2019/2020 Budget Promotes Diversified Economic Development - InvestHK

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2019/2020 Budget Promotes Diversified Economic Development - InvestHK
Quarterly Newsletter                                                               April 2019

2019/2020 Budget Promotes
Diversified Economic Development
Hong Kong’s Financial Secretary Paul Chan unveiled the 2019-20 Budget on 27 February. On the
economic front, the economy grew by 3 percent in 2018 and is forecast to grow by 2-3 percent in
2019. Headline inflation was 2.4 percent in 2018, with an underlying inflation rate of 2.6 percent.
For 2019, headline inflation and underlying inflation are both estimated at 2.5 percent.

This Issue   3 Sector Focus: Dispute Resolution
             4-5 Special Feature: New Business Opportunities in the Greater Bay Area
             6-7 International Forward Calendar 8-15 Case Studies
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
2

    Apart from strengthening the industries currently enjoying competitive edges, Hong Kong has identified new areas
    of growth by vigorously developing emerging industries. Here are the highlights:

                                         • Set aside$5.5   billion for the • Allocate $800      million to support
                                           development of Cyberport 5 to     R&D by universities, key laboratories
       Innovation                          accommodate more technology and engineering research centres
          and                              companies and startups
       Technology                                                           • Launch the $2billion Re-industrialisation
                                         • Set aside$16     billion for       Funding Scheme in 2019
                                           universities to enhance or
                                           refurbish campus facilities,     • Expand the Corporate Venture Fund of the
                                           in particular those for R&D
                                                                              Science Park to   $200 million
                                         • Inject$20    billion into the
                                                                            • Establish two innovative clusters in
                                           Research Endowment Fund for
                                                                              the Science Park focusing on “A.I. and
                                           more research projects
                                                                              robotic technologies” and “healthcare
                                                                              technologies”

                                         • Issue the first batch of         • Consider limited partnership
                                           government green bonds             regime/tax arrangements to attract
                                                                              private equity funds to HK
         Financial                       • Tax concessions for Marine
         Services                          Insurance and underwriting of    • Provide a$400        million
                                           specialty risks                    seed capital for Financial
                                                                              Reporting Council
                                         • Provide a  50  percent profits
                                           tax concession to marine         • Establish Academy of Finance for
                                           insurance businesses               financial leadership development

                                         • Allocate$353      million for    • Allocate$150      million to
                                           the continued implementation       support the development of
                                           of the Development Blueprint       an online international dispute
           Others                          for Hong Kong’s tourism            resolution platform by NGOs
                                           industry

                                         • Inject$1  billion into the
                                           Film Development Fund

    w www.budget.gov.hk
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
Sector Focus                 3

Hong Kong — the Leading Dispute
Resolution Hub
Hong Kong has a robust legal services          The Hong Kong International Arbitration         its common law system which is familiar to
sector with more than 9,800 practising         Centre (HKIAC) is a home-grown arbitral         the international community and it is the
solicitors (including registered foreign       institution. HKIAC ranked first for location,   only common law jurisdiction with China.
lawyers from 33 jurisdictions) and about       perceived value for money, helpfulness
                                                                                               Hong Kong’s special reciprocal arrangement
1,500 practising barristers, of which 100      of staff and IT services by the Global
                                                                                               with Mainland China makes it an ideal
are Senior Counsels in the city. Many major    Arbitration Review Hearing Centres
                                                                                               location for the resolution of B&R-related
international law firms have offices in        Surveys 2016, 2017 and 2018.
                                                                                               disputes. Under the arrangement, if a party
Hong Kong and provide a wealth of legal
                                               A number of well-respected international        refuses to comply with an arbitral award
expertise in areas such as banking and                                                         decided upon in Hong Kong, the other party
                                               institutions have chosen Hong Kong as
finance, shipping, maritime, construction,                                                     can apply to the Intermediate People’s
                                               their first global location outside their
intellectual property and information                                                          Court of the Mainland China in order to
                                               home jurisdictions. This melding of local
technology. They also bring international                                                      seek enforcement of the award.
                                               and international arbitral institutions has
perspective and experience in handling
                                               strengthened Hong Kong’s development as
international transactions so that                                                             All of these advantages enable Hong Kong
                                               the leading international legal and dispute
commercial disputes can be dealt with                                                          to become a prime venue for international
                                               resolution services hub in the Asia-Pacific
fairly and effectively.                                                                        legal and dispute resolution services
                                               region and beyond.
                                                                                               through arbitration and mediation.
Worldwide Recognition and                      Opportunities from the
Enforcement of Arbitral Awards                 Belt and Road Initiative
Since 2015, Hong Kong has been among                                                             To explore the opportunities
                                               The Belt and Road (B&R) Initiative
the top five preferred seats for arbitration                                                     of setting up or expanding
                                               is expected to increase activities in
globally according to the International                                                          your dispute resolution related
                                               trading, investment, financing as well as
Arbitration Surveys conducted by Queen                                                           business services in Hong Kong,
                                               infrastructure and construction projects
Mary University of London.                                                                       please contact:
                                               amongst enterprises in the Mainland and
Hong Kong arbitral awards are enforceable      the Belt and Road countries. Inevitably,          Philip Kung
in over 150 Contracting States to the New      there will be a possibility of disputes in        Head of Business & Professional
                                               these activities and transactions.                Services
                                                                                                  Z (852) 3107 1091
York Convention. This is complemented
by respective arrangements for reciprocal      Under the “one country two systems”
enforcement with Mainland China and            principle, the Hong Kong Special                  m pkung@investhk.gov.hk
Macao SAR.                                     Administrative Region (HKSAR) maintains
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
4     Special Feature

