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Major
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Major
Exhibitions & Conferences in Hong Kong
Basic Law of Hong Kong SAR Guaranteed One Country Two System for 50 Years
HK Leaders & Basic Law
Top China's Students Attend HK Universities
HK School of Creative Media, Entertainment
& Tech Industries
1997 Hong Kong Handover to China - Flag Ceremony Video
Hong Kong 10 Years History Slide Show (1997 - 2007)
HK 10 Years - Economy (1997 - 2007)
HK 10 Years - Life (1997-2007)
Lan
Kwai Fong tops HK nightlife
Mission
successful: PLA Garrison in HK
HK 10 Years - Safety (1997 - 2007)
HK 10 Years - Fashion (1997 - 2007)
Horse
racing remains most popular sports in HK
HK 10 Years - Stars (1997 - 2007)
HK 10 Year - Donald Tsang (1997 - 2007)
HK
economy looking forward to better future
Born
on the 1st of July, growing with the HKSAR - The little
girl Leung Sum Mui was born right on July the first, 1997.
Hong
Kong Handover - Jiang Zemin's speech June 30 1997
Dining
and shopping paradise for travelers
HK
Businessmen in Beijing
Prince Charles and former Hong Kong Governor Christopher Francis Patten leave
HK after the handover ceremony in 1997
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 |
Listen to MP3 “Business Beyond the Reef” to discuss
the problems with imports from China, telling all sides of the story and then
expand the discussion to revitalizing Chinatown -
Special Guest: Johnson Choi, MBA, RFC. President - Hong Kong.China.Hawaii
Chamber of Commerce (HKCHcc) and Danny Au, Manager, Bo Wah Trading |
View Video #1/2
View Video #2/2 - Mike
Rowse, Director General, InvestHK, Hong Kong SAR Government
April 11, 2008
French
wine traders cheer Hong Kong's duty-less regime
 |
| Measures enhance prospects for French
wine makers. |
When the Hong Kong government eliminated all duties
on wines and beer imports in February, winemakers and exporters across
France raised a glass of their finest vintage to celebrate.
"Next year will be a big, big market," says Yves
Lambert, owner of Domaine de Saint-Just and an agent for other
French vineyards.
Asia, especially the Chinese mainland, was already
becoming a major market, and this can only strengthen the trend, says
Lambert. Alcohol sales to the Mainland in 2007 totaled Euros247 million,
sparked by a growing middle class, and France has had a large share of the
market.
Sales of French wines to the Chinese mainland grew
145% last year, according to the Fédération des Exportateurs de Vins et
Spiritueux de France (FEVS). The trade association, which represents the
interests of 550 French wine and spirit producing and exporting companies,
says the Mainland was the 11th largest market by value for French wines and
spirits in 2007.
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| Mainland is a developing
market for French wines. |
Sales of French cognac and other spirits grew 162%
year-on-year by value, making the Chinese mainland the third largest market
for the products, behind the US and Singapore (which tranships to the
Mainland). Wine and liquor are France's second largest exports after
Airbus aircraft.
Rising incomes, a growing interest in Western
lifestyles and tastes, and better wine education, have driven the rise in
consumption on the Chinese mainland.
Drinking wine has a strong social status in China,
and French wines have that certain cachet. According to a recent
MasterCard survey, 80% of Chinese consumers prefer it.
 |
| Bordeaux wines selling on the Chinese
mainland. |
So, French winemakers - both small and large - are
looking to Asia for new markets. France mainly sells Bordeaux, Champagne and
Vins de Pays (a regional wine, a step up from table wine).
French vineyards interested in Hong Kong
"We think the market [to Asia] will increase," says
André Barlier, deputy director of Viniflhor, a public body based in Paris.
Viniflhor promotes wine as well as gathering industry information, which it
distributes through publications and on the Internet (www.frenchwines.com).
 |
| Body promotes wines and
information about them. |
"A lot of French companies will be interested in
Hong Kong," Barlier says. "Five years ago, the trend was through Hong Kong
to [the Chinese mainland] but in the past two or three years, wine has been
exported directly to [the Mainland]. Now this will change and Hong Kong
traders will acquire a new position."
Wine producers and exporters say that French
companies have had problems finding a suitable business partner on the
Chinese mainland. "It is difficult for the French to get a good company to
work with," Barlier says. Hong Kong partners know how to sell to the
Mainland better than the French do, he believes.
Will Chinese mainland winegrowers cover the market,
or will the country import, he asks. "They are planting a lot of grapes, but
the imports are rapidly increasing."
Exporters say that if Hong Kong does realize its
aspirations to become the wine hub of Asia, storage should pose no problems.
Exports will be mainly bottles, delivered in containers, not bulk wine. The
only storage needed is space, such as a warehouse, with temperatures
controlled. As long as the wine is not left outside, and is kept cool, it
can be stored safely.
Label development in Asia
Barlier mentions an opportunity for importers to
create their own labels. They can buy wine in bulk and create a label in
Europe, Hong Kong or on the Chinese mainland.
One concern for French dealers is that the Mainland
may not respect trademark rules, he says, producing a bottle of cheap
Chinese wine with the Eiffel Tower on a faux French label. "But the customer
can tell it isn't authentic by the price."
|
 |
| Barlier: problems with labels. |
|
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| Unreal quality: fake French label. |
|
Another problem is that many people on the Chinese
mainland don't know about wine, or even how to open a bottle. "There is a
lot to learn and producers should teach consumers how to buy and consume
wine," says Barlier.
Yves Lambert, who represents an association of
vineyards from Bordeaux, Languedoc and Côtes de Provence, agrees. "Wine is
part of the social life; it is good for socialising and for health," he
says. "Consumers start by buying cheaper wine; when they have more money,
they buy more expensive wines," he says. "And rich people buy expensive wine
because it is good for face. So there are two markets, for cheaper and more
expensive wines."
Wine experts say that when their incomes increase,
people prefer drinking wine rather than beer, and whenever taxes decrease,
wine consumption increases. They see a market for well-off Chinese
mainlanders interested in grand cru (the top growth of a region), but also
another market for very cheap wines.
More attractive trade environment
The new Hong Kong law will make exporting to the
territory more attractive, says Lambert, who is looking for a representative
importer in Hong Kong. "I can sell 300,000 bottles of my own wine and one or
two million other bottles," he says. "We have good wine and a good price,
and our wines are getting better and better."
 |
| Lambert: looking for a
representative in Hong Kong. |
His initial efforts on the Chinese mainland last
year were positive. "I sent a container to Shenzhen, and they have already
asked for another," he says. "The importer sold 12,000 bottles in a month."
In February, Lambert added Chinese to his French
and English web site (http://st-just.net/chine/index_chine.php).
The company also has a new project on the Chinese mainland, designing
special red and rose wines for weddings. "Young Chinese like this," he says.
The company sells a minimum per container, which is
12,000 bottles. "We sell 90% red wine," Lambert says. "White wine is only
popular along the coast, in fish and seafood restaurants."
Lambert also expresses a sentiment common among
French businessmen: it is easier to work in Hong Kong, as the law is not the
same as on the Chinese mainland. "British law is better for us," he says.
"For Europeans, it is easier to sell to Hong Kong, a major business centre,
and let Hong Kong importers sell to [the Chinese mainland]."
Hong Kong tax change reduces currency
fluctuations
A number of exporters point out that the Hong Kong
tax change will help offset the high Euro, as its recent increases against
the Chinese Yuan and the US dollar have hurt sales in two of the biggest
markets for French wines.
Geneviève Chavignon, export assistant of Les
Vins Jean-Pierre Teissèdre, says her company, which plans to sell to
Hong Kong and China, also welcomes the recent change.
So far, the demand from the Chinese mainland for
her company's wine has been for very low-priced wines, and for wine in bulk.
However, Chavignon believes that Hong Kong buyers will want more expensive
wines.
"We would certainly prefer to deal with Hong Kong
importers, as selling directly to [the Chinese mainland] is not easy," she
says, echoing comments from other exporters.
 |
| Fu with Teissèdre:
handling wine business on the Mainland. |
Managing director Jean-Pierre Teissèdre believes
his Rhone Valley wines, such as the Côtes du Rhône, and the
Vins de Pays from southern France will appeal to Chinese tastes, as
will Beaujolais Crus such as the Chénas or Morgon.
The company has hired Youxia Fu, a young woman from
Sichuan who has a master's diploma in business from Burgundy Business School
in Dijon, to handle its wine business in China.
Larger companies already exporting to the Chinese
mainland also anticipate an increase in sales. Étienne Godard, in charge of
overseas exports for Vins Skalli, says dropping the duties will be
good for premium wines bound for Hong Kong. The company, which sells 30
million bottles worth Euros85 million annually, also finds Hong Kong a
useful gateway into the Mainland.
"The recent tax change will definitely help us
develop our premium wines such as Domaine du Silène and Maison
Bouachon, and especially Côtes Rôties, Hermitage,
Gigondas and Châteauneuf du Pape," says Godard. "We are
convinced that the market will trade up."
 |
| Hong Kong a window for
French wines. |
Thanks to this change, Hong Kong will remain a
great window for wine in Asia, especially for premium wines, he says.
Skalli exports to Hong Kong through the distributor Maxxium
and to the Chinese mainland through ASC. The company sells just 10% of its
production to Asia, but the region is its fastest growing market.
"The trend we have seen in recent years is for
consumers' taste for rounder, easier to drink and more fruity wines," Godard
says. "We have worked all our wines to meet consumers' expectations, with
very fruity wines and silky tannins."
However, he adds, the company considers it's
important to keep wines well-balanced. Fortant wine is now the
number 10 imported brand in the Chinese mainland market, and the third
largest French brand. "Once consumers are more educated, they go for more
complex wines and move to premium varietals or AOC wines (Appellation
d'Origine Contrôlée, the highest classification)," Godard explains.
