Transcript A Tale of Three Cities - Hong Kong Trade Development Council

A Tale of Three Cities –
The Hong Kong Plus PRD
Powerhouse
Peter Woo
Chairman
Hong Kong Trade Development Council
The China Appeal
 GDP will reach US$2,340 billion by 2010




19% of population classified as
middle-class = 250 million people
Will increase to 25% by 2010
Spent US$2 billion on luxury
items in 2004
Projected to consume 29%
of the world’s luxury items by 2015
Diverse Markets
BEIJING

Beijing and Bohai Area

Shanghai and Yangtze
River Delta
SHANGHAI

HONG KONG
Greater Pearl River Delta
Greater Pearl River Delta
Small region
Massive impact
Greater Pearl River Delta
Nine municipalities
• 0.4% of China's land
mass
• Population of 45 million
•
•
Concentration of
manufacturing
•
34% of China’s exports
Rich consumer markets
• 33% of China’s imports
•
A Tale of Three Cities
Hong Kong
+ Shenzhen
+ Dongguan
= The HK plus PRD Powerhouse
= The best entry point to China's markets
A Tale of Three Cities
Shenzhen


New "Silicon Valley“ for IT and R&D

50% of industrial output from high tech

20% of China's high tech exports
24,000 Hong Kong-backed ventures
A Tale of Three Cities
Dongguan

20,000 HK owned factories

Variety of manufacturing clusters

Competitive production, good quality

Steady source of efficient labour
A Tale of Three Cities
PRD Powerhouse Average real GDP growth 2000 - 2004
Shenzhen
15.8%
Dongguang
18.7%
Shanghai
11.5%
A Tale of Three Cities
PRD Powerhouse GDP per capita 2004 (US$)
Shenzhen
7,160
Dongguang
8,698
Shanghai
6,682
A Tale of Three Cities
PRD Powerhouse Export Strength (US$ billion 2004)
Shenzhen
77.8
Dongguang
35.2
Shanghai
73.5
A Tale of Three Cities
PRD Powerhouse High-tech Exports (% of China’s exports 2004)
Guangdong Province
40.1
Shenzhen
21.2
Shanghai
17.5
A Tale of Three Cities
Population
(Million)
GDP
(US$
billion)
Exports
(US$
billion)
TEUs
(Million)
Hong Kong
7
166
259
22
Shenzhen
7
40
78
14
Dongguan
7
14
35
-
TOTAL
21
220
372
36
Hong Kong Advantages
Unrivalled platform for China
business
International centre for:



Finance
Trade and business services
Transportation and logistics
Ideal base for regional headquarters to manage
operations (3,800 RHQs + ROs)
Hong Kong Advantages
Made in China by Hong Kong
Designed, financed, marketed,
and distributed by Hong Kong
Hong Kong Advantages
Location, location, location
At the heart of Asia
 Three-hour flight
to key mainland cities
 HK airport connects
with 150 world cities
+ 45 cities in mainland

5 hours
3 hours
1 hour
Hong Kong Advantages
Hong Kong's China business
advantage:
Knowledge of China and experience
 Market access and connection
 Risk management

Hong Kong Advantages
Ease of doing business
World's freest economy
 Strong legal system
 Level playing field
 Familiar business environment
 Strong UK business community
(115 UK Regional HQs)

Hong Kong Advantages
HK - Getting ever stronger
Key developments:
 Strong economic growth




RMB business
Improved infrastructure connection with mainland
More mainland tourists
CEPA III
CEPA
CEPA - what is it?

Closer Economic Partnership Arrangement

Free trade agreement with mainland

Easier / faster access to China markets

Zero tariff on HK-made goods

Allows HK service providers to operate
CEPA
CEPA: impact on service sector
First mover advantage
Covers 26 service areas
 Lowering of entry requirements

CEPA
How foreign firms can take advantage
In goods
 Manufacture in Hong Kong
In services
 Partner with HK companies
 Invest in or buy a CEPA-qualified HK company
China's "going out" policy
Encourages mainland enterprises to:



Connect with international markets
Manage and finance business deals
Raise capital - US$100 billion already
Hong Kong is the natural platform !
China’s MPEs
The rise of mainland private
enterprises:

4 million private enterprises

Majority are SMEs

Half of them want to "go out"
China opportunity
Don't miss it!
Hong Kong plus the PRD is your entry point
PRD
Hong Kong
HK Trade Development Council
How can we help you:
1) Providing information




By market and sector
Face-to-face
London + 11 China offices
Online - tdctrade.com
HK Trade Development Council
How can we help you:
2) Matching business
partners


Face-to-face - London office
Online – sourcing.tdctrade.com
HK Trade Development Council
How can we help you:
3) Connecting clients



Sourcing and selling at trade fairs
28 leading trade fairs in Hong Kong
Online – “virtual trade fairs” at tdctrade.com
Contact us!
London Office
Tel 44-(20)-7616-9500
Fax 44-(20)-7616-9510
Email: [email protected]