New Business Opportunities under
the Outline Development Plan of
the Greater Bay Area
The Outline Development Plan (the Plan) of      circle for living, working and travelling,       establishing Hong Kong as the centre for
the Guangdong-Hong Kong-Macao Greater           strengthening cooperation and jointly            international legal and dispute resolution
Bay Area (GBA) was promulgated by the           participating in the Belt and Road Initiative,   services in the Asia Pacific region.
Central Government on 18 February 2019          jointly developing Guangdong-Hong Kong-
                                                                                                 Some of the many business opportunities
and is an important document guiding the        Macao cooperation platforms, as well as the
                                                                                                 for overseas companies to take advantages
development of the GBA. In addition to          implementation of the Plan.
                                                                                                 of the GBA via Hong Kong include:
the background of the Plan and the overall
                                                The Plan supports Hong Kong in
requirements such as the basic principles
                                                consolidating and enhancing its status as
                                                                                                 Innovation and R&D
and objectives of development, it covers
the spatial layout, namely building on          international financial, transportation and      • Foreign investors could set up research
the four core cities of Hong Kong, Macao,       trade centres as well as an international          and development (R&D) institutes and
Guangzhou and Shenzhen as core engines          aviation hub, strengthening Hong Kong’s            innovation platforms in the GBA. Taking
for regional development, continuing            status as a global offshore Renminbi               advantage of Hong Kong’s super tax
leveraging their comparative advantages,        (RMB) business hub and its role as an              deduction of 300 percent for qualified
and strengthening the radiating effect in       international asset management centre and          R&D expenditure and other supporting
leading the development of nearby regions.      a risk management centre, promoting the            policies, higher education institutions,
It includes policy measures for developing      development of high-end and high value-            R&D institutes and enterprises from other
an international innovation and technology      added financial, commercial and trading,           regions are encouraged to participate in
hub, expediting infrastructural connectivity,   logistics and professional services, and           events on innovation and technology
building a globally competitive modern          so forth, making great efforts to develop          in the GBA. They can leverage the
industrial system, taking forward ecological    the innovation and technology industries,          strengths in innovation and R&D as well
conservation, developing a quality living       nurturing emerging industries, and                 as high concentration of headquarters
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
Market Focus                    5

 of enterprises in Hong Kong, together          technology; biotechnology; high-end             World-Class Business and
 with the advantages of having complete         equipment manufacturing and new                 Professional Services
 industry chains in rest of the GBA.            materials; 5G and mobile internet;
                                                intelligent robots; 3D printing; applications   • Providing world-class business and
• Moreover, the Plan calls for Hong Kong,
                                                of BeiDou satellite navigation system; new        professional services has long been
  Macao, Guangzhou and Shenzhen to
                                                energy vehicles; energy conservation and;         Hong Kong’s core strengths. The Plan
  leverage their rich scientific research
                                                environmental protection technologies,            supports Hong Kong’s development of
  resources and solid foundations in new
                                                just to name a few.                               high-end maritime services; maritime
  and hi-tech industries to jointly develop
                                                                                                  law and dispute resolution services;
  strategic emerging industry clusters which   • As innovation and creativity is not              aviation management training centre
  are well-supported by a comprehensive          restricted to hardware development,              and high value-added freight, aircraft
  production chain, highly radiative for         the GBA focuses in digital and creative          leasing and aviation financing services as
  driving the development of other areas         industries such as animation, comics             well as other professional services such
  and globally competitive. In other words,      and games, internet culture, digital             as accounting and auditing, legal and
  R&D institutes and enterprises in Hong         culture and devices, digital art and             dispute resolution services, management
  Kong can benefit from more collaboration       display, film and television industries          consultancy, testing and certification,
  with other cities in the GBA as well.          and promote the application of digital           intellectual property, construction
                                                 creativity in areas such as convention           and related engineering works. Global
New Pillar Industries                            and exhibition, e-Commerce, medical              companies can help satisfy the increasing
• The GBA will pursue the development            and healthcare, education services,              business service needs of the GBA from
  and growth of new pillar industries            tourism and leisure.                             Hong Kong.
  including new-generation information
                                                                                                • The GBA consists of a consumer base
                                                                                                  of 70 million people, who are relatively
                                                                                                  and increasingly wealthy, and are within
                                                                                                  just an hour or so travelling from Hong
                                                                                                  Kong.

                                                                                                Last but not least, Hong Kong’s status as
                                                                                                an international financial centre enables
                                                                                                it to further expand into a platform for
                                                                                                investment and financing serving the Belt
                                                                                                and Road Initiative, a green finance centre,
                                                                                                develop more offshore RMB, commodity
                                                                                                and other risk management tools and
                                                                                                steadily expand the channels for Mainland
                                                                                                and Hong Kong residents to invest in
                                                                                                financial products in each other’s market.

                                                                                                InvestHK will continue to help enterprises
                                                                                                from around the world to understand
                                                                                                and take advantage of development
                                                                                                opportunities brought about by the
                                                                                                development of the GBA.

                                                                                                Full text of the Outline Development Plan:

                                                                                                w   www.bayarea.gov.hk/filemanager/en/
                                                                                                share/pdf/Outline_Development_Plan.pdf
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
6       International Forward Calendar

                                                                APR
         Capital Link International Shipping Forum                               Lloyd’s List Singapore Business Forum
         Organised in partnership with Citi and in cooperation with              As part of the Singapore Maritime Week, the forum is a
         NASDAQ and the New York Stock Exchange, the forum is a                  knowledge based platform for audience to obtain the latest

