2008 SCoRPP. 1
2008 Annual Survey of Companies in Hong Kong
Representing Parent Companies
Located outside Hong Kong
2008 SCoRPP. 2
(i) To enumerate number of RHQs, ROs and LOs in HK representing parent companies located outside HK
(ii) To obtain basic information of these companies
(iii) To seek their views on HK as a location for setting up RHQs/ROs and LOs
Survey Objectives
2008 SCoRPP. 3
Covers companies in HK taking charge of business/operations in HK or in the region on behalf of parent companies located outside HK
Does not cover companies in HK which are funded by investment from outside HK and manage the business in HK or in the region independently but not on behalf of investors
Survey Coverage
2008 SCoRPP. 4
Survey Coverage
• RHQs + ROs + LOs ≠
Total no. of companies in HK with investment from outside Hong Kong
2008 SCoRPP. 5
Survey Targets
Parent companies located outside HK
Companies in HK representing parent companies located outside HK
>
( > 6612 ) ( 6612)
2008 SCoRPP. 6
First working day in June
Survey Reference Date
2 June 2008
2008 SCoRPP. 7
How is a company classified as an RHQ, RO or LO?
Taking charge of
business/operations on behalf of
its parent company
located outside HK?
Non-RHQ/RO/
LO
No
Yes Geographical responsi
bility?
LO
HK only
RHQ
Yes
In the region
Any managerial control over offices in the
region?
RO
(i.e. only coordinates offices and/or operations in the region)
No
2008 SCoRPP. 8
100
200
300
400
500
600
700
USA Japan UK MainlandChina
RHQ
RO
LO
0
957%
1199%
23818%
31124%
1285%
2349%
49419%
61224%
49918%
1736%
44016%
45217%
Country/Territory of Location of Parent Companies
No.
of
com
pan
ies
Note : Top 4 countries/territories listed in terms of total no. of RHQs, ROs and LOs.
2008 SCoRPP. 9
500
1 000
1 500
2 000
2 500
MainlandChina
Taiwan Singapore Korea Japan
RHQ
RO
0
33426%
38129%
44835%
48437%
1 13888%
62924%
66626%
78530%
94036%
2 13383%
Geographical Responsibility of RHQs and ROs
in the Region (other than HK)
No.
of
com
pan
ies
Note : Top 5 countries/territories listed in terms of total no. of RHQs and ROs having responsibility for the operation /business there.
2008 SCoRPP. 10
250
500
750
1 000
1 250
1 500
RHQ
RO
LO
0Wholesale,
retailand I/E trades
Businessservices
(excl. IT)
Financeand banking
ManufacturingTransportand related
services
826%
23018%
64650%
13210%
1199%
2008%
131951%
45718%
28411%
934%
813%
53119%437
16%
102838%
28210%
No.
of
com
pan
ies
Major Line of Business of RHQs, ROs and LOs
Note : Top 5 lines of business listed in terms of total no. of RHQs, ROs and LOs engaged in the lines of business concerned.
2008 SCoRPP. 11
250
500
750
1 000
1 250
1 500
RHQ
RO
LO
0Manufacturing Wholesale,
retailand I/E trades
Financeand banking
Businessservices
(excl. IT)
Transportand related
services
15712%
13310%
47737%
42933%
14811%
2439%
31512%
85933%
95937%
1958%
27110%
72126%
74927%
58321%
26610%
Major Line of Business of Parent Companies
No.
of
com
pan
ies
Note : Top 5 lines of business listed in terms of total no. of RHQs, ROs and LOs with parent company engaged in the lines of business concerned.
250
500
750
1 000
1 250
1 500
RHQ
RO
LO
0Wholesale,
retailand I/Etrades
Businessservices
(excl. IT)
Financeand banking
ManufacturingTransportand related
services
826%
23018%
64650%
13210%
1199%
2008%
131951%
45718%
28411%
934%
813%
53119%437
16%
102838%
28210%
No.
of
com
pani
es
2008 SCoRPP. 12
Views on Importance of Factors for Choosing Location for Setting up
RHQs/ROs and LOs
*In descending order of importance
RHQs/ROs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption free government
4. Political stability and security5. Absence of exchange controls
LOs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption free government
4. Political stability and security
5. Absence of exchange controls
2008 SCoRPP. 13
Views on Importance of Factors for Choosing Location for Setting up
RHQs/ROs and LOs
*In descending order of importance
RHQs/ROs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption free government
Amongst the top three since 2004
LOs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption free government
2008 SCoRPP. 14
FactorFavourable Unfavourab
le
Views on Favourable Factors for HK as a Location for Setting up RHQs/ROs
• Simple tax system and low tax rate• Free flow of information
• Absence of exchange controls• Corruption free government
71%69%68%67%
<0.5%
<0.5%1%
1%
• Political stability and security
65%
1%• Communication,
transport and other infrastructure
65%
1%
• Free port status 65%
1%
2008 SCoRPP. 15
FactorFavourable Unfavourab
le
Views on Unfavourable Factors for HKas a Location for Setting up RHQs/ROs
• Availability and cost of residential accommodation
• Availability and cost of business accommodation
14%
18%
34%
32%
2008 SCoRPP. 16
FactorFavourable Unfavourab
le
Views on Favourable Factors for HK as a Location for Setting up LOs
• Simple tax system and low tax rate
• Free flow of information
• Corruption free government
• Absence of exchange controls
• Communication, transport and other infrastructure
68%
64%
63%
63%
61%
1%
1%
1%
1%
1%
2008 SCoRPP. 17
FactorFavourable Unfavourab
le
Views on Unfavourable Factors for HKas a Location for Setting up LOs
• Availability and cost of residential accommodation
• Availability and cost of business accommodation
13%
17%
33%
31%
2008 SCoRPP. 18
Views on Overall Business Environment in HK
as a Location for Setting up RHQs/ROs and LOs
Deteriorated 15%
No comment 12%
Improved 15%
Same 58%
Deteriorated 15%
No comment 14%
Improved 14%
Same 57%
RHQs/ROs LOs
Comparing June 2008 with June 2007
2008 SCoRPP. 19
Views on Effect of CEPA Implemented since January 2004 on RHQs/ROs and LOs
Very much beneficial
2%
Negatively affected
1%
To some extent
beneficial26%
Not affected
58%No
comment12%
RHQs/ROs LOsVery much beneficial
2%
Negatively affected
1%
To some extent
beneficial24%
Not affected
59% No comment
14%
2008 SCoRPP. 20
EffectNo comment
12%
No78%
Yes10%
Setting up new
business expansion
plans
Advancing business
expansion plans
Views on Effect of CEPA on Investment Activities of RHQs/ROs and LOs
Whether investment activities affected ?
No comment
15%
Yes8%
No78%
RHQs/ROs LOs
2008 SCoRPP. 21
2008 Annual Survey of Companies in Hong Kong
Representing Parent Companies
Located outside Hong Kong
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