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 Rank FDI Inflows USD bn FDI Outflows 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 (2011 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 Health Service Education Financial Service Opportunities Professional service Retail Transport and Industrial Tourism and Hospitality ICT Innovation and Technology GHQ/ RHQ Treasury R&D Sales/ Marketing/ Business Development Relationship management 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 25 45 49 23 17 China 17 20 14.5 20 7 Singapore 16.5 15 5 5 0 Hong Kong VAT/GST/Sales tax Capital Gains Tax NO Withholding tax on investments 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 Brunei Czech Republic France Hungary Jersey Kuwait Liechtenstein Luxembourg Mainland of China New Zealand Portugal Spain Switzerland Thailand Indonesia Ireland Malaysia Malta UK Vietnam As of 30 April 2012 *Not yet entered into force In negotiations: Bangladesh Canada Finland Guernsey India Italy Korea Macau Malaysia Mexico Saudi Arabia the United Arab Emirates
Closer Economic Partnership Arrangement Unique CEPA advantages: Mainland China s first bilateral free trade agreement Easier China access for HK-made products and HK-based service companies Available to people and businesses registered in Hong Kong of all nationalities
CEPA The Free Trade Pact CEPA applies to: Trade in Goods Over 1,500 categories of products (Click here for details) Exported direct from Hong Kong to the Mainland Trade in Services 46 service sectors (Click here for details) Benefits: Removes all export duties Greater market access: Eligibility: Applications approved (as at 30 April 2012) : Made in Hong Kong products, under specified Rules of Origin Trade Certificates of Goods 81,826 Companies must have substantive operations in HK Service Supplier Certificates 1,596
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 Banks in Hong Kong 2009: RMB 1.9 billion 2010: RMB 369.2 billion 2011: RMB 1.9 trillion 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 values at RMB 218.4 billion
Invest Hong Kong What we do
How InvestHK Helps Investors Information to aid planning and evaluation Facilitation of visa applications, schooling InvestHK PR and marketing support for launch/ expansion Networking events, introduction to service providers
Get in touch www.investhk.gov.hk Email: enq@investhk.gov.hk Tel: (852) 3107 1000