#1HONG KONG Business Opportunities and the Sector Market Outlook Alpha Lau Director-General of Investment Promotion 19 March 2024 InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China @Copyright InvestHK, HKSARG#2Hong Kong 2023 CDP +3.2% +7.3% Private Consumption +25.4% Import of Services +10.8% Investment Expenditure +0.4% to reach 7.5 MM Population Source: Census and Statistics Department 2#3Hong Kong continues to grow sustainably in the next 5 years In 2024: Up to +3.5% GDP growth During 2024-2028: +3.2% Annual GDP growth Asia and Mainland market Return of travelers ** Developing infrastructures & Attracting Strategic Enterprises $ Global interest rate cut Talent attraction 3#4Hong Kong’s Unparalleled Advantages 4#5Hong Kong's Unparalleled Advantages Companies with parent companies outside Hong Kong 9,039 Strong Global Business Community Major sources of the parent companies InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China Mainland China Japan US UK Singapore Regional headquarters in Hong Kong 1,336 Major lines of business ES Import/export trade, wholesale and retail Financing and banking Professional, business and education services Transportation, storage and courier services Source: 2023 Annual Survey of Companies Operating in Hong Kong with Parent Companies Located Outside Hong Kong 5#6Hong Kong's Unparalleled Advantages Dynamic Startup Ecosystem 4,257 startups, +34% vs 2019 No. of Startups +6% InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China locations of co-work spaces! +43% vs 2019 132 incubators/ accelerators, 16,453 employees, +32% vs 2019 No. of +6% No. of Staff +7% Locations +7% +12% 4,257 +26% 132 132 3,985 124 +6% 3,755 116 +21% +16% 3,360 3,184 92 +10% +8% 16,453 +31% 12,478 -14% +29% 13,804 14,932 10,688 ミロロ 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Total no. of startups Total no. of staff* Total no. of locations Top 5 Industries of Startups • FinTech E-Commerce/ Supply chain management/ LogTech Information, computer and technology Education and learning Data Analytics Origin of Founders 26% Overseas, Mainland China and Taiwan founders Hong Kong Home-grown Unicorns WeLab KLOOK BitMEX animoca BRANDS HASHKEY LALAMOVE 6% 68% returnees Hong Kong SmartMore TNG 香港人的電子錢包 Source: 2023 Startup Survey 6#7Hong Kong's Unparalleled Advantages Hong Kong's Distinctive Status and Advantages 'One Country, Two Systems' Hong Kong is the ideal gateway for international companies to access China InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China > An international financial, shipping and trading centre Free, open, and regulated business environment "There is no reason for us to change such a good policy and we must adhere to it in the long run." President Xi's keynote address on 1 July 2022 Common law legal system Close connection with the world market and strong support from the motherland 7#8Hong Kong's Unparalleled Advantages Competitive & Simple Tax System Reducing tax burden on enterprises and fostering a favourable business environment with two-tiered tax system InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China 16.5% Hong Kong 16.5% Singapore 17% China 25% Hong Kong 15% Singapore 22% China 45% HK Favourable factors Profits above HK$2M 8.25% First HK$2M of profits NO ■ VAT/GST/Sales tax Capital Gains tax Withholding tax on investments ■ Estate duty ■ Global taxation ■ Wine duty Corporate tax rate Hong Kong 0% Singapore 7% China 13% VAT Personal tax rate Hong Kong has signed Comprehensive Double Taxation Agreements (CDTAs) with 47 jurisdictions including VIETNAM Geographical location Simple tax system and low tax rate Free flow of Free port information status Business opportunity in Mainland China 8#9Hong Kong's Unparalleled Advantages Heart of Asia @MEHK InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China 120 airlines operate flights to 220 destinations worldwide Beijing Secul Shanghar Taper Hong Kong 1 Lokyo 4 HOURS All of Asia's key markets within 4 hours Kuala Lumpur Singapore Manda Hours 4 Hours 5 HOURS 5 hours from half the world's population#10Hong Kong's Unparalleled Advantages Vibrant Lifestyle A VIBRANT CITY @Hong Kong Tourism Board A nature-filled city with many stunning yet easily accessible hiking trails and beautiful beaches A global foodie feast with a diverse array of international cuisines and options AN ACCESSIBLE CITY A CASHLESS CITY TimeOut -368.0 $328.0 2 HK$328.00 HSBC CATHAY HEALTH CHERS InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China DM-DD SOUTH STAND AM HSBC CATHAY/ REWS KUNG CA World-class events of sports, arts and culture A MULTI-CULTURAL CITY Reliable and low-cost World #1 Public Transit System*, and well-established network of roads, ports and airport 98% penetration rate of