    1
         meeting place for C-level executives, investors, ship owners     10     news and trend in shipping.
         and financiers.                                                         Location: Singapore
         Location: Metropolitan Club, New York City                              Organiser: Lloyd’s List
         Organiser: Capital Link                                                  lloydslist.maritimeintelligence.informa.com
          forums.capitallink.com/shipping/2019newyork/index.html
                                                                                 Internet Economy Summit
         Marine Money Hong Kong Ship Finance Forum                               The region’s flagship event on digital economy that aims
         Annual get-together for international shipping and finance              to examine how businesses can leverage data-driven
         professionals in Hong Kong, one of the major maritime hubs              innovations to capitalise on opportunities in the connected
                                                                                 world. Themed “Digital Economy • Redefines our Future”, the
    2    in the world.
                                                                                 two-day summit brings together prominent industry icons,
         Location: Renaissance Hong Kong Harbour View Hotel
                                                                         15-16   top business executives and entrepreneurs from around the
                                                                                 world offering a vision into the digital future with disruptive
         Organiser: Marine Money
                                                                                 influence in the hottest topics at the forefront of global
          marinemoney.com/forum/HK19                                             technology development.
                                                                                 Location: Hong Kong Convention and Exhibition Centre
         Connecticut Maritime Association Shipping                               Organisers: HKSAR Government, Hong Kong Cyberport
         North America’s largest Maritime conference where the                     ieconomysummit.hk
         annual Commodore Award will be presented to those who
         have significantly contributed to the development of the
2-4      maritime industry.                                                      International Dispute Resolution Conference 2019
         Location: Hilton Stamford Hotel, Connecticut                            The Conference aims to foster discussion on emerging trends
                                                                                 in dispute resolution and the impact of the “Convention
         Organiser: Connecticut Maritime Association                             on International Settlement Agreements Resulting from
          cmaconnect.com                                                         Mediation” on international business environment.
                                                                                 Location: Hong Kong Convention and Exhibition Centre
         Celebration of Chinese New Year                                         Organisers: United Nations Commission on International Trade
                                                                                 Law, Hong Kong Mediation Centre and International Dispute
         Hong Kong business seminar organised on the occasion of                 Resolution & Risk Management Institute
         CNY celebration.
    3                                                                              mediationcentre.org.hk
         Location: Vicenza Chamber of Commerce                            17
         Organisers: InvestHK, HKTDC, HKETO in Brussels
                                                                                 Silicon Dragon Hong Kong 2019
          vi.camcom.it/it
                                                                                 Panel discussions and tech chats with leading Mainland
                                                                                 China and Silicon Valley venture capitalists, tech entrepreneurs
         Capital Link Singapore Maritime Forum                                   and their investors. Focus on China’s leading advances in AI,
                                                                                 robotics, FinTech, biotech and more.
         As part of the Singapore Maritime Week, the forum will
         highlight the competitive positioning and advantages of                 Location: Cyberport, Hong Kong
         Singapore as a maritime hub and also regional business and              Organiser: Silicon Dragon
    8    trading opportunities in Asia.                                            silicondragonhk2019.eventbrite.com
         Location: Westin Hotel Singapore
         Organiser: Capital Link
          forums.capitallink.com/shipping/2019singapore/index.html
                                                                                                                                        MAY
                                                                                 HOFEX
         Marine Money Singapore Offshore Finance Forum                           Asia’s leading food and hospitality tradeshow will bring
         As part of the Singapore Maritime Week, the forum will gather           the most comprehensive selection of food and drinks,
         ship owners, banks, leasing companies and marine insurance      7-10    hospitality equipment and supplies products to Asia.
         companies to deliberate on the future of shipping in Asia.              Location: Hong Kong Convention and Exhibition Centre
         Location: St. Regis Hotel, Singapore                                    Organiser: UBM Asia Ltd
         Organiser: Marine Money                                                   hofex.com
          marinemoney.com/forum/SINOFF19
                                                                                 Finovate Spring
         Symposium on the Guangdong-Hong Kong-Macao                              Being one of the largest FinTech events, Finovate Spring
                                                                                 aims at bringing cutting-edge banking and financial
    9    Greater Bay Area                                                        technology, through a series of
         With prominent government and business leaders from             8-9     fast-paced demos.
         Hong Kong, Guangdong, Macao, and Japan as speakers, the                 Location: Hilton Union Square, San Francisco, California
         Symposium will provide in-depth understanding of the
         Greater Bay Area, and the business opportunities there.                 Organiser: KNect365
         Location: Imperial Hotel Tokyo                                            finance.knect365.com/finovatespring
         Organisers: The People’s Government of Guangdong Province,
         the Government of the Hong Kong Special Administrative                  The Next Web Conference (TNW)
         Region, the Government of the Macao Special Administrative
                                                                                 TNW Conference is a two-day technology festival that
         Region, InvestHK                                                        brings together international technology executives, top-tier
         Registration: form.qooker.jp/Q/auto/en/greaterbayarea/sympojp           investors and promising startups for two days of business,
                                                                         9-10    knowledge sharing. InvestHK will have a booth at the event.
                                                                                 Location: NDSM (Nederlandsche Dok en Scheepsbouw
                                                                                 Maatschappij), Noord-Amsterdam
                                                                                 Organiser: theNextweb
                                                                                   thenextweb.com
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
7

