China.Hawaii Chamber of Commerce ®
Hong Kong.Hawaii Chamber of Commerce ®
Hong Kong.China.Hawaii Chamber of Commerce ®

"Hawaii-China Guan Xi, We Get Things Done™" - Trade Advocacy Organization

video  

USA Small Business Administration (SBA) Selected Johnson Choi/HKCHcc 2008 United States National Champion

Newsletter

Biz: China Hong Kong

What people said about us 

China Earthquake Relief

Tax & Government

Hawaii Voter Registration

Biz-Video

Hawaii's China Connection

CDP#1780962

Doing Business in Hong Kong & China

China Leaders

Remembrances

Pictures-Old HK

Hawaii Asian Lunar New Year

Major Exhibitions & Conferences in HK

Better Hawaii Bureau - Blog

Chinese Medicine   

 Scholarship & Grants   

Understanding the New USA Visa Policy 

China & HK Legal Issues

Medal Count

Business Survey by

 Translate

Bauhinia News© & Newsletter©  

Bauhinia News©

For Current Information, Please Visit our EVENT, HK & CHINA BIZ and PHOTO ALBUM PAGES

News Archives in PDF Format

How can we serve you better? - please take 1 minute to complete the web survey

Newsletter Archivest - 2001 - 2005

China Projects Bidding Information - update daily

Do you know our dues paying members attend events sponsored by our collaboration partners worldwide at their membership rates - go to our event page to find out more!

Do you know our dues paying members attend events sponsored by our collaboration partners worldwide at their membership rates - go to our event page to find out more! After attended a China/Hong Kong Business/Trade Seminar in Hawaii...still unsure what to do next, contact us, our Officers, Directors and Founding Members are actively engaged in China/Hong Kong/Asia trade - we can help!

Are you ready to export your product or service? You will find out in 3 minutes with resources to help you - enter to give it a try

December 18, 2008

Creative openings - Hong Kong has played a vital role in the mainland's reform and opening up, and will continue to do so by Donald Tsang

This year, our country marks the 30th anniversary of the reform and opening-up process that has had a profound impact not just on the mainland, but also on the rest of the world and Hong Kong. On December 18, 1978, the third plenary session of the 11th Communist Party Central Committee was convened in Beijing, which resolved to shift the focus of work to modernization. Put simply, the long-held policy based on the principle of class struggle would give way to one that was geared towards economic construction.

This was a profound and historic decision. The reform and opening-up policy provided the Chinese people with an opportunity to innovate and give their best. Over the past 30 years, the mainland has enjoyed rapid economic growth, with average annual gross domestic product rises of 9.88 per cent. Hundreds of millions of people have been lifted out of poverty.

The reform and opening up has also brought China back into the international community and enabled it to contribute to global development.

In 1978, China's trade volume was less than 1 per cent of the world total. Today, it accounts for about 8 per cent. At the same time, China has been committed to maintaining peace and stability in the region and globally. In future, China will continue to fulfill its international obligations as a world power promoting the welfare of mankind and working with other countries to build a harmonious world.

The mainland's reform and opening up, and the rapid development of Hong Kong, are closely intertwined. While the tremendous changes in our country have had an enormous impact on Hong Kong, the city has also been a participant in the process and has made important contributions to our nation's development.

Hongkongers were the pioneers of investing in the mainland economy. We were the first to establish joint ventures across the border. Today, Hong Kong's realized direct investments on the mainland have reached almost US$320 billion - about 40 per cent of the mainland's total external direct investment. In Guangdong alone, some US$112 billion has been invested - almost two-thirds of all direct external investment in the province.

Capital investment aside, Hong Kong has also exported management experience, international business networks and market economy concepts to the mainland.

The contributions by Hong Kong entrepreneurs go far beyond their investments on the mainland. Many have devoted their knowledge, expertise, time and personal wealth to promote the development of education and welfare there.

The city's role will not diminish as our country continues to develop. Rather, it will become more crucial.

First, Hong Kong will continue to play a vital role as the mainland continues to enhance its economic structure and merge with the global economy. The city can help the mainland develop modern service industries including trading, logistics, hosting conventions and exhibitions, information technology, accounting, legal and engineering services.

