Business Opportunities in Hong Kong YOUR! Athens, 14 th of March 2017 Paula Kant Head, Investment Promotion
The three topics of today 1. HK: ideal place in Asia for business 1. InvestHK: Who we are and What we do 2. How can HKTDC and InvestHK help you do business? 2. HK: ideal place in Asia for biz 3. Spotlight on 2 sectors: F&B and Fintech 3. How can InvestHK help you?
HK: Gateway to China, and Asia Biz-hub 1) Geographic location 5 hrs plane ride to half the world s population Proximity to Pearl River Delta (PRD), population: 64 M 2) Business friendly environment, low taxation and a trusted legal system 3) Rigorous IP protection 4) Social media from mainland and overseas 5) World-class universities and talent 6) Fundraising: Top 5 stock exchange for IPOs 142,000 High Networth Individuals
142,000 HNWIs in HK, up 281% (2009-2015) 56.6 million visitors in 2016 BUSINESS-TO- CONSUMER 5.1M in Asia Pacific 84% of the world s leading luxury and fashion retailers are in HK 42.8M from Mainland One restaurant every 600people US$63bn sales
BURGEONING STARTUP ECOSYSTEM Number of Co-work Spaces / Incubators / Accelerators Funding Support 2016 2010 3 48 Number of Startups in 2016 1,926 24% Source: Startup Profiling Survey, InvestHK, 2015 from 2015
What can HKTDC and InvestHK offer you? Creating opportunities for international trade. Hong Kong Trade Development Council. Invest Hong Kong Assist companies with potential to contribute to HK s economy to set up a company and expand in HK.
HOW HKTDC CAN HELP A Hong Kong statutory body established in 1966 Helps international businesses explore opportunities in and through Hong Kong Promotes Hong Kong as Asia s business platform and services hub More than 40 offices globally, including 13 on the Chinese mainland Assists international companies and investors to explore and enter new markets on the Chinese mainland and throughout Asia Facilitates Chinese outbound investment in both mature and emerging markets Connects businesses worldwide with Hong Kong partners, including product suppliers and services providers www.hktdc.com Provides market intelligence Tel: (852) 1830 668 Email: hktdc@hktdc.org @hktdc https://www.linkedin.com/company/hong-kong-trade-development-council 7
INVESTHK S WORLDWIDE NETWORK Gothenburg Moscow London Brussels Paris Berlin Toronto Milan San Francisco New York Istanbul Jerusalem Chengdu Beijing 1 Shanghai Seoul Osaka Tokyo Mexico City Dubai Mumbai Bangkok Wuhan Guangzhou Hong Kong Taipei 2 Bogotá Kuala Lumpur Singapore Rio de Janeiro InvestHK Overseas: 30 country offices InvestHK HQ: 9 sector teams Sydney InvestHK s services are free! Investment Promotion Units in Hong Kong Economic and Trade Offices Consultants Note: 1 Beijing Office 2 Hong Kong Economic, Trade and Cultural Office (Taiwan) Office locations are subject to change. For the latest version, please refer to InvestHK s website.
PRIORITY AREAS COVERED BY NINE SECTOR TEAMS Nine Sector Teams Priority Sub-sectors Four Traditional Pillar Industries Business & Professional Services (BPS) Education Professional services Creative Industries (CI) Digital marketing Consumer Products (CP) E-retail Trading & logistics (trading) Financial Services (FS) Asset management Financial services Financial Technology (FinTech) Innovation & Technology (I&T) Internet of Things (IoT) Information & Communications Technology (ICT) Fintech Transport & Industrial (T&I) Maritime Trading & logistics (logistics) Tourism & Hospitality (T&H) Food trading Tourism
HOW WE CAN HELP Planning Everything you can do before actually going to HK,.get in touch with InvestHK re. sector-specific opportunities, tax and business regulations, relevant meetings in HK, visit programme, etc. Set up Facilitating the actual set up of your business in HK, advice re. service providers: accountants, lawyers, recruitment firms, real estate agents, etc. Launch Helping to make your launch a success: PR events, press releases, featuring your company in the bimonthly InvestHK Newsletter, etc. Expansion Even when you are up and running, InvestHK is still there when you need us
5 STEPS to set up in Hong Kong 1) Select Company Type and Company Name 2) Register and Incorporate a Company - Shareholders can be foreigners, company secretary must be HK resident 3) Open a bank account 4) Choose a business premises 5) Immigration and Visas, InvestHK can help every step of the way!
Success story: Diamanti per Tutti Unique jewellery designs, 18K gold plated sterling silver, hand-set with real diamonds From Antwerp, with shops all around Europe HK office is regional HQ for Asia Why HK? Cosmopolitan culture, and Asia s centre for diamand and jewellery trade DPT explored various retail models; pop-up shop, next step 2015: shop in PMQ, 2 permanent retail locations in HK. 3 new shops opened in 2016! InvestHK helped with: - Company set-up - Info re. government regulations, latest HK retail trends, additional perspectives for growing the business.
