InvestHK advices and assists Israeli companies looking at Hong Kong as a springboard/base for their activities in mainland China and Asia at large

1. Where Business Goes to Grow
Hong Kong as a Gateway to
Mainland China & APAC
March 2015
OurCrowd Webinar

2. RIGHT PLACE
Heart of
Asia
Gateway to
China

3. Greater Pearl River Delta
• Population 55.3 mn > Canada
• Exports US$387 bn > UK, Canada (more than 27% of China’s exports)
• GDP US$665 bn > Sweden, Belgium
• Land area 56,000 sq km < Panama (less than 1% of China)

4. One Country, Two Systems

5. Low and Simple Tax System
Source: Forbes Tax Misery Index 2009, Inland Revenue
• VAT/GST/Sales tax
• Capital Gains Tax
• Withholding tax on investments
• Estate duty
• Global taxation
• Wine duty

6. World Class ICT - Connecting People
• 8th in the Global Innovation Index Report
(INSEAD 2012)
• 6th most advanced ICT economy
(ITU Sept 2011)
• 2nd in Asia Cloud Readiness Index
(Asia Cloud Computing Association, Sept 2011)
• The safest place in Asia for setting up
data centres (Data Centre Risk Index, Cushman $
Wakefield, 2012)
• Mobile phone penetration rate >220%

7. Human Capital - Quality Education
• Two universities in the world’s top 100
(Times Higher Education World University Rankings 2012/13)
• HKUST MBA - 1st in Asia and 10th in the world
(Financial Times Global MBA Ranking 2012)
• World’s Top EMBA in 2011: Kellogg - HKUST EMBA
Programme
(Financial Times 2012)
• 48 international schools
• 3rd in the Global Index of Cognitive Skills and Educational
Attainment (Economic Intelligence Unit 2012)
• Hong Kong people have the highest average IQ in the world – 107
(IQ and the Wealth of Nations)

9. Rapidly Growing Wealth in Asia
Source: Credit Suisse Global Wealth Report 2011
l Gateway to 3.7 million HNWIs in
Asia Pacific with wealth totaling
US$12 tn
l Wealth growth the strongest in
Asia Pacific at 12%
l Hong Kong – HNWIs up 36%
l Asia Pacific expected to lead
robust global HNWI wealth
growth. HNWI wealth expected to
reach US$16 tn by 2015
l Source: Capgemini World Wealth Report 2013

10. Source: HKTB

11. Total retail sales US$52 billion; +25%
Per capita retail spending >USD8,900
84%of the world’s leading luxury and fashion retailers
and 41%of all international retail brands are in Hong Kong
11 shops in London;17 in Hong Kong
6 shops in Milan;13 in Hong Kong
4 shops in Milan;10 in Hong Kong

12. %
of
mainland
companies
%
of
market
capitalisation
18%
27%
47%
57%2000 2012 • 721 listed Mainland enterprises
on the HKEx; total market cap
US$1.61 tn (as of Dec 2012)
• 1,086 new investment projects
approved; investment amount
US$35 bn (MOFCOM, 2011)
• RMB deposits in Hong Kong of
RMB558 bn (~US$88 bn) (as of
June 2012)
Springboard for Mainland Companies

13. Markus Kramer
President, Dispersions
and Pigments Division
(Global headquarters)
Global Operations in Hong Kong
John Rice
Vice Chairman
(Global operations)
Jean-Pascal Tricoire
Global CEO
Johan de Nysschen
President
(Global headquarters)
Michael Andrew
Global Chairman
Jeff Urwin
Global Head of
Investment Banking
Wiebo Vaartjes
EVP & GM
(Global headquarters of
Philips Consumer LifeStyle)

14. As well as Micro…

15. Notable Israeli companies in HK

16. Committed to Attracting and
Supporting Innovative, High Impact
Ventures Israeli startup FreightOS
wins StartmeupHK 2014
Competition

17. Why entrepreneurs come to Hong Kong
Connectivity–heartofAsia; halftheworld’spopulationwithin5hours’flighttime
ProfitCentre–lowandsimpletaxregime
Law-independentjudicialpower;acommonlawjurisdictionwithinChina
Resources–Globalfinancialcentre;largepoolofHNWIsandtalentedpeople
Culture-multiculturalcommunity;bestofEastandWest
Innovation-ranked1st inAsiaintheGlobalInnovationIndex(GII)2013
Efficiency–registeracompanywithonedirectorandHK$1inonehour
World’sfreesteconomy–lowbarrierstoentry;idealplacetocommercialiseinnovativeideas
Asia strategy – Western business culture meets Eastern
opportunities, best platform for global supply chain and
test market.

18. Incubators
HongKongScienceandTechnologyParks
• 308graduatesraisedUS$99.3millionfromVCs/angelssince2003
• >350companiesand>50%ofstaffengagedinR&D
• Clustersinelectronics,biotech,IT/telecom,greentech,precisionengineering
Cyberport
• 158incubateesuptoMarch2012raisedUS$5.1millionfromVCs/angels
• >100ICTanddigitalmediacompanies
• Clustersincloudcomputing,e-commerce,emerginginternet

19. Support and Startup Communities

20. Burgeoning Co-work Spaces
startup
commune
2010
3
2014
30
Number of co-work spaces in HK
>1,600 spaces

21. A Vibrant Community
• and – Empowering Young Entrepreneurs
Programme
• and – Accelerator Support
Programme
• Open Data Hong Kong
• HK$500 million Social Innovation and Entrepreneurship
Development Fund (launched in 2013)

22. Notable Hong Kong VC Deals
Post-GFC
funded by Fresco funded by First Round
Capital, True Ventures,
Greycroft, etc
funded by Arbor
admitted to
500Startups admitted to Techstar x Nike
funded by
Ambient
Sound
funded by IPV
invested by
Sumitomo, EMC,
Stanford, Sierra
and Mission
invested by Mandra, AXA
and Mitsui, business plan
now fully funded by
Neiman Marcus

23. Opportunities in Hong Kong
• Serve as the laboratory/Asian POC site for a smart city solutions,
Fintech
• Scale your Asia business and manage channels out of HK
• Rising demand for industries to enhance quality of life, e.g.,
creative/content industries, green business, medical and health
tech/ICT and other technologies

24. Lifestyle in Hong Kong

25. How InvestHK Helps Entrepreneurs
Facilitation of
visa
applications,
schooling
PR and
marketing
support for
launch /
expansion
Networking
events,
introduction
to service
providers
Information to
aid planning
and evaluation

26. For more information,
please contact:
Jonathan Sternberg, Israel Office
www.investhk.gov.hk
Email: jsternberg@investhk.com.hk
Tel: (972) 25710199
Get in Touch