We can also help mainland enterprises to fully use overseas markets to integrate into the world economy.

Second, almost every major economy has a world-class financial centre. Hong Kong is not only a fund-raising centre for mainland enterprises; it is also the only international financial centre in China.

Third, global competition today is among regional economies. By complementing each other's strengths, Hong Kong and Guangdong have set a successful example of regional co-operation over the past three decades. But there is still plenty more room for co-operation in the future.

We are working with Guangdong on a wide range of fronts to transform the Pearl River Delta region into a world-class economic zone, serving as our country's "flagship" as it competes globally.

Fourth, China's development requires good education and a vast pool of talent. Hong Kong has an excellent track record in attracting talent from around the world and providing a high standard of tertiary education.

Finally, given the strength of our legal system, market mechanisms, administrative efficiency, corporate governance, entrepreneurship and city administration, Hong Kong can help the mainland to refine its market economic system, formulate effective public policies and strengthen its city administration.

Although the world is in the grip of financial turmoil and facing a recession, co-operation between Hong Kong and the mainland will not falter. The central government has pledged to back Hong Kong and take effective measures to support us. These measures will not only help the city face the present challenges, but also aid the mainland's continued opening up and reform.

In addition, the 4 trillion yuan (HK$4.5 trillion) stimulus plan recently unveiled by Beijing will not only help sustain the mainland's economic growth; it will also provide a plethora of business opportunities for Hong Kong enterprises.

Hong Kong and Guangdong will continue to deepen co-operation in the financial and services sectors, as well as on cross-boundary infrastructure, to maximize our regional advantages as we tackle the economic crisis together.

The past 30 years of reform and opening up have been of singular importance to China and the world. It has changed the course of our nation's history and affected the economic development of the whole world.

Hong Kong should take great pride in its active, unique role in this process. As the reform and opening up continues, we will grasp every opportunity to deepen our integration with the mainland, and make the best use of our competitive strengths to contribute to the development of our country.

At the same time, Hong Kong will enter a new phase of development that holds even greater promise for our city and our people.

Donald Tsang Yam-kuen is the chief executive of Hong Kong

December 9, 2008

The corruption factor by JOSEPH CHENG

Chen Shui-bian is in custody; the "son of Taiwan" has become the "shame of Taiwan". His case has led Hong Kong people to question the democratic system. His allegedly corrupt behavior is, of course, a matter of personal conduct. But there are institutional factors behind such behavior. The hysterical accusations from his daughter, Chen Hsin-yu, that all Democratic Progressive Party leaders had received money from her father naturally reflect problems in the electoral system.

Taiwan's electoral campaigns are extremely costly; this is a political fact recognized by the people. Campaign funds of political parties and candidates come mainly from business groups; this is the root cause of collusion between businessmen and politicians. Business groups making major donations to electoral campaigns naturally expect returns. It is an open secret in Taiwan that public-sector infrastructure projects involve substantial kickbacks.

When electoral campaign expenditure exceeds the legal limits, there will be all kinds of shady deals. Since they go unreported, there is no accountability and party leaders responsible for fund-raising could be easily corrupted.

The vast confidential state funds at the Taiwanese president's personal disposal are a legacy of earlier authoritarian regimes. They are also related to Taiwan's difficult diplomatic and security situation. The authorities spend substantial funds on intelligence gathering (especially against the mainland), overseas united-front activities, bribery to secure diplomatic relations, and the like. Such expenditure cannot be in the open; it is therefore controlled by the president alone. This gives rise to opportunities for corruption.

In many democracies, secret operations of intelligence agencies are monitored by oversight bodes such as America's bipartisan Senate Select Committee on Intelligence. The monitoring process remains classified, but nonetheless it serves as an effective check-and-balance mechanism.

The US model may offer a useful point of reference for Taiwan. The key question is whether its political parties in the legislature have sufficient mutual trust and self-discipline to fairly monitor various types of covert activities on a confidential basis to create effective checks and balances. This is certainly an important test for a mature democratic system.

There is probably already adequate public support for the effective control of electoral campaign expenditure according to the law. The same conditions exist as in Hong Kong in the 1970s, when the Independent Commission Against Corruption was established.

