Transcript What are the opportunities and potentials for HK

What are the opportunities and
potentials for HK businesses in
the mainland?
The economic growth in China
• Continuous growth in real GDP
• Also, there is an obvious growth in GDP
per capita Increasing in purchasing
power
• Enlarging the potential market in China
China’s Average Annual Real
GDP Growth Rate
Year
GDP growth rate
2004
10.1%
2005
9.9%
2006
9.5%
2007(forecast)
About 9.25%
China - GDP per
capita ($)
8000
6000
4000
2000
0
3800
3600
1999
2000
4600
5000
2002
2003
7198
7600
2005
2006
5600
2004
Globalization
• becoming a single-world society
• Stages of production finished in different
countries
• Customers are no longer concern about the
origin of products (low regional preference)
Minimizing the possible risks
Reinforcing global development
The development of e-commerce
• General use of computer and internet
• People do business through internet (e.g.
e-mail, e-conference )
• Easy to manage business and operations
oversea
• Cross broad business become possible
The development of e-commerce
(continued)
• E-commerce is well-developed in HK
Possess the necessary skills and talents
A potential to enlarging the business in
China
Information Technology (Example)
• one of the focus for HK firms
- Telecom market;
- e-commerce;
- and software industries
What are the strengths and
weaknesses of HK businesses
vis-a-vis mainland firms and
multinationals?
Strengths
•
•
•
•
•
•
•
Developed a good image in China
High quality products and services
Good infrastructure and business system
Adequate talents and business experience
Similar culture and language with China
Market sensitive
CEPA—zero tariff
Weaknesses
•
•
•
•
Less innovative ideas
Not enough famous and local brands
High costs
Lack high-tech professionals