2019/2020 Budget Promotes Diversified Economic Development - InvestHK
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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
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
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
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
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
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
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
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
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
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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