Lorna Wong

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• Lorna Wong
• Director, Hong Kong Economic Trade Office
• 8 May 2008

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Roles of HKETO

• To strengthen Hong Kongs economic and trading
  ties with Australia
• To encourage direct investment to Hong Kong
• Dedicated Investment Team in ETO

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• Hong Kong as a City for Business

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Key cities in China and Asia within five hours
flight time from Hong Kong
Strategic Location
Beijing
Beijing
Seoul
Tokyo
Shanghai
Taipei
Manila
Bangkok
Jakarta
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• Worlds 6th largest trading economy
• Worlds 3nd busiest container port
• World class airport busiest air cargo centre
• Ranked first for 14th consecutive year by
  Heritage Foundation
• Low level of government intervention
• Free port with no barriers to trade
• Simple procedures for starting enterprises
• Free entry of foreign capital and repatriation of
  earnings

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International Financial Hub

• Asias 2nd largest stock market, 6th in world
• Worlds 6th largest foreign exchange centre
• Home to 68 of the worlds 100 largest banks,13 of
  the 20 worlds top insurers
• China-related business
• Qualified Domestic Institutional Investor Scheme
  (QDII) Mainland enterprises and investors can
  trade in Hong Kong stock market
• Renminbi business deposit, remittance,
  exchange, bankcard, RMB cheque services

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Ny-lon-kong

• linked by a shared economic culturehave
  created a financial network that has lubricated
  the global economy Understand this network of
  cities Ny-lon-kong, we call it -- and you
  understand our time

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One Country, Two Systems

• High degree of autonomy
• Fully convertible currency
• Common law system
• Rule of law and independent judiciary
• Clean and efficient government
• Low and simple tax system
• Independent customs and tariff region
• Freedom of speech and religion
• Free flow of goods, people, information and
  capital

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Separate membership in International Trade Forums
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Australian Companies in HK
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• Hong Kongs Economic Performance

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Strong GDP Growth in 2007
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2008 economy to continue with solid growth
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• Opportunities brought by Budget 2008

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Infrastructures

• 10 Major infrastructural projects, including
• Roads and railways
• West Kowloon Cultural District
• Kai Tak Redevelopment
• HK43.4 billion (A6.02 billion) in 2008-09

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• Hi-speed Rail Link to Guangzhou

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• Hong Kong-Zhuhai-Macao Bridge

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Concessions Rebates

• Profits tax
• One off reduction by 75, with a maximum of
  HK25,000
• Tax rate lowered to 16.5
• Salary tax
• One off reduction by 75, with a maximum of
  HK25,000
• Standard tax rate lowered to 15

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Concessions Rebates

• One-off reduction of Property Tax in 2008-09
• One-year Waiver
• Business Registration Fee
• Rates in 2008-09 (up to HK5,000 per quarter)
• Waiver of Hotel Accommodation Tax

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Wine Duty Exemption commencing from 27 February

• To promote HK as a wine trading distribution
  centre

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China Connections
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China is huge but.

• Cultural and language barriers
• State and local government structures
• Rules and regulations
• Supervision over long-distance

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Mainland links

• Close cultural and linguistic links with China
• Decades of experience in operating business in
  the Mainland
• In Guangdong alone, 60,000 HK-related companies
  employing over 10 million workers
• Largest external investor in Mainland
• 241 Chinese companies listed in HKEX
• Qualified Domestic Institutional Investor Scheme
  (QDII)
• Individual visit scheme for Chinese citizens

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• China Hong Kong Closer Economic Partnership
  Arrangement
• (CEPA)

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CEPA - Trade in Goods

• Zero tariff on
• Imports from Hong Kong meeting CEPA rules of
  origin
• Products which can benefit
• high Mainland tariff rate
• high value-added content
• high intellectual property content
• brand name products
• examples pharmaceutical products, textiles and
  clothing, plastics, chemical products

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Trade in Services

• Earlier and wider market access to the Mainland
  market in 38 sectors, e.g. transport logistics,
  distribution, advertising, value-added
  telecommunications, management consulting
  convention, etc.

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Opportunities for Overseas Companies and
Investors

• Can be treated as a Hong Kong company upon
  meeting the minimum stay requirement
• Partner with, invest in or buy a CEPA-qualified
  firm in Hong Kong to gain full benefits
  immediately

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Hong Kong as a Strategic Base for Chinese and
Asian Operations
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Success Case

• Marine Culture Technology

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Success Case

• Mr Lloyd Moskalik, Managing Director, MCT
• Its always a risk when you take your
  technology off-shore, but in Hong Kong we found
  the combination of a sizeable live reef fish
  market and strong IP protection
• It is on the doorstep of the Mainland market,
  and in particular the affluent Pearl River Delta

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Hong Kong Economic Trade Office Level 1 Hong
Kong House 80 Druitt Street Sydney, NSW 2000 Tel
[phone] Fax [phone] Email
enquiry_at_hketosydney.gov.hk
Thank you
Websites Hong Kong Economic Trade
Office www.hketosydney.org.au Hong Kong
Government www.info.gov.hk InvestHK www.inves
thk.gov.hk Hong Kong Trade Development
Council www.tdctrade.com Hong Kong Tourism
Board www.hktb.com