparent government

• Information about governmentservices easily available online

• One of the least corrupt economiesin the world, according to theTransparency International’sCorruption Perceptions Index 2016

• Efficient public servicewith performancepledges

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Hong Kong’s Strengths

Efficient and sophisticated infrastructures

• Efficient and extensive public transportsystem and road connections

• World-class convention and exhibitionfacilities

• Excellent IT and telecommunicationinfrastructures• Fastest broadband download and easiest

accessibility of public wifi spots in the world

• Mobile phone penetration rate >240%

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Hong Kong’s Strengths

Vibrant and cosmopolitan lifestyle

• English as the common language for business

• Multiculturalism

• 40% of the area is designated as country parks and nature reserves

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Hong Kong’s Strengths

• Over 7 900 overseas companies with around 3,800 regional offices and headquarters

• The world’s busiest cargo airport and third busiest passenger airport, with flights to some 190 overseas and Mainland destinations

• World’s top five busiest container port,handling 20.1 million TEUs in 2015

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Hong Kong’s Strengths

Excellent Connectivity

Low and Simple Tax Regime

16,5

17

25

15

20

45

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14,5

49

5

20

23 17

0

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Hong Kong

Singapore

China

Corporate Income Personal Income Employer Social Security Employee Social Security VAT

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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Hong Kong’s Strengths

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Pillar Industries

Financial Services

TourismProfessional Services

Trade and Logistics

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.

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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

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Pillar Industries

Financial Services

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Pillar Industries

• Hong Kong is one of the major international financial centers in the worldenjoying high global rankings

Rank

Economic

Freedom Index

2016

Global Financial

Centres Index

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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

Financial Services

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Pillar Industries

• 75 out of the world’s top 100 banks areoperating in Hong Kong

• Ranked 1st globally for IPOs in 2015 &2016

• Free flow of capital without anyrestrictions

• Legal• Accounting• Architecture• Engineering• Planning• Surveying• Human resources• Management consultancy• Technical testing• Product development and distribution• Market research• Conference and exhibition• Information technology

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Professional Services

Pillar Industries

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• 56.6 million visitors in 2016

Tourism

• 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

Pillar Industries

• Strong support by the Government

• 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 example: Swedish Karolinska Institutet and Massachusetts Institute of Technology

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Innovation & Technology and starts-up

New Driving Forces

• 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

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Gateway to China

Strategic Location

Preferential treatment

• The Mainland and Hong KongCloser Economic PartnershipArrangement (CEPA)

• Tariff Free Goods trade

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• Liberalisation of Trade in Services

Gateway to China

RMB Business

• Largest Offshore RMB Centre

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Gateway to China

• Shanghai-HK Stock Connect& Shenzhen-HK StockConnect

• Mutual Recognition of Funds

Belt and Road Initiative

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Gateway to China

• New Silk Road Economic Belt• 21st Century Maritime Silk Road

• Boosts economic, trade, cultural and people-to-people tiesbetween the Mainland and 60 countries spanning threecontinents

• Hong Kong is actively participating in the Belt and RoadInitiative by assuming three-fold role:

• International Financial Centre• Trade and Logistics Platform• Platform for Professional Services

Belt and Road Initiative

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Gateway to China

Super-connector

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Gateway to China

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Hong Kong welcomes you!