#1Hong Kong's Role in the Greater Bay Area David Wong Head, Greater Bay Area Business Development, InvestHK 31 August 2021 THE InvestHK Copyright Invest Hong Kong, HKSAR#2GBA Development and Specific Roles of Hong Kong#3Hong Kong Still an Attractive Destination for FDI (x)=2019 ranking United States (1) China (2) Hong Kong, China (5) Singapore (3) India (8) 64 51 62 Luxembourg (25) 15 36 Germany (7) 54 54 33 Ireland (4) 29 Mexico (14) 34 Sweden (32) 26 10 25 Brazil (6) 65 Israel (20) 25 19 Canada (10) 24 24 48 20 Australia (12) 39 United Arab Emirates (22) 18 && 20 20 United Kingdom (11) 45 19 Indonesia (19) 24 18 France (15) 34 16 Viet Nam (24) 16 10 Japan (26) 15 Source: UNCTAD, FDI/MNE database (www.unctad.org/fdistatistics). 74 91 114 81 149 141 119 156 2020 2019 261#4Hong Kong Still a Major Investment Conduit Origin of Mainland's Inbound Investment in 2019 Destination of Mainland's Outbound Investment in 2019 30% 70% Hong Kong ■Rest of World 34% Hong Kong Rest of World 66% Sources: "2019 Statistical Bulletin of China's Outward Foreign Direct Investment" by MOFCOM, National Bureau of Statistics and State Administration of Foreign Exchange#5China's Dual Circulation Strategy Enhances Hong Kong's Role as Investment Conduit Mainland companies Go Global via Hong Kong Domestic Circulation International Circulation International companies Expand into China via Hong Kong#6- Hong Kong – The Best Gateway to Access GBA Heart of Asia One Country, Two Systems Competitive and Simple Tax System 16.5% Profits above HK$2M 8.25% First HK$2M of profits Hong Kong High degree of economic freedom Common law system and independent judiciary Robust financial system NO ■ VAT/GST/Sales tax Capital Gains tax Withholding tax on investments ■ Estate duty ■ Global taxation ■ Wine duty#7Hong Kong's Unique Business Functions in GBA RHQ - Management Base 1504 foreign companies using HK to manage their regional operations Hong Kong as a prime investment destination Sales & Marketing Launchpad to access huge B2C and B2B markets in GBA, whole of Mainland, and rest of Asia (particularly ASEAN) R&D Intellectual property protection and trade Top universities Collaboration with Shenzhen Capital Raising Top IPO centre 7 times in last 12 years A total of 154 companies raised HK$398 billion in 2020 - the highest amount raised in a single year since 2010#8GBA Facilitation Measures and Business Opportunities#9☑Supporting Measures to Promote Innovation & Technology in GBA VOA Supporting the development of the Shenzhen -Hong Kong Innovation & Technology Co-operation Zone HK-Shenzhen Innovation & Technology Park at the Lok Ma Chau Loop Shenzhen Innovation & Technology Zone at the north side of Shenzhen River and adjacent to the loop Facilitating customs clearance of imported animal-derived biomaterials into the GBA Enabling HK researchers to conduct clinical research and experiments in the GBA Relax limitation on exporting Mainland human genetic resources to Hong Kong Enabling institutes and hospitals to export human genetic resources to HK independently under a trial scheme#101. Major Science and Technology Zones in GBA Foshan National Hi-tech Industrial Development Zone 2. Leping Intelligent Innovation Demonstration Park Foshan National Torch Innovation Pioneering 3. Park 4. Shunde High-tech Zone Intelligent Manufacturing Industrial Park 1. Cuiheng New District 2. Tanzhou Town Yuzhou Science and Innovation Island 1. THSP Zhuhai Zone 2. Zhuhai Southern Software Park 3. Zhuhai Smart Industrial Park Zhaoqing 1. HEMC-International Innovation City 2. Sino-Singapore Guangzhou Knowledge City 3. Guangzhou Science City 4. Pazhou Internet Innovation Cluster 5. Guangzhou International Guangzhou Biological Island 6. Tianhe Intelligence City Huizhou Foshan 1. Songshan Lake Hi-Tech Dongguan Industry Development Zone Shenzhen 2. Dongguan Binhaiwan New Zhongshan Area Hong Kong 3. Dongguan Neutron Jiangmen Macau Science Centre Zhuhai 1. Shenzhen Airport New City 2. Shenzhen High-tech 1. Shenzhen-Hong Kong Industrial Development cooperation in scientific and Zone 3. Shenzhen International technological innovation area 2. Hong Kong Science & Biological Valley Life Technology Parks Science Industrial Park 4. 