U.S. and Hong Kong (1997)
FY 1998 Country Commercial Guide: Hong Kong
Report prepared by U.S. Consulate General Hong Kong, released August 1997*.
Executive Summary | Economic Trends and Outlook | Political Environment
Marketing U.S. Products and Services | Leading Sectors for U.S. Exports and Investments
Trade Regulations and Standards | Investment Climate | Trade and Project Financing
Business Travel
Appendices (Country Data)
I. EXECUTIVE SUMMARY
This Country Commercial Guide (CCG) presents a comprehensive look at Hong Kong's commercial environment using economic, political and market analyses. The CCGs were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force, to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at U.S. embassies and consulates through the combined efforts of several U.S. Government agencies.
On July 1, 1997, Hong Kong reverts to Chinese sovereignty after over 150 years under British rule. The Sino-British Joint Declaration, signed in 1984, and the Basic Law, passed by China's National People's Congress in 1990, form the legal basis for China's "One Country, Two Systems" guarantees for Hong Kong as it becomes a "Special Administrative Region" (SAR) of China in 1997. These documents guarantee a high degree of autonomy for the HKSAR except in matters relating to foreign affairs and defense. Beijing has pledged that the social and economic systems, life-style, and rights and freedoms that Hong Kong people now enjoy will remain unchanged for 50 years. The HKSAR will also enjoy executive, legislative and independent judicial power.
The keys to Hong Kong's economic success -- its free-market philosophy, entrepreneurial drive, absence of trade barriers, well established rule of law, low and predictable taxes, transparent regulations, and complete freedom of capital movement -- are all expected to remain intact through the transition to Chinese sovereignty.
In 1996, the territory's open, services-dominated economy achieved a real growth rate of 4.7%. In 1996, inflation averaged 6.0% and foreign currency reserves totaled US$63.8 billion at year's end, the world's seventh largest. The Hong Kong dollar is linked to the U.S. dollar at a rate of HK$7.8 = US$1. As a result, Hong Kong's interest rates track rates in the U.S. A tradition of prudent fiscal management has generally enabled Hong Kong to realize budget surpluses. The fiscal year 1996/97 surplus amounted to U.S.$1.9 billion. According to U.S. Government statistics, U.S. exports to Hong Kong totaled US$14 billion in 1996, and two-way trade totaled US$23.8 billion, making Hong Kong the United States' thirteenth largest trading partner.
Hong Kong's attractiveness as a profitable commercial and financial center is increasingly tempered by the high cost of doing business, largely stemming from rising property and labor costs. Residential property prices recovered in 1996, surpassing their 1994 peak. Residential rental costs remain among the world's highest. Unemployment, near a record high at 3.5% at year-end 1995, declined to 2.8% in 1996. Demand has stretched Hong Kong's modern air and port facilities to capacity. Hong Kong boasts the world's busiest one-runway airport and the world's busiest container port. The Government and private sector have spent billions of dollars during the 1990's to upgrade transportation links and environmental facilities. A centerpiece is the US$21 billion Chek Lap Kok airport and related projects, due to open in April 1998.
There are over 1,100 U.S. businesses represented in Hong Kong -- including over 420 regional operations -- and 40,000 American citizens reside in Hong Kong. According to U.S. Government statistics, U.S. direct investment in Hong Kong totaled US$13.8 billion at year-end 1995 (based on historical cost), making the United States one of Hong Kong's largest investors, along with the U.K., China and Japan. Eighty of the world's top 100 banks have operations in Hong Kong; and twenty-seven U.S. banking groups have offices in Hong Kong.
Geographic proximity and cultural and linguistic ties, particularly to adjacent Guangdong province, have greatly accelerated Hong Kong's economic integration with China. Trade and investment with China have surged as China's economy continues its fast-track growth. China is Hong Kong's largest trading partner, absorbing one-third of Hong Kong's total exports of US$172.3 billion. Hong Kong serves as the principal transshipment point for Chinese exports. An estimated 60% of cumulative foreign investment in China originates from or transits through Hong Kong. Over 5 million Chinese workers are employed by Hong Kong-invested enterprises in Guangdong alone.
With a per-capita GDP of US$24,282, Hong Kong's sophisticated population offers outstanding opportunities for sales of a full range of U.S. products and services. Its role as a regional financial services and transportation hub contributes to a promising market in computers, telecommunications equipment and information technology services. With a new airport opening in 1998 the market for aircraft and parts should flourish. A growing population and pressures for improvements in quality of life, support growing demand for building products, pharmaceuticals, and environmental services and equipment. All of these areas offer outstanding opportunities for U.S. exporters, as do such products traded through Hong Kong to China as paper and high value food products.
II. ECONOMIC TRENDS AND OUTLOOK
A. Major Trends and Outlook
Hong Kong's real GDP increased by 4.7% in real terms in 1996, to reach US$153 billion at current market prices. GDP per capita reached US$24,282. The performance of the Hong Kong economy in 1996 showed continued improvement, recovering from a cyclical downturn begun in 1995. With increasing strength in stock and property markets, as well as recovered retail sales and declining unemployment, real GDP in 1996 grew by 3.3% in the first quarter, 4.6% in the second quarter, 5.1% in the third quarter, and topped at 5.8% in the fourth quarter. With a strong economic performance during the first half of 1997, Hong Kong's GDP is projected to grow 5.5% in 1997 and at comparable rates through the end of the millennium.
Labor market conditions improved in 1996. Unemployment, following a low of 1.9% in 1994, increased to a ten-year high of 3.6% in October 1995 and stood at 2.8% at the end of 1996. During 1996, the labor supply recorded notable growth, underpinned by substantial inflows of returnees, incoming expatriates, and Chinese immigrants. Job creation exceeded increases in the labor supply, causing unemployment to decline steadily.
Hong Kong's merchandise, or visible, trade deficit dropped 6.3% in 1996 to US$17.6 billion. In 1996, growths of exports declined by 5% in real terms while imports grew by only 4% in real terms. Exports of services, however, rose significantly by 6% in real terms in 1996 against the growth of 2% in real terms of imports of services. The enlarged invisibles surplus offset, to a large degree, the merchandise trade deficit.
In 1996, Hong Kong's total exports (comprising re-exports and domestic exports) grew slower than in 1995. In real terms, total exports in 1996 increased by 5%, as compared with a 12% increase in 1995. By value, total exports rose by 4% to US$179 billion in 1996. Re-exports, which account for 85% of Hong Kong's total exports, increased by 8% in value terms. (Re-exports refers to goods made in foreign countries, principally China, which officially enter Hong Kong's customs territory for shipment onward to other countries.) Domestic exports fell by 8% in real terms, following a 2% increase in 1995. China is Hong Kong's principal export market, taking one third of total domestic merchandise exports. The United States is Hong Kong's second largest export market. Including re-exports from China, in 1996 Hong Kong's total exports to the U.S. were US$37.5 billion, according to Hong Kong Government statistics. Other principal export markets in order of importance are Japan, Germany and the U.K.
Total imports grew by 3% in value terms in 1996 to US$197 billion. The growth rate in real terms was 4%, following a 14% increase in 1995. Retained imports -- those not shipped onward to China or elsewhere -- fell by 2% in real terms to US$71.2 billion in 1996. The drop represented an adjustment to the large inventory build-up in the local economy during 1995. China is the largest supplier of imports with a 37% share, followed by Japan, Taiwan, and the United States. U.S. exports to Hong Kong totaled US$15.5 billion in 1996, up 5.2% from 1995. (Note: According to US Government statistics US exports to Hong Kong totaled USD 14 billion, down from USD 14.2 billion in 1995.)
Since 1983, the Hong Kong dollar has been linked to the U.S. dollar at a rate of approximately HK$7.8 = US$1. The Hong Kong Government (including officials from the incoming Special Administrative Region Government) is steadfastly committed to the link and has pledged to maintain it. Currency notes are issued by three commercial banks, and are fully backed by U.S. dollars on deposit with the Exchange Fund. The link requires local interest rates to generally track those in the United States. The market exchange rate of the Hong Kong dollar against the US dollar remained on the strong side of the link during 1996, ranging within 7.731 to 7.745. The strength of the Hong Kong dollar was partly due to the inflow of funds to the buoyant local stock market.
B. Principal Growth Sectors
Services dominate Hong Kong's economy, accounting for 84% of GDP and employing 79% of the work force in 1995. Between 1985 and 1995, exports of services grew at an average annual rate of 8.6% in real terms, while services imports increased at 10.3%. Major sectors include travel/tourism, transportation, trading and financial services. Finance, insurance, real estate and business services contributed 25% of GDP in 1995, up from 20% in 1990. See Section VII (O) for a discussion of the banking/financial services sector.
Manufacturing as a percentage of GDP has declined steadily as companies have shifted production facilities to lower cost locations in China and elsewhere. Manufacturing in 1995 accounted for only about 8.8% of GDP and 15% of the work force, down from 17.6% and 28% respectively in 1990. The textile and clothing/apparel industries remain the backbone of Hong Kong's manufacturing sector. These industries employed 36% of the manufacturing work force and accounted for 38%, or US$11.3 billion, of Hong Kong's 1995 domestic exports. Other principal industries include electronics, watches and clocks, and chemical and industrial machinery. Manufacturers continue to shift production facilities out of Hong Kong, primarily to China, to take advantage of lower labor and land costs.
(1) Tourism and Retail Sales
Tourism is Hong Kong's largest earner of foreign exchange after the textile and apparel industries. Tourism provided revenues of US$10.8 billion in 1996, up 12.8% from 1995. Visitor arrivals reached 11.7 million in 1996, up 15% from 1995. Visitors from Japan and China each accounted for 20% of Hong Kong's total arrivals followed by Taiwan with 16%, Southeast Asia with 14%, and the U.S. with 6%. The volume of visitors from the U.S. in 1996 remained roughly the same as in 1995, at 750,000. Hotel room occupancy rates grew to 88% in 1996 as compared with 85% in 1995. In January 1997, the number of incoming visitors grew by 12.3% over the same period in 1996.
Retail sales volume rose by 1.6% in 1996, compared to a 1% decline 1995, reflecting a gradual pick-up in consumer spending in 1996. Except for department stores and fuels, retail sales showed a slight increase in volume in 1996, including consumer durable goods other than motor vehicles (up 6% in volume); food, alcoholic drinks and tobacco (up 2% in volume); clothing and footwear (up 1% in volume); motor vehicles (up 0.3% in volume) and jewelry, watches and clocks and valuable gifts (up 0.1% in volume). Sales in supermarkets also rose by 1% in volume. Department stores and fuels registered a decrease of 1% in volume and 8% in volume, respectively, in 1996.
(2) Property
After two weak years starting in April 1994, both residential and commercial property recovered noticeably in 1996. However, the rental market for office space in 1996 remained soft. In 1996, average monthly rental prices for Grade A (the highest grade) office space in Central and Wan Chai North, two of the most popular commercial districts for multinational companies on Hong Kong Island, dropped markedly by 16.6% and 13% respectively compared to 1995. While office space in Central now fetches, on average, US$7.13 to $7.37 per square foot (p.s.f.) per month, similar office space at Wan Chai North average US$5.91 to $6.42 p.s.f. In Kowloon, and Tsim Sha Tsui in particular, prime office space is available for US$4.28 to $4.51 p.s.f.
Increasing numbers of commercial tenants have been resisting Hong Kong's high rents. Companies, trying to cut overhead costs, are moving away from the expensive and high occupancy Central business district to outlying areas where rents are lower. This is especially true of "back office" or support functions. Tenants are also economizing on the amount of space they require, while new office building completions or conversions continue to add to the supply of office space. Given this trend, landlords in Central and Wan Chai North have offered rental-free periods or have lowered their rental premiums on three year leases to retain tenants.
In 1996, the residential property market, led by luxury units and to a lesser degree by mass-housing units, experienced a strong rebound. Both the primary and secondary markets were active. Spurred by the demand for housing by returnees (Hong Kong residents who emigrated in previous years but have opted to come back), expatriates and Chinese immigrants, fueled by growing household income and aspirations for better-quality accommodations, residential prices surpassed their previous peak of April 1994. This surge was propelled primarily by the prices of luxury units (units of at least 1000 square feet with added amenities) near the end of 1996. Apartment prices were, on average, 9.2% higher than 1995. The Peak, Wan Chai/Mid-levels, and the South Side of Hong Kong Island are the most popular living areas for expatriates. In April 1997, average rental prices were US$4.49 to $4.74 (The Peak), US$4.10 to $4.87 (Wan Chai/Mid-levels), and $4.49-$5.51 (South Side) p.s.f. Concerns about speculation emerged, attracting increased government scrutiny.
(3) Infrastructure (Construction, Telecommunications, Environment)
See Section II.E below for a discussion of these sectors.
C. Government Role in the Economy
The Hong Kong Government pursues a generally non-interventionist approach to economic policy that stresses the predominant role of the private sector. Economic policy is based primarily on minimal interference with market forces. However, the Government plays a significant role in infrastructure development, healthcare, public housing, and land sales. In recent years, the government has also become more proactive in support of high technology industrial development. It has introduced various schemes to encourage applied research and development and has plans to develop a science park. In early 1996, the government unveiled a multi-year plan to promote and support trade in services. Since the 1995 elections, the Legislative Council has taken on a more assertive role on behalf of labor and consumers, seeking to restrict fee increases for services and boost severance pay for laid off workers. The government's role in the economy is not expected to change after Hong Kong reverts to Chinese sovereignty on July 1, 1997.
Hong Kong has consistently supported an open multilateral trading system. The government was a firm proponent of the Uruguay Round of trade talks in the General Agreement on Tariffs and Trade (GATT) and is active in the World Trade Organization (WTO). Hong Kong maintains no anti-dumping laws, countervailing duty laws, import quotas or tariffs. (There are consumption taxes on a few items which apply equally to imports and local products.) It urges similar open trade policies for its neighbors and trading partners.
