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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!