Hongkong Guangdong Business Conference

Situated at the southern end of China and adjacent to Guangdong, Hong Kong is an international financial, trade, shipping, tourism and logistics centre in the Asia-Pacific region. Apart from having a well-established legal system, sound financial system and clean government, Hong Kong is renowned for its duty-free port with world-class infrastructure, free flow of capital, information and goods. Hong Kong is consistently being rated by the US Heritage Foundation and the Fraser Institute of Canada as the world’s freest economy. Its tax rates, at 16.5% for corporate and 15% for personal income, are among the lowest in the world. Hong Kong also offers abundant dedicated and skilled labour, as well as a strong pool of professional expertise in various fields.

Hong Kong has long been viewed as the natural gateway to the mainland of China, with unrivalled access to the vast market of the Mainland especially the Pearl River Delta (PRD), just across the border. Overseas investors wishing to establish a presence in the Mainland often find it advantageous to set up regional headquarters or offices in Hong Kong for sales, marketing, distribution, finance, management and R&D and form strategic partnerships with Hong Kong entrepreneurs.

Hong Kong has increased its appeal as an ideal location for foreign investment with the implementation of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), which provides preferential treatment to Hong Kong service suppliers in various service areas as well as tariff-free treatment for all products of Hong Kong fulfilling the mutually agreed CEPA rules of origin. Foreign companies can leverage on CEPA to gain greater access into the Mainland market through Hong Kong.

All these advantages, together with the huge market potential of the hinterland, have made Hong Kong the most preferred destination for investment. According to the World Investment Report 2009 published by the United Nations Conference on Trade and Development, Hong Kong was the second largest recipient of foreign direct investment in Asia after Mainland China and ranked 7th in the world. Over 3,500 companies from all over the world have set up their regional operations in Hong Kong. Of the world’s top 100 banks, about 69 have their operations in Hong Kong. In 2009, Hong Kong’s GDP reached USD 209.4 billion and the total value of trade in goods was USD 661.7 billion. Direct investment inflow amounted to nearly USD 63 billion in 2008.

Hong Kong and India have a close economic and trade relationship. India is Hong Kong's 8th largest trading partner in 2009. The bilateral trade between two places amounted to USD 13.5 billion. Indian exports to Hong Kong reached USD 6.7 billion, of which 75% were pearls, precious and semi-precious stones. Other major categories of Indian exports include leather and jewellery. Indian imported USD 6.8 billion worth of goods from Hong Kong in 2009. Key categories were non-metallic mineral manufactures; telecommunication equipment and parts; electrical machinery and parts; office machines and gold.

The Indian companies in Hong Kong are a vibrant and diverse group. Nearly 1,500 Indian companies are doing business in the city and about 21 of them operate as regional headquarters and regional offices. They are mainly engaged in business sectors like banking, trading, IT and logistics. Leading Indian companies in Hong Kong include Jet Airways, Bank of India, Indian Overseas Bank, and Union Bank of India, Tata Consultancy Services and Infosys Technologies Limited.
 
Hong Kong and Guangdong have always complemented each other with their respective advantages. With the implementation of CEPA (Closer Economic Partnership Arrangement) and the launch of regional co-operation in the Pan Pearl River Delta area, the co-operation between Hong Kong and Guangdong has been further enhanced. The Greater Pearl River Delta is developing itself into one of the most prosperous and vigorous economic centre in the world, with Hong Kong being a major international service centre and Guangdong an important manufacturing base.