The tax system in Hong Kong is simple and tax rates are low. No one pays more than 15% of their income in salaries tax. As a result of generous allowances under the law, 61% of the work force pay no salary tax at all. The business profit tax is 16.5% and is payable only on net profits arising in Hong Kong or derived from business performed in Hong Kong. There are no taxes on capital gains, dividends, or interest. Other revenue sources include stamp duty on property and stock market transactions, betting duties, estate duty and hotel accommodation tax. The Hong Kong Government's low taxes and prudent fiscal policy have enabled it, generally, to achieve surpluses on its consolidated account over the past decade. Under the Sino-British Joint Declaration and China's Basic Law on Hong Kong, Beijing cannot tax Hong Kong or otherwise extract revenue after the July 1, 1997 handover and the establishment of the HKSAR Government.
Hong Kong Government-funded core projects, including those related to the Chek Lap Kok airport and environmental protection, have further fueled the development of Hong Kong's economy. In Fiscal Year 1996 (FY96), which ended March 31, 1997, government expenditure accounted for about 18.2% of GDP. Government expenditure has never exceeded 20% of GDP. Prudent fiscal management and strong reserves have obviated the need for the Hong Kong Government (HKG) to incur debt to finance expenditures. The Hong Kong Monetary Authority (Hong Kong's de facto central bank) had a total of US$11.8 billion in Exchange Fund bills and notes outstanding at year-end 1996. The bills and notes are used as instruments of monetary policy and are a principal means by which the HKG has worked to develop a local debt market. They are not used to finance expenditures.
D. Balance of Payments Situation
Hong Kong will begin releasing official Balance of Payments (BoP) data in 1999. In the meantime, the Hong Kong Monetary Authority has, in February 1997, made an interim estimate of the BoP for 1993-1995. There was an overall surplus in the BoP (excluding reserves) in 1993, 1994 and 1995. In 1996, the merchandise trade deficit of US$18.2 billion ( 9.2% of total imports) exceeded the surplus in services trade of US$16.6 billion, leaving an overall trade deficit of US$1.6 billion.
According to the findings of the surveys on external investments conducted by the Industry Department and the Census and Statistics Department, at year-end 1996, total inward direct investment stood at US$99.7 billion, based on original cost. At year-end 1996, settled foreign currency reserves (excluding forward transactions) totaled US$63.8 billion.
E. Infrastructure Situation
Hong Kong's modern and efficient infrastructure has supported Hong Kong's leading role as a trade entrepot and regional financial and services center. However, rapid growth has placed severe demands on that infrastructure, particularly on transportation and shipping facilities. By mid 1997, Hong Kong's new airport at Chek Lap Kok and the related roads, bridges, tunnels and airport railway were 80-90% complete with all facilities expected to be operating by mid 1998.
Other significant projects include a planned expansion of container terminal facilities, bridges, railways, sewage facilities, telecommunications and power stations. Projects and contracts which bridge the 1997 Handover are approved by the Sino-British Joint Liaison Group to ensure that the post July 1, 1997 Special Administrative Region Government will support the projects and will honor the contracts.
Airport Core Program
Hong Kong's current airport, Kai Tak, ranks sixth in the world in terms of cargo handled and fifteenth in terms of passengers. A total of 29.6 million passengers passed through the terminal in 1996, an increase of 7.8% over the 27.4 million in the previous year. Over 1.56 million tons of cargo, valued at US$76.1 billion, were handled in 1996. The new Chek Lap Kok airport, being built on reclaimed land on the north shore of Lantau Island, is projected to become operational in April 1998. Besides the airport, the Airport Core Program (ACP) includes nine additional integrated projects, including a railway link, the world's longest twin-deck suspension bridge, a third cross-harbor tunnel, new roads, land reclamation, and a new town. The new airport will initially be capable of handling 35 million passengers and 1.5 million tons of air cargo annually. A second runway, scheduled for completion by the end of 1998, will boost annual capacity to 80 million passengers and nine million tons of air cargo.
Shipping and Port Activities
Hong Kong enjoys perhaps the best natural deep-water port on the Chinese coast. With continued high economic growth and industrialization in China, the development of deep water ports at Yantian and Gaolan in south China should complement Hong Kong's facilities over the medium term. Over the longer term, increased competition should generate greater efficiencies in service.
Hong Kong's container port is one of the world's busiest. In 1996, Hong Kong's eight privately operated container terminals and mid-stream operators handled 13.4 million twenty foot equivalent units (TEU) of cargo, a 6.9% increase over 1995. The Port Development Board expects container throughput to triple by the year 2016.
Given the long-term growth, Hong Kong projects that it will require additional container terminals. There are currently eight terminals with 19 berths. After a 4-year delay, China finally signaled its approval of the US$1.3 billion Container Terminal (CT) 9 project in September 1996. Located on Tsing Yi Island, CT9 will have five berths when completed, the first of which could be in operation as early as 1999. The Hong Kong Government has also made provisions for port facilities (CT10 - CT 13) on reclaimed land on Lantau Island. With the settlement of CT9, the Hong Kong Government is now doing detailed studies for CT10.
In addition to the construction of container terminals, the franchise to build and operate Hong Kong's first river trade terminal was awarded in March 1996. This US$750 million project is expected to be completed some time in 1999.
Roads and Railroads
Hong Kong's roads have one of the highest vehicle densities in the world. At the end of 1996, there were 467,833 licensed vehicles and about 1743 kilometers of roads, or 268 vehicles per kilometer of road. This high vehicle density, combined with difficult terrain and high density building development, poses a constant challenge to transport planning, road construction and maintenance. To cope with worsening traffic congestion, largely due to the rapid growth in the number of private cars, the Highways Department has launched an extensive road construction program. Roughly 70 road projects are under way and 40 more are planned. The department's budget for the financial year ended March 1997 totaled US$908 million. Of this, US$816 million was for major highway construction and US$92 million for road and public lighting maintenance work.
Hong Kong is serviced by three major railway systems: the Mass Transit Railway Corporation (MTRC) operates a three-line metro system; the Kowloon-Canton Railway Corporation (KCRC) provides a 34-km line to service the new towns in the northeastern New Territories and freight service into China; KCRC also operates the Light Rail Transit System in the northwestern New Territories. Still under construction is MTRC's Airport Railway which is expected to be completed in mid-1998.
Hong Kong Government's Transport Branch published a Railway Development Strategy (RDS) in December 1994, with a proposal to expand the railway system by stages according to Hong Kong's transport needs and its economy and land development plans. The first phase of the RDS includes MTRC's Tseung Kwan O and Quarry Bay extensions, plus KCRC's West Rail Project, which includes a freight service to the Kwai Chung container port and a passenger line. After much political wrangling which slowed these projects in 1996, MTRC now has a clear go ahead to proceed with its expansion projects. In late 1996, KCRC also received approval to proceed with the construction of the domestic passenger line of the West Rail. The Authorities will decide later whether to build the freight service. For all these projects, the preliminary design has been completed. MTRC plans for a target completion date in mid 2002, whereas KCRC expects to begin construction in mid 1998 for completion in 2004.
Telecommunications
Telecommunications ranks as one of Hong Kong's most dynamic and technologically advanced industries, having for many years played an integral role in Hong Kong's economic prosperity and development as an international business center. Whether it is in mobile services, which introduced the newest generation Personal Communication System (PCS) networks in early 1997, or fixed line services, where Hong Kong boasts a fully digitalized system that has recently been opened to three new network operators, Hong Kong's telecommunications sector has been a regional leader in terms of both technical innovation and market liberalization. Mirroring the global expansion in the Internet, over 100 Internet service providers (ISPs) have established operations in Hong Kong, operating within a free market system subject to limited regulatory control. Many American telecommunications and information technology firms have already established strong positions throughout the local telecommunications market, where they offer a wide range of service and equipment for both the mobile and fixed line networks. Although international voice service remains under monopoly control until 2006, the Office of Telecommunications Authority (OFTA) has interpreted the terms of Hong Kong Telecom's exclusive license on international voice traffic quite liberally, allowing for a proliferation of call-back services, which operate legally, in Hong Kong. Moreover, the liberalization of regulations permitting international value-added network services (IVANS) has greatly expanded the market opportunities available in the international service sector. As a result of the recently concluded Information Technology Agreement under the auspices of the World Trade Organization, Hong Kong has agreed to open up the International Simple Fax Resale Services and Virtual Private Networks markets to competition.
Over the next few years, two of the most important technological developments that are likely to have a significant impact upon the telecommunications market will be the increasing use of smart cards, not only in telecommunications but nearly all facets of commerce in Hong Kong, and the gradual introduction of video-on-demand services over the area's telecommunications lines. These two technologies, which are already undergoing trials in the Hong Kong market, are forecast to gain wider acceptance and usage throughout the community, allowing Hong Kong to maintain its competitive edge in the region in the telecommunications and information technology fields. And as telecommunications and broadcasting technologies continue to converge, the demand and opportunities for TV programming will also increase.
Environment
After decades of paying little regard to the environment, the last ten years have seen dramatic changes in the Hong Kong environmental market. The Hong Kong Government has developed sweeping environmental regulations and guidelines for industry and the public, and has commenced broad-reaching environmental infrastructure projects to improve both the quality of life and the environment in Hong Kong. In support of this commitment, the Hong Kong government is slated to continue to spend at least 3% a year of Hong Kong's GDP cleaning up the environment.
In 1987, the Hong Kong Government started identifying many of its long-term environmental problems (i.e. solid waste, water, waste water, and air), and developed projects to begin to remedy these problems. The Hong Kong Government started the construction phase of many of these projects in the early 1990s and is working to complete a majority of the projects by the end of the decade.
In addressing Hong Kong's environmental infrastructure requirements, over US$ 1 billion of environmental infrastructure project awards are being made between 1997 and 2000. Projects that offer the greatest opportunities for US companies include a US$ 150 million livestock slaughterhouse and two or three municipal solid waste incinerators, each valued at US$ 150 million. The slaughterhouse design contract was awarded in early 1997; equipment to control air, water and noise pollution will be purchased in early 1998. On the Waste to Energy incinerator projects, the feasibility study is to be awarded in the summer of 1997. This 18 month study will likely be followed by a Design Build Operate contract for the multiple facilities.
The largest of all the environmental infrastructure projects currently being undertaken is the Strategic Sewage Disposal Scheme (SSDS) at a cost of US$ 2-3 billion. While the main portion of the treatment plant will be completed in early 1998, the development of secondary phases -- disinfection, sludge minimization and deep oceanic outfall -- will be sourced in 1998 and 1999. Opportunities for US participation in these aspects of the project, other municipal sewage systems and related equipment valued at US$ 300-400 million are good.
Additional niche markets exist in Hong Kong for the following types of environmental technologies:
Electric Vehicles - Each of the two local power companies and the Hong Kong government are promoting the development of light buses and large buses.
Vehicular air pollution control technologies - The Hong Kong government is advocating the use of alternative fuels and advanced technologies to control the growing problem of respirable small particulate.
Energy-Efficient building technologies - The Hong Kong Government has a US$ 6 million fund to promote energy efficiency in buildings. This is more than matched by funds in the private sector.
MAJOR INFRASTRUCTURE DEVELOPMENTS IN HONG KONG
PROJECT TARGET | | COMPLETION DATE |
| |
Airport Core Program |
Chek Lap Kok Airport (US$9.7 B.) | | 1998 |
Tung Chung New Town Phase 1 (US$0.5 B.) | | 1997 |
West Kowloon Reclamation (US$1.0 B.) | | 1997 |
Airport Railway (US$4.4 B.) | | 1998 |
Central-Wanchai Reclamation (US$2.0 B.) | | 1997 and beyond |
| |
Port Facilities |
Container Terminal 9 (US$1 B.) | | 1999 |
Container Terminal 10 & 11 (US$1 B.) | | 2000 and beyond |
River Trade Terminal at Tuen Mun (US$0.8 B.) | | 1999 |
| |
Transport |
Country Park Section - Route 3 (US$0.9 B.) | | 1998 |
Mass Transit Railway Extension * (US$2.8 B.) | | 2002 |
Western Corridor Railway (US$7.0 B.) | | 2004 |
* Tseung Kwan O and Quarry Bay extensions |
| |
Other |
Drainage and sewage facilities (US$2-3 B.) | | 2003 |
Redevelopment of Kai Tak and Kowloon Bay Reclamations (US$1.5 B.) | | 1998 and beyond |
Waste to Energy Incinerators (US$0.5 B.) | | 1998 and beyond |
Telecommunications (US$5 B) | | 1998 and beyond |
III. POLITICAL ENVIRONMENT
A. Nature of Bilateral Relationship with the U.S.
The U.S. and Hong Kong maintain close and cooperative relations across a broad range of areas. Hong Kong is our thirteenth-largest trading partner and U.S. direct investment in Hong Kong through 1995 totaled US$13.8 billion on a historic cost basis. The U.S. maintains a wide number of cultural and educational exchanges with Hong Kong, and enjoys excellent cooperation in law enforcement matters. Over 40,000 American citizens reside in Hong Kong and over 1,100 U.S. companies have offices in Hong Kong.
B. Major Political Issues Affecting Business Climate
Hong Kong becomes a "Special Administrative Region" (HKSAR) of the People's Republic of China on July 1, 1997. The Sino-British Joint Declaration, signed in 1984, and the Basic Law of the HKSAR, passed by China's National People's Congress in 1990, form the legal basis for China's "One Country, Two Systems" guarantees for Hong Kong. The HKSAR is to have a high degree of autonomy, and is to enjoy executive, legislative and independent judicial power. The social and economic systems, life-style, and rights and freedoms currently enjoyed by Hong Kong people will remain unchanged for at least 50 years. Beijing will be responsible for foreign affairs and defense of the HKSAR.
Sino-British consultations on transition issues have taken place chiefly in the Joint Liaison Group (JLG). Prior to July 1, 1997, the JLG has been responsible for approval of Hong Kong's agreements with third countries and economic decisions -- such as the major franchise licenses and contracts -- that straddle 1997. After July 1, the HKSAR Government, with authority granted by the Chinese Central Government, will negotiate and approve bilateral agreements and major economic decisions on its own.
