July 2011

Quarterly Issue : 3/2011

NEWSLETTER

It will be the 25th Anniversary of the International Business Center in November this year.

This is the third quarterly newsletter issue of 2011. We are carrying on with the profile of Hong Kong while we identify some more business opportunities by industry, and add some practical hints for doing business here. We further elaborate the services that we as IBC are offering in facilitating your business start-up and/or development operations in Hong Kong and Mainland China.

 

Profile of Hong Kong

The geographical, climatic, political, social, economic and demographic background was described in our Quarterly Issue 1/2011 in January. The GDP, industrial sectors, imports and re-exports were reported in our Quarterly Issue 2/2011.

Hong Kong is one of the most open and business-friendly environments in the world. It has been ranked as the world’s freest economy in the Wall Street Journal and Heritage Foundation’s Index of Economic Freedom for 15 consecutive years.

Not only is Hong Kong an attractive market in its own right and a springboard to the Mainland Chinese market, it is also an ideal base for regional operations. Hong Kong, as a regional hub, is situated in the prime central position in East Asia, with half the world’s population within a 5-hour flying time. Position, position, position!

Hong Kong offers a level playing field to business with an accountable government, well-established rule of law, robust protection of Intellectual Property Rights, a well-regulated banking system and a free flow of people, ideas and information. It has an ideal business environment in line with international business practices.

(Source of Information: World Fact book, Central Intelligence Agency, British Consulate General Hong Kong, UK Trade & Invest)

Business Opportunities in Hong Kong

Our previous Quarterly Issues 1/2011 and 2/2011 covered the aspects of Financial & Professional Services, Construction & Engineering, Education & Training and Environmental Protection, the Aerospace Industry and the Railway Industry respectively. In this new issue, we shall talk about three more positive industrial opportunities in Hong Kong: -

  1. Information & Communication Technology
  2. The Information and Communication Technology (ICT) industry has been enjoying prosperity in Hong Kong for many years. Mobile phone penetration was 174% in December 2009. About 9,000 public Wi-Fi access points were established in March 2010. Broadband is enabled throughout the majority of commercial and residential buildings. Internet adoption is very high indeed.

    Mobile & Wireless Applications

    Augmented reality games, content and applications

    Digital Advertising

    e-Learning

    e-Government

     

  3. Creative Industries
  4. Hong Kong has developed a leading edge in key areas of creative industries. The creative industries sector forms one of the new 6 pillars of Government policy to strengthen the economy. There are around 32,000 creative industry related establishments offering job opportunities for over 176,000 employees. These areas include film, TV, music, 2D & 3D design, architecture, comics & animation, games, and digital entertainment etc.

    Create Hong Kong’ is an office dedicated to promoting the development of creative industries in Hong Kong. It is set up under the Commerce and Economic Development Bureau. The office is responsible for the administration and management of funding schemes related to creative industries: The CreateSmart Initiative, DesignSmart Initiative, Film Development Fund, the regulatory control of special effects materials for the production of special effects for film shooting and theatrical performance. You will find more comprehensive information at the website of Create Hong Kong (www.createhk.gov.hk).

  5. Automotive Industry
  6. Hong Kong has a dense population and a congested urban environment just like many other great cities. Based on the statistics of Hong Kong Transport Department, in March 2011, we had 613,622 licensed vehicles: -

    • 420,160 Private cars
    • 18,124 Taxis
    • 12,672 Public buses
    • 503 Private buses
    • 4,347 Public light buses
    • 2,103 Private light buses
    • 69,599 Light goods vehicles
    • 37,192 Medium goods vehicles
    • 3,338 Heavy goods vehicles
    • 37,956 Motor Cycles
    • 1,327 Special Purpose vehicles
    • 6,301 Government vehicles

    Plenty of room exists for development in the areas of electric vehicles and auto parts. It is Government policy to promote a green environment whereas about 98% of the total exports of auto parts were re-exports to Mainland China.

    (Source of Information: Transport Department & Information Services Department, Hong Kong SAR Government, UK Trade & Investment, and CSL Hong Kong)

Doing Business in Hong Kong

We discussed the ways of doing business in Hong Kong in our last newsletters Quarterly Issue 1/2011 and Quarterly Issue 2/2011. In this issue, we introduce the topics of Business Etiquette, Language and Culture.

Generally the business culture in Hong Kong is very similar to the western business culture. People in Hong Kong are sufficiently familiar with western customs to be fully tolerant of cultural differences. We are a multi-cultural society.

Languages

Meetings and Presentations

Negotiations

The Easiest Place to Do Business

Terms of Payment

Investing in Hong Kong

Financial Assistance

(Source of Information: UK Trade & Investment, Invest Hong Kong, and Hong Kong Domain Name Registry)

Gateway to China

Hong Kong is culturally where East meets West. It is geographically located as the prime entrance to Mainland China. Hong Kong is well known of its openness, free economy, sound legal system, low taxation rate, the world class communication freedom and efficiency, and the most modern and convenient transportation system.

Both the Chinese Motherland and Hong Kong SAR signed the Closer Economic Partnership Agreement (commonly known as “CEPA”) providing preferential access to Hong Kong enterprises and individuals to the Mainland market. CEPA is a World Trade Organisation (commonly abbreviated as “WTO”)-compliant, free trade agreement, which became effective from January 2004.

CEPA covers 3 broad areas: -

  1. Trade in goods – almost all goods that qualify as “made in Hong Kong” can be exported duty-free to Mainland China.
  2. Trade in services – geographical, financial and ownership restraints are reduced or eliminated in a broad range of service sectors.
  3. Trade & investment facilitation – a series of measures have been agreed to make business between the two economies easier, more efficient and effective.
(Source of Information: Sinova Management Consultancy Ltd.)

We Offer Helpful And Effeicent Professional Services

For almost a quarter of a century, we have been providing information and support to our clients for matters related to all of the above mentioned topics.  As our core business we offer business center facilities on very flexible term leases for a wide choice of fully serviced offices. In addition we provide Business Identity Programmes (BIP) to cater for the needs of those companies or individuals who simply require a virtual office. With support from the 14 IBC (International Business Center) Group Companies we are also able to render an extensive range of professional services:

  • All Accountancy Services
  • Secretarial services
  • Business Plans / Marketing Plans
  • Franchise Building & Development
  • Brand Building & Development
  • Marketing Services / Event Management
  • Profitability Consultancy
  • Mergers & Acquisitions
  • Organisation & Methods
  • Operating Procedure Manuals
  • Due Diligence
  • Internal Control Review
  • Website Building & Maintenance
  • Short Video Production
  • 2D & 3D Media Design Services
  • Data protection and Storage

Should you need to know anything more about Hong Kong and our International Business Center, please contact us at our website. Alternatively you are always welcome to call us at +852 2268 6888 (Hong Kong is GMT +8:00 hours). Or simply fill in the enquiry form on www.ibchk.com and we shall reply to your message shortly.

Recent Activity

Caring Company NGO Partnership Day 2010/11

On 19th April 2011, International Business Center, IBC Capital Limited and IBC Solutions Limited were granted their “Caring Company” certificates in the event of “Caring Company NGO Partnership Day 2010/11. Ms. Teresa Ng, Ms Madelaine Tsung and Mr. Andy Chan represented the 3 companies to receive the certificates.

Disclaimer

The information contained in this Newsletter is for reference purposes only, and is provided by International Business Center as a complimentary service. Many sources are used in the compilation of this information, and where necessary the relevant credits and/or copyright acknowledgements are made. Due diligence must be exercised and additional research should be conducted before acting on any of the opinions expressed herein.
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