Peter Woo Chairman Hong Kong Trade Development Council

Peter WooChairmanHong Kong Trade Development Council

A Tale of Three Cities –

The Hong Kong Plus PRD Powerhouse

A Tale of Three Cities –

The Hong Kong Plus PRD Powerhouse

The China Appeal GDP will reach US$2,340 billion by 2010 19% of population classified as

middle-class = 250 million people Will increase to 25% by 2010 Spent US$2 billion on luxury

items in 2004 Projected to consume 29%

of the world’s luxury items by 2015

GDP will reach US$2,340 billion by 2010 19% of population classified as

middle-class = 250 million people Will increase to 25% by 2010 Spent US$2 billion on luxury

items in 2004 Projected to consume 29%

of the world’s luxury items by 2015

Diverse Markets

Beijing and Bohai Area

Shanghai and Yangtze

River Delta

Greater Pearl River Delta

Beijing and Bohai Area

Shanghai and Yangtze

River Delta


BEIJING

SHANGHAI

HONG KONG


Small region

Massive impact

Small region

Massive impact


• Nine municipalities

• 0.4% of China's land mass

• Population of 45 million

• Concentration of manufacturing

• 34% of China’s exports

• Rich consumer markets

• 33% of China’s imports

• Nine municipalities

• 0.4% of China's land mass

• Population of 45 million

• Concentration of manufacturing

• 34% of China’s exports

• Rich consumer markets

• 33% of China’s imports

A Tale of Three Cities

Hong Kong

+ Shenzhen

+ Dongguan

= The HK plus PRD Powerhouse

= The best entry point to China's markets

Hong Kong

+ Shenzhen

+ Dongguan

= The HK plus PRD Powerhouse

= The best entry point to China's markets

Shenzhen

New "Silicon Valley“ for IT and R&D

50% of industrial output from high tech

20% of China's high tech exports

24,000 Hong Kong-backed ventures

Shenzhen

New "Silicon Valley“ for IT and R&D

50% of industrial output from high tech

20% of China's high tech exports

24,000 Hong Kong-backed ventures


Dongguan

20,000 HK owned factories

Variety of manufacturing clusters

Competitive production, good quality

Steady source of efficient labour

Dongguan

20,000 HK owned factories

Variety of manufacturing clusters

Competitive production, good quality

Steady source of efficient labour


PRD Powerhouse -Average real GDP growth 2000 - 2004

PRD Powerhouse -Average real GDP growth 2000 - 2004


Shanghai 11.5% Shanghai 11.5%

Shenzhen 15.8%

Dongguang 18.7%

Shenzhen 15.8%

Dongguang 18.7%

PRD Powerhouse -GDP per capita 2004 (US$) PRD Powerhouse -GDP per capita 2004 (US$)


Shanghai 6,682Shanghai 6,682

Shenzhen 7,160

Dongguang 8,698

Shenzhen 7,160

Dongguang 8,698

PRD Powerhouse -Export Strength (US$ billion 2004)

PRD Powerhouse -Export Strength (US$ billion 2004)


Shanghai 73.5Shanghai 73.5

Shenzhen 77.8

Dongguang 35.2

Shenzhen 77.8

Dongguang 35.2

PRD Powerhouse -High-tech Exports (% of China’s exports 2004)

PRD Powerhouse -High-tech Exports (% of China’s exports 2004)


Shanghai 17.5Shanghai 17.5

Guangdong Province 40.1

Shenzhen 21.2

Guangdong Province 40.1

Shenzhen 21.2


PopulationPopulation(Million)(Million)

GDPGDP(US$ (US$

billion)billion)

ExportsExports(US$ (US$

billion)billion)

TEUsTEUs(Million)(Million)

Hong KongHong Kong 77 166166 259259 2222

ShenzhenShenzhen 77 4040 7878 1414

DongguanDongguan 77 1414 3535 - -

TOTALTOTAL 2121 220220 372372 3636

Hong Kong Advantages

Unrivalled platform for China business

International centre for: Finance Trade and business services Transportation and logistics

Ideal base for regional headquarters to manage

operations (3,800 RHQs + ROs)