        Capital Link International Shipping Forum, China                          Moneyconf
        Held in partnership with Columbia Shipmanagement and                      An event focused on FinTech and the revolution in money,
        Singhai Marine Services and supported by the Pudong                       payments and finance.
        Government, the forum will explore how international and          10-12   Location: RDS Arena, Dublin
        Chinese ship owners, leasing firms, shipyards, and industry
 10     players can benefit from the latest trends in global financing,           Organiser: CiLabs (by invitation only)
        capital markets, private equity, and alternative financing.                moneyconf.com
        Location: Grand Kempinski Hotel, Shanghai
        Organiser: Capital Link                                                   Reception for New Foreign and Mainland
         forums.capitallink.com/shipping/2019china/                               Companies in Hong Kong
                                                                                  This networking reception is to welcome the foreign and
                                                                            13    Mainland companies newly established in Hong Kong.
        Consensus 2019
        InvestHK will exhibit at the largest blockchain-focused event             Location: Hong Kong
        in North America. This year the event is expected to bring                Organiser: InvestHK (by invitation only)
13-15   over 8,800 attendees and 254 speakers from 119 countries.
        Location: New York Hilton Midtown
                                                                                  Airfinance Journal China 2019
        Organiser: Coindesk
                                                                                  The two-day aviation finance conference will bring together
         coindesk.com/events/consensus-2019                                       over 700 senior executives from airlines, leasing companies,
                                                                          13-14   financial institutions and investment houses to examine
                                                                                  the most pressing issues and opportunities of the aviation
        Nordic Community Networking Reception                                     finance landscape.
        This networking reception is to thank Nordic companies for                 events.airfinancejournal.com/china-airfinance/details
 23     their contribution to Hong Kong.
        Location: Hong Kong
        Organiser: InvestHK (by invitation only)                                  Inspirefest
                                                                                  Silicon Republic’s international event connecting sci-
                                                                                  tech professionals with fresh perspectives on leadership,
        RICS Hong Kong Annual Conference 2019                             16-17   innovation and diversity.
        This conference will frame the regional and global dilemma,               Location: Bord Gais Energy Theatre, Dublin
        examine sensible city planning for professionals and                      Organiser: siliconrepublic
        policymakers, and explore how Hong Kong can place itself at
 24     the heart of the green revolution.                                         inspirefest.com
        Location: Grand Hyatt Hong Kong
        Organiser: Royal Institution of Chartered Surveyors (RICS)                32nd Annual Marine Money Week
         rics.org/en-hk/events/conferences-seminars/hkconf19                      An annual event in the US, the Marine Money Week will bring
                                                                                  along a mid-year review of the global shipping industry.
                                                                          17-19   Location: The Pierre Hotel, New York City
        HKVCA China Private Equity Summit 2019
                                                                                  Organiser: Marine Money
        This flagship event will attract over 600 venture capital and
        private equity practitioners, leading corporates, and other                marinemoney.com/forum/MMWeek19
        industry professionals and participants from across the
 30     region.
                                                                                  TradeWinds Shipowners Forum
        Location: Hong Kong Convention and Exhibition Centre
                                                                                  An interactive discussion led by a panel of experts and
        Organiser: Hong Kong Venture Capital and Private Equity                   designed to reflect TradeWinds readers priorities and
        Association
                                                                           25     concerns.
         cpes.hkvca.com.hk                                                        Location: Athens
                                                                                  Organiser: TradeWinds
                                                                  JUN              10times.com/shipowners-forum

        Money 20/20                                                               Aviation Financial Festival
        The world’s largest marketplace for ideas, connections and                The premier annual gathering for senior aviation finance
        deals in payments, FinTech and financial services, the                    professionals to connect and address emerging trends and
        event is where industry leaders come to seize new business                risks facing the global aviation finance market. InvestHK will
3-5     opportunities, strengthen partnerships and discover the           26-27   have a speaking slot.
        latest disruptions. InvestHK will have a booth at the event.
                                                                                  Location: Dublin, Ireland
        Location: RAI Amsterdam
                                                                                  Organiser: ISHKA
        Organiser: Money 20/20 Europe
                                                                                   ishkaglobal.com
         europe.money2020.com/amsterdam

        FIN Portugal 2019
        Aiming to be a networking and interacting space for
        participants, the event includes a forum, exhibition and
        lounge area for product showcasing and workshop. InvestHK
6-7     will have a booth in conjunction with HKTDC.
        Location: Exponor, Matosinhos, Porto                                                                                   See more events at
        Organiser: Association of Young Entrepreneurs Portugal-China
         finportugal.com

                                                                          Organised by InvestHK               Visit investhk.gov.hk for details
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
8     Case Study

Gearing Up
for Global
Expansion
Surging demand for smartphones
and IoT products spurs Xiaomi to
add brick and mortar in Hong Kong
and push forward its global strategy.

Established in 2010 in Mainland China,         Exchange. According to Luo, listing in        can strengthen the connection between
Xiaomi is an internet company with             Hong Kong helps the company build             Mainland China and the global market.”
smartphones and smart hardware                 an international and open ecosystem.
                                                                                             Xiaomi’s core objective in the next five
connected by an IoT platform at its core.      “Hong Kong’s legal environment provides
                                                                                             to ten years will remain in its dual-core
The company first tapped on Hong Kong          a strong foundation for the city’s free and
                                                                                             strategy of AI and IoT, while at the same
market in 2016 through its eCommerce           stable market,” Luo remarked.
                                                                                             time put emphasis on 5G technology
website mi.com. While its wide‑range
                                               “With the internationalisation of RMB,        development, which the company believes
of smart products gaining popularity
                                               Xiaomi will continue to leverage on           will greatly boost its product demand in
in Hong Kong, Xiaomi opened two Mi
                                               the city’s status as one of the largest       both Mainland and overseas market.
Home Stores in the city in 2017, located
                                               offshore RMB business hubs to manage
in Mong Kok and Causeway Bay, offering                                                       Luo concluded, “we are grateful for
                                               our corporate financing, which will be
their products at affordable price for the                                                   InvestHK’s support and professional
                                               favourable for us to build an international
local market.                                                                                advice along our set up and expansion.
                                               and open ecosystem.”
                                                                                             The market insights that they provide has
Two years later since the Hong Kong
                                               Thanks to the city’s abundant supply          been very helpful for us to understand the
stores opened, the company is already
                                               of international and multilingual talent,     commercial environment in Hong Kong
planning its third store in Hong Kong which
                                               Luo said, the company currently hires         and make the right decision.”
will situate in the New Territories and is
                                               over 100 local employees covering sales,
expected to open soon in 2019.
                                               marketing and partnership liaison, all of
Janine Luo, Hong Kong Operation Director,      which are essential roles as the company
saw a 60 percent sales surge in Hong Kong      gradually emerges as one of the global          Xiaomi
in 2018. “The achievement and experience       players in the technology arena.
that we gained in Hong Kong is extremely
                                                                                                  Xiaomi Corporation
                                               “We will continue to strengthen our                 (stock code: 1810) was
beneficial to Xiaomi’s goal to ‘go global’,”
                                               multi‑brand strategy for smartphone
said Luo, “with a high-quality and broad                                                           listed on Hong Kong Stock
                                               market, and plan to expand globally
consumer market, Hong Kong is definitely
                                               including Europe and Latin America,”
                                                                                                   Exchange on 9 July 2018
the place for us to invest in.”
                                               Luo added. “With ample opportunities               The world’s fifth biggest
In 2018, Xiaomi launched an initial public     under the Belt and Road Initiative, Hong
                                                                                                   seller of smartphones, the
offering (IPO) on the Hong Kong Stock          Kong as an international financial centre
                                                                                                   company has presence in
                                                                                                   over 80 overseas markets
                                                                                                  As of 2018 Q3, overseas
              The achievement and experience                                                       market sales accounted for
                                                                                                   44 percent of the group’s
              that we gained in Hong Kong is                                                       revenue
              extremely beneficial to Xiaomi’s                                                     w mi.com
              goal to ‘go global’.
                                                                                                       Watch the video:
              Janine Luo
              Global Operations Director
              Xiaomi
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
Case Study                  9