E-payment (Octopus cards/ credit cards/ e-wallets) An open society embracing different ethnicity, religion and background *Oliver Wyman Forum in partnership with University of California, Berkeley; Urban Mobility Readiness Index 2023 10#11Hong Kong's Unparalleled Advantages Hong Kong as a Gateway to China and Greater Bay Area An important economic cluster comprises of 9 Cities + 2 Special Administration Regions 000 Population¹ YYY 86 million 陋 GDP3 Land Area² 56,098km² 1 Larger than that of Germany US$1.9 tr 2 Greater than Ireland, Latvia, Panama 3 Larger than Australia, Spain (~11% of China's total) *Guangdong-Hong Kong-Macao Greater Bay Area Zhaoqing Guangzhou Huizhou Foshan Dongguan Shenzhen Zhongshan Jiangmen Zhuhai Macao* InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China Hong Kong* 11#12Hong Kong’s Sector Market Outlook 12#13Hong Kong's Sector Market Outlook FASHION InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China Hong Kong was the largest spender on luxury goods in 2023 MARKET Clothing and Footwear Hong Kong reclaimed its position as No.1 in per capita spend on luxury goods in 2023, followed by Switzerland and Singapore 6.2 billion USD Retail sales +41% YoY market growth +5% from 2022 CAGR 2024-2028 Jewelry, Watches, Clocks and valuable Gifts 7.7 billion USD Retail sales +54% YoY market growth from 2022 +4% CAGR 2024-2028 Source: Census and Statistics Department, Euromonitor 13#14Hong Kong's Sector Market Outlook F&B MARKET InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China Opportunities for Premium Food and Pet Food 411 Food and Beverage Pet Food and Pet Care Hong Kong market is full of opportunities for Vietnamese premium food and pet food products 4.8 billion USD +4.2% +4.8% Market value 1.9 billion USD Market value YoY market growth from 2022 +4.9% +3.5% CAGR 2024-2028 YoY market growth from 2022 CAGR 2024-2028 en of the World 「世界廚房 MEAT ZERO MOOGLY Source: Census and Statistics Department, Euromonitor 14#15Hong Kong's Market Outlook Fintech Innovation Pay Hong Kong as a Hub for Fintech Innovation Fintech organisations operating in Hong Kong 1000+ Web3-related Tech firms in Cyberport 170+ InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China Highly diverse range of Fintech companies Wealth Tech Blockchain application/software Payments and remittance Hong Kong is open and inclusive towards the global community of innovators engaging in Virtual Assets (VA) businesses. TECH Virtual Banks Virtual Insurers 8 4 Licensed virtual asset trading platforms Non-bank SVF licensees 13 2 Licensed banks issuing SVFS 4 . Digital asset & cryptocurrency software Fintech enterprise solutions InsurTech • Fintech private investment Compliance & RegTech Home to 10 Fintech Unicorns in Hong Kong Highlights: HASHKEY ►GROUP Airwallex WeLab Bank ZZ N 15#16InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China 101011101 1010101001 000WEB3.0 101010 Hong Kong's Market Outlook Fintech Innovation Pay Hong Kong as a Hub for Financial Innovations HASHKEY OSL ▸GROUP Hong Kong is open and inclusive towards the global community of innovators engaging in Virtual Assets (VA) businesses. Assets Green and Sustainable Finance 80 billion USD green and sustainable debt has issued in Hong Kong ► The government will launch subsidy scheme for green fintech aiming to encourage more financial technology to support corporates dealing with carbon neutrality Licensing Regime for Virtual Assets Service Providers ► 2 VA trading platforms are formally licensed by the Securities Futures Commission (SFC) since June 2023 ► 21 Applicants waiting for approval Task Force on Promoting Web3 Development Chaired by the Financial Secretary with 15 non-official members from relevant market sectors To provide recommendations on the sustainable and responsible development of Web3 in Hong Kong 16#17Hong Kong's Market Outlook Family FO Office Hong Kong as a Hub for Family Office InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China The Government issued the Policy Statement on 24 March 2023 to set out its stance and measures on developing a vibrant ecosystem for global family offices and asset owners. NEW 1. New Capital Investment Entrant Scheme (CIES) Min. HK$30M investment Including HK$3M in CIES investment Portfolio and HK$27M in financial assets Open for foreign nationals, Chinese nationals, Macao SAR residents and Chinese residents of Taiwan Application opens from 1 March 2024 5. A new network of Family Office Service Providers Established in June 2023, with professional service providers including private bankers, trustees, lawyers, accountants, and wealth management professionals • • • • • 2. Offering Profit Tax Concessions Concessionary tax rate of 0% for eligible FIHVS No pre-approval required