Exporters in the more rarified market of spirits
sales also greeted the tax change with enthusiasm. Florence Castarède,
director of Armagnac Castarède, exporter of Armagnac (an
exclusive brandy) and a newcomer to the Asian market, says the Hong Kong
move to cut duties is great news. "Some new companies will be happy to be in
Hong Kong," says Castarède. Her company began exporting to Hong Kong last
year.
 |
| Castarède: new companies
happy to be in Hong Kong. |
"It is an opportunity," she says. "[the Chinese
mainland] is the future for the wines and spirits market, the biggest in the
world by population."
However, she cautions that producers will have to
adapt to the taste of the market. "For each market, we have to adapt
packaging, taste and price."
Guillaume de Guitaut, director of public affairs
for Moët Hennessy, says the company, as part of the Hong Kong Wines
and Spirits Industry Coalition, pressured the government for the change, so
it came as no surprise.
He agrees that Hong Kong could become a wine hub
for Asia as there is a growing interest in wine. "It could be a place for
tasting, for auctions," he says. However, importers must concentrate on
quality wines.
"Volume is part of the equation, but value is more
important," de Guitaut explains. "You do not want to have a lake of the
worst wine in the world."
Hong Kong is not a market for cheap wine but for
quality, as wine is an elite drink, he says.
"I think wine marketing and auction houses will set
up in Hong Kong, and wine collectors will speculate," adds de Guitaut,
noting that many Asian customers now attend London wine auctions.
He also does not anticipate problems with storage
facilities in Hong Kong. "I think they will make the right investment in
order to store wine," de Guitaut says. "The key is not to leave a container
in the sun for a month, but rapidly put it in the right place."
Wine merchants, eagerly looking East, are certainly
heartened by Hong Kong's new tax regime and the opportunities it represents. |
Company/Association/Contact Person
Tel/Fax/Email/Web
Armagnac Castarède
Florence Castarède, Director Tel: (33) 1-44-05-15-81
Email: florence.castarede@wanadoo.fr
Web:
http://www.armagnac-castarede.fr ASC Fine Wines Tel:
(86) 20-8666-8683
Fax: (86) 20-3631-5005
Email: allysonhu@asc-wines.com
Web: http://www.asc-wines.com
Domaine de Saint-Just
Yves Lambert, Managing Director Tel: (33) 2-41-51-62-01, (33) 6-07-27-07-78
Fax: (33) 2-41-67-94-51
Email: infos@st-just.net
Web: http://www.st-just.net
Fédération des Exportateurs de Vins et Spiritueux de
France (FEVS)
Tel: (33) 1-45-22-75-73
Fax: (33) 1-45-22-94-16
Email: contact@fevs.com
Les Vins Jean-Pierre Teissèdre SARL
Geneviève Chavignon, Managing Director
Tel: (33) 4-74-03-45-08
Fax: (33) 4-74-03-46-33
Email: jp-teissedre.earl@wanadoo.fr
Web:
http://www.vins-teissedre.com MasterCard
Chris Monteiro Tel: (1) 914-249-5826
Fax: (1) 914-249-4207
Email:
chris_monteiro@mastercard.com
Web: http://www.mastercard.com
Maxxium Hong Kong Limited
Tel: (852) 2891-8086
Fax: (852) 2838-4664
Web: http://www.maxxium.com
Moët Hennessy
Guillaume de Guitaut, Director of Public Affairs Tel: (32) 2-372-96-30
Fax: (32) 2-372-96-19
Email:
gguitaut@moet-hennessy.com
Web: http://www.lvmh.fr
Skalli
Étienne Godard, Directeur Grand Export/International Manager
Tel: (33) 4-90-83-58-59
Email: etienne.godard@skalli.com
Web:
http://www.skallifamilywines.com Viniflhor
André Barlier, Deputy Director Tel: (33) 1-42-86-32-00
Email: andre.barlier@viniflhor.fr
Web: http://www.viniflhor.fr
March 27, 2008
Hong Kong Trains 1,000 People from
Jiangsu Each Year
Jiangsu's Personnel Department recently announced its decision to further expand
the Jiangsu-Hong Kong Personnel Training Cooperation Program after a successful
four-year run. In the six years between now and 2013, the province will be
sending over 1,000 professionals to Hong Kong each year for training. By 2013,
over 10,000 professionals from Jiangsu would have benefited from the most
advanced professional and technical expertise that top-notch universities and
training institutions in Hong Kong have to offer through the training program.
It is understood that the first batch of this year's trainees will leave for
Hong Kong on 8 April. During the four years since the implementation of this
training program, the biggest of its kind in the history of Jiangsu, 4,850
people have received training in Hong Kong in more than 70 professional fields,
including major service sectors such as accounting, finance, securities and
auditing. The trainees came from different trades and professions in Jiangsu.
The Jiangsu-Hong Kong Personnel Training Cooperation Program has been adopted by
the government of Jiangsu as one of its priorities this year. This year, the
scope of training has been extended from modern services to various sectors
relating to economic and social development. More than 10 new professional
fields have been added, including housing planning; airport operation,
management and control; hotel management; corporate financing and listing;
information services; construction engineering consultancy; and volunteer
community work. The program currently covers over 100 fields, and the trainees
range from personnel in the service sectors to specialized personnel of all
kinds.
The New Media Olympics - Expectations High
for New Technology at Beijing Olympics
Nothing short of a media frenzy is expected to converge on Beijing during this
year’s Summer Olympic Games in the Chinese capital. Top-ranking Chinese media
executives discussed the possibilities for the country’s new media industry at
the 17 March FILMART (www.hkfilmart.com) International Forum on the Beijing
Olympics – Media Convergence and Cooperation. President of the Chinese
mainland’s Harun Media Group, Liu Yanming, said the international sporting event
was much more than a chance to promote social harmony and China’s market
prosperity. “It’s also a very important event for our media because, with this
opportunity, our media can show their might and establish a well-known brand for
themselves,” said Mr Liu.
Miracle Event - “With new technology, we will be able to keep improving in areas
such as digital telecasting and production values,” said Mr Liu. “The Beijing
Olympics is a miracle event for us. It’s a chance to apply the latest technology
and bring about multi-functional media for our creative industries, so that we
can develop a competitive edge over our rivals and make full use of digital
technology.” Yang Zhen Hua, CEO of the Shanghai New Culture Media Investment
Group, said that the Beijing Olympics was a rare opportunity to interact with
global media and exchange views, experience and technological know-how. “It will
be a convergence point for media all over the world, because they’re all
concerned about how Beijing is going to present these Olympics,” said Mr Yang.
“It is an unprecedented opportunity,” he added.
High Expectations - There is a lot of pressure, he said, because China will be
broadcasting to the rest of the world, and expectations are high. “We have to
keep raising our standards to satisfy their needs and aspirations. We’d like to
have good cooperation with our friends overseas, particularly in Hong Kong,
Taiwan and Southeast Asia, as well as Japan and Korea.” Mr Yang pointed out that
not many Chinese productions are being seen in the western world, and that the
globalization of economies doesn’t necessarily imply a globalization of culture.
“Our cultural programs will have to satisfy the needs of those outside China, so
as to arouse the interest of the western world,” he said. “We have produced a
lot of Chinese programs in recent years but not many of them can do us proud.”
Peter Lam, Vice President of the Hong Kong Televisioners Association, also
raised the question of how to produce attractive programming for an overseas
audience. Documentaries, he said, are an interesting and effective way to
promote the achievements of China’s many athletes. “An overseas audience could
be introduced to our training techniques and understand our athletes,” he said.
Chinese ESPN - Mr Lam pointed to the successful international career of
basketball star Yao Ming, as well as track star Liu Xiang. These and other
sports celebrities, he said, can be used to promote Chinese culture. “China has
these international stars,” he said. “We want the world to know about their
training and the spirit behind their hard work.” The proliferation of new media
distribution channels provides an opportunity to discuss how they can converge
with traditional media outlets, he added. “The Olympics has so many sporting
events and activities. How are we going to make use of the multi-level
broadcasting channels and media to provide immediate information for a
sports-hungry audience? Given the global nature of the Olympics, Mr Lam wondered
whether it might be time to promote a Chinese sports channel, “a Chinese ESPN
that could broadcast different sporting activities.” Wang Chang Tian, President
of mainland Enlight Media, cited a statistic about China’s cultural industries.
He said the total market was about RMB500 million. Based on the cultural
industries standard of developed countries, he said that “current market demand
in China could be RMB2 trillion, but we are now only satisfying a quarter of the
demand.
New Media Triumph - Mr Wang said that the mainland could not rely simply on
imported songs and TV programs. “We have to have our own productions. The games
will trigger this demand and release it. Somebody will have to light the
detonator so that the industry will explode.” He warned, however, that the
opportunity could create a crisis of sorts for such traditional media as
television. “They may well have the broadcasting rights, but they’ll be affected
by the convergence of the Internet and the fact that people will be able to read
about the Olympics on blog sites or on their mobile phones,” he said. “New media
will triumph over traditional media during these Olympics.”
March 22, 2008
International Accent Highlights 3rd
Hong Kong Music Fair Fair's Musical Doors Open to Industry Professionals and
Public
 The 3rd Hong Kong Music Fair opened
today and continues until 21 March. Officiating at the opening ceremony were
(left to right): Hong Kong performers Joey Yung, Charlene Choi and Justin Lo; Ng
Yu, Chairman, Working Committee, Hong Kong Music Fair; Fu Yanmei, Assistant
Ombudswoman, Department of Cultural Market, Ministry of Culture, PRC; Esther
Leung, Deputy Secretary for Home Affairs, HKSAR; Benjamin Chau, TDC Assistant
Executive Director; Hung Tik, Chairman of IFPI (HK Group) Ltd; performers Denise
Ho and Hins Cheung
The 3rd Hong Kong Music Fair opened today with about 70 exhibitors from Hong
Kong, the Chinese mainland, Germany, Korea and Singapore. Record companies, new
media content providers, music portals and mobile and hardware manufacturers,
along with music industry artists and other professionals, are taking part in
the three-day fair, which continues until 21 March at the Hong Kong Convention
and Exhibition Centre.
