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Hong Kong is the ideal business partner for US companies that are looking to expand and grow their markets in Mainland China and Asia, said the Director of the Hong Kong Economic and Trade Office, New York, Ms Anita Chan.
Speaking at a breakfast event entitled "Hong Kong - Prospects and Opportunities for US Businesses" this morning (October 19, New York time) in New York City, Ms Chan highlighted the advantages of setting up a business in Hong Kong and the new opportunities Hong Kong offers to US businesses.
She said that Hong Kong has attracted many more New York-based companies across all sectors in recent years, from banking and financial institutions to legal firms, art galleries and technology start-ups. They are attracted by the city's many unique attributes, including its close links with Mainland China, rule of law, low taxes, bilingual workforce and convenience in conducting business.
"Whatever line of business you are in, and whether you are big or small, Hong Kong has something attractive and unique to offer if you wish to tap the vast China and Asia market," she said.
Ms Chan noted that Hong Kong was among the first economies to rebound from the financial tsunami."Our economy started picking up from the third quarter of 2009. Our GDP has expanded by 7.2% for the first half of this year," she said, adding that the latest forecast for GDP growth for the whole of 2010 had been revised upwards to between 5% and 6%.
On new developments in Hong Kong, Ms Chan highlighted Hong Kong's new and unique role as an offshore renminbi (RMB) trading centre, especially after the Revised Clearing Agreement signed between the People's Bank of China and the RMB clearing bank, the Bank of China (Hong Kong) Limited, in July which had opened up new opportunities for corporations to raise, hold and invest RMB.
"As our Chief Executive pledged in his recent Policy Address, Hong Kong will continue to work with Mainland authorities to ensure that we play an even stronger role in this regard," she said. "This will benefit not just the large companies raising funds, the financial houses or professional services sector, but also all companies using RMB for their business transactions and investors wishing to benefit from this increasingly important currency."
Ms Chan pointed out that, aside from financial services, US companies can also benefit from the opportunities under the Closer Economic Partnership Arrangement (CEPA) between Mainland China and Hong Kong that allows 1,500 items of goods manufactured in Hong Kong tariff-free entry into Mainland China and service providers in 44 sectors to enjoy preferential treatment in setting up and operating their business in China.
Ms Chan noted that CEPA is "nationality-blind" and does not impose any restrictions over the source of capital. Any overseas company, including a US business, that is registered in Hong Kong is eligible to enjoy the benefits under CEPA. And indeed many have done so by setting up an office in Hong Kong, or partnering with or investing in a Hong Kong company.
Ms Chan added that US businesses will also benefit from enhanced transport links between Hong Kong and Mainland China, which will further facilitate people and cargo flow between the two places. She cited the examples of the 18-mile Hong Kong-Zhuhai-Macao Bridge which would bring a 50-million consumer base within a three-hour commuting radius from Hong Kong, as well as the Guangzhou-Shenzhen-Hong Kong Express Rail Link which would not only reduce travelling time between Hong Kong and Guangzhou from 100 minutes to 48 minutes but also connect Hong Kong's railway system with China's high-speed railway network.
"This means not only faster, easier access to Mainland China from Hong Kong, but bringing more Chinese businesses and consumers to Hong Kong, creating greater demand for all kinds of goods and services." said Ms Chan.
Noting that a recent US business survey showed that many mid-sized US companies were pinning their growth plans on the growing Chinese market, Ms Chan concluded by encouraging the corporations present to use Hong Kong as the springboard: "No city is as close to China and so open, free, safe and business-friendly."
The breakfast event, attended by about 100 business and corporate executives, was organised by the Hong Kong Economic and Trade Office, New York, the Hong Kong Trade Development Council and the Manhattan Chamber of Commerce, in association with the Hong Kong Association of New York.
Ends/Wednesday, October 20, 2010
Issued at HKT 12:56
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