In June 1995, Chinese and British negotiators reached agreement on the establishment of a Court of Final Appeal (CFA), which will replace the British Privy Council as the highest appeal body on July 1, 1997. This development was widely seen as a step forward in assuring the continuity of the rule of law, which has been fundamental to Hong Kong's success as an international business and financial center. In May 1997, Andrew Li, a widely respected British educated barrister, was nominated to be Chief Justice of the CFA.
C. Political System, Elections, Orientation of Major Political Parties
When Hong Kong becomes a Special Administrative Region of China in July 1997, the Basic Law will guarantee the rights and freedoms that Hong Kong residents now enjoy: the continued rule of law, and the maintenance of Hong Kong's capitalist system for 50 years. The HKSAR will maintain its capitalist economic and trade systems, retain the status of a free port and continue a free trade policy with free movement of goods and capital. It will retain its status as an international financial center. It will, on its own, formulate monetary and financial policies and safeguard the free operation of business and financial markets. The Basic Law states that the HKSAR will maintain its own currency and use revenues exclusively for its own purposes. The Hong Kong Dollar will continue to be freely convertible and foreign exchange, gold and securities markets will continue to operate. Systems currently in place, including Hong Kong's regulatory and supervisory framework, will remain unchanged. Hong Kong's legal system, including the independence of the judiciary and obligation of the executive authorities to abide by the law, are slated to continue. Beijing will be responsible for foreign affairs and defense of the HKSAR.
Hong Kong is a free society with legally protected rights. As a British dependency, its constitutional arrangements have been defined by the letters patent and royal instructions. Executive powers are vested in a British crown-appointed governor who has held extensive authority. The judiciary has been an independent body adhering to English common law with certain variations. Fundamental rights ultimately rest on oversight by the British Parliament. In practice, however, Hong Kong largely controls its own internal affairs. The Governor appoints an advisory executive council, and a partially representative Legislative Council has limited powers. The main functions of the Legislative Council (Legco) have been to enact laws, control public expenditure and monitor performance of the government by putting forward questions on matters of public interest.
Prior to 1985, all seats in the Legco were appointed rather than elected. In 1992, Governor Patten proposed measures toward a more accountable and democratic political system. Following 17 rounds of unsuccessful U.K.-PRC negotiations, in June 1994 the Legco approved Governor Patten's proposal to establish nine broadly-based functional constituencies for Legco members representing sectoral interests. Legco further extended political franchise in Hong Kong by lowering the voting age from 21 to 18 and opening to direct elections all seats on district and municipal boards, forums for public consultation. The September 1995 Legco elections held under the reformed election rules were fair, open and resulted in a more representative legislative body than had previously existed in Hong Kong. Three major political parties were represented in the 1995 Legco: the "pro-Beijing" Democratic Alliance for the Betterment of Hong Kong (8 seats), the Democratic Party (19 seats) which advocates broader democracy, and the "pro-business" Liberal Party (10 seats). Under the new 1995 electoral structure, the 60-member Legco is comprised of: 20 seats representing geographic constituencies; 30 from functional (industry-specific) constituencies; and 10 from an election committee, a group composed of 283 elected District Board members. China has made it clear that the terms of current Legco members will terminate on June 30, 1997. Thirty three of the 60 members of the existing Legislature have been selected to sit on the Provisional Legislature.
In December 1995, Beijing announced the formation of the Preparatory Committee (PC), a group of 150 representatives -- 57 from China and 93 from Hong Kong -- charged with devising the specific method of forming the first Legislative Council (after July 1, 1997) and for selecting the group of 400 Hong Kong representatives which has chosen the first Chief Executive (equivalent to Governor). In March 1996, the Preparatory Committee announced that a "provisional legislature" would be formed to take over legislative responsibilities after the disbanding of the 1995 Legco on July 1, 1997. In December 1996, after selecting the Chief Executive, C.H. Tung, the Preparatory Committee voted in a 60 member Provisional Legislature, 33 of whom were sitting Legislators. Democratic Party Legislators and others refused to participate in a body not chosen by open elections. The Provisional Legislature began to hold meetings in May 1997, across the border from Hong Kong in Shenzhen. Many in Hong Kong are concerned that actions and decisions made by the Provisional Legislature prior to July 1 will serve as the basis for legal challenges after the handover. The Provisional Legislature will be disbanded and replaced by an elected legislature within a year of the July 1, 1997 handover.
IV. MARKETING U.S. PRODUCTS AND SERVICES
For many American products and services, initial market penetration in Hong Kong does not require an investment of millions of dollars of company funds. Given that Hong Kong is a "free port" with virtually no duties or tariffs and that it has a wide ranging network of agents and distributors, a well-managed market penetration program with a moderate investment in market development is generally all that is required initially. The market for U.S. service firms is also quite open. Due to its open nature, however, Hong Kong is among the most competitive and price sensitive markets in the world. Companies considering the market should also be aware that the Hong Kong business climate is extremely fast-paced. Decisions are made quickly and companies need to be able to respond to inquiries immediately or they will lose the market to faster moving suppliers.
Many American products and services do have a market in Hong Kong, and in many cases through Hong Kong to China. The best agents and distributors for China are often located in Hong Kong, although given China's size and diversity, it is usually necessary to work with different agents for different regions of China. Hong Kong companies are eager to talk to potential exporters and have a strong interest in representing good quality, competitively priced U.S. products from companies committed to the market. Commitment to the market is demonstrated in various ways but should include: quoting in metric, providing Chinese language material, responding quickly to inquiries, meeting relevant standards, and visiting the market for first hand understanding and building of relationships.
A. Distribution and Sales Channels
One of the best ways to sell products in the Hong Kong market is through the use of agents or distributors. It is also an excellent way of minimizing the initial investment in the market. As outlined below, there is a wide range of companies which can serve as agents or distributors for U.S. firms. Other options for pursuing Hong Kong's market are establishing an office or partnering. Companies looking to sell equipment needing long term maintenance or technical support or installation or who are seeking to become involved in infrastructure projects frequently seek to partner with local companies.
B. Use of Agent/Distributors; Finding a Partner
Working with agents and distributors in Hong Kong is very much like working with an agent in the United States. An agent takes orders in the supplier's name. Distributors act in their own name and may stock products purchased from the manufacturer for resale. The choice depends on the relationship with which the manufacturer/supplier is most comfortable and the nature of the business.
Hong Kong has no special legislation regarding agents and distributors. Virtually anything which both sides can agree to and put into a written contract is acceptable and enforceable, including restrictions on territory and a grace period for termination of the agreement. While not required by Hong Kong law, the more complex the contract, the more helpful legal counsel can be in drafting the text. Items that are often in the contract include:
- Discussion of exclusivity and sales territories (always a sensitive issue; business people should be careful about granting an exclusive agency too soon or in too large a territory if the agent is to cover beyond Hong Kong.)
- Discussion of proprietary information (theft of intellectual property is prohibited by local law, but prevention of piracy is always less expensive and more effective than post-facto legal action.)
- Levels of sales activity -- set specific targets and goals to qualify for maintaining or renewing the agreement
- Time duration
- Payment terms
- Quality control -- inspection -- verification
- Rule of law -- jurisdiction in the USA vs. Hong Kong (It is generally Hong Kong, but another location may be specified -- for arbitration, for example.)
- Covenants restricting activity following cancellation of the contract.
There are many types of agents and distributors in Hong Kong, ranging from those who simply stock retail stores with standard items to agents who provide sales, engineering and technical support for complex systems. It is common for a single company to deal in a wide variety of products in a particular sector. Agents and trading companies may be less specialized than companies in a large economy like the US, but the best ones are focused and have contacts in a general line of business.
C. Franchising
During the past decade, Hong Kong and the region have been catching on to the concept of franchising. With the rise in household income over the years, there has been growing demand for goods and services of a better quality. In addition, the high cost of space and labor supports the use of known business formats such as franchises for entrepreneurs. The number of franchise operations in Hong Kong has increased from 52 in 1992 to 90 in 1996, the majority of which are U.S. franchises. In addition to foreign franchises, there are also a number of home grown franchises in fast food, frozen yogurt, herbal tea, etc. The competition that foreign franchises have to face is not minimal. However, market demand continues to grow.
D. Direct Marketing
Over the years, Hong Kong has developed an efficient wholesale and retail network to cater to the growing consumption needs of a more affluent population. Supermarkets, large department stores, convenience stores and modern shopping centers have become increasingly popular. Shopping has become a popular pastime, creating a need for a much wider selection of value for money merchandise. From the consumer standpoint, because of the convenience of having a wide selection of merchandise available in the retail market, direct marketing is not a well-accepted sales channel in Hong Kong. Recently there has been some growth in direct marketing through television, but mail-order and other forms of direct marketing are still very limited.
E. Joint-Ventures/Licensing
Joint-ventures or strategic alliances can be very helpful in entering the market, and are particularly important in competing for major projects. (For additional information on joint ventures, see Section VII below, Investment Climate.)
Licensing is increasingly common in the field of brand name product manufacturing and marketing.
F. Steps to Establishing an Office
Foreign interests are allowed to incorporate their operations freely in Hong Kong, to register branches of foreign operations, or to set up representative offices. There is no restriction on the ownership of such operations. Company directors are not required to be citizens of, or resident in Hong Kong. Reporting requirements are straightforward and not onerous. There is no distinction in law or practice between investment by foreign controlled companies and those controlled by local interests. There are no disincentives to foreign investment such as limitations on the use or transfer of foreign currency, or any system of quotas, performance requirements, bonds, deposits, or other similar regulations. The high cost of labor and rents is the major disincentive to establishing a presence in Hong Kong. The transition to PRC sovereignty should have no impact on the openness to foreign companies and the ease of establishing an office in Hong Kong.
G. Selling Factors/Techniques
The major selling factors are the same as in the U.S.: price, quality, timeliness in delivery and service. Initial sales require more face-to-face contact as Asians generally place a premium on developing personal connections.
H. Advertising and Trade Promotion (including listing of Major Newspapers and Business Journals)
Many promotional vehicles are open to suppliers to introduce and develop their products and services in the Hong Kong market. These include:
- special trade fairs and exhibitions
- advertising in the media and other public relations activities
- holding seminars,
- in-store promotions
Hong Kong is a major conference and exhibition center. Hundreds of international exhibitions are held annually. The Hong Kong Conference and Exhibition Center (owned by the quasi-governmental Trade Development Council) has 194,000 square feet of exhibition space and will be adding an additional 300,000 square feet of exhibition space in a major expansion scheduled for completion in the summer of 1997. A privately built facility, the International Trademart, opened in Kowloon Bay in early 1996 with 158,000 square feet of exhibition space. A list of the major trade shows and trade show organizers is supplied in the appendix.
Suppliers should provide technical catalogs in English, and at least some information in Chinese, for distribution to agents and firms. Company brochures are particularly useful when visiting Hong Kong for the first time. English-Chinese business cards are very helpful. Business people should also be aware that business cards are exchanged far more frequently in Hong Kong and China than in the United States.
Television is a widely used medium with an estimated daily audience of 5.3 million out of a population of 6.4 million. Hong Kong television also reaches much of neighboring Guangdong Province in China, where it is very popular.
As one of the largest centers in the world for Chinese language publications, Hong Kong produces 58 daily newspapers and 625 periodicals. Advertising agencies, including many of international standing, offer a full range of services. A list of the English language major newspapers and magazines follows.
Newspapers:
South China Morning Post
South China Morning Post Publishers Limited
Morning Post Building
Tong Chong Street
Quarry Bay, Hong Kong
Tel: (852) 2565-2222
Fax: (852) 2565-5380
Hong Kong Standard
Hong Kong Standard Newspapers Ltd.
4/Fl., Sing Tao Building
1 Wang Kwong Road
Kowloon Bay
Kowloon, Hong Kong
Tel: (852) 2798-2798
Fax: (852) 2795-3027, 2795-3009
Trade Journals:
AmCham (Monthly)
American Chamber of Commerce in Hong Kong
1904 bank of America Tower
Central, Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289
Asian Business (Monthly)
Far East Trade Press Ltd.
Block C, 10/F., Seaview Estate
2-8 Watson Road
North Point, Hong Kong
Tel: (852) 2566-8381
Fax: (852) 2508-0197
Construction & Contract News (Monthly)
Trend Publishing (HK) Ltd.
19/F., Washington Plaza
230 Wanchai Road
Hong Kong
Tel: (852) 2832-9298
Fax: (852) 2832-9667
Far Eastern Economic Review (Weekly)
Review Publishing Company Limited
25/F., Citicorp Center
18 Whitfield Road
Causeway Bay, Hong Kong
Tel: (852) 2508-4300
Fax: (852) 2503-1537
Hong Kong Industrialist (Monthly)
Federation of Hong Kong Industries
4/F., Hankow Center
5-15 Hankow Road
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2723-0818
Fax: (852) 2721-3494
Productivity News (Monthly)
Hong Kong Productivity Council
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Kowloon
Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5900
Telecom Asia (Monthly)
CCI Asia-Pacific
101, 1/F, Pacific Plaza
410 Des Voeux Rd West
Central, Hong Kong
Tel: (852) 2858-0789
Fax: (852) 2857-6309
I. Pricing Product
If possible, quote in metric, on a deliverable basis to Hong Kong i.e. CIF or C&F rather than FOB. Hong Kong companies have lots of options; American companies must make it as easy as possible to deal with them.
J. Sales Service/Customer Support
Some sort of local presence, whether it is a branch office or an agent or distributor, is very important in getting established in the market. Business in Hong Kong (and elsewhere in Asia) requires relationships which can only be developed with some sort of full-time presence. Prompt after-sales service is also crucial to succeeding in this very competitive market.
K. Selling to the Hong Kong Government
The Hong Kong Government Supplies Department (GSD) is the central purchasing, storage and supply organization for the Hong Kong Government, serving over 80 government departments and agencies, and many subsidiary organizations. The GSD usually purchases by open tender, with decisions based on price, quality and delivery. The GSD gives no preference to any particular source of supply from any country or organization. GSD spent US$606 million in 1996, with American companies winning around 40% of the total procurement contracts (about US$244 million). The Hong Kong Government decided in December 1996 to join the WTO government procurement code. Under the agreement, Hong Kong will implement a bid protest system by May 1998.