Charting New Waters
in the Greater Bay Area
UK-based water leisure specialist uses the city as the springboard for
its progressive growth plan in Mainland China and Asia Pacific.

  All these projects
  wouldn’t come to
  fruition if we hadn’t
  opened an office here
  in Hong Kong.

  Derek Barton
  Managing Director
  Barr + Wray (HK) Ltd

Barr+Wray (B+W) is UK’s leading                 steam rooms and spa treatment rooms.        Barton was connected to InvestHK via
provider of commercial pool and spa             Barton said the project is an excellent     Scottish Development International
facilities. Founded in 1959 in Glasgow as       addition to their expansive portfolio       when they were planning to open an
a pump and filter supplier, the company         in Asia, and can best demonstrate the       office in Asia. The department assisted
developed into a filtration supplier for        strength and comprehensive specialties      the setup of B+W in Hong Kong by
pools and water facilities in the mid-60s,      of B+W.                                     providing local market insights and
and gradually evolved into a global spa                                                     networking opportunities. Barton
engineering and construction solution           Under the vast development of
                                                                                            recalled, “Not only did InvestHK help
provider today with projects spanning           Guangdong-Hong Kong-Macao Greater
                                                Bay Area, there are even more new           with our business setup, on a personal
across Europe, Middle East and Asia.
                                                opportunities for B+W. “We expect there     level, they also assisted my family to
When the company opened its                     will be a lot of upcoming five-star hotel   settle in Hong Kong. For companies
Hong Kong office in 2011, they saw a huge       projects in the area, which provide         planning to come to this city, I highly
opportunity in the region, especially in        enormous opportunities for us,” Barton      recommend them to contact InvestHK
Mainland China and Macao where the              remarked, “although there will also be      for assistance.”
hotel market was thriving. According            lots of local competition for sure, we
to Derek Barton, Managing Director,
                                                have to stay focused and set ourselves
Hong Kong is the best location for
                                                apart from others in our industry.”
them to reach out to the Asia market.                                                         Barr + Wray (HK) Ltd
“Since we came here, we have already            B+W’s next step is to enhance the
                                                                                                 Headquartered in Glasglow
completed more than 60 projects in all          company’s exposure in the industry by
                                                various marketing strategies, such as
                                                                                                  with offices in Hong Kong
sizes across the region,” said Barton, “all
these projects wouldn’t come to fruition        worldwide advertising and participating           and Dubai
if we hadn’t opened an office here in           in global industry conferences. While the        The Hong Kong office has a
Hong Kong.”                                     Hong Kong office looks after projects in          full team of administrative
                                                Asia including Mainland China, the team           staff, project managers,
B+W recently completed a project for
                                                is also looking to open new markets,
MGM Cotai in Macao, where it designed                                                             draftsmen and site managers
                                                especially in Australia and New Zealand
and built the spa facilities of the five-star                                                     looking after clients in the
hotel with VIP feature pools and an array       where tourism and hospitality industry
                                                is booming.
                                                                                                  Asia Pacific region
of thermal experience including saunas,
                                                                                                  w barrandwray.com
2019/2020 Budget Promotes Diversified Economic Development - InvestHK
10      Case Study

                                                                          Hong Kong –
                                                                          Connecting the
                                                                          Nordic Business
                                                                          Community and
                                                                          Greater Bay Area
                                                                          Nordic Innovation House has opened in
                                                                          Hong Kong to lead businesses to explore
                                                                          the new opportunities in the city and
                                                                          the Greater Bay Area.

With the objective to give Nordic                 “The Hong Kong government has so            space and lounge for members to connect,
companies a head start in one of the              many initiatives and they make it           and access NIH’s local network and join
most vibrant global innovation hubs               very easy for expats to get visas and       the Nordic community in the city. The
in the world, Nordic Innovation House             funding,” he remarked, “I am amazed         house also tailor-makes a “mentorship
(NIH) is a collaboration among Nordic             by such willingness of a city to attract    programme” where members can meet
Innovation, Nordic Council of Ministers,          foreign companies.”                         experts in the field to offer advice from
and the national business organisations                                                       legal, to finance and recruiting aspects.
                                                  NIH’s member companies can use the
from Finland, Iceland, Norway, Sweden
                                                  resources of the house, including meeting   Seeing great demand from companies who
and Denmark. NIH establishes offices in
                                                                                              are curious in exploring the Greater Bay
leading business hubs of the world where
                                                                                              Area, a new NIH has also been planned in
members can access NIH’s resources and its
                                                                                              Shenzhen which will open in the coming
worldwide network.
                                                                                              year, providing an additional space and
NIH Hong Kong was opened in                                                                   resources for members.
November 2018 as its fourth destination
                                                                                              “It is important for companies to come here
worldwide after Silicon Valley, New York
                                                                                              and the region to experience the vibrancy
and Singapore. The rapidly growing interest           The Hong Kong                           and energy. Once they have decided to set
in Asia market among Nordic companies
has drawn NIH to set up in Hong Kong,                government has                           up here, they can also be an ambassador in
                                                                                              their home market,” he concluded.
according to Christian Bergenstråhle,
Community Director. “Although the easiest
                                                   so many initiatives
way for the Nordic companies to expand               and they make it
to overseas is to ‘think west’, as it is closer
to their culture and market, we see a much
                                                  very easy for expats to                       Nordic Innovation House
bigger potential in Asia, especially in           get visas and funding.                        Hong Kong
Hong Kong and the Greater Bay Area.”