Jointly organised by the Hong Kong Trade Development Council (TDC) and the IFPI
(Hong Kong Group), the fair caters to business as well as public interests,
promoting music products and raising awareness of legal downloads.
"Thanks to the 10 German companies joining us for the first time, our fair is
more international than ever," said Benjamin Chau, TDC Assistant Executive
Director, speaking at the opening ceremony. "With the development of new media,
music's business model can no longer focus solely on the sales of CDs and other
traditional music products. That makes artist management, including concert
management and celebrity endorsements, an even more important aspect of the
industry," he added.
As such, a series of star seminars will be staged on 20 March, with artist
managers from all over Asia sharing their management secrets. Managers Virginia
Lok, Paco Wong and Mani Fok, along with such local artists as Law Ka Leung, Jade
Kwan and Eric Suen, are sure to shed new light on this hot topic.
For the first time, the IFPI Hong Kong Top Sales Award presentation ceremony and
the Hong Kong Music Fair will be held at the same venue. To promote the public's
awareness of intellectual property rights, visitors are free to download
segments of the presentation ceremony at the fair's Cyberport booth, 20 March to
21 March. Among the other new features this year is the Talent Showcase, giving
promising singers and composers from Hong Kong and the Chinese mainland a chance
to be discovered by industry professionals. The showcase is a new initiative
introduced by the IFPI (Hong Kong Group).
The music fair will open to public from 5pm to 9:30pm on 20 March, and from
10:30am to 9:30pm on 21 March. Exhibitor promotion sessions will be held on 21
March, with local singers Fiona Sit, Ivana Wong, Stephy Tang, Alex Fong, Kary
Ng, Kay Tse, Chet Lam and others performing at various times. Visitors who
purchase music products of at least HK$50 in value at the fair will be admitted
free.
Also presiding at today's opening ceremony were: Esther Leung, Deputy Secretary
for Home Affairs, HKSAR; Fu Yanmei, Assistant Ombudswoman, the Department of
Cultural Market, Ministry of Culture, PRC; Ng Yu, Chairman, Working Committee,
Hong Kong Music Fair; Hung Tik, Chairman of IFPI (HK Group) Ltd; and performers
Joey Yung, Hins Cheung, Charlene Choi, Denise Ho and Justin Lo.
The Hong Kong Music Fair is one of the core events of Entertainment Expo Hong
Kong. Other Expo events include: the Hong Kong International Film and Television
Market; the Hong Kong International Film Festival; the Hong Kong Film Awards
Presentation Ceremony; the Asian Film Awards; the Hong Kong - Asia Film
Financing Forum; the IFPI Hong Kong Top Sales Music Award; the Digital
Entertainment Leadership Forum; and the Hong Kong Independent Short Film and
Video Awards.
March 12, 2008
HK will lead billion-dollar boom in region's wine trade, survey finds -
Dennis Eng
Hong Kong will dominate the region's booming trade in wine after scrapping the
40 per cent wine duty and reap valued-added economic benefits expected to top
HK$1 billion by 2012, a study has found. The economic benefits, including the
creation of thousands of jobs, were projected to reach almost HK$3 billion by
2017, said Edward Leung Hoi-kwok, the Trade Development Council's chief
economist.
The wine market in Asia was predicted to grow by between 10 per cent and 20 per
cent annually over the next five years, with the mainland alone expected to
import HK$7 billion worth of wine by 2017, the council's study said. The value
of wines consumed in the region, excluding Japan, would reach HK$130 billion in
2012 and HK$210 billion by 2017. Since the government announced two weeks ago
that wine duties would be abolished, excitement in the industry has been
considerable. Fine-wine auctions are planned and various wine-related businesses
intend to set up offices in Hong Kong.
"It's not going to give you the opportunity to become a world wine-trading
centre, truly, because of the location of Hong Kong, but you're going to run
Asia," said Gil Lempert-Schwarz, chairman of the Wine Institute of Las Vegas. On
May 31, New York-based Acker Merrall & Condit, the oldest wine merchant in the
US, will visit to auction fine wines worth more than US$6 million.
"This is going to be gigantic in terms of the wines that are involved and in
terms of this potentially being one of the top 10 sales of all time," Mr Lempert-Schwarz
said. "Somebody said that two or three of the big clients of Acker in Hong Kong,
who were going to bid on stuff in New York this last weekend, are now holding
back from that because they want to put all their effort into the sale here in
Hong Kong."
Mr Lempert-Schwarz, a consultant for Acker Merrall, said he expected 85 per cent
of the roughly 1,000 lots on sale to go to either local or mainland buyers, and
maybe some Taiwanese collectors. The company will hold another auction in the
city in November, with wines valued at US$4 million to US$5 million. According
to Mr Lempert-Schwarz's brother, who runs a wine hedge fund for Merrill Lynch
out of Japan, a number of major collectors in Japan are talking about storing
wine in Hong Kong to capitalize on the zero duties, provided storage facilities
are suitable.
Mr Lempert-Schwarz also said three of the top 10 wine collectors in the world
were in Hong Kong, one of whom was looking to relocate a significant portion of
his wines from London. It is estimated that at least 2 million cases of wine
stored in London are owned by Asian collectors.
To capitalize on the market potential, the council will hold the first Hong Kong
International Wine Expo from August 14 to 16.
March 8, 2008
 Agreement reached on bridge link
funding - Hong Kong-Zhuhai-Macau Bridge.
The new bridge will dramatically speed up connections between Hong Kong,
Macau and Zhuhai Hong Kong, Zhuhai and Macau have reached a consensus on the
financing of the Hong Kong-Zhuhai-Macau Bridge linking the three places. Once
completed, the bridge is expected to be a major landmark which will enhance Hong
Kong's connections with other cities and port facilities in the Pearl River
Delta in southern China. The project would soon proceed to public tenders but
arrangements have been made to cover any shortfall between construction costs
and investment by the private developer that wins the bid to build the bridge.
Hong Kong would cover 50.2 per cent, Guangdong 35.1 per cent and Macau 14.7 per
cent.
Secretary for Transport & Housing Eva Cheng said: "The three sides agreed that
the three governments would be responsible for the construction and operation of
the boundary-crossing facilities and connecting roads to the bridge within their
own territory. We agreed to share the amount of the subsidy under the
cost-to-benefit ratio which takes into account the economic benefits to each
side."
Improved cargo flows - Dr Billy Mak from the Department of Finance at Baptist
University told South China Morning Post (February 29) the bridge was likely to
lead to more cargo flow from western Guangdong and Guangxi region to Hong Kong
container terminals and the airport. The bridge would also stimulate the
development of North Lantau as a tourist zone.
The connecting roads are about 12.6km on the Hong Kong side and 13.9km on the
mainland side. The main body of the bridge measuring 29.6km is expected to run
from San Shek Wan in Lantau to Gongbei in Zhuhai and A Perola in Macau.
Travelling time between Hong Kong and Macau and Zhuhai will be shortened from an
hour to between 15 and 20 minutes.
The bridge was first proposed in 1982 by Hong Kong entrepreneur Gordon Wu whose
company Hopewell Holdings is expected to be one of the bidders for the project.
Foreign and Domestic Banks Actively
Build QDII Brands
Since the launch of the qualified domestic institutional investor (QDII)
program on the mainland in 2006, various large foreign and domestic banks have
rushed to build their own brands and launch different types of QDII financial
products to meet the increasing demand for wealth management from mainlanders.
As of the end of October 2007, a total of 154 QDII bank products had been
launched by 16 foreign and domestic banks and the sales volume amounted to
Rmb35.196 billion and US$1.012 billion. Of these 154 products, 64 were offered
by 11 domestic banks capturing Rmb29.349 billion and US$0.317 billion in sales,
while 90 were sold by five foreign banks raising Rmb5.848 billion and US$0.695
billion.
Many of these QDII bank products have established a name in the market and have
built a brand in wealth management. The Industrial and Commercial Bank of China
launched the first wealth management product making offshore investment on
behalf of clients on the mainland and built the "Pearl of the Orient" brand.
Among this series, "Pearl of the Orient I" is the first QDII product investing
in offshore stock markets following the liberalization policy and
record-breaking sales have been attained. Other well-known investment product
brands established by domestic banks include "Huideyin" and "Haiyin I" of the
China Construction Bank, and "Delibao" and "Huijutong" of the Bank of
Communications. Investment products offered by foreign banks include "Dynamic
Return Investment" of the Standard Chartered Bank and "Jihuibao" of the Bank of
East Asia.
According to Li Fuan, director of the business innovation and supervision
department under the China Banking Regulatory Commission (CBRC), banks offering
offshore wealth management services are characterized by having a steady client
base, good reputation, extensive operation network, flexible and diversified
product designs, and rich product variety. The many offshore wealth management
products offered by them can meet the various demands of clients.
However, these products also have room for improvement. For instance, the sales
channels and coverage are limited, the marketing effort is not strong enough,
the brand advantage has yet to be formed, manpower support and backup system are
inadequate, etc. Also, policy constraints such as restrictions on investment
types, proportion and minimum amount have stifled the growth of QDII products.
With respect to the demand for wealth management, the vigorous boom in the
capital market in the last two years has greatly boosted the demand of mainland
investors for wealth management. The wealth effect of the stock market has also
caused saving deposits to flow in its direction. According to the statistics of
the People's Bank of China, in October 2007 the level of savings of mainlanders
dropped Rmb506.2 billion, the greatest drop ever in a single month. At the same
time, the trend of mainlanders terminating their insurance policies and
diverting the money to the stock market was obvious. The number of people
investing in securities and fund has continued to rise.