Min AUM >=HK$240M HIHV managed by SFO in Hong Kong Min. 2 full-time employees required Min. HK$2M operating expenditure Max. 50 eligible FIHVS per each SFO 6. Art Storage facilities at the airport 7. Market Facilitation Measures 8. Hong Kong as a Philanthropic Centre 3. Hong Kong Academy for Wealth Legacy Launched in Nov 2023 as a training hub to bolster the sustainable growth of the entire family office ecosystem in Hong Kong 4. Dedicated FO team in InvestHK Family OfficeHK 香港家族辦公室 InvestHK Family Office Network of Family Office Service Providers Launch Ceremony 17#18About InvestHK Highlights of Vietnamese Companies in Hong Kong FPT FPT Software FPT Software ICT NTQ SOLUTION NTQ Solution Co., Ltd ICT QFIT Q Fit I&T finKO architect Finko Architect C&I InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China 18#19InvestHK is Here to Help 19#20InvestHK is Here to Help We organise Flagship Event to Promote Family Office 裕澤香江 SAVE THE DATE! WGHK Wealth for Good in Hong Kong Summit 2024 培 27 March 2024 WEALTH FOR GOOD IN HONG KONG Wealth for Good in Hong Kong Summit | March 2023 Showcased Hong Kong's appeal as a world-leading family office hub Well-attended by 100 influential decision makers from global family offices WGH GHK 裕澤香 InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China WGHK 峰 壇 WEALTH FOR GOOD IN HONG KONG 24 March 2023 InvestHK FamilyOffice BINE WGHK Family Office Sharing Panel 家族辦公室經驗分享 WOHK MEAL WGHK GHK 20#21InvestHK is Here to Help We organise Flagship Event to Promote Fintech >HONG KONG FINTECH WEEK Asia's flagship Save the Date: 2024 Hong Kong Fintech Week 28 October - 1 November 2024 financial technology conference brings together FinTech founders, banking executives, VCs, regulators and FinTech- savvy audiences, who are shaping the future of financial services by driving a technological revolution in the industry across Asia and globally. 2023 Highlights Theme: Fintech Redefined 35,000+ 5.5 Million+ From 100+ economies Visitors Video views 800+ Speakers Learn more: 700+ Sponsors & Exhibitors 30+ 250+ Mainland & International delegations Media coverages fintechweek.hk acion InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China HONG KONG FINTECH WEEK crypto.com 21#22InvestHK is Here to Help We organise Flagship Event to Promote Innovation STARTMEUPHK SAVE THE DATE! FESTIVAL 21-25 OCTOBER 2024 A unique platform for startups, investors, industry leaders, tech enthusiasts and government officials to exchange ideas, make connections and chart a course for the future. 2023> • Event Highlights: STARTMEUPHK FESTIVAL IN NUMBERS 8 main activities with discussions around hot topics such as Web3, Health Tech, PropTech, sustainability, etc. • Pitching Competitions Startup-investor Matchings Learn more: startmeup.hk start meup.hk 16,000+ ONLINE VIEWERS 12,000+ PARTICIPANTS 85 COUNTRIES/ TERRITORIES 604 SPEAKERS 800+ BUSINESS MATCHINGS MATHEUPHK AND STARTMEUPHK 30FD-178 FESTIVAL HONGANNOU Invest The Governme Hồng Kong s of the SMART POWER.. FOR SMART CITIE 22#23InvestHK is Here to Help We help you enter and expand in Hong Kong InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China PLANNING Guidance in strategic implementation and evaluation of business decisions, including opportunity identification Connecting with relevant Consulates, Chambers of Commerce and business associations Advising on living and working in Hong Kong (bank accounts, housing, healthcare, schooling and networking, etc) SET-UP Providing support with business licences, visa applications, trademark registration, IP and trade regulations, etc Informing on tax and business regulations Arranging meetings with service providers, professional associations and government departments Advising on sector-specific industries and opportunities LAUNCH Connecting with lawyers, accountants, human resource specialists, consultancies, designers, interior specialists and real estate companies, etc Providing marketing and public relations services EXPANSION Tools for continuous expansion Support in identifying growth opportunities Ensuring a sustainable foundation for growth Continuing to support across marketing and public relations 23#24InvestHK is Here to Help Get In Touch Melvin Lee Head of Business and Talent Attraction / Investment Promotion [email protected] Alpha Lau Director-General of Investment Promotion [email protected] Follow us on social media InvestHK in X D return ©X@ Check out our website control InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China for the most updated Client Profiles/ Case studies/ Events 24 24#25Hong Kong: The world's super connector where opportunities converge InvestHK The Government of the Hong Kong Special Administrative Region of the People's Republic of China 25