“Our mission is to educate these
                                                      I am amazed by                               Situated in Central PMQ,
                                                                                                    Nordic Innovation House
interested Nordic companies about these             such willingness                                Hong Kong was inaugurated
opportunities in Asia, to inform and also to
inspire them the possibilities,” he added.
                                                     to attract foreign                             on 28 November 2018
                                                         companies.                                Offers different membership
The Perfect Gateway                                                                                 packages for startups, SMEs
As one of the core cities in the Greater                                                            and corporates from the
Bay Area, Hong Kong is an excellent                                                                 Nordic region
springboard for foreign companies and               Christian Bergenstråhle
startups, Bergenstråhle said. “Lots of Nordic         Community Director                            w nordicinnovationhouse.
companies have a vision to expand their                                                                com/hongkong
business to Mainland China, and they see            Nordic Innovation House
Hong Kong as a perfect gateway.”                           Hong Kong
Case Study                  11

NANOS, Spanish Leading Kids Clothing Brand
Implements Omnichannel Strategy
for Asia Expansion
50-year-old Spanish children’s fashion brand plans to open more boutiques in
the city with launch of eCommerce site to prepare for regional expansion.

                                                                         Hong Kong is definitely the best
                                                                         place for us to start in Asia, we
                                                                         are highly impressed with the
                                                                         efficiency of setting up a business,
                                                                         and we have everything we need
                                                                         right at our fingertips.
                                                                         Sergio Crespo
                                                                         Managing Director, Goods from Spain
Originated from Spain, children’s fashion      has greatly boosted the brand’s exposure       it a perfect location for us to plan our
brand NANOS is well-known for its exquisite    within a short period of time. According       regional expansion.”
collections with timeless design, luxurious    to the brand, they have already amassed
                                                                                              To sustain the business momentum,
soft fabrics and impeccable finishing in the   over 100,000 followers on their social
                                                                                              NANOS’ next step is to open its second
garments. Royal families in Europe, as well    media platforms.
                                                                                              outlet in Kowloon, and plans to expand the
as children of celebrities have been seen
                                                                                              team to manage the physical stores and
wearing the brand.
                                                                                              the website.
With over 70 stores worldwide located
                                                                                              Crespo concluded, “InvestHK has been
in Europe, US and Middle East, NANOS
                                                                                              giving us a lot of support since the
launched its first permanent boutique in
                                                                                              beginning, and helped us to set up and
Hong Kong in November 2018. Situated in
                                                                                              learn about the business environment in
Lee Garden Two in the bustling Causeway
                                                                                              Hong Kong. Their expansive network has
Bay, the new permanent boutique marks the
                                                                                              been very useful for us to create more
50‑year-old-brand’s debut in Asia.
                                                                                              opportunities for the company.”
“When we saw the great opportunity to
bring NANOS to Hong Kong, we immediately
had to jump at it,” said Sergio Crespo,
Managing Director of Goods from Spain.         Shortly after, NANOS launched its                Goods from Spain
Inspired by Crespo’s wife Gigi, who is a big   eCommerce website focusing on the Asia
fan of Spanish brands, in particular NANOS,    market. According to Crespo, the website            Founded in 2017, Goods from
Crespo decided to set up the company           has been going strong since the launch,              Spain currently has around 5
in 2017 with a focus to import high quality    and is already receiving orders from across
                                               the region. With the brand’s ongoing digital
                                                                                                    employees to manage NANOS
Spanish goods to Hong Kong. “With its wide
product range and high quality clothing, we    efforts, the eCommerce site is especially            stores in Hong Kong as well as
are convinced that NANOS’ strength and         instrumental for expanding to existing               the Asia eCommerce site
uniqueness will succeed in the Asia market.”   markets across Asia
                                                                                                   NANOS is the first brand
In preparation for the opening of a            “Hong Kong is definitely the best place              imported by Goods from
permanent shop for NANOS, a series of          for us to start in Asia,” Crespo remarked,
                                               “we are highly impressed with the                    Spain to Hong Kong, but the
marketing and branding strategies had
been lined up to introduce the brand. In       efficiency of setting up a business, and             company is already bringing
May 2018, NANOS first appeared in the city     we have everything we need right at our              more Spanish apparel brands
as a pop up store in a popular shopping mall   fingertips, such as service companies in             to the city
in Tsim Sha Tsui. Coupled with a strong        public relations, eCommerce as well as
key opinion leader (KOL) engagement and        logistic partners. The city’s geographical           w nanos.hk
public relations strategy, the pop up store    proximity to other Asian cities also makes
12      Case Study

Local Talent
Holds Key
to Business
Success
With a strong pipeline of strategic
plans in Asia, global financial
technology firm, Enfusion, has
great ambition to further expand
in APAC via their Hong Kong office.