If Taiwanese President Ma Ying-jeou is determined to combat corruption, setting up a high-level committee or working group headed by the premier is still inadequate. What is needed is bipartisan co-operation and determination to mobilize public opinion to reform the Central Election Commission and the judiciary.

On this basis, special units may then be set up within the commission and the police to monitor election campaign expenditure, together with a broad publicity campaign. This should ideally be supported by advisory committees consisting of respected anti-corruption community leaders.

The starting point may well be the local elections next year. Candidates from all political parties should be treated equally. The commission, police and judiciary will then gradually establish a strong image and style to run elections cleanly. Further institutional reforms are also needed. Rules on electoral expenditure must be clearly stipulated and loopholes closed.

Mr Ma is perceived to be very clean, politically. But his performance has been lackluster in recent months. Establishing a clean electoral system will certainly help him restore his appeal to the electorate.

Taiwan's democracy has been a major contribution to the Chinese nation. Clean elections and corruption-free politics will secure even greater respect from the international community.

Joseph Cheng Yu-shek is a professor of political science at City University of Hong Kong

November 20, 2008

United States is guarding China's nuclear 'secrets' by Alex Lo SCMP

It is frequently asserted without proof or evidence by top Pentagon officials and senior US politicians that China maintains extreme secrecy with its military development. The media then duly reports their complaints as if they were facts. The latest criticism comes from an interview with Rear Admiral Richard Wren, commander of the Japan-based USS George Washington carrier strike group. If you repeat the same thing over and over, and the media duly reports it, it must be true.

Again, Admiral Wren claimed China's military is opaque with its intentions and capabilities. "We all encourage China to become a responsible global participant. But the way they are growing their military is confusing," he said. "Why do you need a missile that can go thousands and thousands of kilometers if you are a defensive force? The total number of submarines they have, and their capabilities, sure doesn't point to a defensive or even an `active defence force', as they like to call it."

But, it remains unclear whether the Chinese military is any more secretive than, say, the US Defense Department. It may be safe to assume that a nation's nuclear arsenals and weapons development programmes are among its best-kept military secrets. But, on this, China has been remarkably open - to the US government.

A reader brought to my attention the September edition of the journal Physics Today. It contained an account of the history of China's nuclear weapons program by Tom Reed, a US nuclear weapons engineer and former secretary of the air force. He knows this because, in 1990, his associate, Danny Stillman, was given two full tours of China's key thermonuclear weapons research, development and testing facilities across the country. Dr Stillman made seven more visits between 1991 and 1999.

Dr Stillman was, at the time, director of the technical intelligence division at Los Alamos National Laboratory, where the world's first atom bombs were developed and subsequently dropped on Japan. The Chinese knew exactly who Dr Stillman was and what he was after. He asked for the tours and he was promptly granted them.

He was taken to research centers at Fudan University in Shanghai, a prime component of the Chinese nuclear weapons complex; Science City, the intellectual capital of the Chinese nuclear empire on the outskirts of Mianyang , in Sichuan province; and several hard-to-reach test sites. He was shown weapons designs, testing equipment and records of China's nuclear tests up to that time.

Why did the Chinese do it? "For one thing," Mr Reed wrote in the article, "the Chinese probably sought deterrence. An American awareness of Chinese nuclear capabilities should lead to a more cautious American military posture around Taiwan and in the Pacific Ocean."

Beijing has defined its national interests as nation-building; its domestic agenda requires a peaceful international environment. Its military is defensive by policy and design. By contrast, the US defines its national interests as global, which at times require military action to defend them. It is militarily the most offensive of all nations.

But why did Mr Reed publish the article now? I suspect it was because his friend, Dr Stillman, was having trouble publishing his book, Inside China's Nuclear Weapons Program, based on his experiences in China.

The US government banned it in 2000 because it contained classified material. He has unsuccessfully launched several lawsuits over the years. Last year, Dr Stillman lost another suit against the CIA, which allegedly kept delaying its review of the book, thereby preventing its publication.

So get this: the CIA and the Pentagon have successfully prevented the public from learning about Chinese nuclear weapons development from one of its foremost US experts. The US is guarding military secrets for the Chinese who have been perfectly happy to divulge them.