Tenderers generally have about six weeks to prepare their offers. Invitations to open tender are published in the Hong Kong Government Gazette and in leading Hong Kong newspapers. Tenderers are urged to submit offers with at least a 30-day validity period. Payment is usually effected by check within 30 days of delivery of the goods, but terms are often amended to suit special conditions of the contract. Total bid prices and names of the successful tenderers are published weekly in the Government Gazette.
For information about a subscription to the Hong Kong Government Gazette, contact:
Information Officer
Publications Sales Section
Information Services Department
28th Floor, Siu On Centre
188 Lockhart Road
Wanchai, Hong Kong
Tel: (852) 2598-8197
Fax: (852) 2598-7482
The GSD maintains lists of registered suppliers. To become a "Registered Supplier" and regularly receive the GSD's tender documents, companies must submit questionnaires detailing business activities, licensing arrangements, financial resources, the goods and services they offer, etc. The GSD evaluates this information and selects qualified suppliers for inclusion on their register. The U.S. & Foreign Commercial Service at the US Consulate General in Hong Kong office regularly reports on government tenders. Which are available via the NTDB. For information call the U.S. Department of Commerce at 1-800 stat-usa.
Companies seeking more information on the GSD are encouraged to contact:
The Director of Government Supplies
Government Supplies Department
12 Oil Street
North Point, Hong Kong
Tel: (852) 2802-6100
Fax: (852) 2510-7904
http://www.info.gov.hk
L. Protecting your product from IPR Infringement
The best protection for an American company is to aggressively market in Hong Kong. By using a good local agent, American manufacturers or suppliers can make their product legally available. Dealers have a strong incentive to stop any piracy, and with good local connections, have a better chance of making that happen than an American company which is not actively participating in the market. The chief law enforcement body for Intellectual Property Rights (IPR) is the Hong Kong Customs and Excise Department. However, protecting copyrights or trademarks takes vigilance, and even with the U.S. Government vigorously pressing Hong Kong on this issue, enforcement is still dependent on reporting incidents of product piracy to the authorities and, in some cases, providing evidence in court. For more information on intellectual property legislation and registration, see Section VII. H, below.
M. Need for a Local Attorney
Hong Kong follows the Common Law System and disputes which cannot be resolved between the interested parties are commonly pursued through the court system. Attorneys are needed for most court processes and are extremely expensive.
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Hong Kong, with the second-highest per capita income in East Asia, offers bountiful opportunities to U.S. businesses. Information technology products and services including telecommunications and computer related items are among the most promising as Hong Kong competes every day to maintain and increase its competitiveness as a high value-added services center. Pharmaceuticals, aircraft and parts, cosmetics, franchising and insurance services also offer outstanding opportunities for U.S. exporters. Other "best prospect" sectors include high quality paper products for Hong Kong's own requirements as the fourth largest printing and publishing center in the world, as well as for re-export to China.
Total U.S. agricultural exports to Hong Kong reached US$1.49 billion in 1996, our 8th largest export market. If seafood and forestry products are included, the total exceeds US$1.61 billion. Hong Kong has become an increasingly important and rapidly growing market for American foods and farm commodities. It ranks as the fourth largest importer of U.S. consumer-oriented agricultural products after Japan, Canada and Russia. Hong Kong imported US$1.21 billion of consumer-oriented products in 1996, up 11% from 1995. Overall, Hong Kong ranks as the fifth largest U.S. agricultural export market in Asia after Japan, Republic of Korea, Taiwan and the People's Republic of China.
There is also potential growth for U.S. grocery line items as the number of food retail outlets continues to increase. Because of established ties and advantageous trading arrangements, most of Hong Kong's grocers traditionally looked to the United Kingdom, Europe, Australia, New Zealand and other Commonwealth countries for supplies. In recent years, however, those buying habits have been shifting and many American items are now available on local shelves, at highly competitive prices. U.S. style warehouse/club retail stores in Hong Kong continue to grow. GrandMart, established in 1993, was the first and now has seven stores which primarily carry food and non-food products from the United States. Unlike most supermarket chains, there are no slotting fees, giving U.S. access to this highly competitive market. While GrandMart was the first to introduce the warehouse concept to Hong Kong, over the past few years a variety of new players have joined the local retail scene. These include Value Club, Carrefour and A-Mart.
Hong Kong consumers like new products, and will experiment with different foreign products. U.S. suppliers have been successful in local Japanese supermarkets, and even Chinese grocery chains. U.S. Department of Agriculture food shows and in-store promotions also offer an excellent way for U.S. firms to introduce and promote new products to the Hong Kong market. With the U.S. Consulate General's Agricultural Trade Office's (ATO) services, and Hong Kong's strong economy, this is an ideal location for U.S. products.
A. Best Prospects for Non-Agricultural Goods and Services
Following is a list of the non-agricultural goods and services best prospects sectors for U.S. exporters to Hong Kong:
Note: All Figures in U.S. Dollar millions unless otherwise indicated.
1. COMPUTERS AND PERIPHERALS (CPT)
Although Hong Kong manufactures a wide range of computer-related products, key components such as central processing unit chips, integrated circuits, disk drives, memory chips, keyboards and monitors are still being imported from around the world, principally from the U.S., Japan and Taiwan. With the growing popularity of Internet, multimedia, networking and electronic mail systems, products such as new models of modems, peripheral cards, LAN cards, multimedia plug-on boards, sound blaster cards and CD-ROM drives are in great demand.
Most Hong Kong assembled computers are mainly designed for domestic and small business uses, such as laptops, notebooks and desktops. There are only a few local suppliers of professional computers and workstations for CAD/CAM for engineering and computer networking applications. Given the high investment required for these more sophisticated systems, the U.S. will continue to be one of the major suppliers in this market sector.
As China's economy continues to boom and its per capita income grows, demand for consumer products including personal computer products has been rapidly expanding in recent years. In 1996, China was the largest export/re-export market for Hong Kong's computer products, constituting around 25% of the total.
U.S. exporters of computer peripherals have been facing keen competition from local and regional manufacturers. The challenge for U.S. exporters is to maintain their position as high-end technology providers, while withstanding the fierce price competition where price is still a major buying determinant.
| | 1996 | 1997 | 1998 |
| Total Market Size | 3,807 | 4,133 | 4,367 |
| Total Local Production | 2,400 | 2,532 | 2,671 |
| Total Exports | 1,682 | 1,429 | 1,214 |
| Total Re-exports | 7,371 | 8,476 | 9,747 |
| Total Imports | 10,460 | 11,506 | 12,657 |
| Total Imports from the U.S. | 1,439 | 1,726 | 2,071 |
The above statistics are unofficial estimates.
2. AIRCRAFT/PARTS (AIR)
Hong Kong is served by 66 scheduled airlines which operate 1,500 direct flights in and out of Hong Kong weekly to 100 cities. In 1996, these airlines accounted for 158,797 aircraft movements and brought 29.4 million passengers and 1.56 million tons of cargo throughput at the Hong Kong International Airport at Kai Tak, making the Hong Kong airport one of the busiest in the world. At present, Hong Kong has three home-based airlines (Cathay Pacific, Hong Kong Dragon Airlines and Air Hong Kong) which own a total of 73 aircraft. Macau, the Portuguese approximately 30 miles to the southwest of Hong Kong, opened its airport in 1995, with one home-based airline, Air Macau. Replacement and expansion needs both in Hong Kong and Macau create a demand for more aircraft, particularly after Hong Kong's new airport at Chek Lap Kok becomes operational in April 1998.
At present, the Hong Kong Aviation Engineering Company (HAECO) manages all aircraft maintenance at Kai Tak. When the Chek Lap Kok airport opens, there will be three franchises for line services (HAECO, China Aircraft Services Ltd and Pan Asia Pacific Aviation Services) and one base service managed by HAECO. The expected increase in aircraft movements, when the new airport opens in 1998, will increase the demand for aircraft maintenance parts. The Macau aircraft maintenance hangar is scheduled for completion in July/August 1997. When this hangar is operational, there will be further demand for aircraft parts. Also, nearly half of Hong Kong's re-export of aircraft parts goes to China. With China's aviation industry growing at a 13% annual rate, demand for aircraft parts for replacement and maintenance purposes will increase dramatically.
The U.S. already maintains 75% and 55% share of the import market for aircraft and aircraft parts, respectively. The U.S.'s long established reputation in Hong Kong should enhance its competitiveness still further in the expanded market after 1998.
| | 1996 | 1997 | 1998 |
| Total Market Size | 1,733 | 2,253 | 2,929 |
| Total Local Production | 0 | 0 | 0 |
| Total Exports | 112 | 146 | 189 |
| Total Imports | 1,845 | 2,399 | 3,118 |
| Total Imports from U.S. | 672 | 874 | 1,136 |
The above statistics are unofficial estimates.
3. SECURITY/SAFETY EQUIPMENT (SEC)
Hong Kong's electronic security products industry is characterized by heavy dependence on imported parts and components. Sensors, integrated circuits and magnetic components are imported from the US, Japan, South Korea, and Taiwan, while other components, including transistors, capacitors, switches, printed circuit boards (PCBs), metal and plastic parts are sourced locally.
In order to cope with competition, both local and overseas suppliers frequently introduce new products with different combinations of features. For example, detectors include functions such as auto-reset, remote control and security code access switches. Growing crime rates and rising concern about home and office security have prompted an increasing demand for more sophisticated security systems. Complete integrated security systems with higher value-added features are increasingly popular. The latest trends are towards multi-zone detection coverage and do-it-yourself wireless connection to central control panels via radio transmission, requiring no fixed wiring, making such systems easy to install without affecting the interior design of homes and offices. Products with digital control keypads for programming, which are capable of communicating with a remote center via a telephone network, are also in high demand.
During the last few years, there have been a large number of cross border thefts of executive and luxury cars. This has resulted in a demand for sophisticated, false-alarm-proof vehicular security systems. An increasing number of automobile manufacturers are selling vehicles with built-in security systems. Intrusion detectors are based on either open-door, vibration or more sophisticated ultrasonic, infrasonic or microwave sensors. Products equipped with remote controls and long range pagers to alert car owners of theft are also increasing in popularity.
Hong Kong's high density building environment and buildings which predate the current building codes have resulted in a number of major fires in commercial and residential buildings. Residents are demanding improved fire prevention and detection systems in buildings. Smoke detectors are becoming more popular than fire alarms because they can detect fires more quickly. Fire alarms have restricted use and are mainly employed in places storing dangerous goods.
As costs of production in Hong Kong have increased, local manufacturers have moved their production facilities into China.
| | 1996 | 1997 | 1998 |
| Total Market Size | 60 | 85 | 135 |
| Total Local Production | 104 | 62 | 60 |
| Total Exports | 377 | 467 | 560 |
| Total Imports | 333 | 489 | 635 |
| Total Imports from the US | 28 | 41 | 53 |
The above statistics are unofficial estimates
4. COMPUTER SOFTWARE (CSF)
The local market for computer applications software and services is continuously growing. Demand for software products and services comes from a wide range of businesses. Currently, approximately 80% of the services are provided by local service providers.
As Hong Kong's role as a regional trading, transportation and telecommunications hub continues to grow, trading, distribution, shipping and telecommunications companies, which are well-established computer users, will remain the major sectors of growth in the local software products and services market. In addition, with the growing popularity of Internet and e-mail systems, as well as new developments and applications in areas such as multi-media and mobile communications, software products and services for these applications are in growing demand.
Partly as a result of Hong Kong's return to Chinese sovereignty during 1997, greater cooperation between software developers in Hong Kong and China is anticipated. Chinese business application software has been embraced by restaurants, factories, small retailers and other companies involved in the China trade. Hong Kong's increasing economic integration with China, as well as increasing use of Chinese language in both the government and private sectors, will continue to stimulate development of Chinese language software.
According to a recent survey, over 60% of small to medium-sized enterprises in Hong Kong are not yet fully computerized. Among the companies that are computerized, there exists a great need for systems to be upgraded in order to catch up with technological advancements. The most promising market opportunities for IT companies exist particularly in the areas of industry-specific application software, electronic commerce, Internet/Intranet applications, computer graphics and multimedia software.
U.S. companies, however, should be cautious in protecting their products due to concerns with ongoing Intellectual Property Rights violations in Hong Kong.
| | 1996 | 1997 | 1998 |
| Total Market Size (products)* | 58 | 70 | 84 |
| (services)** | 569 | 683 | 819 |
| Total Local Production (products)* | 13 | 15 | 18 |
| (services)** | 455 | 546 | 655 |
| Total Exports (products)* | 14 | 17 | 20 |
| Total Re-exports (products)* | 60 | 72 | 87 |
| Total Imports(products)* | 120 | 144 | 173 |
| Total Imports from the U.S. (products)* | 58 | 70 | 84 |
* Standard software packages sold in recorded media form for other than sound or images.
** Customized software systems and services sold usually on a project basis.
The above statistics are unofficial estimates.
5. TELECOMMUNICATIONS EQUIPMENT (TEL)
Hong Kong's telecommunications market is one of the most technically advanced and competitive in the Asia-Pacific region. Its world-class, fully digitized telecommunications infrastructure has both resulted partly from, and has helped to bolster, Hong Kong's position as the leading business, financial and communications center in the region.
The telecommunications infrastructure is comprised of four fixed line service companies, four traditional mobile service providers, six Personal Communications Services (PCS) license holders, over 31 paging operators on 68 channels, more than 100 Internet access service providers, and more than 100 value-added service providers. By the end of 1996, 4.4 million telephone sets had been sold in Hong Kong, serviced by 3.4 million exchange lines. Hong Kong's telephone density is extraordinarily high, at 69 telephones or 53 lines per 100 people. The number of dedicated facsimile lines grew to 308,000 by the end of 1996, representing a monthly average increase of nearly 3,000 lines. Present penetration rates for both mobile phones and pagers have reached nearly 17%, with approximately 1.1 million subscribers in each market. International Direct Dialing (IDD) service is available to over 230 countries and 1,200 Chinese cities. Satellite-based telecommunications and television broadcasting services are provided via 32 satellite earth station antennas, making Hong Kong the largest teleport in Asia. Hong Kong is connected to six submarine fibre-optic cable systems, and three overland systems have been put into operation to service the growing traffic between Hong Kong and China. Hong Kong Telecom and Wharf Cable, the monopoly provider of cable television services, are currently independently developing Video-on-Demand (VOD) interactive television systems, with commercial launch for Hong Kong Telecom's service scheduled for late 1997.