Unrivalled platform for China business

International centre for: Finance Trade and business services Transportation and logistics

Ideal base for regional headquarters to manage

operations (3,800 RHQs + ROs)

Made in China -

by Hong Kong

Designed, financed, marketed,

and distributed by Hong Kong

Made in China -

by Hong Kong

Designed, financed, marketed,

and distributed by Hong Kong


At the heart of Asia Three-hour flight

to key mainland cities HK airport connects

with 150 world cities

+ 45 cities in mainland

At the heart of Asia Three-hour flight

to key mainland cities HK airport connects

with 150 world cities

+ 45 cities in mainland

1 hour1 hour

3 hours3 hours

5 hours5 hours


Location, location, locationLocation, location, location

Hong Kong's China business advantage:

Knowledge of China and experience Market access and connection Risk management

Hong Kong's China business advantage:

Knowledge of China and experience Market access and connection Risk management


Ease of doing business

World's freest economy Strong legal system Level playing field Familiar business environment Strong UK business community (115 UK Regional HQs)

Ease of doing business

World's freest economy Strong legal system Level playing field Familiar business environment Strong UK business community (115 UK Regional HQs)


HK - Getting ever stronger

Key developments: Strong economic growth RMB business Improved infrastructure connection with mainland More mainland tourists CEPA III

HK - Getting ever stronger

Key developments: Strong economic growth RMB business Improved infrastructure connection with mainland More mainland tourists CEPA III


CEPA - what is it?

Closer Economic Partnership Arrangement Free trade agreement with mainland Easier / faster access to China markets Zero tariff on HK-made goods Allows HK service providers to operate

CEPA - what is it?

Closer Economic Partnership Arrangement Free trade agreement with mainland Easier / faster access to China markets Zero tariff on HK-made goods Allows HK service providers to operate

CEPA

CEPA: impact on service sector

First mover advantage

Covers 26 service areas Lowering of entry requirements

CEPA: impact on service sector

First mover advantage

Covers 26 service areas Lowering of entry requirements

CEPA

How foreign firms can take advantage

In goods Manufacture in Hong Kong

In services Partner with HK companies Invest in or buy a CEPA-qualified HK company

How foreign firms can take advantage

In goods Manufacture in Hong Kong

In services Partner with HK companies Invest in or buy a CEPA-qualified HK company

CEPA

Encourages mainland enterprises to:

Connect with international markets Manage and finance business deals Raise capital - US$100 billion already

Hong Kong is the natural platform !

Encourages mainland enterprises to:

Connect with international markets Manage and finance business deals Raise capital - US$100 billion already

Hong Kong is the natural platform !

China's "going out" policy

The rise of mainland private enterprises:

4 million private enterprises

Majority are SMEs

Half of them want to "go out"

The rise of mainland private enterprises:

4 million private enterprises

Majority are SMEs

Half of them want to "go out"

China’s MPEs

China opportunity

Don't miss it!

Hong Kong plus the PRD is your entry point

Don't miss it!

Hong Kong plus the PRD is your entry point

Hong KongHong KongPRDPRD

HK Trade Development Council

How can we help you:

1) Providing information

By market and sector Face-to-face London + 11 China offices Online - tdctrade.com


1) Providing information

By market and sector Face-to-face London + 11 China offices Online - tdctrade.com



2) Matching business partners

Face-to-face - London office Online – sourcing.tdctrade.com


2) Matching business partners

Face-to-face - London office Online – sourcing.tdctrade.com



3) Connecting clients

Sourcing and selling at trade fairs 28 leading trade fairs in Hong Kong Online – “virtual trade fairs” at tdctrade.com


3) Connecting clients

Sourcing and selling at trade fairs 28 leading trade fairs in Hong Kong Online – “virtual trade fairs” at tdctrade.com

Contact us!

London Office

Tel 44-(20)-7616-9500 Fax 44-(20)-7616-9510

Email: [email protected]

Contact us!

London Office

Tel 44-(20)-7616-9500 Fax 44-(20)-7616-9510

Email: [email protected]

Peter Woo Chairman Hong Kong Trade Development Council

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