November 14, 2008

Immigrant-Owned Businesses Provide Important Contribution to U.S. Economy - Immigrants are 30 percent more likely to start businesses than non-immigrants

Washington, D.C. –The Minority Business Development Agency (MBDA) and the Small Business Administration (SBA) join together to share the report, “Estimating the Contribution of Immigrant Business Owners to the U.S. Economy” by Robert W. Fairlie, PhD, professor of economics at the University of California Santa Cruz at an event held at the Department of Commerce from 10:00 am through 12:00 pm. The study, funded by SBA’s Office of Advocacy, finds that immigrants are nearly 30 percent more likely to start a business than non-immigrants, representing 16.7 percent of all new business owners in the United States.

There are approximately 1.5 million immigrant business owners in the United States, representing 12.5 percent of all business owners. Immigrant business ownership is geographically concentrated in a few states, such as California, New York, New Jersey, Florida and Hawaii. Nearly 30 percent of all business owners in California are immigrants. One quarter of all business owners in New York are foreign-born and one-fifth of all business owners are foreign-born in New Jersey, Florida and Hawaii.

“U.S. Census figures predict that by 2050, the United States will be a majority-minority country. This growth will be fueled by immigrants-specifically people of color,” says Ronald N. Langston, National Director, MBDA. “Some fear this change and others complain about the burden and cost of immigration,” he adds. “But, this report illustrates the positive rewards of embracing inclusion, diversity and minority entrepreneurship.”

“This report is the first time that immigrant business ownership rates and immigrant-owned businesses contributions to the economy have been studied in detail,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. “These findings can make a significant contribution to public policy debates,” he added.

Although Mexican immigrants make up the largest percentage of immigrant business owners, the top five countries of origin also include Korea, India, China and Vietnam. Immigrants also own businesses that range from low-skill businesses such as retail and wholesale trade to high-skill jobs like technology and engineering. In fact, approximately 25 percent of engineering and technology jobs started in the past decade were founded by immigrants. These specific firms had more than $52 billion in sales and hired 450,000 workers, according to the report.

About the Minority Business Development Agency (MBDA)

MBDA, http://www.mbda.gov, an agency within the U.S. Department of Commerce, serves minority entrepreneurs across America who are building and growing enterprises. In doing so, minority-owned firms are better equipped to create jobs, impact local economies and compete successfully in domestic and global marketplaces. With a nationwide network of more than 40 business centers and strategic partners, MBDA assists minority entrepreneurs and business owners with consulting services, contract and financing opportunities, bonding and certification services, building business-to-business alliances and executive training.

About SBA’s Office of Advocacy

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit www.sba.gov/advo, or call (202) 205-6533.

February 25, 2008

Hong Kong Manufacturers Enjoy Priority in PRD Power Supply Increase

Guangdong plans to increase its installed capacity by 8.35 million kw this year to ease the problem of power shortage, which has forced many factories to "open for three days and close for four days" a week. Hong Kong manufacturers in the PRD will enjoy priority in electricity distribution.

Guangdong's power shortage has been a major headache for enterprises, including Hong Kong manufacturers, who find the practice of "opening for three days and closing for four days" a week unacceptable because it affects their normal production process. In light of this, measures have been taken in recent years to give Hong Kong manufacturers priority in power supply. Under these measures, Hong Kong companies enjoy shorter power cutoff hours and more prompt service. In the event that their power supply is interrupted, they can notify the local foreign trade and economic cooperation department and their problem would be resolved promptly.

Demand for electricity in Guangdong will continue to grow rapidly and steadily this year. Total power consumption is expected to reach 333.9 billion kwh, an increase of 12% year-on-year. Maximum load demand will reach 56 million kw, up 13% year-on-year. Of this, 46.5 million kw are subject to overall planning, up 24% year-on-year. With the increase in installed capacity by 8.35 million kw this year, the problem of power shortage in the province could be eased.