Hong Kong is also an important distribution and sourcing center of products in the region. With the remarkable growth experienced by China and the Asia-Pacific countries in recent years, Hong Kong has become an ideal place for U.S. telecommunications equipment suppliers to tap into the fast growing demand in the region.
| | 1996 | 1997 | 1998 |
| Total Market Size | 3,068 | 3,660 | 4,766 |
| Total Local Production | 1,172 | 1,207 | 1,267 |
| Total Exports | 3,995 | 4,274 | 4,573 |
| Total Imports | 5,891 | 6,727 | 8,072 |
| Total Imports from the U.S. | 553 | 631 | 757 |
The above statistics are unofficial estimates
6. BUILDING PRODUCTS (BLD)
Public housing development, private residential and commercial development, infrastructure projects, and the China market are the driving forces behind the demand for building products in Hong Kong. With Hong Kong's population expected to grow to 8.2 million by 2016 (i.e. 30% growth from the present 6.3 million level), the need for more housing, hospitals, schools and better transport infrastructure will increase demand for more building products in the future.
Hong Kong relies heavily on imports of building products because local production is far too small to meet demand. In the import market, competition is keen with major players from China, Japan, Italy, Germany, Spain and the UK competing against the US. However, U.S. products are capable of being well positioned in the building products market by emphasizing quality and special features such as low maintenance or energy efficiency. In particular, market potential exists for waterproofing products, insulation materials, concrete admixtures, sealants, hard wood/vinyl/raised flooring, ironmongery, lighting systems, etc from the US.
| | 1996 | 1997 | 1998 |
| Total Market Size | 2,707 | 3,249 | 3,898 |
| Total Local Production | 858 | 1,030 | 1,236 |
| Total Exports | 1,861 | 2,233 | 2,680 |
| Total Imports | 3,710 | 4,452 | 5,342 |
| Total Imports from U.S. | 298 | 358 | 429 |
The above statistics are unofficial estimates.
7. POLLUTION CONTROL EQUIPMENT (POL)
The next five years will see ample opportunities for US firms in Pollution Control Equipment as planned infrastructure projects come on line and as industry works to comply with new environmental regulations. The key areas for US firms are in municipal sewage, industrial waste water and solid waste minimization and handling equipment.
In addressing Hong Kong's environmental infrastructure requirements, over US$ 1 billion of project awards will be made between 1997 and 2000. Projects currently being awarded or planned include: municipal sewage treatment systems and related equipment for US$ 300-400 million, a centralized slaughterhouse facility for US$ 150 million, two remaining refuse transfer stations for US$ 75 million, two million tons/year waste-to-energy incinerators at US$ 200-300 million and a low-level radioactive waste storage system for US$ 5 million. Equipment to support these projects typically accounts for 25-30% of the project cost and will offer significant opportunities to US suppliers.
In 1996, the Hong Kong Government implemented the Water Control Zone (WCZ) effluent discharge regulations for Hong Kong waters. However, enforcement of the effluent discharge guidelines will take effect slowly as a government grace period expires and as enforcement becomes more stringent. Hong Kong's Industry Department projects that the total cost of compliance for Hong Kong's 2000 factories now affected by the WCZ will reach US$ 250 million, spread over a period of several years. This should provide excellent opportunities for US firms, as US technologies are considered highly competitive in Hong Kong's market. The key industries needing waste water control equipment are electroplating, electronics, bleaching and dyeing, and food processing.
One of Hong Kong's priority sectors in the coming years is the minimization of solid waste. US firms with innovative solutions to reduce, reuse and re-cycle solid waste will find ample opportunity to market their equipment and processes.
| | 1996 | 1997 | 1998 |
| Total Market Size | 221 | 228 | 235 |
| Total Local Production | 11 | 12 | 12 |
| Total Re-Exports | 40 | 48 | 58 |
| Total Imports | 250 | 264 | 281 |
| Total Imports from the U.S. | 63 | 89 | 103 |
The above statistics are unofficial estimates.
8. ELECTRONIC COMPONENTS (ELC)
The electronics industry continues to play a key role in Hong Kong's economy. Hong Kong Government statistics show that the electronic industry remains Hong Kong's second largest export-earner in 1996, with U.S. $4.5 billion of domestic exports and U.S. $20 billion of re-exports in 1996.
Hong Kong is an important trading center for electronic parts and components in Asia-Pacific. Many items from China, Japan, Taiwan, South Korea, and the U.S. are re-exported via Hong Kong. Hong Kong exports a wide range of electronic parts and components, with particular strength in middle range products. The largest export items are parts and accessories for computers, radio telecommunications, telephone/telegraphic apparatus, and audio/visual recording apparatus. Many Hong Kong manufacturers have re-oriented production towards higher-end electronic parts and components for use in commercial and industrial equipment. Hong Kong manufacturers also have adopted a strategy of greater vertical integration to increase value-added.
In the next few years, Hong Kong's demand for parts and accessories for computers and telecommunications will be sustained by the growing popularity of the Internet and e-mail systems, as well as new developments and applications in the areas of multimedia and mobile communications. U.S. companies should be aware of the ongoing structural changes in Hong Kong's electronic industries and place more attention on Hong Kong's growing demand for high-technology electronics parts and components.
The Information Technology Agreement (ITA) reached in early 1997 under the auspices of the World Trade Organization (WTO) aims to start reducing, and eventually to eliminate customs duties on IT products among the WTO members and ITA participant states, beginning in July 1997. This agreement, which includes electronic parts and components, is expected to further accelerate Hong Kong's trade in electronic parts and components.
| | 1996 | 1997 | 1998 |
| Total Market Size | 14,994 | 17,214 | 19,608 |
| Total Local Production | 9,465 | 9,938 | 10,435 |
| Total Exports | 4,527 | 4,200 | 3,897 |
| Total Re-exports | 20,697 | 22,352 | 24,140 |
| Total Imports | 30,753 | 33,828 | 37,210 |
| Total Imports from the U.S. | 4,430 | 4,837 | 5,360 |
The above statistics are unofficial estimates.
9. COSMETICS/TOILETRIES (COS)
With a per-capita GDP of US$ 24,282, Hong Kong's sophisticated bilingual consumer population offers outstanding opportunities for sales of a full range of U.S. products and services. The broad category of consumer goods, with imports of US$ 74.2 billion in 1996, constituted the largest share of Hong Kong's total imports. Since the lifting of the 30% duty on cosmetics and perfumery products in Hong Kong in March 1993, the demand for these products has been continuously increasing. Imports of cosmetics, perfumery and hair care products, which totaled US$ 566 million in 1996, grew by 9% as compared to 1995. U.S. products, which are perceived by Hong Kong consumers as high quality, particularly those with FDA approval, occupied 16% of the import market. This is up from a 14% share of total imports in 1995; and it represents an impressive 24% growth in U.S. exports compared to 1995. Prospects for continued growth in U.S. exports in the near future remain promising.
Tourism remained Hong Kong's second-largest earner of foreign exchange in 1996. Some 11.7 million visitors came to Hong Kong in 1996, an increase of 14.7% over the previous year. Visitor spending, which amounted to US$ 10.8 billion, was 16% higher than 1995. According to research conducted by the Hong Kong Tourist Association in 1995, visitors spent more than US$ 160 million on cosmetics and a further US$ 74 million on perfumery and toiletries, an increase of 21% and 47%, respectively, over 1994's spending.
| | 1996 | 1997 | 1998 |
| Total Market Size | 414 | 455 | 500 |
| Total Local Production | 13 | 14 | 14.4 |
| Total Exports | 9.8 | 10.3 | 10.8 |
| Total Re-Exports | 156 | 171 | 188 |
| Total Imports | 566 | 623 | 685 |
| Total Imports from the U.S. | 90 | 104 | 119 |
The above statistics are unofficial estimates and are in thousands.
10. DRUGS/PHARMACEUTICALS (DRG)
Approximately 80% of Hong Kong's pharmaceutical market consists of imports. In addition to the U.S., major suppliers include the U.K., Japan, Germany and China. U.S. pharmaceuticals are very well received in Hong Kong. Even though exports of U.S.- made pharmaceuticals amounted to only USD63 million in 1996, 5.2% of Hong Kong's total imports, the U.S. market share is actually much higher because many U.S. pharmaceutical products are produced and imported from other countries in the region. Hong Kong consumers generally consider U.S. pharmaceuticals to be effective and safe, an impression attributable to the knowledge that the American Government exerts strict oversight over the manufacture of pharmaceutical products. U.S. Food & Drug Administration (FDA) Certification is well recognized by the Pharmacy and Poisons Board of Hong Kong's Department of Health.
The Hospital Authority is responsible for the management and control of all public hospitals, and is the biggest pharmaceuticals end user in Hong Kong. Drugs are a major and growing expense for the Hospital Authority, which spent USD134 million during the 96/97 fiscal year. The H.A.'s expenditures on drugs are likely to continue to increase in the future, because public hospitals are treating more patients than ever before - last year the number of patients treated rose by 11 per cent.
In 1997, the Hong Kong Pharmacy and Poisons Board endorsed the "Good Manufacturing Practice" (GMP), which will be implemented beginning in the year 2000. Because of the more stringent manufacturing requirements that GMP will impose, estimates are that 20-25 of Hong Kong's 40 active local manufacturers will be discouraged by the new program, and eventually this group of manufacturers will be phased out. Consequently, imported products (especially over the counter and generic drugs) should enjoy an even higher market share in Hong Kong in the future. There should also continue to be a large expansion in the re-export trade which is largely triggered by the demand in China.
| | 1996 | 1997 | 1998 |
| Total Market Size | 394 | 413 | 469 |
| Total Local Production | 197 | 181 | 163 |
| Total Exports | 1,022 | 1,124 | 1,236 |
| Total Re-Exports | 911 | 1,038 | 1,225 |
| Total Imports | 1,219 | 1,341 | 1,542 |
| Total Imports from the U.S. | 63 | 68 | 77 |
The above statistics are unofficial estimates.
11. ARCHITECTURE/CONSTRUCTION/ENGINEERING SERVICES (ACE)
Hong Kong is planning substantial infrastructure projects including improved cross border links, railway systems, environmental services and new container terminals. There is also a steady increase in the demand for housing. To support these projects, Hong Kong's engineering consulting services sector is expected to further flourish.
The Government predicts that by the year 2011, the yearly demand for cargo handling will rise to 32 million 20-foot equivalent units (teus) from the 13.4 million teus recorded in 1996. With this growth in cargo throughput, Hong Kong is planning a completely new container port on Lantau Island with twice the capacity of the existing port which already handles the largest container throughput in the world.
The Government is investing heavily in environmental infrastructure projects. Projects include: the development of municipal sewage systems, refuse transfer stations and their supporting infrastructure and numerous other environmental projects.
Hong Kong's two railroad companies are starting major expansion projects. The Kowloon-Canton Railway Corporation (KCRC) has obtained approval from the Government for its proposal to build the 30-km Western Corridor Railway which is valued at US$7 billion. Similarly, the Mass Transit Railway Corporation (MTRC) plans to extend its existing line to service new towns in South East Kowloon. The total project cost is valued at US$3.2 billion.
The Government also has plans to spend US$3.4 billion on new roads up to the year 2001. These projects include improvements to existing roadways, and the building of new roadway networks.
The Government aims to produce 511,000 new flats over the six-year period from April 1995 to April 2001, made up of both public and private housing units.
All of these will require a variety of architectural, engineering and consultant services. The opportunities for U.S. firms are particularly good in design and fire engineering consultancy work, for large scale projects including railway stations, hotels, office complexes and shopping malls.
| | 1996 | 1997 | 1998 |
| Gross value of construction work | 15,011 | 16,812 | 18,830 |
| Consulting fee involved (approx.6.5%) | 976 | 1,093 | 1,224 |
| Market share by HK firms (est.90%) | 878 | 984 | 1,102 |
Market share by US Firms
(est. 2%) | 20 | 22 | 24 |
The above statistics are unofficial estimates. Note: The figure for Hong Kong firms includes many long established foreign firms in Hong Kong which were originally from the United Kingdom and Japan.
12. INSURANCE SERVICES (INS)
Hong Kong is a leading insurance center in Asia, providing general and long term risk coverage as well as investment management services for private and corporate policies. Hong Kong has the largest number of authorized insurance companies in Asia: at the end of 1996, Hong Kong had 223 authorized insurers, of which 123 were incorporated overseas. Among the overseas incorporated insurers, 28 are from the United Kingdom and 22 are from the U.S. Of the world's top 10 insurance companies, six have branch offices or subsidiaries in Hong Kong.
Hong Kong's insurance industry has enjoyed an average annual growth of 19% in gross premium income between 1991 and 1995. Gross premium income increased by 12% from US$5 billion in 1994 to US$5.7 billion in 1995. Hong Kong's gross premium income ranks fifth in Asia (after Japan, South Korea, Taiwan and China) and 24th in the world. Hong Kong remains largely uninsured, with only 45% of the population covered by life insurance, compared with 80%-90% in the U.S. and 90% in Japan. With rising living standards and an increasing awareness of the protection provided by insurance, there is a sizable local market waiting to be captured.
The insurance industry will benefit from the implementation of the Mandatory Provident Fund (MPF) scheme in 1997. The MPF scheme is estimated to inject an extra US$3.9 to $5.2 billion a year in retirement funds for the next 30 to 40 years until the system matures. Insurance companies will play a vital role in not just administering the MPF, but also operating master trusts and directing funds to various external fund managers.