To meet the increasing demand for wealth management, CBRC will continue to
strengthen its support for commercial banks in providing offshore wealth
management services. Efforts will be made to create the conditions for further
liberalizing the investment market, allowing investors to participate more in
the international capital market. CBRC is also planning to extend the scope of
offshore stock market beyond Hong Kong to include other mature stock markets so
as to achieve a rational global distribution of assets for diversification of
risks.
According to Li, CBRC will conduct studies on the QDII business of commercial
banks, collecting information on the banks' development strategies, product
designs and marketing plans in relation to their QDII business. Meanwhile, CBRC
will call on the commercial banks to strengthen their ability in risk and
investment management, and will also continue with its efforts in enhancing
investors' investment experience and risk awareness so as to safeguard their
interests.
It can be expected that the demand for offshore wealth management of
mainlanders and the support of the central government will bring enormous
business opportunities for Hong Kong's professional service sectors such as
financial services, financial accounting, legal services and marketing.
Amid the increasing demand of mainlanders for wealth management, foreign and
domestic banks engaged in QDII business on the mainland have offered a large
variety of financial products but none of them have emerged as the leading
brand. Hong Kong financial institutions, with their rich experience in designing
and marketing financial products, coupled with the fact that Hong Kong is the
first stop of the mainland's QDII offshore wealth management business, have
first-mover advantage in formulating relevant marketing strategies and
developing QDII brands.
QDII can also drive the development of Hong Kong's marketing, accounting and
legal services sectors which can provide professional services for QDII business
such as market consultation, financial and legal services.
As China's QDII business is going to extend to international capital markets
beyond Hong Kong, Hong Kong's financial and other professional services sectors
stand to benefit by assisting the mainland to "go global" via Hong Kong.
February 24, 2008
Hong Kong retains mantle as world's
freest economy
 Chief Executive Donald
Tsang receives his copy of the 2008 Index of Economic Freedom from Heritage
Foundation President Dr Edwin Feulner
Hong Kong claimed the top spot as the world's freest economy for the 14th
straight year in a study released by Washington-based think tank, the Heritage
Foundation.
The 2008 Index of Economic Freedom covered 157 economies worldwide after
assessing them on 10 economic freedom factors. Hong Kong scored top marks on
four factors: trade freedom, investment freedom, financial freedom and property
rights. The city also ranked among the top 10 in other areas such as freedom,
government size, monetary freedom and labour freedom.
Second and third place went to Singapore and Ireland respectively.
Financial Secretary John Tsang said the government was determined to uphold Hong
Kong's position as the freest economy in the world. "We see the role of the
government as that of a facilitator. We provide a business-friendly environment
where all the firms can compete on a level playing field and establish an
appropriate regulatory regime to ensure the integrity and smooth functioning of
a free market," he said.
The report also noted the city's simple business regulation and highly flexible
labour market. Investment in Hong Kong was strongly encouraged with virtually no
restrictions on foreign capital.
A separate report released recently showed that more Hong Kong people wanted to
start their own businesses amid the rosy economic outlook. The 2007
entrepreneurship study showed one out of 10 Hong Kong people had tried starting
their own businesses, up from 3 per cent in a 2004 similar study. It was also
the second highest rate among so called "high income countries", following
Iceland where the rate was 12.5 per cent. The United States came third with 9.6
per cent.
The findings coincided with the latest Hong Kong Company Registry figures,
showing a record 22.9 per cent rise in newly registered companies in 2007.
The study was conducted by Global Entrepreneurship Monitor (GEM), a non-profit
research oganisation led by Boston's Babson College and the London Business
School. Last year's study was the fourth GEM Hong Kong report, in which 2,000
people were interviewed between May and October.
February 1, 2008
Hong Kong's World-class services a
platform for growth
 (From right) HKTDC Executive
Director Fred Lam; HKSAR Chief Executive Donald Tsang; Ali M Thunayan Al-Ghanim,
Chairman of the Kuwait Chamber of Commerce & Industry and H.E.Sheikh Dr Salem
Jaber Al-Ahmad Al-Sabah, Adviser to the Kuwaiti Prime Minister.
Hong Kong is well placed to become a centre for Islamic finance in Asia, said
Chief Executive Donald Tsang at a business luncheon organized by the Hong Kong
Trade Development Council (HKTDC) and the Kuwait Chamber of Commerce. He invited
Kuwaiti banks and financial services companies to extend and diversify their
global reach through the city. Attended by more than 200 Kuwaiti business
people, the luncheon held in late January was the first stop in a week-long
business services sector trip to the Middle East which also covered Riyadh, the
Saudi Arabian capital, along with Abu Dhabi and Dubai in the United Arab
Emirates.
Mr Tsang said Hong Kong's sound financial services infrastructure and
well-established system make it an attractive location for investments. The
first Islamic retail fund launched recently in Hong Kong had attracted about
US$45 million worth of orders by December. Noting Hong Kong is already a market
of first choice for Middle Eastern companies, Mr Tsang said average annual
bilateral trade with Kuwait grew 20.5 per cent from 2002-2006. In 2006, it was
worth US$264 million.
Cepa good for business - "One way to further deepen the trading relationship is
for Kuwaiti companies to capitalize on Hong Kong's special status within China,"
said Mr Tsang, adding that the Closer Economic Partnership Agreement (Cepa) is
especially good for this purpose. "We welcome investments by sovereign wealth
funds, which are becoming more prominent in financial markets and are a positive
force for global markets."
Hong Kong Trade Development Council Executive Director Fred Lam added that Time
magazine in its January 2008 cover story had called Hong Kong "China's Wall
Street at the dawn of the Asian century", noting the city's world-class
financial services sector and bustling stock market.
"We believe we can also become the Middle East's Wall Street," said Mr Lam. He
added that there is much more to Hong Kong than finance. A delegation of more
than 20 of Hong Kong's most senior players including international bankers, top
property developers, architects, urban planners and interior designers as well
as heads of major legal services and media companies accompanied Mr Tsang and Mr
Lam for the Middle East mission to explore areas of cooperation with Middle East
investors.
Asian filmmaking hub scores starring
role
 Wouter Barendrecht,
pictured with actress Michelle Yeoh, says no other country apart from America
has so many international stars
In 1991, Dutch-born Wouter Barendrecht founded Fortissimo Films with Hong Kong
film director and distributor Shu Kei due to his passion for Asian films.
Seventeen years later, with present business partner Michael J. Werner, he was
honoured at the annual CineAsia convention in Macau for his "significant
achievements in the development, financing, co-production, promotion and
distribution of award-winning films globally".
Fortissimo is responsible for bringing to the world Hong Kong cinema classics
such as director Wong Kar Wai's Chungking Express and In the Mood for Love. The
latter film won Best Actor award for Hong Kong actor Tony Leung Chiu Wai at the
2000 Cannes Film Festival. But their presence is felt all around Asia. For
example, they helped bring Thailand's booming film industry into the
international limelight with hits like The Eye trilogy and The Iron Ladies.
"I have always loved Asian films," said Fortissimo's Co-Chairman. Mr Barendrecht
had previously worked as a programmer for the Rotterdam Film Festival and as a
press officer for the Berlin Film Festival.
"I think Asian films have more to offer than either European or American films.
The film industry in Europe is subsidised and there is no business element.
Sometimes, it is just art for art's sake. There is nothing wrong with that but
Asian filmmaking is more interesting as there is more variety in the genre and
overall, there are more auteur aspects," he said. "Asian films have
entertainment and art. It proves that both elements can co-exist at the same
time."
Quantum leap - Asian films have come a long way, according to Mr Barendrecht.
"Back then when we were selling Asian films, people referred to it as Oriental
films, which smacks of neo-colonialism. Now, everybody can differentiate between
Japanese, Korean or Thai films."
He started Fortissimo Films as a hobby, with just a "fax machine in my bedroom
in Amsterdam", while his partner Shu Kei was in Hong Kong doing film
distribution. "We went to Cannes in 1991 and pitched ourselves as a new company
involved with Asian films. At the beginning, we focused on Japanese and Korean
films. We had no money then, only our passion and integrity and a firm belief
that Asian films are artistic and exciting."
The turning point came with Hong Kong director Clara Law's Autumn Moon, which
won the Golden Leopard award at Locarno Film Festival in 1992. Fortissimo
distributed the film and things progressed from there and he moved to Hong Kong.
"Hong Kong is my home now and it is good operating from here. There are now
about 10 other companies in Hong Kong doing what we do but we are the only
company distributing foreign films as well as Asian films." Fortissimo is also
distributing a documentary on The Rolling Stones called Shine a Light which is
scheduled to open in Hong Kong around March/April.
He said he couldn't find a better place in the world for his kind of business.
"Hong Kong is really the heart of Asian filmmaking. With the exception of
America, there is really no other place which has exported such talents as
international stars Michelle Yeoh, Maggie Cheung, Tony Leung Chiu Wai, Andy Lau,
Jackie Chan, Chow Yun Fat and directors like John Woo, Wong Kar Wai and Johnnie
To."
Promising future - Mr Barendrecht said Hong Kong's film industry is doing well
these days. In the past, the Chinese mainland regarded Hong Kong films as
foreign films. But the good news is that Hong Kong filmmakers have discovered
co-production which helps to spread the risks financially. "The film industry is
a risky business so it is good to spread the risks around with all parties. It
also guarantees that we can distribute the film to a wider audience. Best of
all, depending on how we structure our films on a co-production basis, we can
distribute to the huge mainland market." Any film over US$5 million has to be
co-produced, he said, as the Hong Kong market is too small.
