Post on 25-Apr-2020
Leveraging Hong Kong’s Unparalleled Strengths andUnprecedented Opportunities
Dr Jimmy ChiangAssociate Director-General of Investment Promotion
September 2019
© Copyright Invest Hong Kong, HKSAR
3rd
FDI Inflows
2nd
CompetitivenessEconomic Freedom
1st
A WORLD CLASS ECONOMYHONG KONG
Sources: The Heritage Foundation, International Institute for Management Development, UNCTAD
Over 120 airlines operate 1,100 flights per dayto over 220 destinations worldwide, including over 50 Mainland cities
The busiest air cargo airport in the world – 5.1 million tonnes of cargo handled in 2018 (Airport Authority Hong Kong)
Most of Asia’s key markets within four hours’ flight time
4hours
From half the world’s population
5hours
HEARTof ASIA
LAW
THERULEOF
(as of May 2019)
* There is no standard rate across the Mainland China. Shanghai is used as an example.
HONG KONG
SINGAPORE
SHANGHAI*25%
45%
32.9%
10.5%
16%
17%
22%
17%
20%
7%
16.5%15%
5%5%0% VAT
Corporate Income
Personal Income
Employer Social Security
Employee Social Security
VAT
✗VAT/GST/Sales tax
✗Capital Gains Tax
✗Withholding tax on
investments
✗Estate duty
✗Global taxation
✗Wine duty
Hong Kong has signed Comprehensive Double Taxation Agreements (CDTAs) with 40jurisdictions.
Negotiations with 15 jurisdictions are in progress.
LOW & SIMPLETAX SYSTEM
HK$2M
ProfitsAbove
of ProfitsFirst HK$2M
8.25%
16.5%
Two-tiered tax system
FREE & FASTFLOW OF INFORMATION
for smartphonepenetration rate
259.9%(OFCA, Oct 2018)
in Asia
MOST COMPETITIVEFINANCIAL CENTRE IN ASIA
Ranking City
1 New York
2 London
3 Hong Kong
4 Singapore
5 Shanghai
6 Tokyo
7 Sydney
8 Beijing
9 Zurich
10 Frankfurt
Source: The Z/Yen Group of Companies
The Global Financial Centres Index (Sept 2018)
POPULATION71.1mn>UK, Italy, South Africa
GDPUS$1.6trillion>Indonesia, Netherlands, Turkey
LAND AREA56,000km2
>Ireland, Latvia, Panama, West Virginia (US)
GREATERBAY AREA
GREATER BAY AREA
CHINA
Hong Kong
Zhaoqing GuangzhouHuizhou
Dongguan
Shenzhen
Foshan
Jiangmen MacaoZhuhai
Zhongshan
Source: Government statistical departments in the relevant jurisdictions, TDC
Guangdong-Hong Kong-Macao Bay Area
San Francisco Bay Area
New York Metropolitan Area
Tokyo Bay Area
Land area (sq km) 55,905.5 17,886.4 21,478.5 36,898.3
Population (mn) 69.6 7.6 20.2 44.0
GDP (US$ bn) 1,513.4 781.2 1,657.5 1,774.2
Real GDP growth (%) 7.0 5.3 0.9 1.9
Per-capita GDP (US$) 21,750 102,230 82,050 40,360
Air passenger traffic (mn passenger-times) 201.7 81.3 132.2 123.9
Air freight traffic (mn tonnes) 7.96 1.18 2.16 3.58
Port container throughput (mn TEUs) 66.48 2.42 6.25 7.76
GDP share of tertiary industry (%) 65.6 71.9 83.3 77.0
COMPARISON WITHTHE WORLD’S MAJOR BAY AREAS
DEVELOPMENT OBJECTIVES1. A globally influential international innovation and technology
hub
2. Expediting infrastructural connectivity
3. Building a globally competitive modern industrial system
4. Taking forward ecological conservation
5. A quality living circle for living, working and travelling
6. An important support pillar for the Belt and Road Initiative (BRI)
7. A showcase for in-depth cooperation between the Mainland and Hong Kong and Macau
FOCUSES OF 4 CORE CITIES
Guangzhou
Shenzhen
MacaoHong Kong
GUANGDONG
World-class tourism and leisure centre Commerce and trade cooperation service
platform between China and Lusophone countries
International financial, transportation and trade centres