China is identified as the most attractive insurance market with the greatest potential for growth over the next 20 years. China has taken measures to speed up the liberalization of its insurance industry. In addition to the three foreign insurers already competing in the market, an additional foreign insurer obtained a license to operate in China in November 1996. Premium income in China has grown 320%, growing from RMB 17.85 billion in 1990 to an estimated RMB 75 billion in 1996. The number is expected to grow to RMB 200 billion by the year 2000 as projected by the World Bank. Thus, there are also good opportunities for U.S. companies, particularly in the southern China market.
| | 1996 | 1997 | 1998 |
| Total Sales | 5,838 | 6,134 | 6,820 |
| Sales by Local Firms | 1,284 | 1,349 | 1,500 |
| Overseas Sales by Local Firms | 0 | 0 | 0 |
| Sales by Foreign Owned Firms | 4,554 | 4,785 | 5,320 |
| Sales by US Owned Firms | 1,606 | 1,687 | 1,876 |
The above statistics are unofficial estimates.
13. PAPER/PAPERBOARD (PAP)
Hong Kong, the fourth largest printing and publishing center in the world, is dependent upon the supply of high quality paper products as raw material. As its adjacent trading partner, China, continues its rapid economic development, Hong Kong's role in trans-shipping quality paper products to China is also expected to stay strong.
Hong Kong is a financial, trading and communications center. As such, its need for paper products has been increasing steadily. In 1996, Hong Kong's media consisted of 58 daily newspapers and 625 periodicals. World renowned publishers such as Oxford University Press and MacMillan also have regional headquarters in Hong Kong. Adding to this demand is the continuing increase in local and overseas consumption of packaging and advertising materials. All these factors lead to a flourishing printing industry and a growing demand for paper products locally.
Hong Kong has long been recognized as a gateway to China, and it has been supplying paper products to the growing Chinese paper market. In 1995, Hong Kong re-exported US$ 1.2 billion worth of paper products to China. Although some paper mills are found in China, the product quality at present is substantially lower than imported paper. For this reason, as well as Hong Kong companies' publishing activities in China, Hong Kong is expected to continue to have a major role in supplying China with paper products.
| | 1996 | 1997 | 1998 |
| Total Market Size | 1,162 | 1,220 | 1,320 |
| Total Local Production | 140 | 150 | 165 |
| Total Exports | 1,481 | 1,630 | 1,795 |
| Total Imports | 2,503 | 2,700 | 2,950 |
| Total Imports from the U.S. | 447 | 490 | 540 |
The above statistics are unofficial estimates.
14. EDUCATION/TRAINING (EDS)
Education is a major priority in Hong Kong. Most children attend pre-school from the age of three. And by law, all children must be in full-time education from the age of six to 15. After grade 9, most stay on for a two-year senior secondary course leading to the first public examination, the Hong Kong Certificate of Education Examination; others start vocational training, while a small number choose to leave formal education. And a few go abroad to continue their high school education and higher education. About 14,000 student visas are issued in Hong Kong each year by the four major recruiting countries -- the U.S., Australia, Canada, and Britain.
Last year, the U.S. Consulate in Hong Kong issued a total of 4,782 student visas to Hong Kong students to study in the U.S. It is estimated that each Hong Kong student studying in the U.S. spends about USD27,000 each year for tuition and living expenses. Assuming that each student stays in the U.S. for an average of 4 years, this would imply that there are approximately 19,128 students studying in the U.S., and that the total spending of Hong Kong students in the U.S. was as much as USD516 million in 1996. This represents a significant "export" for the U.S. economy.
In Hong Kong, the recent trend is for more students to be sent to the West for secondary and tertiary education. Hong Kong is a very cosmopolitan city, and English is one of the two languages of administration and commerce. Most highly-paid jobs require proficiency in English. Consequently, fluency in English is highly regarded. Of 490 secondary schools in Hong Kong, only 52 use Chinese as the primary language of instruction. However, beginning in the Fall of 1997, the situation will be reversed. Under the Special Administrative Region Government, 433 secondary schools will be required to use Chinese as the language of instruction in class and only 57 secondary schools (with approval from the Government) will use English as the language of instruction. Parents in Hong Kong are concerned that their children will lose their English ability. As a result, we anticipate that more students will be sent to English speaking countries. This should present a significant export opportunity for American educational institutions, including also the possibility of establishing ESL Institutions in Hong Kong.
| | 1996 | 1997 | 1998 |
| Total Student Visas Issued in HK (US, Australia, Canada, & Britain) | 14,130 | 15,260 | 16,557 |
| Total Expenditures Abroad by HK students (US$ million) | 1,524 | 1,648 | 1,788 |
| Total Student Visas Issued by US | 4,782 | 5,260 | 5,786 |
| Total Expenditures in the US by HK students (US$ million) | 516 | 568 | 625 |
The above statistics are unofficial estimates.
15. FRANCHISING (FRA)
During the past decade, franchising has become one of the fastest growing forms of business in Hong Kong. The number of franchise operations in Hong Kong increased by 70% from 52% in 1992 to 90 in 1996, operating nearly 2,000 outlets. According to the Hong Kong Franchise Association (HKFA), approximately half of these outlets are foreign franchises. Most are operated by the master franchisees and do not engage in sub-franchising activities. While official trade statistics on the total sales made by these franchises are not available, based on a 1995 survey completed by the HKFA, of the 87 local companies surveyed, 33 indicated that their annual sales turnover amounted to a total of US$ 129 million.
As of February 1997, food-related franchises dominate the market, accounting for 37.5% of sales, with retailing and other services accounting for 29.5% and 33%, respectively. Franchise operations in Hong Kong include the following: The Athlete's Foot, The Body Shop, Bennetton, Century 21, Domino's Pizza, Esprit, Fujicolor Circle, Haagen-Dazs, Hardee's, Jack-in-the-Box, KFC, McDonald's, Mrs. Fields Cookies, Pizza Hut Restaurants, 7-Eleven, TCBY, Wendy's Hamburgers, etc.
The Hong Kong Government follows a laissez-faire policy in relation to commercial and manufacturing activities carried out in Hong Kong. The legal climate in Hong Kong is conducive to franchising as there is no special legislation restricting foreign investment or franchising. The only relevant laws affecting franchising are the laws concerning registration and licencing of trademarks and contract law.
| | 1996 | 1997 | 1998 |
| Total Sales by Franchises | 818 | 859 | 902 |
| Sales by Local Franchises | 164 | 172 | 181 |
| Sales by Foreign Franchises | 654 | 687 | 721 |
| Sales by U.S. Franchises | 638 | 670 | 703 |
The above statistics are unofficial estimates.
B. Best Prospects for Agricultural Products
Sector Description
Poultry
Fresh Fruit
Red Meats
Processed Fruit & Vegetables
Ginseng
Hides & Skins
Tree Nuts
Lumber
Cotton
Dairy Products
Wine & Beer
Eggs
Fresh Vegetables
Snack Foods
Of all U.S. agricultural exports to Hong Kong, poultry, oranges, red meats, processed fruit & vegetables, ginseng, hides & skins, tree nuts and lumber are the leading items. Once again, poultry meat topped the list of U.S. food exports to Hong Kong in 1996 at US$419 million. This represents a 4% increase over the 1995 level of US$403 million. Chicken meat (US$396 million) was the star performer as Hong Kong consumers continue to enjoy U.S. chicken wings, feet and chicken franks, and the China market absorbs a large share of Hong Kong's poultry re-exports.
Exports of U.S. fresh fruit and vegetables alone totaled a record high of US$207.7 million in 1996. The United States is the number one supplier of fresh fruit to Hong Kong; and of all fresh citrus and non-citrus fruits exported offshore from the U.S., Hong Kong purchases approximately 8% of the total. Hong Kong is among the top three U.S. export markets for oranges, apples, grapes, tomatoes, celery, lettuce, peppers and onions. Hong Kong, with perhaps the highest per capita consumption of fresh oranges in the world, imported 121,477 metric tons of oranges from the United States in 1996. Fresh apples, grapes and lettuce have also done well. Frozen vegetable imports too, led by mostly French fries, continued to rise.
US ginseng exports to Hong Kong, on the other hand, have fluctuated up and down over the past few years. For 1996, US ginseng exports to Hong Kong totaled 756 metric tons or US$70 million. US wild and cultivated ginseng is still much sought after in this market, and, the US is the second largest supplier in terms of value behind the PRC.
U.S. exports of tree nuts including pistachios, almonds and macadamias have also done extremely well in this market over the past few years. In 1996, total tree nut exports grew by 11% over the 6% increase in 1995, to US$49 million, more than 4 times the 1990 level of US$10.8 million.
VI. TRADE REGULATIONS AND STANDARDS
A. Trade Barriers, Including Tariffs, Non-Tariff Barriers and Import Taxes
The Hong Kong Government levies no import tariffs. However, domestic consumption taxes (referred to as duties in Hong Kong) are imposed on certain goods, including tobacco (including cigarettes), alcoholic beverages, methyl alcohol and some fuels. These taxes are levied equally on local manufactures and imports. In addition, a steep tax, called a "First Registration Tax," which ranges from 40 - 60% of the price, is levied on new car purchases.
Useful contact for inquiring about specific products:
Customs and Excise Department
8/F, Harbor Building, 38 Pier Road
Central, Hong Kong
Tel: (852) 2852-3324
Fax: (852) 2542-3334 (Dutiable Commodities Division)
B. Customs Valuation
Customs valuation is only an issue for the taxable items listed above. The tax on tobacco is by volume. The tax on distilled spirits is 100%, on wine is 60% and on beer is 30%. The tax on petroleum products is by both volume and value. The value is based on the bill of lading as long as it represents a reasonable market value. The tax on automobiles is based on both retail price and engine size.
C. Import Licenses
Textiles are subject to import and export licensing because of Hong Kong's obligations under agreements with the U.S. and other countries. Importers of "Reserved Commodities" which include rice and frozen meat must obtain an importer's license before they can import these commodities. Frozen/chilled meat imports must be accompanied by appropriate health certificates issued by a recognized authority of the country of origin. Plant and animal imports must be accompanied by appropriate health certificates. Hong Kong imposes quarantine requirements for certain pets and breeding swine depending on country of origin. The Agriculture and Fisheries Department's Livestock Regulatory Division contact is tel: 2733-2166 and fax: 2311-3731.
D. Export Controls
The Hong Kong Government imposes restrictions on the export of high-technology products to countries proscribed under the former COCOM regime, including the People's Republic of China. Restrictions on trade with China were relaxed significantly by the United States in 1991, allowing Hong Kong to re-export to China on a more liberal basis. Textiles are subject to import and export licensing because of Hong Kong's obligations under agreements with the USA and other countries.
Hong Kong has committed to maintain its existing export control system after Hong Kong's reversion to Chinese sovereignty on July 1, 1997. Additionally, Hong Kong's status with regard to access to controlled U.S. technologies will not be altered as a result of reversion.
E. Import/Export Documentation
U.S. standard trade documentation is acceptable.
F. Temporary Entry
There are no problems for most products which are not subject to any Hong Kong duties or taxes. For alcohol, cigarettes and fuel, companies must fill out a duty waiver form which can be obtained from Hong Kong Customs at the address above.
G. Labeling, Marking Requirements
Non-tariff barriers such as labeling requirements, standards, etc. are also minimal.
H. Prohibited Imports
The import of munitions, firearms and fireworks is strictly forbidden.
I. Standards
Few product safety standards are required for the domestic Hong Kong market. What little there are relate to fire control (gas and electricity) in the city's high rise buildings. Other standards of quality and safety control imposed on domestic manufacturers are for goods made for export or re-export outside Hong Kong. Currently, building materials and electrical/mechanical supplies have to meet British standards. However, Hong Kong is gradually recognizing other standards so US companies seeking to export to Hong Kong check with potential agents and customers to determine exact standards required.
Another guideline to use regarding quality control is the "ISO 9000" series, published by the International Organization for Standardization (ISO). These standards, now in the process of being adopted in Hong Kong via the Hong Kong Quality Assurance Agency, provide a framework for all types of manufacturing industries. The Hong Kong Housing Authority has also adopted ISO 9000 for all of its consultants/contractors, and the Works Branch has extended ISO 9000 to engineering and architectural consultants as of April 1, 1996. The Airport Authority also requires suppliers and contractors to conform to ISO 9000.
J. Free Trade Zones/Warehouses
There are no special zones since the whole territory is basically a free trade zone.
K. Special Import Provisions
None
L. Membership in Free Trade Arrangements
Hong Kong is a GATT member in good standing, and is a founding member of the WTO.
VII. INVESTMENT CLIMATE
A. Openness to Foreign Investment
Hong Kong pursues a free market philosophy, and there is minimum government interference with corporate initiative. It welcomes foreign investment. It offers no special incentives nor does it impose disincentives for foreign investors. Hong Kong's well established rule of law is applied consistently and without discrimination. There is no distinction in law or practice between investments by foreign-controlled companies and those controlled by local interests.
There are no direct subsidies to domestic industries and, as a duty free port, no tariff barriers. There is no discrimination against foreign investors either at the time of initial investment or afterwards. There is no capital gains tax nor are there withholding taxes on dividends and royalties. Profits can be freely converted and remitted. Foreign-owned and domestically owned firms are taxed at the same rate, 16.5% of profits. There are no preferential or discriminatory export and import policies which affect foreign investors.
There are no disincentives to foreign investment such as limitations on the use or transfer of foreign currency, or any system of quotas, performance requirements, bonds, deposits, or other similar regulations. There is no anti-trust law. Certain sectors of the economy are dominated by monopolies or cartels, not all of which are regulated by the Hong Kong Government. These entities do not necessarily discriminate against U.S. goods or services, but they can use their market position to block effective competition. The Hong Kong Code on Takeovers and Mergers (1981) sets out general principles for acceptable standards of commercial behavior.