He cited the successful co-production example of Lust, Caution, produced by Hong
Kong's Bill Kong, directed by Taiwan's Ang Lee (he won an Oscar for Brokeback
Mountain), starred Hong Kong's Tony Leung Chiu Wai and Chinese mainland actress
Tang Wei. The film won the Golden Lion for Best Film for Ang Lee at the recent
Venice Film Festival and the Golden Horse Best Actor award for Tony Leung Chiu
Wai at the Taiwan Golden Horse. "This film has everything - star power, an
auteur script based on a famous novel and beautiful production. But can we
repeat the success? There are no guarantees in the film making business."
Mr Barendrecht is also actively involved with Hong Kong Asian Film Financing
Forum (HAF) which he founded in 2000 together with the Hong Kong Directors
Guild. "It was a particularly trying time as Hong Kong and the rest of the Asia
Pacific region were just coming out of the Asian financial crisis. A year later
we were hit by Sars: nobody was going to the cinema, and China was not opening
its market to Hong Kong films. We looked at the European business model, reached
out to other countries, discovered co-production in Asia and we are now all
working on a pan-Asian level. This is the model that the Asian film industry in
Korea, Hong Kong, Thailand, Japan, China and Singapore are working on now."
Entertainment Expo shines - Mr Barendrecht had been lobbying, along with the
entire Hong Kong film industry, for HAF and Filmart to come under one umbrella –
Entertainment Expo – for some time and is very glad that it has taken off.
"People want to do business efficiently and the timing for the Entertainment
Expo is great as it is held six weeks before the Cannes Film Festival.
Entertainment Expo is a very compact event – everything takes place under one
roof and it is an important event for buyers around the world. I meet a lot of
people at the event and all my clients love to come to Hong Kong because of its
great food and shopping…but of course, business is the most important, and they
feel that they get a lot done here."
With five staff in its Hong Kong office and almost 20 in Amsterdam, Fortissimo
handles around 20 films a year – two to three productions, five to six
co-productions and the rest are acquisitions. Besides Hong Kong, Fortissimo
Films has offices in Amsterdam, London, New York, Sydney and Paris and agents in
the US, Europe, Tokyo, Beijing and the Middle East.
Footwear Design Competition Winners
Announced Dazzling Footwear and Bags on Display at Awards Show
 A dazzling array of footwear and
bags were showcased at today's 8th Footwear Design Competition Hong Kong - Belle
International and Lam Wing Yee were the big winners at today's 8th Footwear
Design Competition Hong Kong awards show, held at the Hong Kong Convention and
Exhibition Centre.
 Ms Lam picked up the
Staccato Award for Grand Champion, the Millie's Award for the Most Promising New
Talent 2008, and the Ladies' Boots award for her Amphitrite design theme. Belle
International swept all three corporate prizes, including the Shoemaster Award
for Best Corporate Design and the Texon Award for Corporate Creativity,
impressing the judges with her Flying Belle design theme. The company also
received the Licheng Award for the Best Commercial Prospect.
 Belle International
swept all three corporate prizes, including the Shoemaster Award for Best
Corporate Design and the Texon Award for Corporate Creativity
More than 1,100 entries were submitted, and Tang Yiu, Chairman of the Federation
of Hong Kong Footwear Ltd, was impressed with the high design quality. "The
competition is meant to develop young design talent and to enhance creativity
and quality in the Hong Kong footwear industry. All these are vital to the
growth of the industry," said Mr Tang, who chaired the organising committee for
this year's Footwear Design Competition.
Ladies' Shoes and Bags was this year's new category, joining six others:
Children; Sports; Men's Shoes; Ladies' Boots; Ladies' Sandals; and Ladies'
Shoes. Judging was based on creativity, fashion aesthetics and ease of design
production.
Prizes were awarded in each category. In addition, a number of special awards
were presented: the Joy & Peace Award for Creativity; Fiorucci Award for Most
Eye-catching Design; le saunda Award for Modern Chic; Amann Award for
Intelligent Design; Y-NOT KiDS Award for the Most Smart Kid's Shoes; Classical
Award for the Best Charismatic; APLF Global Market Award; and China Shoes for
Best Fashion Sense Award.
The winning designs will be featured in Hong Kong Footwear, published by the
Hong Kong Trade Development Council (TDC). They will also be displayed at
several major fairs, including Style Hong Kong and Fashion Access.
Hong Kong footwear exports amounted to US$5.4 billion (HK$42.1 billion) in the
first 11 months of 2007, with the United States, Japan and the Chinese mainland
the top three markets. Exports to the Chinese mainland, Italy and Germany grew
substantially over the same period last year, up 15 per cent, 16 per cent and 12
per cent respectively.
The competition was organized by the Federation of Hong Kong Footwear and the
TDC (Hong Kong Trade Development Council).
January 30, 2008
Olympic torch relay set for May 2
 Olympic spirit: Secretary for Home
Affairs Tsang Tak-sing (third left) announces the Olympic torch relay will take
place on May 2 in Hong Kong.
The Olympic flame will arrive in Hong Kong April 30 and the Olympic Torch Relay
will be held May 2. The flame will be carried by 120 torchbearers across Hong
Kong and the torch relay will last eight hours. Secretary for Home Affairs Tsang
Tak-sing today said Hong Kong will be the first stop on Chinese soil after the
Olympic flame is carried through 19 cities around the world.
A launch ceremony for the torch relay will be held at its starting point in the
Cultural Centre Piazza in Tsim Sha Tsui. It will finish at Golden Bauhinia
Square in Wan Chai followed by a closing celebration at Sha Tin Racecourse.
Torchbearers will pass Tsing Ma Bridge, the Shing Mun River, the Olympic
Equestrian Venue in Sha Tin, Sha Tin Racecourse, the Avenue of Stars, Victoria
Harbour, the Legislative Council Building, Olympic Square in Hong Kong Park and
the Convention & Exhibition Centre.
Students and residents' associations will be invited to cheer the torchbearers
along the relay route, and people can witness the historical moment live on
television. Roving exhibitions will be held in the 18 districts from March to
May.
After Hong Kong the Olympic flame will head to Macau and major Mainland cities
before arriving in Beijing on August 8 for the opening ceremony of the Beijing
2008 Olympic Games.
January 22, 2008
Hong Kong's Jewellery sparkles in
upbeat Malaysia - Developing the Hong Kong brand.
 Hong Kong's Chow Tai Fook, which has 750
retail outlets in the territory, Macau, Taiwan and on the Chinese mainland, has
opened its first store in Kuala Lumpur. It's a move to take advantage of
Malaysia's growing prosperity and higher-income consumers - and forge ahead of
other foreign designers who may not take account of Malaysian tastes and
jewellery requirements.
The new store was established in November 2007 in prestigious The Gardens in Mid
Valley City, and is presenting a dragon-themed line of jewellery inspired by
ancient Chinese craftsmanship. The work is aimed at modern-minded women who
appreciate the richness of Chinese designs.
The Kuala Lumpur store is the first step by Chow Tai Fook into South East Asia,
and the pieces are guided by design guru Yip Kam Tim. The firm says it chose the
Malaysian capital as an opening to the region because Malaysian retail offers
modern, dynamic appeal to an emerging consumer pool.
With a growing demographic for youthful, affluent shoppers, Kuala Lumpur offers
plenty of potential for mid-priced and well-designed jewellery.
In fact, Hong Kong brands have an established reputation for stylish offerings,
thanks to the popularity of the territory's movie stars, films, TV programmes
and singers. Hong Kong's cachet is particularly strong among Chinese Malaysians.
The Malaysian jewellery sector has been opening to a wider range of jewellery
and methods of retail in recent months. Jeweller Poh Kong Holdings Bhd recently
opened franchise operations in Kelantan, Terengganu, Sabah, and Sarawak, aiming
to draw on sales from greater prosperity in the provinces.
January 17, 2008
Lampposts to house Wi-Fi facilities
Wi-Fi facilities will be installed into 669 lampposts across Hong Kong.
Secretary for Commerce & Economic Development Frederick Ma told legislators
today the Office of the Telecommunications Authority supports the move and has
provided detailed lamppost data to Wi-Fi service operators.
Three operators have applied for Wi-Fi installation on lampposts. One has
already presented its technical proposal to the Highways Department.
The Housing Department has made 1,000 estate lobbies available to operators for
Wi-Fi services. The Housing Authority also plans to reserve ducts between
lampposts in new estates for the installation of Wi-Fi or other electronic
services.
January 14, 2008
Hong Kong ranks world's freest economy
again for 14 consecutive years by Heritage Foundation
Hong Kong has been ranked as the world's freest economy for the 14th consecutive
year by the Heritage Foundation in the foundation's 2008 Index of Economic
Freedom study released on Tuesday, a press release from the Hong Kong Special
Administrative Region (HKSAR) government said.
According to the study report, Hong Kong scores exceptionally well in almost all
areas of economic freedom.
Among the 10 individual areas assessed, Hong Kong ranks first in trade freedom,
investment freedom, financial freedom and property rights. Hong Kong also ranks
in the top 10 in another four areas - fiscal freedom, government size, monetary
freedom and labor freedom.
The report noted that Hong Kong's income and corporate tax rates were very
competitive, and overall taxation was relatively small as a percentage of gross
domestic product (GDP).
It also said that Hong Kong's business regulation was simple, the labor market
was highly flexible, and investment in Hong Kong was strongly encouraged with
virtually no restrictions on foreign capital.
The foundation also complimented Hong Kong as one of the world's leading
financial centers, with its regulation of banking and financial services both
non-intrusive and transparent. The study noted that property rights were
protected by an independent and virtually corruption-free judiciary.
Compared to Singapore, Hong Kong fares better in regard to trade freedom, fiscal
freedom, investment freedom and financial freedom, while Singapore fares better
in business freedom, government size, monetary freedom, freedom from corruption
and labor freedom. Both Hong Kong and Singapore are ranked first in property
rights.
"We are determined to uphold Hong Kong's position as the freest economy in the
world," Hong Kong Financial Secretary John C Tsang said while welcoming the
study report.