3. Cyberport Ban Xue Gang High-Tech Zone#11Shenzhen/Hong Kong Innovation and Technology Cooperation Zone Shenzhen Innovation and Technology Zone (HKSTP can lease and manage certain areas of this Zone so that institutes and enterprises from Hong Kong can easily start their business in GBA) ANGMIHU ESIDENTIAL DISTRICT 香蜜灣街道 West Wing Shenzhen 深圳市 FUTIAN DISTRICT 福田区 YUANLING RESIDENTIAL DISTRICT |园岭街道 CAINO YOUZHA 【菜农油|| East Wing LONGCHUANXU Lok Ma Chau Loop Hong Kong- Shenzhen Innovation and Technology Park (first batch of 8 buildings to be completed in 2024- 27 in phases)#12Fast Growing Mass Affluent and Middle Class in China UHNW HNW Mass Affluent and the rising middle class China's middle-class population* is expected to expand from 300 million in 2019 to 660 million in 2025, representing 46% of the total population in China in 2025. The Mass Affluent** is a key segment to wealth managers. The Mass Affluent space is projected to show CAGR of over 7% from 2020 to 2025, and account for 39% of total client assets across APAC. ■ The two wealthiest cities Guangzhou and Shenzhen had roughly 394 and 527 UHNWIs in 2018, respectively. Hong Kong has 3,010 UHNWIS. *National Bureau of Statistics put out an official definition for people earning a monthly income of RMB 2,000 (US$295) to RMB 5,000 (US$740) constituted as 'middle income' earners in China **Mass affluent segment is defined as those having wealth between US$100,000 and US$1 million Sources: Transformation of world management in Hong Kong by PwC 2020 March#13EGBA Opportunities - Financial Services • Proposed Wealth Management Connect Residents registered in the nine GBA cities, or record of 5 years + social security or individual income tax in the nine GBA cities, and • 2 years+ experience in investment, and Mainland/ GBA • • . Net financial assets of RMB 1 million + over the past 3 months, or financial assets with a monthly balance of RMB 2 million + for the past 3 months The qualified products to be verified and announced by the regulators in Hong Kong and Macao Designated investment accounts Closed-loop through the bundling of designated remittance and investment accounts in RMB Hong Kong • • • Northbound @ RMB 1 million Aggregate quota of RMB 150 billion Southbound @ RMB 1 million - Eligibility is subjected to further details from HK and Macao respective regulators Eligible northbound investor can invest in Class 1 – Class 3 non-guaranteed principal investment products issued by mainland wealth managers except cash management investment products, and R1-R3 mutual funds Closed-loop through the bundling of designated remittance and investment accounts in RMB#14GBA Opportunities - Business and Professional Services ☐ Legal Hong Kong and Mainland law firms can form partnership associations in the Mainland Hong Kong legal practitioners can obtain Mainland qualifications to practice in the nine Pearl River Delta municipalities in the GBA Architecture & Engineering Allow Hong Kong-registered companies to directly provide services in the GBA Simplify procedures for Hong Kong companies to start business in the GBA Construction Mutual recognition of qualifications for construction professionals Expand liberalization measures for Hong Kong construction professionals to practice in the Mainland#15- GBA Opportunities – Lifestyle & Creative Industries Retail, food services & hospitality Retail, food services and hospitality companies can use Hong Kong as the management hub (e.g. for financing, IP and brand management) to tap into the growing Mainland market while enjoying business advantages of Hong Kong. G2 Import/export trade, wholesale and retail Trading and sourcing companies can use Hong Kong to further expand their B2B businesses in Asia and beyond with Hong Kong's status as an international finance, logistics and trading hub further strengthened under 14th 5-year plan, while benefiting from RCEP arrangements to benefit from simplified customs procedures and improved logistics. coal Business expansion for creative industries companies Hong Kong is Asia's creative hub where international fairs and events take place. It is also one of the largest export markets for design services with networks of well-established supply chains and enhanced inter-city collaboration opportunities in the Greater Bay Area.