With few exceptions, the Hong Kong Government does not attempt to limit the activities of foreign investors either in specified projects or sectors. Foreign investment in Hong Kong flows freely into the industrial sector as well as into services, franchises, restaurants, the entertainment industry, and the ownership of property, both residential and commercial. There are certain exceptions:
I) Telecommunications -- Hong Kong Telecom International (HKTI) has a franchise granting it a monopoly on international basic voice telecommunications until September 30, 2006.
ii) Broadcasting -- Foreign ownership of local broadcasting stations or cable operators may not exceed 49%. All broadcasters must use the HKTI satellite uplink.
iii) Legal Services -- Until recently, foreign lawyers were not allowed to practice law in Hong Kong. However, as of spring 1996, foreign lawyers could apply to take the Hong Kong Bar Examination and, if successful, practice Hong Kong law. Foreign law firms may not hire local lawyers to advise on Hong Kong law, but may become "local" firms (after satisfying certain residency and other requirements) and thereafter hire local attorneys. However, foreign law firms still face impediments and disadvantages in trying to compete in the Hong Kong market.
iv) Financial Services -- In September 1994, a one-branch restriction on overseas banks licensed after 1978 was relaxed. Overseas banks are now permitted to set up one regional office and one back office, in separate buildings, to conduct such activities as strategic planning, general liaison with correspondent banks and corporate entities, and processing and settlement of transactions already entered into by the branch office. Moreover, foreign banks may acquire a controlling interest in a local bank that has unlimited branching rights.
v) Aviation services -- Two U.K.-affiliated companies currently provide all ground services at Hong Kong's Kai Tak Airport. The Airport Authority, which is overseeing construction of the new airport at Chek Lap Kok, has committed to having, through competitive tendering, multiple service providers of airport ground services for maintenance and cargo handling. U.S. companies are members of consortia that have won Chek Lap Kok franchise contracts.
vi) Government Contracts -- While Hong Kong's record for open and fair government procurement is generally without blemish, the Hong Kong Government agreed in December 1996 to join the new WTO plurilateral agreement on government procurement. Under the agreement's provisions, Hong Kong is not required to implement an official bid protest system until May 1998.
Foreign firms and individuals are allowed freely to incorporate their operations in Hong Kong, to register branches of foreign operations, and to set up representative offices without discrimination or undue regulation. There is no restriction on the ownership of such operations. Company directors are not required to be citizens of, or resident in Hong Kong. Reporting requirements are straightforward and not onerous.
Hong Kong's extensive body of commercial and company law generally follows that of the United Kingdom, including the common law and rules of equity. Most statutory law is made locally. The local court system provides for effective enforcement of contracts, dispute settlement and protection of rights. Hong Kong is a member of the World Trade Organization in its own right as a separate customs territory -- a status it will retain after reversion to Chinese sovereignty on July 1, 1997.
Formalities are minimal for company incorporation and business registration. Foreign and domestic companies register under the same rules and are subject to the same set of business regulations.
The Hong Kong Government's Industry Department encourages inward investment as a means to introduce new or improved products, processes, designs and management techniques. U.S. and other foreign firms can participate in government financed and subsidized research and development programs on a national treatment basis.
According to the Hong Kong Government's survey of regional representation by overseas companies in Hong Kong, 2,307 regional operations by overseas companies were identified in Hong Kong in 1996. Among these companies, 816 were regional headquarters and 1,491 were regional offices. The United States of America has the largest number of regional headquarters in Hong Kong (188 companies), followed by Japan (122 companies) and the United Kingdom (90 companies). The major lines of business of the regional headquarters included wholesale/retail, import/export, finance and banking, manufacturing, and transport and related services. In terms of attractiveness of investment climate in Hong Kong and China for the next five years, the survey showed that more than 82% (among 330 respondents) of these overseas companies were of the opinion that the investment climate was favorable in both areas.
B. Right to Private Ownership and Establishment
Hong Kong law and regulations provide for the right of foreign and domestic private entities to establish, own and to dispose of interests of business enterprises. Foreign investors are generally allowed to engage in all lawful forms of remunerative activity. Restrictions on the latter involve regulated entry of practice in the mass transit, electric power generation, medical services, legal, telecommunications and broadcasting sectors. The Hong Kong Government does not generally engage directly in business activity via public enterprises, preferring to leave this to the private sector. In general, business privileges, franchises and land development rights are granted on the basis of competitive equality.
C. Protection of Property Rights
Hong Kong's commercial and company laws provide for effective enforcement of contracts and protection of corporate rights. The Intellectual Property Department, which includes the Trademarks and Patents Registries, is the focal point for the development of Hong Kong's intellectual property regime. The Customs and Excise Department is the principal enforcement agency for intellectual property rights (IPR). While the Hong Kong Government has taken significant steps to improve its intellectual property rights regime and enhance enforcement efforts, retail sale of pirated software, recordings, and films remains rampant. As a result, the United States Trade Representative placed Hong Kong on the Special 301 Watchlist in 1997.
The Customs and Excise Department has a special IPR unit with over 100 investigators. It conducts raids on local establishments and street vendors, and works with the police to investigate organized elements involved in the wholesaling and distribution of pirated goods. In May 1995, the Government substantially increased penalties for copyright violation; the new copyright bill now under consideration would increase them further. In 1996, Customs conducted 1282 raids, arrested 1268 people, and seized 578,976 compact discs, video compact discs, and CD-ROMs worth nearly $4 million. The number of people imprisoned for copyright violations rose from 18 in 1995 to 144 in 1996.
Despite the seizures of pirated goods in Hong Kong and improving China-Hong Kong cooperation, Hong Kong's enforcement efforts have failed to make a significant dent in the sale of pirated goods, most of which are produced in China. The Government's continued efforts to stem piracy, coupled with proposed new measures to enhance enforcement, may lead to a reduction in the availability of pirated goods.
Hong Kong has been working to ensure it will continue to have a strong intellectual property regime after the July 1, 1997 reversion to China. In November 1995, the Joint Liaison Group (JLG) agreed on the basis for continued protection of all categories of intellectual property in Hong Kong after its reversion to China. Protection will continue both under localized laws, which are now being prepared to replace ordinances that have depended on UK law, and under international conventions, which will continue to apply to Hong Kong after June 30, 1997. Hong Kong has acceded to the Paris Convention for the Protection of Industrial Property, the Bern Convention for the Protection of Literary and Artistic Works, and the Geneva and Paris Universal Copyright Conventions. Hong Kong will continue to participate in the World Intellectual Property Organization after June 30, 1997.
As of May 1997, the Hong Kong Government had presented draft "localized" bills governing copyrights, patents, and registered designs to the Legislative Council. The key provisions of these bills, as drafted, are outlined below.
The copyright bill would protect any original copyright work created or published by any person anywhere in the world. It provides for rental rights for sound recordings and computer programs but not films. It provides for enhanced penalty provisions against copyright piracy and additional legal tools to facilitate enforcement. It would decriminalize parallel imports of copyrighted products one year after their release anywhere in the world, but maintain civil penalties. Registration is voluntary.
The patent bill would allow for granting of an independent patent in Hong Kong based on the patents granted by the UK and the Chinese Patent Offices. The patent granted in Hong Kong would be independent, and would be capable of being tested for validity, rectified, amended, revoked and enforced in the Hong Kong courts in accordance with Hong Kong law. The bill provides for the establishment of an independent patents registry in Hong Kong. Continuity will be preserved so that existing patents eligible for protection will continue to enjoy protection in Hong Kong after the new law comes into effect.
The registered designs bill is modeled on the proposed EU design registration system, with certain modifications. To be registered, a design must be new. The proposed system requires no substantive examination. Protection will be for an initial period of five years, and may be extended for four periods of five years each, up to a maximum of 25 years.
Hong Kong's existing trademark law is not dependent on that of the UK, and so does not need to be "localized." The law is already TRIPS-compatible, and will be modernized as needed. All trademark registrations originally filed in Hong Kong are valid for seven years and renewable for 14-year periods. Proprietors of trademarks registered elsewhere must apply anew and satisfy all requirements of Hong Kong law. When evidence of use is required, such use must have been in Hong Kong. Trademarks are registered under the Trademarks Ordinance, with provisions similar to trademarks legislation in the United Kingdom. The Trademarks (Amendment) Ordinance, which came into effect in 1992, extends the trademarks law to allow for registration of trademarks relating to services.
Hong Kong has no specific ordinance to cover trade secrets. Under the Trade Description Ordinance, however, the government has the duty to protect the information being disclosed to other parties. The Trade Description Ordinance prohibits false trade descriptions, forged trade marks and misstatements in respect of goods supplied in the course of trade.
The Legislative Council passed an Intellectual Property (World Trade Organization Amendment) bill in May 1996 to fulfill Hong Kong's international obligation as a WTO member. The bill expands the definition of what can be trademarked, provides new anti-piracy tools to the Hong Kong Government and provides for civil detention orders at the border to stop import of infringing product. The Hong Kong Government has claimed a developing country status exemption to the Trade-Related Intellectual Property requirements of the World Trade Organization. In theory, this gives Hong Kong five years to phase in the requirements. The Government has committed, however, to meeting the requirements well within that period.
D. Performance Requirements/Incentives
Consistent with its generally non-interventionist economic philosophy, Hong Kong imposes no export performance or local content requirements as a condition for establishing, maintaining or expanding a foreign investment. Hong Kong offers no special privileges to attract foreign investment. There are no requirements that Hong Kong residents own shares, that foreign equity be reduced over time, or that technology be transferred on certain terms. Such matters are left to the market. While pledging to steer clear of market intervention, in 1996 the Hong Kong Government pledged to establish a technology-centered industrial park and to spend greater efforts promoting service exports.
All of Hong Kong is a duty-free zone, as it is a free port. Subject to nondiscriminatory application of excise taxes and restricted entry in some sectors, as noted above (e.g. broadcasting, electric power, telecommunications), local and foreign firms are free to take advantage of investment opportunities as they arise.
E. Transparency of the Regulatory System
Hong Kong's body of law and regulation implicitly and explicitly promotes competition in all forms of economic endeavor. The only exceptions are those previously mentioned, where entry is restricted. Tax, labor, health and safety and other laws and policies avoid distortions or impediments to the efficient mobilization and allocation of investment. Bureaucratic procedures and "red tape" are held to the minimum and are equally transparent to local and foreign investors. In November 1996, the Consumer Council published a study report to recommend the setting up of competition law and an independent Competition Authority to investigate any anti-competitive practices. The Hong Kong Government is examining these recommendations.
F. Corruption
Hong Kong has a good track record in combating corruption. U.S. firms have not, for the past three decades, identified corruption as an obstacle to foreign direct investment. The Independent Commission Against Corruption (ICAC) is responsible for combating corruption. The ICAC was established in 1974, three years after enactment of the Prevention of Briberies Ordinance. The ICAC is independent of the public service and the ICAC Commissioner has been responsible directly to the Governor. A bribe to a foreign official is a criminal act as is the giving or accepting of bribes, for both private individuals and government employees. In 1996, according to HKG statistics, of 393 persons prosecuted for corruption and related offenses, 341 were from the private sector. Penalties are stiff. For example, a civil servant who solicits or accepts any advantage without special permission of the Governor can receive one year's imprisonment and a HK$100,000 fine if convicted. Individuals in both the private and public sector can receive up to 7 years imprisonment and a HK$500,000 fine for offering, soliciting or accepting a benefit for performance or non- performance of an official duty.
G. Labor
For most of the last decade, Hong Kong's unemployment rate hovered around 2% as the economy continued a rapid structural transformation from manufacturing to a financial and services center. The burgeoning services sector easily absorbed displaced manufacturing workers.
After an upward spike in unemployment in 1995, the labor market improved in 1996. The unemployment rate in 1996 was down to 2.8%, after reaching 3.5% in the fourth quarter of 1995. As part of a package of measures adopted in February 1996 to combat rising unemployment, the Hong Kong Government began curtailing its labor importation schemes. The measures, seen as a response to union and pro-labor legislative pressure, 1) replaced the General Importation of Labor Scheme for skilled and semi-skilled workers (with its 25,000-worker quota) with the Supplementary Labor Scheme (with a 2,000-worker preliminary limit and a ban on foreign workers in 26 professions), 2) provided for expanded recruitment of local construction workers for the Chek Lap Kok airport and related infrastructure projects, and, 3) imposed stricter local recruitment criteria before local firms can hire foreign workers. Qualified foreign professionals, technical staff, administrators and managerial personnel are not affected, nor are foreign domestic helpers. An employee retraining board, established in 1992, provides skills retraining for local employees to cope with ongoing structural change in the economy.
Labor-management relations are generally smooth. The average number of days lost due to industrial conflicts is one of the lowest in the world (0.37 worker days lost per 1000 workers in 1995). In early 1996 labor groups achieved their goals of scaling back labor importation and boosting severance pay. In 1995, membership in Hong Kong's 565 registered unions totaled 607,586, a participation rate of about 21%. Total membership figures for 1996 are not available. Hong Kong has implemented 31 conventions of the International Labor Organization in full and 18 others with modifications. China maintains that Hong Kong will continue to adhere to these conventions after June 30, 1997.
H. Efficient Capital Markets and Portfolio Investment
There are no impediments to the free flow of financial resources. Non-interventionist economic policies, complete freedom of capital movement and a well-understood regulatory and legal environment have greatly facilitated Hong Kong's growing role as a regional and international financial center. Hong Kong is to continue to enjoy substantial economic autonomy following its reversion to Chinese sovereignty on July 1, 1997. Chinese leaders have repeatedly underscored China's intention to abide by the provisions of the Sino-British Joint Declaration and China's Basic Law for Hong Kong, which amplify the meaning of "one country, two systems" to include separate monetary systems, separate financial and regulatory systems, and separate budgetary regimes.
Hong Kong's foreign exchange markets handled an average daily turnover of US$91 billion in 1996, making it the fifth largest in the world. By the end of 1996, Hong Kong had 182 licensed banks (151 were incorporated overseas), 62 restricted licensed banks (24 were incorporated overseas), 124 deposit-taking institutions ( 3 were incorporated overseas), and 157 representative offices (all were set up by foreign banks). Thirty-five American "authorized financial institutions" operate in Hong Kong, including 7 of the top 10 U.S. banks. U.S. banks licensed in Hong Kong are listed in Appendix E(f) below. Most banks in Hong Kong maintain U.S. correspondent relationships.