"We see the role of the HKSAR government as that of a facilitator. We provide a
business-friendly environment where all firms can compete on a level-playing
field and establish an appropriate regulatory regime to ensure the integrity and
smooth functioning of a free market," Tsang said.
The study measured the degree of economic freedom of 157 economies worldwide by
assessing 10 factors: business freedom, trade freedom, fiscal freedom,
government size, monetary freedom, investment freedom, financial freedom,
property rights, freedom from corruption, labor freedom. Hong Kong retained its
position as the freest economy in the world, followed by Singapore and Ireland.
Make HK top source of talent, urges new
AmCham HK chief
 Developing Hong Kong into a regional hub
for top talent is key to maintaining its stature as an international business
centre, according to Steven DeKrey, the new chairman of the American Chamber of
Commerce. Dr DeKrey, an associate dean and director of MBA programs at the Hong
Kong University of Science and Technology, said yesterday he was aware of the
region's growing need for talent.
In his first speech in his new role - "Face to Face with AmCham: 40 Years in
Asia's Business Capital" - made at an AmCham luncheon at the Ritz-Carlton Hotel,
Dr DeKrey urged the government to put more effort into becoming a source of
talent for Asia.
"Much progress has been made on educational fronts and visa policies, but more
can be done," said the new chairman, who succeeds Gary Clinton.
He said the chamber would continue to pursue the provision of quality education
for expatriate children - especially the availability of school places, which
had become a significant concern for its members.
"It has made it difficult for many incoming executives to find school places for
their children, which affects the ability of companies to bring their top talent
to the city," Dr DeKrey said.
Another top priority would be to work closely with the other seven AmChams in
Greater China, including those in Macau, Taiwan, Beijing and Shanghai.
Referring to a survey conducted by the chamber, he said he was optimistic about
this year's economic outlook. "Firms are very satisfied being in Hong Kong.
Regional headquarters are also staying," he said.
Dr DeKrey said he believed the mortgage crisis in the US was not over.
"It is still not clear for the future, and its impact has not been fully
reflected in the market," he said.
January 13, 2008
 Invesco chief
economist John Greenwood, also dubbed the `architect of the dollar peg,' says
local currency appreciation is not an effective measure to alleviate
inflationary pressure in the long run. "Let's say the dollar peg appreciated
from 7.8 to 7.6, inflation will temporarily decline but the inflation rate will
resume to its previous course later," Greenwood told The Standard, warning that
currency appreciation would have more of a downside as it would invite more
speculation activity. Under the currency peg, the Hong Kong dollar is fixed at
7.8 to the US dollar, though the widening of the trading band in May 2005
allowed it to be traded between 7.75 and 7.85. On January 2, the China
Securities Journal published a report suggesting the Hong Kong dollar should
appreciate from its current 7.8 to 7.5, to help ease inflationary pressure and
avoid an asset bubble. Greenwood, who has been on the Hong Kong Monetary
Authority's currency board committee since 1988, said he does not see an asset
bubble in the local economy, stressing that the HKMA has an effective mechanism
to maintain stocks of the Hong Kong dollar. A strong advocate of the currency
peg since the 1980s, Greenwood also insists the current peg system is the best
for Hong Kong. "Hong Kong's business cycle is determined by the global business
cycle, not that of China. When you talk about the global economy, the United
States is still the most influential." Greenwood said the Hong Kong dollar
cannot be pegged to the Chinese yuan as it is not freely convertible. "It will
take more than 15 years for the yuan to become fully convertible. "If the yuan
is freely convertible then the Chinese government will lose control over it. Do
you think the Chinese government will abandon its control?"
January 11, 2008
Delicate Balance of Creativity and
Functionality - Hong Kong Product Shines in China Red Star Award
 Yip states with Hong Kong celebrating the
10th anniversary of the reunification with its mother country, local product
designers have to re-position themselves accordingly.
 Yip Chi Wing was awarded the China Red
Star Award with his "Li Ning Power-pack" camping backpack (top) and "Life-power
LP6500" massage chair (bottom).
"China Red Star Design Award" is one of the most distinguished awards in the
Chinese Mainland's design industry. The Award aims to promote the development of
Chinese design industry, and enhance international competitiveness of Chinese
products by encouraging Mainland enterprises to carry on independent innovation
and brand building. Among over 1,500 entries for this year, the renowned Hong
Kong product designer Alan Yip Chi Wing snatched highest awards with his "Li
Ning Power-pack" camping backpack and "Life-power LP6500" massage chair. This
reiterates the prominent presence and reputation of Hong Kong product designers
in the international design world.
Broadening Horizons through Expos and Competitions
Alan Yip has been a product designer for over 20 years. He graduated from Dept
of Industrial Design of Hong Kong Polytechnic University in 1987. After winning
a working scholarship in 1986, he worked as an intern for Frog Design Inc. in
California, USA. Upon his graduation he was hired at the Philips Eindhoven, the
Netherlands. Yip returned to Hong Kong in 1990 and founded his own Yip Design
Ltd. He comments, "For a relatively small market like Hong Kong, it is paramount
for product designers to participate in different kinds of expositions and
competitions, so as to strive for room for better development and opportunities.
For instance, I have been participating promotional activities organized by Hong
Kong Trade Development Council (HKTDC) continuously; that is not for awards or
benefits but the experiences I gain. Joining expos and competitions offers a
great opportunity for me to appreciate the excellent works from designers around
the world, helping me cultivate an international perspective about design. In
additional, meeting Mainland and overseas industry players is also crucial for
business development in the long run. "
Leverage on Hong Kong's Competitive Advantages
Alan Yip's awarded products are for him merited by their bold embrace of
creativity. He explains, "Li Ning Power pack is quite a breakthrough
design-wise. Apart from its swift flowing outer shell, it is made of hi-tech
plastic materials. The strength of cushioning is also ergonomically fine-tuned
befitting different parts of the wearer's body. It could be said an innovation
of its kind in the leisure product market in China. Life-power LP6500, on the
other hand, resembles first class in-flight seating in its design. It offers a
luxuriant comfort and comes in a vibrant, spray-painted outlook. As of
purchasing a car, the buyers can also select their favourite colour of paints
when they place their order for the chair. Such customized service proves
successful in appealing to the younger market, generating 'talking points' as
well as sales."
Yip furthers that with Hong Kong celebrating the 10th anniversary of the
reunification with its mother country, local product designers have to
re-position themselves accordingly. He adds, "As Hong Kong product designers,
our competitive advantages are highlighted: there is much room for creativity in
Hong Kong and we are backed by the huge Mainland market. It is high time we
moved forward with a globalized point of view, and leveraged our unique position
to explore new business opportunities for our design industry."
January 10, 2008
Hong Kong and Macau Doctors Allowed to
Open Private Clinics on Mainland
The Ministry of Health has recently issued a circular on the implementation of
Supplement IV to the Mainland-Hong Kong and Mainland-Macau Closer Economic
Partnership Arrangement (CEPA) with regard to medical services. According to
this circular, qualified Hong Kong and Macau service providers who are holders
of the mainland Certificate of Practicing Physician (for clinical treatment,
traditional Chinese medicine and oral care) may apply to open private clinics in
mainland cities after 1 January 2008.
The applicants must be licensed to practice medicine in Hong Kong and Macau and
must have a medical license for over five years in either Hong Kong or Macau,
have practiced continuously in both Hong Kong and Macau for a total of five
years, or have served in clinical posts in the same field on the mainland for
over five years.
Each Hong Kong or Macau service provider may only open one private clinic. He or
she must be the sole proprietor and responsible person of the clinic.
In principle, a private clinic may not employ other physicians. However, if
circumstances so require, the Hong Kong or Macau service provider may employ one
to two practicing physicians (mainland residents) in the same area of practice
to meet the needs for medical services. A suitable number of mainland registered
nurses may also be employed based on medical service needs.
December 18, 2007
Higher Threshold for Hong Kong
Investment in Mainland Commercial Sector
According to Supplementary Provisions III to the Measures for the
Administration of Foreign Investment in Commercial Sector approved by the
Ministry of Commerce, the threshold for Hong Kong investors in the mainland's
commercial sector has been raised.
The supplementary provisions are directed at the newly promulgated Catalogue for
the Guidance of Foreign Investment Industries which sets out strict restrictions
on foreign investment in the wholesale and retail sectors. The fact that these
sectors remain open to Hong Kong and Macau investors suggests that the central
government still encourages Hong Kong and Macau service providers to invest in
the commercial sector.
Under Supplementary Provisions III, where the same Hong Kong service provider
has opened more than 50 shops on the mainland, this service provider is allowed
to hold majority shares with an equity ratio of up to 60% provided that it deals
in books, newspapers, magazines, drugs, pesticides, agricultural films, chemical
fertilizers, grain, vegetable oil, edible sugar and cotton, with the commodities
representing different brands and coming from different suppliers.
The new supplementary provisions have raised the threshold for Hong Kong
companies investing in the mainland commercial sector. Under Supplementary
Provisions II, where the same Hong Kong service provider had opened more than 30
shops on the mainland, it was allowed to hold majority shares with an equity
ratio of up to 65% provided that it dealt in books, newspapers, magazines,
drugs, pesticides, agricultural films, chemical fertilizers, grain, vegetable
oil, edible sugar and cotton, with the commodities representing different brands
and coming from different suppliers.
Although the threshold for Hong Kong investors is higher under Supplementary
Provisions III than under Supplementary Provisions II, compared with
corresponding provisions for foreign investors in the new Catalogue for the
Guidance of Foreign Investment Industries just released, it can be seen that the
state is still giving special preferential treatment to Hong Kong investors
while restricting foreign investment.
