1. © Copyright Invest Hong Kong, HKSAR Sept 1, 2016 Shirley Wong Head of Investment Promotion, Canada Hong Kong: CDB of Asia and Global Logistics Hub

2. BUSINESS-TO- CONSUMER 5.1 M in Asia Pacific 142,000 HNWIs in HK, up 281% (2009-2015) 45.8 M from Mainland 59.3 million visitors in 2015 84 % of the world’s leading luxury and fashion retailers are in HK US$ 63 bn sales One restaurant every 600 people

3. BUSINESS - TO-BUSINESS HK SHENZHEN STOCK CONNECT 951 listed Mainland enterprises Launched in Nov 2014 RMB hub Expect to be launched in 2016 RMB deposits in HK Source: HKMA US$1.97 tn accounting 62.1% of market total (Total market cap) Source: HKEX 1 trillion Oct 2015 33 bn 2007

4. PRIME CONDUIT FOR FDI RankFDI Inflows (2015)US$ bn 1USA380 2 Hong Kong175 3China136 4Ireland101 5Netherlands73 6Switzerland69 7Singapore65 8Brazil65 9Canada49 10India44 ALL TIME HIGH – 7,904 companies of which 3,798 are RHQs and ROs in 2015 Source: 2015 Annual survey, HKSAR Government’s Census & Statistics Department Source: World Investment Report 2016, UNCTAD

5. HEART OF ASIA Hong Kong

6. 4 hrs Most of Asia’s key markets within four hours’ flight time 5 hrs From half the world’s population More than 100 airlines operate about 1,100 flights daily, linking the Hong Kong International Airport to 190 destinations worldwide, including 47 Mainland cities LOGISTICS INFRASTRUCTURE AIR The busiest air cargo airport in the world – 4.4 million tonnes of cargo handled in 2015

7. Logistics Infrastructure – Sea & River Fifth-busiest container port in the world. Has nine ocean container terminals and one river trade terminal, with total throughput of 20.1 million TEUs in 2015. About 340 liner services per week to over 470 destinations worldwide. River transport - consolidation of containerized, break bulk and bulk cargo between the Hong Kong and ports along the Pearl River Delta.

8. Zhaoqing Foshan Guangzhou Dongguan Huizhou Shenzhen Zhongshan Jiangmen Zhuhai Macau GREATER PEARL RIVER DELTA POPULATION 64 mn >UK, Italy, South Africa EXPORTS US$527 bn >UK, Italy GDP US$962 bn >Indonesia, Netherlands, Turkey LAND AREA 56,000 km 2 <Ireland, Latvia, Panama, West Virginia (US) Hong Kong

9. Logistics Infrastructure – Rail and Road Railway network - a total length of about 250 km, connected with the Mainland China by 2 railway crossings. Comprehensive road network – 2,101 km of roads and 1,335 road structures, 16 road tunnels (including the 3 cross- harbour tunnels), and 5 major cable supported bridges. Connected with the Mainland China by 4 goods vehicle boundary crossings.

10. DUTY FREE PORT LOW & SIMPLE TAX SYSTEM Capital Gains Tax Withholding tax on investments Estate duty Global taxation Wine duty HONG KONG SINGAPORE SHANGHAI* Corporate Income Personal Income Employer Social Security Employee Social Security VATVAT * There is no standard rate across the Mainland China. Shanghai is used as an example. Hong Kong has comprehensive Double Taxation Agreements with Mainland China, Canada and 33 other jurisdictions. 25% 45% 17% 20% 16% 20% 37% 11% 7% 16.5% 5% 15% 0% VAT NO TARIFF, DUTY, VAT or SALES TAX MINIMUM RED TAPES

11. Customs Efficiency and Facilitation Round-the-clock border crossings / one-stop customs clearance: efficient transfer of goods to and from Mainland China and Hong Kong. Efficient customs clearance: clearance of detained sea cargo within 5 working days and air cargo within 80 minutes. Cargo facilitation initiatives: Regulated Agent Regime, Authorised Economic Operator (AEO) Programme, FTA Transhipment Facilitation Scheme, Wine Facilitation Scheme

12. Streamlined Operations HKIA expedites clearance by providing integrated Electronic Data Interchange linkage between 8 major cargo operators and the Hong Kong Customs. Allow pre-arrival customs clearance, covering all types of cargo down to house airway bill level. Provide a priority consignment facility and automatic assignment of default constraint codes. Enable authorized service providers to provide cross boundary bonded truck services to Mainland China.