#16Pan-GBA Inward Investment Liaison Group 行政長官2020年施政報告 The Chief Executive's 2020 Policy Address 砥礪前行 重新出發 Striving Ahead with Renewed Perseverance The Chief Executive's 2020 Policy Address Establishing the Pan-Greater Bay Area Inward Investment Liaison Group to enable InvestHK and its counterparts in other cities in the GBA to develop holistic and joint inward investment propositions with a view to enhancing synergy Strategic Development Develop and execute investment promotion strategies and plans related to GBA business development, focusing on the four major areas of cooperation with GBA cities, including Joint propositions Joint events Joint promotion materials Joint sharing of best practice#17InvestHK GBA Website and Linkedin Articles Dedicated GBA Website www.gba.investhk.gov.hk Including overview, investment landscape for each GBA cities, supporting policies, FAQs and case studies Linkedin Articles on GBA Insight/ Update Topics include: - Introducing GBA cities series Policy updates related to the GBA Opportunities in the GBA More articles coming soon InvestHK GBA FAQ Q A InvestHK Overview Investment Landscape Facilitation Measures Supporting Policies Case Studies News & Events Contact Us GREATER BAY AREA What is GBA? InvestHK GBA GREATER BAY AREA SAXO MARKETS FAQ GBA GREATER BAY AREA Home > Investment Landscape > Guangzhou Guangzhou Overview Investment Landscape Supporting Policies > ווי Invest Hong Kong InvestHK 29.075 followers 1w- +Follow .. The Chief Executive, Mrs Carrie Lam, attended the thematic meeting of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) last month. Read more about the meeting highlights in the ...see more 22nd Plenary of Hong Kong / Guangdong Co-operation Joint Conference Published on May 17, 2021. Key Industries Advantages Tax and Talent Incentives Special Development Zone Other Useful Information Overview Investment Landscape Facilitation Measures Supporting Policies Case Studies News & Events 新假网 Thematic meeting of Leading Group for Development of Guangdong-Hong Kong-Macao Greater Bay Area Home Supporting Pol David W. on Linkedln 2 min read All Cities Global Investment Markets at Fingertips Bridging Local and Global Financial Needs Keeping Pace with Modern Working Life. Release date Name United Kingdom Denmark Financial Services Mainland China Financial Services Business & Professional Services 06.05.2021 All Industry Supporting Policies Q Search Supporting Policies Go Notice on the Public Consultation of the "Guangdong-Hong Kong-Macao Greater Bay Area Cross-Boundary Wealth Management Connect Pilot Scheme implementation details (Consultation Paper)" Dongguan Fushan Gonghou Hul Jiangmen Shende Zhaoqing Zhonghin Zhuhai Financial Services David W. Head of Greater Bay Area Business Development at Invest Hong Kong 38 articles Follow The 22nd Plenary of Hong Kong/Guangdong Co-operation Joint Conference, co-chaired by HKSAR Chief Executive Mrs Carrie Lam and Governor of Guangdong Province Mr Ma Xingrui, was held on 14 May. Some of the progress made and the directions for future co-operation are set out below: Linked in linkedin.com/in/davidw-ihk#18InvestHK's Support for Foreign Investors#19How We Help Companies Grow -))) IN ку لا 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 Aftercare / Expansion Tools for continuous expansion Support in identifying growth opportunities Ensuring a sustainable foundation for growth Continuing to support across marketing and public relations#20เฟย Get in Touch David Wong Head, Greater Bay Area Business Development [email protected] investhk.gov.hk (852) 3107 1000 [email protected] 24/F Fairmont House 8 Cotton Tree Drive Central, Hong Kong INVEST_HK e.weibo.com/investhk @InvestHK in www.linkedin.com/company/invest-hong-kong ☐ www.youtube.com/user/investhk O www.flickr.com/photos/investhk InvestHK O Copyright Invest Hong Kong, HKSAR