Global offshore RMB business hub and international asset and risk management centre
International legal and dispute resolution services centre
Develop high-end services, innovation and technology industries and emerging industries
National core city and integrated gateway city
Enhance functions as international centres for commerce and industry, transport, technology, education, and culture
National economic core city and national innovation city
Develop as capital of innovation and creativity with global influence
For the other 7 key node cities, main objectives are to develop towns with distinct characteristics and to promote integrated development of urban and rural areas
Coordinated and innovation-driven regional developmentwith more seamless flows of people, goods, capital and information
60%+ of the world’s population
30%+ of global GDP
30%+ of the world’s total merchandise trade
21st Century Maritime Road
Silk Road Economic Belt
Sources: China-US Focus, Xinhua Finance Agency
Hong Kong
TURKEY
IRANIRAQ CHINA
INDIA
SRI LANKA
INDONESIA
THAILAND
BeijingUrumqi
BasraKhambhat
Kollam
Banda Aceh
GuangzhouQuanzhou
Xi’an
South China seaBay of Bengal
Andaman sea
Arabian sea
Indian Ocean Belttung
OMAN
BANGLADESH
ITALY
RUSSIA
KENYA
BELT & ROAD
Arrangement for Advancing HK’s Full Participation in and Contribution to the Belt and Road Initiative
signed in Dec 2017
11-12 September at Hong Kong Convention and Exhibition Center
BELT& ROAD
FINANCIAL/ TRANSPORT/ TRADE CENTRE
CORPORATETREASURY CENTRE
Function
In-house bank to provide treasury services Intra-group borrowing and lending Cash and liquidity management Processing of payments to vendors Supporting capital raising Risk management
Hold the control function on behalf of headquarters Help monitor changes in local regulations and market
conditions
Incentive
Profits tax rate reduced to 8.25% Interest deductions allowed for tax purpose
(Effective since May 2016)
NEW TAX REGIME
GREEN FINANCE
Subsidies for green bond issuance(Green Bond Grant Scheme)
Subsidies for first-time bond issuance(Pilot Bond Grant Scheme)
Inaugural government green bond of HK$100 billion (US$13 billion) issued in May 2019
INNOVATION & TECHNOLOGY
STRONG GOVERNMENT SUPPORT
Innovation & Technology Venture Fund
300% Super Tax Deduction for R&D
Talent List & Technology Talent Admission Scheme (TechTAS)
Smart city Biomedicine/healthy aging
AI and robotics FinTech
KEY EVENTS
Overseas and Mainland companies
8,225
8,7546.4%
Regional headquarters
1,5308.3%2018
VIBRANT INTERNATIONAL BUSINESS HUB
Sources: 2018 Annual survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong, 2018 Startup Survey
HOW WE CAN HELP YOU GROW
Whether you are new to Hong Kong or a long-standing investor
Planning Set-Up Launch Expansion
Information to aid planning and evaluation
Facilitation of visa / licence applications,
schooling, introduction to service providers
PR and marketing support for launch
Ongoing support on business expansion
GET in TOUCH
investhk.gov.hk
© Copyright Invest Hong Kong, HKSAR
Jimmy ChiangAssociate Director-General of Investment PromotionJChiang@investhk.gov.hk
(852) 3107 1000
hk.linkedin.com/in/jimmyhlchiang@jimmyhlchiang
WeChat ID: INVEST_HK
e.weibo.com/investhk
@InvestHK
www.linkedin.com/company/invest-hong-kong
www.youtube.com/user/investhk
www.flickr.com/photos/investhk
Leonid OrlovPrincipal Consultant (Moscow)leorlov@investhk.com.hk