13. Wine Facilitation Scheme Hong Kong is Asia's premier wine hub and among the top 3 wine auction centres in the world, noted for the trade in deluxe wines. Co-operation arrangement between the Mainland China Customs and Hong Kong Customs to facilitate wine trade Facilitation (expedited customs clearance) will be provided by the Mainland Customs for wine consignments exported by registered Hong Kong Wine Traders. Applicable to all ports under Beijing, Tianjin, Shanghai, Shenzhen and Guangzhou Customs Districts.

14. Future Development – Hong Kong International Airport Current 2 runways are fast approaching its max handling capacity. commencedonAug12016,forConstructionof3-runwaysystem completion by phases in 2022-24. −Land reclamation of 650 Ha −3 rd Runway Passenger Building with 57 new parking positions −3,800-metre-long new runway −2,600-metre-long new Automated People Mover (APM) system

15. Future Development – Hong Kong International Airport The total estimated construction cost is HK$141.5 billion Funding will be provided through borrowing (49%), operational surplus (33%) and airport construction fee (18%). To increase the capacity by 35-50% Aircraft movement (Hourly) Passenger (Annual)Cargo (Annual) Current Capacity6874 million6 million tonnes Expanded Capacity 102 ( ⌂ 50%)100 million ( ⌂ 35%) 8.9 million tonnes ( ⌂ 48%)

16. Future Development – Hong Kong Zhuhai Macao Bridge The Hong Kong Zhuhai Macao Bridge will be the main transportation link between Hong Kong, Macao and the western part of the Pearl River Delta. The main body of the bridge is about 29.6km long A 6-lane expressway with vehicle speed of 100 km per hour Construction started in 2009; completion by end- 2017 Transportation costs and time for travelers and goods on the road to be significantly reduced

17. Future Development – Liantang/Heung Yuen Wai Boundary Control Point Enhance passenger and cargo flows between Hong Kong/Shenzhen and the eastern part of Guangdong as well as adjoining provinces like Jiangxi and Fujian Construction in progress; scheduled for completion by 2018 Estimated to handle 20,600 vehicular trips and 30,700 passenger trips a day in 2030

18. Future Development – Guangzhou Shenzhen HK Express Rail Link An express rail link connecting Hong Kong, Shenzhen and Guangzhou Travel to Shenzhen in 14 mins and Guangzhou in 48 mins Interlinked to the mainland China network; travel to Shanghai in 8 hours and Beijing in 10 hours Target opening by Q3 2018

19. Future Development – Land Reserved for Logistics Development The Government has reserved sites for dedicated logistics facilities. Kwai Tsing Area (near container ports and connected with the airport by highway) – about 7 Ha of land for logistics development has been auctioned since 2010. Tuen Mun (near HK/Mainland China border and to be connected to the airport by a undersea tunnel) – About 10 Ha of land is planned for logistics development.

20. Opportunities for Canada Hong Kong Market - In 2015, Canada exported C$3.9 billion in goods to Hong Kong, making it Canada’s 8th largest export destination for goods. China & Regional Market - Hong Kong is a trading hub and gateway in the region.88% of Hong Kong’s overall imports are re- exports, with China being the largest final destination. E-Commerce - China is now the largest e-commerce market in the world.Hong Kong can be an efficient gateway to facilitate e- commerce with Mainland China.

21. HOW WE CAN HELP Networking events, introduction to service providers Facilitation of visa applications, schooling PR and marketing support for launch/ expansion Information to aid planning and evaluation

22. GET IN TOUCH www.investhk.gov.hk © Copyright Invest Hong Kong, HKSAR Shirley Wong Head of Investment Promotion, Canada Tel: (416) 924-5544 Email: shirley_wong@hketotoronto.gov.hk 174 St. George Street,shirley_wong@hketotoronto.gov.hk Toronto, Ontario M5R 2M7 Benjamin Wong Head of Transport and Industrial Tel: +852 3107 1088 Email: bwong@investhk.gov.hkbwong@investhk.gov.hk 25/F, Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong #InvestHK www.youtube.com/user/investhk www.youtube.com/user/investhk www.linkedin.com/company/invest-hong-kong www.flickr.com/photos/investhk