Success story: MosquitNo Mosquito repellent Insect repellent using nano technology + R3535 active ingredient (no DEET) Clothes and homes mosquito-free for up to 3 months HK office is regional hub for all business in Asia Important potential in Asia in view of threat of Dengue fever InvestHK helped with: - Company set-up - Marketing & PR; Marketing Pitch, major event where InvestHK invites journalists
Success story 2016: GreenPeak Technologies A world leading Internet of Things and Smart Home technology system provider. GreenPeak is based in Utrecht, The Netherlands and has offices in Belgium, France, Korea, Japan, Hong Kong, China, India and USA. Why office in HK Science & Technology Park? commits to the Chinese Smart Home market to support large service providers InvestHK helped with: - Company set-up - Intro and contacts with HKSTP which wants to attract cutting edge companies
Sector in the spotlight: F&B
DEMAND FOR F&B IS TREMENDOUS F&B IMPORT F&B RETAIL SALES 40% 37% 2010-2015 2010-2015 RESTAURANT SALES 24% 2010-2015 REAL GDP FORECAST POPULATION FORECAST 3%p.a. 0.8%p.a. Source: Census and Statistics Department Photo credit: Hong Kong Tourism Board 2017-2020 2011-2021
GREAT VARIETY OF IMPORTED FOOD Coffee, Tea, Cocoa (US$0.6bn) 3% Cereals (US$1.1bn) 5% Live Animals (US$0.6bn) 3% Sugars (US$0.4bn) 2% Others (US$1.6bn) 8% Dairy Products and Eggs (US$2bn) 9% Seafood (US$3.5bn) 17% Food Imports US$27.1bn 39% 2010-2015 Feeding Stuff for Animals (US$0.1bn) 1% Meat (US$6.1bn) 29% Vegetables and Fruits (US$4.9bn) 23% Source: Census and Statistics Department Imports of major food items are skyrocketing 28% 2010-2015 58% 2010-2015 17% 2010-2015 124% 2010-2015 Live Animals and Meat Vegetables and Fruits Seafood Dairy Products and Eggs
OPPORTUNITIES AND TRENDS HEALTHY FOOD AND SUPERFOOD Ageing population in HK that 1/3 of population will be aged 60+ in 2040 Government promotes healthy eating and less wasteful habit Consumers continue to eat out but consume more plant-based and healthier food Foodservices emphasize on using fresh, quality and natural if not organic ingredients Importance of traceability from farm to fork Selective eaters on the rise e.g. vegan, dairy free, nuts free, gluten free etc Green concerns centre on self and family- consume sustainable produce and use recyclable products Growing emphasis on Halal-certified
FACTORS SUPPORTING F&B GROWTH Source: CBRE Research, Q3 2016
F&B SECTOR EVENTS YEAR 2017 To target traditional food trading prospects To target restaurant and food startup by food entrepreneurs workshops & awards events To target healthy and superfood trading prospects InvestHK Reception 2017 8 11 MAY Date TBC - JUN 30 AUG 1 SSEP Date TBC - SEP
MARKETING RESOURCES AVAILABLE TO INVESTORS 1. Tourism & Hospitality Monthly Newsletter 2. Sector Flyers x 8 - Food Trading and Distribution - Foodservice Companies - Wine - Beauty & Wellness Services - Cruise - Hotel Operators - MICE - Travel Service Companies 3. Case Study Booklet http://www.investhk.gov.hk/publications-resources.html 4. Euromonitor Market Research Report
Sector in the spotlight: Fintech
Hong Kong Asia s Largest Financial Center and Gateway to China
Global Fintech hubs Source: Global Fintech Hub overview, Connecting Global Fintech: Hub Review 2016, Deloitte 24
Fundamentals of Financial Services in HK economy. 17.6% of HKG GDP 6% of HK workforce 12% export
Fundamentals China Global Financial Center leading in Asia Fast growing FinTech Hub with major growth stage Fintech. 75 of World's Largest 100 Banks in HK #1 Asset Management hub in Asia. USD2.19Tr in 2015 Offshore RMB Center RMB22Tr transaction settled in 2015 China In / Outbound Gateway Financial Services Renovation + Innovation Mature & Stable Regulations Smart City Initiatives CEPA Regional Trade Agreement Regional Connectivity One Belt One Road initiatives
Government Initiatives FinTech in Hong Kong is private sector led Government supports the sector via : FSTB Fintech Coordination Group and initiatives InvestHK / SFC / HKMA / IA / CyberPort / Science Park / ASTRI FinTech Contact Points Poles of excellence FinTech Week + Fintech Finals networking events Series FinTech R&D funding schemes / FinTech Labs
FinTech Sector Priorities Cyber Security RegTech BlockChain InsurTech WealthTech
GET IN TOUCH https://be.linkedin.com/in/paulakant www.investhk.gov.hk Tel: (32) 473 97 81 96 Email: paula_kant@hongkong-eu.org Hong Kong Economic & Trade Office Brussels Rue d'arlon 118 B-1040 Brussels BELGIUM #InvestHK www.youtube.com/user/investhk www.linkedin.com/company/invest-hong-kong www.flickr.com/photos/investhk
THANK YOU!