December 4, 2007
Macau gambling on China
By Vicci Ho
Macau, the former Portuguese colony that was returned to Chinese rule in 1999,
was always the modest cousin to Hong Kong. Its big draw was tourism and gambling
that drew locals looking to get away from the big-city buzz. But that was then,
and now Macau's gaming biz brings in more than Las Vegas and attracts
multinational investors.
The liberalization of the gaming industry in 2002 saw six concessions and
subconcessions granted to local and, more importantly, foreign companies. In
five years, Macau saw foreign-backed casinos and resorts such as the Crown, Wynn
Resorts, Sands, MGM Grand and the Venetian transform the local gaming industry
with glitzy Las Vegas-style hotel resorts, while local businesses responded by
building new and improved casinos such as the Grand Lisboa and theme park/casino
Fisherman's Wharf.
All the investors are banking on the arrival of millions of mainland Chinese
tourists, who, armed with cash-filled suitcases, can now travel to Macau under
the Full Independent Tour plan with relative ease. The numbers certainly suggest
their bets are correct: In 2005, 10.5 million visitors arrived from China alone,
and in 2006 Macau overtook Las Vegas in casino revenues as the gaming industry
generated $6.8 billion.
"The tourism industry is one of the main pillars of Macau's economy, and last
year, a new record of close to 22 million visitors came to Macau, an increase of
17% compared with 2005," says Eng Joao Manuel Costa Antunes, director of Macau
Government Tourist Office.
Macau's ascendancy also is threatening Hong Kong's position as an entertainment
hub, especially since the opening of the $2.4 billion Venetian Macao. In 2007,
the Venetian staged a series of high-profile entertainment events such as sports
exhibitions with English soccer team Manchester United, NBA teams the Orlando
Magic and the Cleveland Cavaliers plus tennis champs Roger Federer and Pete
Sampras as well as perfs by music superstars Beyonce and the Black Eyed Peas.
Hong Kong is beginning to feel the heat. Registered number of visitors for Macau
in September was 2.27 million, over 145,000 more than Hong Kong. But Macau still
has to pay some more dues before it can call itself a truly international
destination: Only 9% of visitors were from outside the region during September.
But Macau investors are pouring in the money with such initiatives as an
original production by Cirque du Soleil and a Celine Dion gig skedded for early
'08, and more entertainment-themed casinos such as Macao Studio City, which is
under construction.
"Most major entertainment events (were) planned with visitors in mind, even
before the (recent) boom," says Gary Ieong, an events organizer in Hong Kong
whose roots lie in Macau. "The locals are more interested in Cantopop acts than
huge international stars."
With luxury hotels, such as the Four Seasons, Sheraton, Hilton and Shangri-La
all hoping for a slice of the profits, Macau is certainly getting ready to
receive these big-spending visitors in style.
Higher Threshold for Hong Kong
Investment in Mainland Commercial Sector
According to Supplementary Provisions III to the Measures for the Administration
of Foreign Investment in Commercial Sector approved by the Ministry of Commerce,
the threshold for Hong Kong investors in the mainland's commercial sector has
been raised.
The supplementary provisions are directed at the newly promulgated Catalogue for
the Guidance of Foreign Investment Industries which sets out strict restrictions
on foreign investment in the wholesale and retail sectors. The fact that these
sectors remain open to Hong Kong and Macau investors suggests that the central
government still encourages Hong Kong and Macau service providers to invest in
the commercial sector.
Under Supplementary Provisions III, where the same Hong Kong service provider
has opened more than 50 shops on the mainland, this service provider is allowed
to hold majority shares with an equity ratio of up to 60% provided that it deals
in books, newspapers, magazines, drugs, pesticides, agricultural films, chemical
fertilisers, grain, vegetable oil, edible sugar and cotton, with the commodities
representing different brands and coming from different suppliers.
The new supplementary provisions have raised the threshold for Hong Kong
companies investing in the mainland commercial sector. Under Supplementary
Provisions II, where the same Hong Kong service provider had opened more than 30
shops on the mainland, it was allowed to hold majority shares with an equity
ratio of up to 65% provided that it dealt in books, newspapers, magazines,
drugs, pesticides, agricultural films, chemical fertilizers, grain, vegetable
oil, edible sugar and cotton, with the commodities representing different brands
and coming from different suppliers.
Although the threshold for Hong Kong investors is higher under Supplementary
Provisions III than under Supplementary Provisions II, compared with
corresponding provisions for foreign investors in the new Catalogue for the
Guidance of Foreign Investment Industries just released, it can be seen that the
state is still giving special preferential treatment to Hong Kong investors
while restricting foreign investment.
Orderly Outflow of Foreign Currency from the Mainland By
Joseph Yam - Chief Executive, Hong Kong Monetary Authority
 It would be better to help Mainland
residents move their foreign currency out of the Mainland in a safe and orderly
way than to try to restrict them.
Money, like water, very often finds a way to flow around obstacles blocking its
path. When there is strong demand for capital to move across jurisdictions,
trying to restrict it will often just drive the flow underground, where
malpractices prevail to the detriment of the interests of those having, possibly
quite legitimate, needs for the movement of funds. Quoting an old Chinese
saying: "the sky wishes to rain and mom wishes to remarry", some people may
throw up their hands and say that there is no way of stopping underground flows
altogether. I would say that building proper facilities to channel such flows,
so that they no longer need to go underground, is a better and more constructive
approach than trying to restrict them.
Perhaps I do not have a very good understanding of the regulatory framework
governing the mobility of an individual's money on the Mainland. We all have to
develop a better understanding of the policies and practices of China's
socialist market economy. There are of course complex issues involved, including
the all-important macro-economic objective of maintaining monetary and financial
stability, protecting the interests of depositors and investors, the legitimate
desire of an individual to achieve higher, risk-adjusted return (according to
his own calculations) for his savings, and the unquestionable right of the
individual to withdraw money from his bank account and spend it.
The maintenance of monetary and financial stability is a very important policy
objective, given its importance to the sustainability of economic growth and
development. There is scope for difference of opinion about what monetary and
financial policies should be pursued at this time on the Mainland. Some still
feel that there is a continuing need for fairly tight exchange controls on
capital-account transactions. Others point to the enormous liquidity in the
financial system on the Mainland, as a result of the large current-account
surplus and the rapid accumulation of foreign reserves, and think that now is
the time for the relaxation of capital controls. Indeed, the high inflation rate
and the appreciation pressure on the exchange rate suggest that relaxation may
be overdue. But there is obviously a need to emphasise controllability,
gradualism and the ability to take the initiative in financial reform and
liberalisation. To the extent that there is consensus, this seems to be in
favour of the orderly outflow of capital. It seems, to me at least, that meeting
the desire of individuals to invest overseas in an orderly manner is a policy
well worth pursuing.
A distinction can perhaps be made between the mobility of capital across
different currencies, for example, from the renminbi to the Hong Kong dollar,
and the mobility of capital denominated in the same currency across different
jurisdictions, for example from the Mainland to Hong Kong. While there is a need
for greater care on the former, one should feel a little more relaxed on the
latter. After all, for individuals who already have foreign currency, it seems a
little harsh to limit them to holding it in the banking system on the Mainland
in the form of deposits earning low interest, instead of allowing them to move
their own foreign currency to other jurisdictions where there are investment
avenues promising a higher rate of risk-adjusted return. Allowing individuals to
move their own money, already in the form of foreign currency, for example Hong
Kong dollars, into Hong Kong, may of course increase their demand for foreign
currency. But this is precisely what we all would like to see on the Mainland,
to address the rather unusual macro monetary environment there. Controllability
is still high, given the current restriction on conversion from the renminbi
into foreign currencies to an amount equivalent to US$50,000 per person per
year.
The choice of investment is a matter best left to the individuals. Everyone has
a different risk-return preference, and it is not the role of the authorities to
decide for individuals how they should invest their money. Such an involvement
of the government creates tremendous moral hazard that should be avoided. At the
same time, there is no doubt that investors, particularly the smaller ones, do
require protection. That is why there are arrangements for the protection of
investors, such as the disclosure requirements imposed on fund raisers and
financial intermediaries, regulation of financial markets and the supervision of
financial institutions. This is an area in which Hong Kong is very strong,
possibly at the forefront of international standards, although admittedly
against a capitalist, free-market economic background. But I would argue, in
terms of investor protection, that what is good for Hong Kong investors should
also be good for Mainland investors. If it is considered that Mainland investors
making such cross-border investments require more protection, a threshold for
the amount of money that an individual is allowed to invest overseas could be
imposed so that the channel is only available to larger and more sophisticated
investors.
December 1, 2007
Hong Kong Campaign to lure students
from boom economies By Winnie Chong
Hong Kong plans to entice students from India, Indonesia and Malaysia in its bid
to become the education hub of Asia, it was disclosed on Friday. The campaign
kicked off in India last week with the Hong Kong Trade Development Council
holding a road show to promote seven universities - Hong Kong, Chinese, City,
Baptist, Lingnan, Polytechnic and Science and Technology. TDC assistant
executive director Benjamin Chau Kai-leung said 500 students from three Indian
universities visited its expos and seminars and showed interest in studying in
the SAR.
India, Indonesia and Malaysia have growing economies and an increasing middle
class, Chau said, adding the tuition fees in Hong Kong are only about 40 percent
of those in Europe or the United States.
Chau said students from other countries would also help boost the exposure of
local universities. In his policy address in October, Chief Executive Donald
Tsang Yam- kuen pledged to promote Hong Kong as a higher-education hub for Asia.
To this end, the proportion of non- local students in local universities will be
increased from 10 to 20 percent. Currently, the majority of non-local students
come from the mainland.
However, Lingnan associate vice president for academic affairs William Lee
Keng-mun said his university would not set quotas for non-local students, and
enrollment would be based purely on merit. In addition to south Asian countries,
the university will conduct promotions in Canada, the United States, Mexico and
Europe.
As there are many job opportunities in the mainland for people of all races, SAR
universities could attract students from around the world, he said.
