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The Chief Executive, Mr Donald Tsang, highlighted two new market opportunities attracting companies to Hong Kong, at a reception organised by Invest Hong Kong (InvestHK) earlier today (July 14).
The annual CE Reception is an occasion to thank overseas and Mainland companies that have established or expanded their operations in Hong Kong during the past year.
Speaking to more than 200 top executives of these companies, Mr Tsang said, "Traditionally, we have marketed our city as a place to do business at four distinct levels: first, as a market in its own right; second, as a co-ordination centre for South China; third, as a base for the whole of China; and fourth, as a base for the region."
"But I also wish to highlight two emerging trends." Hong Kong has become increasingly a springboard for Mainland companies out to global markets and a location where multinational companies perform global functions.
Mainland companies have increasingly recognised Hong Kong's strategic role as the springboard to expand regionally and globally.
"Just six years ago, InvestHK did not have any Mainland clients. In the first six months of this year, Mainland companies accounted for almost 20 per cent of our completed investment projects," said Mr Tsang.
Leading multinationals, on the other hand, have begun to move worldwide business and functions and even relocate senior executives with global responsibilities to Hong Kong. This development suggests that Hong Kong is fulfilling a similar role in Asia to New York's in North America and London's in Europe – a trend depicted in the expression "Nylonkong" coined by Time Magazine earlier this year.
"This is a trend we welcome wholeheartedly and is set to continue and deepen as Hong Kong further develops its role as China's major international financial and business services centre, and as a vital cog in the management of global financial flows," Mr Tsang remarked.
Mr Mike Rowse, Director-General of Investment Promotion, noted these new opportunities would make Hong Kong even more attractive to the foreign direct investors, which was indicated by the high number of completed projects in the first half of this year.
As at the end of June, InvestHK assisted 148 overseas and Mainland companies to invest or expand in Hong Kong, achieving more than half of its annual target of 250. These companies came from a variety of sectors, including Hong Kong's pillar industries such as business and professional services and financial services, as well as transportation and technology.
The growing trend of Mainland companies using Hong Kong as a springboard to go overseas has continued, with one-fifth of InvestHK's completed projects coming from the Mainland. Mr Rowse said, "With the overwhelming response to the 'On Your Marks, Get-set Go' nationwide marketing campaign, increasing numbers of projects from the Mainland is highly expected." Last year, InvestHK launched a three-year marketing campaign in those seven economically developed provinces where privately-owned enterprises (POEs) have a strong presence, promoting Hong Kong as an excellent launch pad to expand internationally.
Mr Rowse concluded by saying InvestHK would strive to make the best use of these and other opportunities to attract even more companies around the world to invest and expand their presence in Hong Kong. "For those global CEOs, Hong Kong is a place where you can manage your regional and global operations effectively and efficiently."
Before the Reception, senior representatives of five companies, accompanied by Mr Rowse, met the media to share their views on the overall business environment in Hong Kong. They were Mr Steve Choi, Executive Director, Dynamic Progress International Limited; Mr Yong Lin, General Manager, Hai Tong (HK) Financial Holdings Ltd; Mr Halfdan Ross, General Manager, Maersk Shipping Hong Kong Limited; Mr Carl Holmberg, Asia Director, Mediaplanet Asia; and Mr Charles Ross, Managing Director, Single Market Events.
The executives discussed their companies' recent investment in Hong Kong. In summary:
Dynamic Progress International Limited
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Dynamic Progress International is a joint venture between two companies based in the US and Hong Kong. At the end of last year, Dynamic Progress International successfully set up Hong Kong's first bio-diesel plant in Tuen Mun. The plant has a capacity of 120 tonnes of oil per day and Dynamic Progress is licensed to process up to 60,000 tonnes. The plant is helping improve Hong Kong's air pollution by cutting greenhouse gas emissions and mitigating climate change.
Hai Tong (HK) Financial Holdings Ltd
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Hai Tong Securities was founded in Shanghai in 1988 and was among the first batch of securities firms in the country. The company currently has a market capitalisation of more than RMB160 billion and over three million clients. Hai Tong (HK) Financial Holdings Ltd was set up in Hong Kong in 2007. Its business activities cover brokerage, investment banking, financing, mergers and acquisitions, asset management, fixed income, derivative products and market research.
Maersk Shipping Hong Kong Limited
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With offices in around 130 countries, the A. P. Moller-Maersk Group from Denmark is internationally recognised for its activities in shipping, energy, offshore, retail and other businesses. Its company Maersk Line is the market leader in worldwide container services, operating more than 500 container vessels and 1.9 million containers. They have recently established a ship owning company in Hong Kong, Maersk Shipping Hong Kong Limited, and plan to grow their fleet of Hong Kong registered ships.
Mediaplanet Asia
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Established in Sweden in 2002, Mediaplanet's business model is developing and producing special interest information in print, online and broadcast. Partnering with 60 of the leading newspapers in Asia, Europe and the US, Mediaplanet publishes more than 900 supplements in 15 languages in 2008. Supplements vary in size from 12 to 28 pages. Today, Mediaplanet has 19 offices in 17 countries and employs 250 staff worldwide.
Single Market Events
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Established over 20 years ago, Single Market Events from the UK is an independent event organiser specialising in creating or managing niche events within strong market sectors. Some of the shows Single Market Events have held include London Fashion Week, The Wine Show and The British International Motor Show. Partnering with Will Ramsay and Andry Montgomery Ltd, Single Market Events' first event in Hong Kong was ART HK 08 in May, which attracted over 100 art galleries and 19,185 visitors from Hong Kong and worldwide.
Ends/Monday, July 14, 2008
Issued at HKT 18:02
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