Investor Presentaiton
Rise of China
Significant economic benefits for Hong Kong
People
• High net worth individuals (ie. individuals with
wealth over RMB10m) in China reached 1.2m
by the end of 2011, with a five-year average
growth rate of 29%1
• Spending power spilled over to HK
In 2011, 25.3m Mainland tourists to HK and 16.2m to
Macau 2
Investment
HK as a gateway for foreign enterprises to
access the China market and vice versa
HK is the largest source of FDI for China, accounting
for 66% of the total amount in 20117
60% of China's Overseas Direct Investment (ODI)
flows to HK8, soared 67.7% during Jan-Jul12
45% of Mainland accumulated foreign capital comes
from HK3
710 Mainland companies listed in HK9 by the end of
Jul 12
Trade
China is the largest exporting country
USD1.9trn total exports in 20113
By 2020, total trade will surge to around USD16.7trn
(19.5% of global trade), with commodity trade export
of USD7.6trn (22.3% of global trade)4
HK/China trade closely linked
47% exports/45% imports of HK are to/from
mainland China5
RMB2trn, or 9% of China's global trade, was settled
in RMB in 20116
China 10
• 2nd largest economy in the world
⚫
GDP grew 35x in three decades
(USD200bn in 1981 to USD7trn
in 2011)
Currency
RMB internationalisation
Reserve currency potential
Targeting full convertibility
Notes:
1 Source: "2012 China Private Banking Development Report", CITIC Bank &
Central University of Finance and Economics
2 Source: Tourism Commission, Hong Kong SAR; China Tourism Academy
3 Source: Ministry of Commerce, PRC
4 Quoted from Pei Changhong (K, Institute of Economics Chinese Academy of Social Sciences)
12
5 Source: Census and Statistics Department, Hong Kong SAR
6 Source: PBoC
7 Source: Ministry of Commerce of the PRC
8 Source: HKMA
9 Source: HKEX
10 Source: World Economic outlook-IMF, APR12View entire presentation