Hong Kong – a platform for business success

Safeguard : sound legal system, level playing field for all Universally acclaimed : among the best place for business in the world Cost : low tax rates Connections : international trading centre closely connected with businesses around the world Efficiency : superb infrastructure for efficient flow of goods, information and people Support : a rich pool of well qualified professionals Services : support services by the InvestHK unit under HKETO

Economic Integration with the Mainland of China: more business opportunities

 Mainland is Hong Kong’s largest trading partner since 1985 (US$442.5 billion, 48.5% of total trade value in 2011)  Hong Kong is Mainland’s 3rd largest trading partner (7.8% of Mainland’s total external trade in 2011)  Mainland is the most important source for Hong Kong’s inward direct investment (36.9% or US402.2 billion in 2010)  Hong Kong is Mainland’s largest source of realized foreign direct investment (45.1% as end 2011)  640 Mainland enterprises listed in Hong Kong (total equity: US$411.3 billion)

Closer Economic Partnership Arrangements (CEPA)

 Signed between Hong Kong and the Mainland in 2003, with eight supplements concluded since covering trade in goods and services and investment facilitation  For goods and products: no import duty on any products made or developed in Hong Kong More than 1730 Hong Kong origin products enjoy tariff free treatment into the Mainland (tariff savings amounted to about US$426 million)  For services: offers Hong Kong companies preferential access to Mainland markets in 47 services areas

The Pearl River Delta (PRD)

 Fastest growing portion of the fastest growing province in the fastest growing economy in the world  Role of HK: management, finance, communication and coordination, logistics, sourcing and research and development  Development trend: high-end, value- added services, emerging consumer economy