Guangdong will see power generation projects going into operation in Guangzhou, Shenzhen, Zhuhai, Huizhou, Shanwei and other places this year. Three of these projects have 2 x 600,000 kw generating units. Each of them will increase installed capacity by 1.2 million kw and flue gas desulfurization capacity by 1.2 million kw. The three projects are: the installation of generating units Nos. 1 and 2 in the first phase of the Shanwei Power Plant at a cost of Rmb580 million; the installation of generating units Nos. 3 and 4 in the first phase of the Zhuhai Power Plant at a cost of Rmb500 million; and the installation of generating units Nos. 1 and 2 in the first phase of the Huilai Power Plant at a cost of Rmb600 million. Following the completion of these projects, except for the January-April dry season when a small power shortage is to be expected, power supply will be basically well-balanced for the rest of the year under normal circumstances. Overall, the year will see an easing of power shortage.

Proven Track Record Needed When Applying for Foreign-Invested Design Enterprise Qualifications

On 1 February, the Ministry of Construction and Ministry of Commerce jointly issued the Implementing Rules for Regulations on the Administration of Foreign-Invested Construction Engineering Design Enterprises. The new rules set strict standards for the application and verification of qualifications of foreign-invested construction engineering design enterprises.

Under the new rules, when applying for verification of qualifications, foreign-invested construction engineering design enterprises must not only meet the necessary professional requirements, but must also provide documents supporting their track record as foreign service suppliers outside China as well as qualification certificates of individual registered architects and engineers.

As required by the Ministry of Construction, foreign service suppliers should be enterprises engaged in construction engineering design or natural persons who have obtained relevant professional qualifications in their own countries or regions. While foreign enterprises must have proven track record as construction engineering design enterprises in their own countries or regions, natural persons must be registered architects or engineers engaged in construction engineering design in their own countries or regions.

When foreign-invested construction engineering design enterprises employing foreign registered architects or engineers as principal professional personnel apply for qualifications as a construction engineering design enterprise, the professional titles of these personnel will not be verified. Verification will only be conducted on their academic qualifications, number of years of service in engineering design, as well as their registered qualifications, track record and goodwill in engineering design abroad.

May 30, 2008

Airport eyes Shenzhen and Zhuhai

A third runway is not merely an option, said outgoing Airport Authority chairman Victor Fung Kwok-king - more are needed if there is full-fledged cooperation with Shenzhen Airport. He told Sing Tao Daily, sister publication of The Standard, the authority is currently developing a 20-year plan that includes ways to improve "the efficiency of the airport, the runways and airport capacity."

The key to maximizing efficiency at Hong Kong International Airport, he said, is cooperation with Shenzhen and Zhuhai airports in which Hong Kong's role is that of a "gateway for passengers coming from Shenzhen and Zhuhai" and they will serve as a gateway to other mainland cities in return." "If HKIA cooperates with Shenzhen, we would be needing fifth, sixth, and seventh runways," Fung said. Fung is not worried about such cooperation opening up a pandora's box of airlines preferring Shenzhen Airport.

"We are concerned more about capacity. Those passengers will still be HKIA customers," he said. Fung acknowledged the challenge posed by the increasing likelihood that there will be direct links across the Taiwan Strait amid a thaw in relations. The key to seeing off that challenge, Fung said, is with Hong Kong adopting an open-skies policy.

He said direct links may have an impact in the short term, but "it should not be a big problem ... it will eventually increase opportunities," Fung said. On budget carriers and the recent demise of Oasis Hong Kong Airlines, he said cooperation with Shenzhen and Zhuhai airports will create openings for budget airlines, as the flight time between these airports is less than an hour. "In the future, there may be more Oases," he quipped.

Fung - who steps down tomorrow - had pushed for HKIA's listing but the move has been postponed. He said: "When an enterprise reaches a certain maturity, it should be given a chance to become listed."

May 11, 2008

443 mainland enterprises got listed in Hong Kong

A total of 443 mainland enterprises have got listed on the Main Board and GEM of Hong Kong Stock Exchange by the end of April 2008, including 148 H shares, 93 red chips and 202 non-H-shares of the mainland private enterprises.

According to the latest statistics released from Hong Kong Stock Exchange, the mainland stock shares account for 58.6% of the total market value and 74.2% of the total market turnover of the Hong Kong stock market.

By the end of April, there were 1,244 listed companies with a total market value of about 18 trillion Hong Kong dollars. Only one Hong Kong company got listed during the first quarter this year. By the end of April, Hong Kong owned in total 4,808 derivative warrants, 260 callable bull/bear contracts, 26 trust funds, and 173 bonds.

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. 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. 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.