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| Hong Kong Chief Executive Donald Tsang (left) and the Director-General of Investment Promotion Mike Rowse propose a toast at a reception in Hong Kong. |
Hong Kong Chief Executive Donald Tsang highlighted two new market opportunities attracting companies to Hong Kong at a July 14 reception organized by Invest Hong Kong (InvestHK). The annual Chief Executive Reception is an occasion to thank overseas and Mainland companies that have established or expanded their operations in Hong Kong during the past year.
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Before the July 14 reception, Director-General of Investment Promotion Mike Rowse and senior representatives of five companies met the media to share their views on the overall business environment in Hong Kong. They were Steve Choi, executive director of Dynamic Progress International; Yong Lin, general manager of Hai Tong (HK) Financial Holdings; Halfdan Ross, general manager of Maersk Shipping Hong Kong; Carl Holmberg, Asia director of Mediaplanet Asia; and Charles Ross, managing director of Single Market Events.
The executives discussed their companies’ recent investments in Hong Kong. In summary:
Dynamic Progress International is a joint venture between two U.S.- and Hong Kong-based companies. At the end of 2007, Dynamic Progress successfully set up Hong Kong's first bio-diesel plant in Tuen Mun. The plant has a capacity of 120 metric tons of oil per day; it is licensed to process up to 60,000 metric tons. The plant is helping improve Hong Kong's air pollution by cutting greenhouse gas emissions and mitigating climate change.
Hai Tong Securities was founded in Shanghai in 1988 and was among the first batch of securities firms in the country. The company currently has a market capitalization of US$23.43 billion and more than 3 million clients. Hai Tong (HK) Financial Holdings was set up in Hong Kong in 2007. Its business activities cover brokerage, investment banking, financing, mergers and acquisitions, asset management, fixed income, derivative products and market research.
With offices in approximately 130 countries, Denmark-based A.P. Moller-Maersk Group is internationally recognized for its activities in shipping, energy, offshore, retail and other businesses. Its Maersk Line is the market leader in worldwide container services, operating more than 500 container vessels and 1.9 million containers. It has recently established a ship-owning company in Hong Kong, Maersk Shipping Hong Kong, and plans to grow its fleet of Hong Kong-registered ships.
Established in Sweden in 2002, Mediaplanet develops and produces special interest information in print, online and for broadcast. Partnering with 60 of the leading newspapers in Asia, Europe and the United States, Mediaplanet publishes more than 900 supplements in 15 languages. Supplements vary from 12 to 28 pages. Today, Mediaplanet has 19 offices in 17 countries, and employs 250 staff worldwide.
Established more than 20 years ago, U.K.-based Single Market Events is an independent event organizer specializing in creating or managing niche events within strong market sectors. Some of the shows Single Market Events has held include London Fashion Week, The Wine Show and The British International Motor Show. Partnering with Will Ramsay and Andry Montgomery, Single Market Events' first event in Hong Kong was ART HK 08 in May, which attracted more than 100 art galleries and 19,185 visitors from Hong Kong and worldwide. |
Speaking to more than 200 top executives, Mr. Tsang said, “Traditionally, we have marketed our city as a place to do business at four distinct levels: first, as a market in its own right; second, as a coordination center for South China; third, as a base for the whole of China; and fourth, as a base for the region. But I also wish to highlight two emerging trends.”
Mr. Tsang pointed out that Hong Kong has increasingly become a springboard for Mainland companies taking on global markets and a location where multinational companies perform global functions.
“Just six years ago, InvestHK did not have any Mainland clients. In the first six months of this year, Mainland companies accounted for almost 20% of our completed investment projects,” said Mr. Tsang.
Leading multinationals, on the other hand, have begun to move worldwide business and functions, and even relocate senior executives with global responsibilities, to Hong Kong. This development suggests Hong Kong is fulfilling a similar role in Asia to New York’s in North America and London’s in Europe — a trend depicted in the expression “Nylonkong” coined by Time magazine earlier this year.
“This is a trend we welcome wholeheartedly, and is set to continue and deepen as Hong Kong further develops its role as China's major international financial and business services center, and as a vital cog in the management of global financial flows,” Mr. Tsang remarked.
Director-General of Investment Promotion Mike Rowse noted these new opportunities will make Hong Kong even more attractive to foreign direct investors, as indicated by the high number of completed projects in the first half of 2008.
By June 30, InvestHK had assisted 148 overseas and Mainland companies to invest or expand in Hong Kong, achieving more than half its annual target of 250. These companies came from a variety of sectors, including business and professional services, financial services, transportation and technology.
The growing trend of Mainland companies using Hong Kong as a springboard to go overseas has continued, with one-fifth of InvestHK’s completed projects coming from the Mainland.
“With the overwhelming response to the ‘On Your Marks, Get Set, Go’ nationwide marketing campaign, increasing numbers of projects from the Mainland is highly expected,” said Mr. Rowse. In 2007, InvestHK launched a three-year marketing campaign in seven economically developed provinces where privately owned enterprises (POEs) have a strong presence, promoting Hong Kong as an excellent launch pad to expand internationally.
Mr. Rowse concluded by saying InvestHK will strive to make the best use of these and other opportunities to attract even more companies around the world to invest and expand their presence in Hong Kong. “For those global CEOs, Hong Kong is a place where you can manage your regional and global operations effectively and efficiently,” he said.
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