POPULATION EXPORTS GREATER PEARL RIVER DELTA 64mn >UK, Italy, South Africa GDP US$962bn >Indonesia, Netherlands, Turkey US$527bn >UK, Italy LAND AREA 56,000km 2 <Ireland, Latvia, Panama, West Virginia (US) Guangzhou Huizhou Zhaoqing Foshan Dongguan XRL Jiangmen Zhongshan HZMB Zhuhai Macau Shenzhen Hong Kong XRL Express Rail Link HZMB Hong Kong-Zhuhai-Macao Bridge
Hong Kong Trade Development Council Creating opportunities in international trade Providing Information Matching Business Partners Connecting Customers
HKTDC: Global Network 46 offices worldwide London Frankfurt Beijing Seoul Tokyo Dubai Bangkok Hong Kong Ho Chi Minh City Kuala Lumpur Singapore Jakarta L.A. Chicago New York Sydney 33 28 along the Belt and Road, including 13 on Chinese mainland, 5 in ASEAN
PRIME CONDUIT FOR FDI ALL TIME HIGH 7,904 companies of which 3,798 are RHQs and ROs in 2015 Source: 2015 Annual survey, HKSAR Government s Census & Statistics Department Rank FDI Inflows (2015) US$ bn 1 USA 380 2 Hong Kong 175 3 China 136 4 Ireland 101 5 Netherlands 73 6 Switzerland 69 7 Singapore 65 8 Brazil 65 9 Canada 49 10 India 44 * Source: World Investment Report 2016, UNCTAD * Up from 103 US$ bn in 2014!
Fintech: A Definition Fintech: Financial technology, also known as FinTech, is an industry composed of companies that use new technology and innovation to leverage available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services. FinTech refers to new applications, processes, products or business models in the financial services industry. 35
Fintech Journey Jul 14 First FinTech Accelerator Sept 14 Second FinTech Accelerator Nov 14 StartmeUp Hong Kong FinTech Day Feb 15 Government Budget Speech Apr 15 FSTB paper Fintech Liaison Offices 2016 HKMA Sandbox SVF Licenses SFC - NON face-to-face account opening HK Fintech week Cyberport 4000m2 Fintech space 2017 Policy Address : Fintech initiatives Lok Ma Chau loop innovation node. 2014 2016-2017
Growth 130+ FinTech Start-ups 2 FinTech Poles of excellence 3 FinTech Accelerators 200+ FinTech Events 4 liaison offices Leading RegTech research Big 4 consulting FinTech leadership in HK Growing FinTech university Programs Research centers Innovations labs Numerous FinTech successes & business milestones SVF / Non face to face onboarding / SandBox / R&D labs
Services of InvestHK Free & confidential services : 1. Bank accounts - Working visas - Office space - Schooling 2. Introduction to regulators : SFC, HKMA, Insurance Authorities 3. Introductions to HK innovation centers : ASTRI / Cyberport/ Science Park /Lok Ma ChauLoop 4. Networking opportunities 5. Business introductions 6. Government support schemes guidance
Government Supports examples : Tech vouchers Scheme: HKD 200,000 for SMEs to upgrade their business Internships Scheme : Employ a local graduate and receive up to HKD16K/month for maximum 2 years to support your R&D efforts. R&D : Up to HKD 10,000,000 support by HK government for R&D projects Investment : HKD 5 billion fund for co-investing in start-ups Talents : Training financial services professionals - HKD7,000 per year per head Innovations : HKMA sandbox with banks, R&D supports
Hong Kong FinTech Week 2016 7 11 Nov 2016 2,500+ participants 100+ speakers 170+ media coverages
Hong Kong FinTech Week 2016 Pencil down your agenda : Next FinTech week > October 2017
FinTech Finals 2017 18-19 January 2017, Hong Kong, PMQ 1,000 Attendees 200 CEOs & Founders 50 Nationalities 24 Live Start-ups Pitches FF17 FINALISTS selected through semi-finals in : Sydney / Kuala Lumpur / Sao Paulo / Shanghai / Singapore / Bangalore / Melbourne / Seoul / Tokyo / Mumbai / NYC http://ff17.nextmoney.org