Enfusion was founded in 1997 as a financial      international education background and          Mainland China and Australia,” said
technology consulting company primarily          their knowledge is highly transferable to       Feng, adding that Hong Kong office as
focused on hedge funds. Today the firm           our industry.”                                  the regional headquarters will be a fully
boasts over 400 top-tier clients and is the                                                      functional and self-sufficient office that
                                                 With its Hong Kong office set up for more
leading provider of cloud-based investment                                                       supports the region.
                                                 than three years, Enfusion is already
management software, outsourced
                                                 planning for expansion. “Our overall goal       “We are also planning to have more
middle and back office services as well as
                                                 in APAC is to expand into other regions         locations in Hong Kong in order to
data analytics.
                                                 with satellite offices, such as in Singapore,   better support our clients,” he added,
Enfusion launched an all‑in‑one solution                                                         “Hong Kong has to be the regional hub, and
Integráta, a bespoke cloud-based, fully                                                          we are happy to see more growth in the
integrated platform in the market that                                                           local market.”
provides clients a full front-to-back
investment management solution through
a single data set. They also offer middle
and back office fund services used by                Hong Kong has                                 Enfusion
investment managers to streamline
operations and reduce overhead expenses.            put a great effort                                Headquartered in Chicago,
                                                                                                       Enfusion has offices in
With its soaring development in the US               in welcoming                                      New York, London, Dublin,
and Europe market, Enfusion came to                                                                    Mumbai and Hong Kong
Hong Kong in 2015 and set up its APAC                global firms to
headquarters in the city. “We saw a good                                                              Functional team in Hong
market opportunity in Asia which we                 come in, and the                                   Kong office from sales,
                                                                                                       marketing, product &
could not ignore,” said Fiona Ren, Head of
APAC – Product Consulting, E‑Trading, Fund
                                                      support from                                     customer support to fund
Services, “Hong Kong is one of the most
active, well-established financial markets
                                                    the government                                     services incorporate their
                                                                                                       efforts into Enfusion’s overall
around the globe, so we decided to come
here and start our Asia business.”
                                                     makes it really                                   enablement strategy and
                                                                                                       services delivery
“We believe that Asia is a good market for us      easy for everyone                                  Plan to expand its workforce
to expand, it also fills the gap of our global
support. The APAC headquarters will better
                                                       to set up a                                     by at least 20 percent in the
                                                                                                       coming months to serve the
serve our international clients.”                    business here.                                    APAC market
According to Bob Feng, Director of APAC
Business, Hong Kong is very welcoming                                                                  w enfusionsystems.com
to foreign investors. “It has been very                   Bob Feng
smooth for us to enter the market,” he
said, “The local talent pool is a key in our
                                                  Director of APAC Business
development. Most employees have an                        Enfusion
Case Study                 13

Building Asia’s Media
Entertainment Hub in Hong Kong
Millennial-targeted WebTVAsia sets up its office in Hong Kong to leverage the
city’s thriving media entertainment industry and easy access to potential partners
and investors.

                                               times of its video content every month.         commercial and media hub that gives us
                                               Two of its most popular represented             better access to potential partners and
                                               content creators, Jason and Emi Wong,           investors,” Chong said, adding that one of
                                               both from Hong Kong, have more than             its earliest creator partners signed are from
                                               700,000 subscribers on their YouTube            Hong Kong when they started out in 2013.
                                               channels, representing a large base of
                                                                                               “The city has always got a vibrant media
                                               audience for Hong Kong market.
                                                                                               entertainment industry including film,
                                               With a mission of being “Asian Media            TV, music and digital media,” Chong
                                               Entertainment Hub”, the company                 remarked, “we see many global and regional
                                               practices “ABC” approach – Audience,            companies setting up their APAC hub here,
                                               Brands, and Creators – to build a strong,       hence we wish to have a closer and more
                                               healthy media entertainment ecosystem           productive relationship with them by
                                               in Asia. Audiences follow the most popular      having a local office.”
                                               creators who are then funded by brands
                                                                                               He added that the talent in Hong Kong are
                                               as advertisers, who seek to reach out
                                                                                               highly educated, multilingual and have
                                               to millennials.
                                                                                               strong work. “We look forward to hiring
                                                                                               committed and passionate talent who can
                                                                                               truly contribute to the growth of not just our
                                                                                               Hong Kong entity, but also the WebTVAsia
                                                                                               group in Asia,” Chong concluded.
                                                   Hong Kong is
Established in 2013 in Kuala Lumpur,               an important                                  WebTVAsia
WebTVAsia is a media entertainment
group with multiple core businesses.             Asian commercial                                   Established in 2013, the
Not only does the company manage a                                                                   company has expanded
multi‑platform network that helps content         and media hub                                      to 11 markets including
creators to distribute and monetise content,                                                         Mainland China, Korea,
it also produces original content, as well          that gives us                                    Japan, Hong Kong, Taiwan,
                                                  better access to
as offering brand solutions for brands                                                               Vietnam, Thailand, Malaysia,
and advertisers.
                                                                                                     Indonesia and Australia
In 2018, the company launched LUVE,              potential partners                                 WebTVAsia is the official
a millennial‑focused video streaming
platform, which has become one of the              and investors.                                    Multi Channel Network
                                                                                                     (MCN) of over 20 video
most popular mobile entertainment apps
in Taiwan and Thailand. WebTVAsia is also                                                            platforms, including Youtube,
planning to expand the platform to more                     Fred Chong                               Tencent, Baidu, as well as
countries in Asia this year.                                   CEO                                   Alibaba’s Youku and Tudou
“By 2025, millennials will form one billion                 WebTVAsia                               Its six core businesses
of Asia’s population, and will become the                                                            include multi-platform
biggest and most influential consumer                                                                network, owned and
groups that every corporate wants to           Covering 11 markets in Asia Pacific,
                                               WebTVAsia set up a permanent office in
                                                                                                     operated platforms,
target,” said Fred Chong, Group CEO.
                                               Hong Kong in 2017 to better serve its clients         production studios,
                                               and partners in the region. To date, the              brand solutions, artiste
Reaching out to Millennials
                                               office has ten employees with functions               management and
WebTVAsia targets millennial audience
                                               including business development, sales,                experiential events
through its video networks which
                                               marketing and production.
reach 330 million millennial viewers                                                                 w webtvasia.com
across Asia who watch over five billion        “Hong Kong is an important Asian
14     Case Study

Welcome to
the World’s
Food Mecca
Mainland China’s famous
hot pot chain Haidilao sees
Hong Kong as the ideal base for
promoting their brand.