HKU student recruitment counselor Queenie Hsu Hiu-fai said the university had
already admitted more than 50 Indian students over the past few years. In
addition, the number of applicants from South Korea for the current semester was
double that of last year.
"Perhaps we attracted attention after it was reported some mainland students had
passed up offers to study at Beijing's Tsinghua University and chose Hong Kong
instead," Hsu said.
A third-year HKU student from Bangalore, Zaira Ali Khan, said Hong Kong was not
a popular choice when she decided to come here. But, she said, she never
regretted her decision.
"Many south Indian students choose to study in Singapore as it is closer. But
Singapore's education is very India-like, with students only focusing on
studying," she said.
"In Hong Kong, teachers from other countries gave me an international
perspective. I also enjoy the opportunity of doing summer internships."
Justice experts call for benchmark on
mediation services By Polly Hui
 Chief Justice Andrew Li Kwok-nang and
Secretary for Justice Wong Yan-lung yesterday called on the rising number of
mediation service providers to make a concerted effort to develop a common
accreditation benchmark. Mr Justice Li also said mediation should be made a
compulsory part of the professional qualification course for lawyers, whose
current understanding of the mediation process was "very far from satisfactory".
He added that students should also be educated about mediation at school. "Time
has moved on," Mr Justice Li said. "We are coming to a stage where we need to
have a common benchmark ... all mediation bodies should co-operate to develop
this benchmark as soon as practicable," he said at a conference on mediation in
Hong Kong yesterday.
To ensure the quality and international recognition of local mediators, he said
the benchmark should be comparable to those set in major jurisdictions where
mediation was a mature process. Mr Wong said training and accreditation were
high priorities for a cross-sector working group on mediation that he will head.
Mediation, like arbitration, is an alternative to litigation in dispute
resolution. It is widely used in the US, Australia, and Britain. A mediator
helps parties establish dialogue and reach agreement. Chief Executive Donald
Tsang Yam-kuen pledged in his October policy address to develop mediation
services, which are used in matrimonial, construction, building and management
disputes. It is believed that mediation will reduce increasingly heavy court
caseloads, cut costs, and help create a harmonious society.
Christopher To Wing, secretary general of the Hong Kong International
Arbitration Centre, which hosted the conference, said there were about 10
mediation bodies in Hong Kong - including universities and professional bodies
for lawyers and engineers - which provide various training or both training and
accreditation services.
Mr To said he believed that the best solution for Hong Kong would be to have a
common benchmark and a single accreditation body. It should provide a
complaints-investigation system for mediation users. "Consumers will only have
confidence in mediation when they know that there is a system for complaints to
be properly heard and investigated," he said.
Rimsky Yuen Kwok-keung, chairman of the Bar Council and a panel speaker at the
conference, expressed his reservations about mediation bodies that both train
and accredit. "There should be a separation between the accreditation body and
the training provider," Mr Yuen said. "Otherwise, there would be a perception of
a conflict of interests."
Chan Bing-woon, chairman of the Hong Kong Mediation Council, said he supported
the idea of a unified accreditation system. But he warned that the system should
not stop those who, despite not being qualified, were capable of conducting
mediation at the community level because of their status in the community or
because people trusted them.
November 26, 2007
Shop around for your dream space - The
king of Lan Kwai Fong made timely investments and there is no reason why others
cannot do likewise By Elizabeth Horscroft
 While many of us may dream of
becoming the next king of Lan Kwai Fong, there is only one at the moment, Allan
Zeman, who made an early investment in a forgotten area of Central and turned it
into an empire of eateries and bars.
Many of us would like to emulate Mr Zeman's success in commercial property
investment but think it is too late and that we will be priced out of the
market. However, some local agents would disagree with that, acknowledging that
while limited means would be an impediment, a good return on commercial property
in Hong Kong was not the sole domain for the ultra wealthy and established
developers.
Even Lan Kwai Fong is not out of reach. Colliers International has 52D'Aguilar
Street up for sale by public tender. Because this is a tender offer, Colliers
International declined to give a price range, but Dominic Lee Chak-lam,
assistant manager, Hong Kong investment at the company, said that a shop in Lan
Kwai Fong, not a whole building, recently sold for HK$110million. The firm
estimated the net yield at 52 D' Aguilar Street would be about 4 per cent with
existing tenants.
Mr Lee said it was possible and viable for someone with a few spare million
dollars to buy commercial property as an investment in Hong Kong. "There are
some shops available for sale which are worth about HK$10million," he said.
An investor with limited capital will need to go further afield to second tier
locations such as Tai Po, Sha Tin and elsewhere in the New Territories. Mr Lee
helped a company sell a shop in Tai Po for a lump sum HK$26million two years ago
and he said the quality of the property was very good.
For those who feel being on Hong Kong Island is the best bet, there are
commercial property opportunities in Wan Chai for about HK$10million. While a
lower-end shop could have a good rental income and property appreciation, Mr Lee
said there was a trade off. The shop would be small, perhaps of poor quality,
off a main street and with a local tenant as opposed to a big-name chain store.
"Wan Chai is not a main shopping and entertainment area like Causeway Bay, but
it is changing. One day a spot in Wan Chai may be a good location," Mr Lee said.
Others disagree. Citing the high cost of entry in the market, Peter Yuen the
head of investment and sales (Hong Kong) at Savills (Hong Kong), thought
investing in commercial property was a long shot for most people.
Savills recently concluded the sale of a ground floor shop on Russell Street in
Causeway Bay for HK$178million. "This sum is way above the affordability of most
people," Mr Yuen said.
But, like most investments, if you have the money it is relatively easy. The
process for owning commercial property in Hong Kong is streamlined and similar
to buying a residential unit.
Mr Yuen said commercial property was a good investment in Hong Kong because the
borrowing cost was low with commercial mortgage rates around 4 to 4.5 per cent.
"We are optimistic about [the] retail sector taking into account ... domestic
consumption and increasing tourism."
This forecast bodes well for commercial landlords who receive a percentage of
their tenant's revenue. The first rule of buying property is to find a good
location. Determining where that is, in most cases, takes a pinch of luck. The
most common commercial properties considered good investments in Hong Kong are
in prime retail districts where there are many tourists. "The demand [for
commercial property] is rising, driven by local investors in prime areas such as
Tsim Sha Tsui, Causeway Bay and Mong Kok."
But, while the location may be good now, that might not be true in three to five
years. Do some research before buying. Investors should examine the physical
condition of the property too. Does anything need to be reinstated or are there
any illegal structures or title issues? Mr Lee said because prices had risen a
lot since 2004, potential investors needed to have a prime location and a
quality property for worthy returns.
The best type of commercial property to buy - office, retail or industrial -
depended on many factors, but Mr Yuen said office space now seemed to be
outperforming the others simply because it had fallen behind for a long time. He
said that retail assets were relatively less volatile.
The process of securing a property is straightforward and an agent and lawyer
should take care of the details. First, find a trustworthy agent to search for
the ideal property and tell the agent your plan for the property. This plan
should include your desired yield, expected risk, location and whether this
would be a short- or long-term investment. Together you find a site, inspect it
and negotiate with the owner.
After agreeing on the price and other commercial terms with the owner, the agent
will prepare the provisional agreement for both parties to sign. After that,
your lawyer will handle the remaining paperwork and you may apply for financing
from banks. With the title in hand you may just feel like the king of your own
castle.
November 18, 2007
Four New Areas Open to
Individually-Owned Businesses by Hong Kong and Macau Residents Next Year
With the approval of the State Council, starting from 1 January 2008 the
business scope of individually-owned businesses established by Hong Kong and
Macau permanent residents with Chinese citizenship will be further expanded to
cover four more areas.
The four new areas include computer services, software (including computer
system services, information processing, public software services and other
software services), road transport-related loading, unloading and porterage and
other transport services (including loading, unloading and porterage and
forwarding services), warehousing (including the storage of farm produce such as
grain and cotton, and other warehousing services), and translation and
interpreting services (referring to business-related translation services).
The existing business scope includes retailing (except tobacco), catering,
hairdressing, beauty and fitness, bath, laundry, photography and photographic
processing, repair and maintenance of motor vehicles and motorcycles, repair of
home electrical appliances and other daily goods, and import and export of goods
and technologies. Franchise operation is not included.
Under state regulations, individually-owned businesses established by Hong Kong
and Macau residents applying for permission to engage in loading, unloading and
porterage and other road transport-related services may not offer international
freight forwarding and courier services. For those applying for permission to
engage in warehousing, their business area may not exceed 300 sqm. As for
translation and interpreting services, they are confined to business-related
activities only.
Hong Kong and Macau permanent residents with Chinese citizenship do not have to
go through approval procedures that apply to foreign investment when setting up
individually-owned businesses on the mainland in accordance with mainland laws,
regulations and administrative rules, and they can only hire a maximum of eight
employees. However, the waiver does not apply to franchise operation.
Hong Kong Investment in Sichuan Shifts
Weight to Service Sectors
Sichuan's department of commerce and the Hong Kong Economic and Trade Office in
Chengdu have jointly published the results of a study on the acceleration of the
implementation of CEPA in Sichuan. According to the report, the number of Hong
Kong companies in Sichuan has increased to 391 three years after CEPA became
effective. Total investment amounts to US$2.267 billion and has been growing at
an average annual rate of 64.08%. At the same time, the weight of investment is
gradually shifting from manufacturing to services.
Hong Kong companies signed contracts worth a total value of US$735 million in
Sichuan between January and July this year, up 16.5% year-on-year and accounting
for 38.6% of total contracted foreign investment in the province. Of this,
contracted investment in real estate, management consultancy and other service
sectors amounted to US$403 million, or 54.83% of Hong Kong's total contracted
investment in Sichuan. In the last three years since the implementation of CEPA
in Sichuan, Hong Kong investment has seen rapid growth and the |