Founded in Mainland China in 1994,                                                           and food and welcome suggestions from
Haidilao has grown into an internationally                                                   customers.”
renowned restaurant group during the past
                                                                                             To maintain excellent customer service,
twenty years. The company prides itself
in excellent and good value for money                  Hong Kong is                          Haidilao also encourages its staff to be
                                                                                             creative in utilising in-store resources to
services. Other than Chinese face mask
changing performance, Haidilao also offers         a food mecca with                         deliver an unforgettable experience for
                                                                                             every customer.
manicure and other personalised services
for customers while they are waiting                a mature market                          Haidilao currently employs 250 staff
to be seated. Thanks to its innovative
business model, the restaurant has grown             and people are                          in Hong Kong and plans to open more
                                                                                             outlets to meet new demand, providing
rapidly in Mainland China and overseas.
Today, the company operates over 400
                                                     very receptive                          a broader range of job opportunities for
                                                                                             local residents.
directly operated restaurants in more
than 100 cities across Asia, Europe, North
                                                       to new ideas.                         “Invest Hong Kong has facilitated our entry
                                                                                             into the Hong Kong market and helped us
America and Australia.
                                                     All these make                          with company registration and visa matters.
In October 2017, Haidilao opened its first                                                   Mainland Chinese restaurant operators
Hong Kong outlet in Yau Ma Tei, Kowloon,              the city one of                        looking to establish a base in Hong Kong
followed by a second store in Causeway
Bay a year later. The company is already             the ideal bases                         can seek advice from professional
                                                                                             organisations like Invest Hong Kong in order
planning to open more restaurants in
other locations across the city in order to          for restaurants                         to facilitate their entry.” Zhang concluded.

serve more customers. In September 2018,
Haidilao was listed on the Hong Kong Stock
                                                    to enhance their
                                                                                               Haidilao International
Exchange, reaffirming its commitment to
the city.
                                                       brand image.                            Holding Ltd
                                                                                                  Haidilao International
Ingredients for Success                                   Zhang Yong                               Holding Ltd (6862.HK) was
According to Haidilao’s chairman Zhang
Yong, “Hong Kong is a food mecca with
                                                           Chairman                                listed on the Hong Kong
                                                                                                   Stock Exchange on
a mature market and people are very                  Haidilao International
                                                                                                   26 September 2018
receptive to new ideas. All these make the                Holding Ltd
city one of the ideal bases for restaurants to                                                    Haidilao has restaurants in
enhance their brand image.”
                                                                                                   Mainland China, Hong Kong,
                                                 providing a wider range of seafood, meat
In Hong Kong’s competitive dining scene,
                                                 and condiments.
                                                                                                   Taiwan, Singapore, Japan,
Zhang believes Haidilao has many success                                                           the US, South Korea, Canada
factors. In addition to providing excellent      “We learn from other industry players
                                                                                                   and Australia
customer service, Haidilao has adapted           and conduct in-depth research into the
its menu to suit local tastes, for example       local food culture. We are also committed         w haidilao.com
by adjusting the spiciness of the broth and      to improving the quality of our service
Case Study                15

Your Virtual Asset Partner
One of the first SFC regulated hedge fund managers in digital asset, MaiCapital
rides on Hong Kong’s FinTech development and explores new markets in APAC.

                                                                                        Hong Kong has a great
                                                                                        access to talents in
                                                                                        both technology and
                                                                                        financial service fields,
                                                                                        making it a perfect
                                                                                        place for us to start
                                                                                        our hedge fund and
                                                                                        blockchain business.

                                                                                        Michael Wong
                                                                                        Managing Partner and COO
                                                                                        MaiCapital

Specialised in blockchain technology,       In November 2018, Securities and              tax allowance and deductions.”
cryptocurrency investment and               Futures Commission (SFC) set
                                                                                          MaiCapital currently hires six
asset management, MaiCapital helps          out new regulatory approach for
                                                                                          employees, including a research
investors to generate return with           virtual assets, including crypto asset
                                                                                          team with advanced degrees from
cryptocurrency, targeting family offices,   portfolio management companies
                                                                                          engineering to physics, while its senior
financial institutions and high net worth   and crypto‑equity fund distributors.
                                                                                          executives bring over a decade of
individuals. Headquartered in Hong          MaiCapital is one of the first SFC
                                                                                          asset management experience. As its
Kong, the company aims to be a full         regulated hedge fund managers in
                                                                                          development progresses, the company
service investment bank in the digital      blockchain technology and virtual
                                                                                          will look to hire more staff for its
asset space, providing product advisory,    assets investment in Hong Kong.
                                                                                          technology and operations team for
asset management and broker dealer
                                            Wong not only sees a big potential for        continuous expansion, with a long term
services to clients around the world.
                                            cryptocurrency market in Hong Kong            goal to boost presence in the rest of the
MaiCapital launched its flagship            as the international financial centre         APAC region.
product Blockchain Opportunity Fund         in the region. “Hong Kong has a great
in March 2019, providing investors a        access to talents in both technology
one‑stop solution to gain exposure          and financial service fields, making it a
to virtual assets, easing the trouble       perfect place for us to start our hedge
of maintaining multiple private keys,       fund and blockchain business,” he said,         MaiCapital
wallets, exchange accounts and              adding that the city’s ease of doing
complex tax filing.                         business, sound regulatory system and              Founded in August 2018 and
                                            abundance of financial talent are also              headquartered in Hong Kong
“Our target is to generate attractive
                                            the decisive factors to start the company
return for our investors with reduced                                                          SFC-licensed hedge fund
                                            in Hong Kong.
volatility and minimise the draw down,”                                                         manager and fully regulated
said Michael Wong, Managing Partner         He added, “the city is highly competitive           under SFC Type 4 (Advising
and COO, “we analyse a lot of different     in terms of its bilingual legal system              on Securities) and Type 9
blockchain model and market data, and       and simple tax regime, providing
                                                                                                (Asset Management)
rank them on a metric system.”              protection for investors with generous
                                                                                                w maicapital.io
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