Hong Kong's five largest banks in terms of total assets (1996) are as follows:
| Rank | Institution | Total Assets (US$ millions) |
| 1 | Hong Kong & Shanghai Banking Corporation (HSBC) | 165,984 |
| 2 | Hang Seng Bank Ltd. | 49,854 |
| 3 | Bank of East Asia, Ltd. | 14,494 |
| 4 | Dao Heng Bank | 13,267 |
| 5 | Nan Yang Commercial Bank | 9,395 |
Sources: Companies' annual reports
Hong Kong has a three-tier system of deposit-taking institutions: licensed banks, restricted license banks, and deposit-taking companies. Only licensed banks can offer current (checking) or savings accounts. The Hong Kong & Shanghai Banking Corporation (HSBC) is Hong Kong's largest banking group. With its majority-owned subsidiary Hang Seng Bank, and 360 branches, the group controls more than 40% of Hong Kong dollar deposits. The 13 banks of the Bank of China Group compose the second-largest banking group, and control 24% of Hong Kong dollar deposits. (Note: The Bank of China does not publish its total assets which is why it is not listed in the previous table.)
Credit is allocated strictly on market terms and is available to foreign investors on a nondiscriminatory basis. The private sector has access to the full spectrum of credit instruments as provided by Hong Kong's banking and financial system. Legal, regulatory, and accounting systems are transparent and consistent with international norms. The Hong Kong Monetary Authority (HKMA) functions as its de facto central bank. The HKMA is responsible for maintaining the stability of the banking system and managing the Exchange Fund backing Hong Kong's currency -- linked to the U.S. dollar at HK$7.8 = US$1. HKMA, with the assistance of the banking sector, has upgraded the financial market infrastructure, for example, the interbank payment system based on Real Time Gross Settlement principles was installed in December 1996. The new system helps minimize risks in the payment system and brings Hong Kong into line with international standards. In addition, a Mortgage Corporation under the HKMA will be established in the second half of 1997. This will improve the liquidity position of banks by enlarging the secondary markets for assets and reduce the concentration risk of the banking sector.
Insurance: Under the Insurance Companies Ordinance, insurance companies are authorized by the Insurance Authority to transact business in Hong Kong. Hong Kong has the highest number of authorized insurance companies in Asia. At the end of 1996, there were 223 authorized companies: of these, 123 were foreign companies from 28 countries. In terms of assets, of the world's top 10 insurance companies, six have branch offices or subsidiaries in Hong Kong. In addition, premium income from insurance services in Hong Kong is the fifth highest in Asia (after Japan, South Korea, Taiwan and China) and the 24th highest in the world.
Stock and Futures Markets: With a total market capitalization of US$446 billion and 583 listed firms at year-end 1996, the Stock Exchange of Hong Kong (SEHK) was ranked second in Asia after Tokyo, and seventh in the world in terms of capitalization. The SEHK is preparing to launch regional derivative warrants and convertible bonds in 1997. At the end of March 1997, the SEHK had grown to 599 firms, with a total market capitalization of US$ 436 billion.
There are no discriminatory legal constraints to foreign securities firms establishing in Hong Kong via branching, acquisition, or establishing subsidiaries. In practice, foreign firms typically establish in Hong Kong as subsidiaries. Rules governing operations are the same, irrespective of ownership. There are no restrictions on cross-border capital flows.
The SEHK plays a significant role in raising capital for Chinese state-owned enterprises. A memorandum of understanding on regulatory cooperation between Chinese and Hong Kong stock and regulatory authorities signed in June 1993 provides a framework for Chinese state enterprises to raise equity (through the issuance of so-called "H" shares) in Hong Kong provided they meet Hong Kong regulatory and accounting requirements. These "H" shares are denominated in renminbi, but must be purchased in Hong Kong dollars. At the end of 1996, a total of 23 Chinese enterprises had "H" share listings on the SEHK (28 "H" share companies were listed in Hong Kong by the end of May 1997), raising more than US$4.6 billion and making Hong Kong an important center for raising capital for China.
The Hong Kong Futures Exchange Ltd. provides a market for Hang Seng Index futures and options. At the end of 1996, futures contracts for thirteen local stocks traded at the Exchange, including CITIC Pacific, Cheung Kong Holdings, China Light & Power, HSBC Holdings, Hang Seng Bank, Henderson Land, Hong Kong Telecom, Hopewell Holdings, Hutchison Whampoa, New World Development, Sun Hung Kai Properties, Swire Pacific 'A', and Wharf (Holdings).
Since 1990, the HKG has made a concerted effort to develop a local debt market with the launching of the Exchange Fund bills and notes program. Maturities now extend to ten years. Hong Kong dollar debt (public and private) has increased substantially, from US$3.46 billion at the end of 1989 to US$36.1 billion by the end of 1996. Regional infrastructure financing requirements, continued high regional GDP growth rates, and increasing investor demand are projected to stimulate further development of the local debt market. The Securities and Futures Commission, an independent statutory body outside the civil service, has licensing and supervisory powers to ensure the integrity of markets and to protect investors.
The Hong Kong Government has begun work on creating a Mandatory Provident Fund to encourage workers and employers to contribute to retirement funds. Contributions are expected to channel U.S. $3 to 4 billion per year into various investment opportunities. Schemes are expected to begin operations in 1998.
Portfolio investment decisions are left to the private sector. There are no laws or regulations that specifically authorize private firms to adopt articles of incorporation/association which limit or prohibit foreign investment, participation or control.
I. Conversion and Transfer Policies
There are no restrictions on conversion and inward or outward transfer of funds for any purpose. The HK dollar is a freely convertible currency that, since late 1983, has been linked to the U.S. dollar at an exchange rate of HK$7.8 = US$1. Authorities are committed to exchange rate stability through maintenance of the linked rate. There is no allocation of foreign exchange.
J. Expropriation and Compensation
The US Consulate General is not aware of any expropriation actions in the recent past. However, expropriations of private property may occur if it is clearly in the public interest, but only for well-defined purposes such as implementation of public works projects. If this is the case, then expropriations are conducted through negotiations, in a nondiscriminatory manner in accordance with established principles of international law. Due process and transparency of purposes are observed. Investors in and lenders to expropriated entities receive prompt, adequate, and effective compensation. Property may be acquired under the Crown Land Resumption Ordinance, the Land Acquisition Ordinance, the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance or the Roads Ordinance. These ordinances provide for payment of compensation. If agreement cannot be reached on the amount payable, either party can refer the claim to the Land Tribunal for jurisdiction.
K. Dispute Settlement
The US Consulate General is not aware of any investor-state disputes in recent years involving U.S. or other foreign investors or contractors and the Hong Kong Government. Private investment disputes are normally handled in the courts or via private negotiation. Alternatively, disputes may be referred to the Hong Kong International Arbitration Center.
The Hong Kong Government accepts international arbitration of investment disputes between itself and investors. Following reversion to Chinese sovereignty on July 1, 1997 and with the exception of disputes between Hong Kong and China (for which a solution is under discussion), Hong Kong will continue to apply provisions of the International Center for the Settlement of Investment Disputes (ICSID, known as the Washington Convention) and the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. Hong Kong as also adopted the United Nations Commission on International Trade Law (UNCITRAL) model law for international commercial arbitration. The local court system provides provides effective enforcement of contracts, dispute settlements and protection of rights, including intellectual property. Secured interests in property are recognized and enforced.
Hong Kong's legal system is firmly based on the rule of law and the independence of the judiciary. Courts of justice in Hong Kong include the Supreme Court, which comprises the Court of Appeal and the High Court, the District Court, the Magistrate's Court, the Coroner's Court and the Juvenile Court. There is also a Lands Tribunal, Labor Tribunal, and other statutory tribunals. In 1995, China and the U.K. reached agreement over the establishment of a Court of Final Appeal for the HKSAR, which will replace Britain's Privy Council as Hong Kong's highest court.
The Hong Kong Government owns all land on Hong Kong and Kowloon, and has leased all land in the New Territories. When the Hong Kong Government "sells" land, it grants a long-term lease without transferring the title. Local and foreign leaseholders are given equal treatment. Under the Joint Declaration, rights under existing leases will be protected. Up until June 30, 1997, the Hong Kong Government may continue to create new leases which can run until 2047, while the HKSAR Government will not be so constrained after July 1, 1997.
L. Political Violence
Hong Kong is politically stable and secure. Hong Kong enjoys an enviable reputation for tranquillity. The Consulate General is not aware of any incidents over the past few years involving politically motivated damage to projects or installations. There has been no major unrest in Hong Kong since China's Cultural Revolution spilled across the border in 1967.
M. Bilateral Investment Agreements
Hong Kong is negotiating a series of bilateral investment agreements -- the Hong Kong Government calls them "Investment Promotion and Protection Agreements" -- with major foreign investors. To date, Hong Kong has signed agreements with Australia, Austria, Belgium, Denmark, France, Germany, Italy, Japan, the Netherlands, New Zealand, Sweden and Switzerland. The Hong Kong Government has initialed agreements with Canada and Vietnam. It is negotiating agreements with Korea, Singapore, Thailand, and the United States. All such agreements have been based on a model text approved by China through the Sino-British Joint Liaison Group. During discussion in 1996 and 1997, the United States and Hong Kong made progress on a bilateral investment agreement. US-Hong Kong investments will be unaffected should agreement not be reached before July 1, 1997.
N. OPIC and Other Investment Insurance Programs
Overseas Private Investment Corporation (OPIC) coverage is not available in Hong Kong. Hong Kong is a member of the World Bank Group's Multilateral Investment Guarantee Agency (MIGA). Its membership will continue after Hong Kong reverts to Chinese sovereignty on July 1, 1997.
O. Foreign Direct Investment Statistics
Table 1: Hong Kong Total Value of Net Assets at Historical Costs Attributed to Inward Foreign Direct Investment in U.S.$ Billions
| Country | 1993 | 1994 | 1995 | 1996 |
| Japan | 18.9 | 21.2 | 24.5 | 24.60 |
| UK | 19.3 | 20.7 | 21.2 | 21.30 |
| China | 15.4 | 17.2 | 19.1 | 19.20 |
| USA | 10.4 | 11.2 | 121 | 2.00 |
| Italy | 2.2 | 2.2 | 2.3 | 2.30 |
| France | 1.5 | 1.8 | 1.7 | 1.70 |
| South Korea | 1.2 | 1.5 | 1.7 | 1.70 |
| Germany | 0.8 | 1.2 | 1.6 | 1.60 |
| Switzerland | 1.5 | 1.6 | 1.6 | 1.60 |
| Netherlands | 1.3 | 1.3 | 1.6 | 1.60 |
| Others | 9.1 | 9.8 | 12.3 | 12.30 |
| Total | 81.8 | 89.7 | 99.7 | 100.00 |
Source: Industry Department and Census and Statistics Department
Table 2: Overseas Investment in Hong Kong Manufacturing
Number, Cumulative Values, and Employment in 1995
(Major Source Countries)
| Country | Investments | (US$ Million) | Employees |
| Japan | 155 | 2,397 | 18,677 |
| U.S.A. | 87 | 1,707 | 18,122 |
| China | 35 | 435 | 3,835 |
| U.K. | 41 | 296 | 9,638 |
| Netherlands | 11 | 228 | 5,514 |
| Switzerland | 17 | 149 | 3,758 |
| Singapore | 26 | 146 | 2,617 |
| Others | 149 | 834 | 16,631 |
| TOTAL | 521 | 6,191 | 65,521 |
Note 1: Sources for Tables 1-6 include: 1996 Survey of Overseas Investment in Hong Kong's Manufacturing Industries, Hong Kong Government Industry Department
Note 2: No. of employees of a particular country refers to the total no. of employees of manufacturing companies with the corresponding country's investment (e.g. wholly owned or joint-venture). Therefore, the figures do not add up to the total due to overlapping. These figures were not published in the survey but given by the Industry Department on request.
Note 3: Investment refers to total investment at original cost which includes stock of fixed assets at original cost plus working capital. US$1 = HK$7.8
Note 4: Data totals may reflect rounding.
Table 3: Overseas Investment in Hong Kong Manufacturing by Industry in US$ Millions (%)
| Industry | 1992 | 1993 | 1994 | 1995 |
| Electronics | 1,510 (31) | 1,582 (30.2) | 1,705 (30.2) | 1,939 (31.3) |
| Electrical Products | 534 (11) | 480 (9.2) | 543 (9.6) | 570 (9.2) |
| Textiles & Clothing | 530 (11) | 505 (9.6) | 485 (8.6) | 574 (6.3) |
| Food & Beverages | 335 (7) | 361 (6.9) | 462 (8.2) | 341 (5.5) |
| Chemical Products | 227 (6) | 447 (8.5) | 399 (7.1) | 525 (8.5) |
| Printing & Publishing | 184 (4) | 252 (4.8) | 228 (4.1) | 317 (5.1) |
| Watches & Clocks | 190 (4) | 163 (3.1) | 161 (2.8) | 226 (3.7) |
| Others | 1,076 (22) | 1,267 (24.2) | 1,411 (25.1) | 1,432 |
| Total | 4,816 | 5,242 | 5,637 | 6,191 |
Note: Figures in parentheses denote percentage share of annual stock of investment.
Table 4: U.S. Investment in Hong Kong Manufacturing By Industry, at historical cost in US$ Millions (%)
| Industry | 1992 | 1993 | 1994 | 1995 |
| Electronics | 713 (54.6) | 848 (57.5) | 788 (51.7) | 854 (50) |
| Electrical Products | 194 (15) | 123 (8.4) | 147 (9.6) | 156 (9.1) |
| Chemical Products | 105 (8) | 121 (8.2) | 120 (7.9) | 132 (7.7) |
| Metal Products | 67 (5) | 71 (4.8) | 97 (6.3) | 123 (7.2) |
| Paper Products | 23 (1.8) | 29 (1.9) | 83 (5.5) | 161 (9.4) |
| Textiles and Clothing | 64 (5) | 115 (7.8) | 81 (5.3) | 52 (3) |
| Plastic Products | 21 (1.6) | 24 (1.6) | 24 (1.6) | 28 (1.6) |
| Food and Beverages | 19 (1.4) | 19 (1.3) | 21 (1.4) | 33 (1.9) |
| Printing and Publishing | 11 (1) | N/A | 17 (1.1) | 10 (0.6) |
| Jade and Jewelry | 6 (0.6) | 5 (0.3) | 5 (0.3) | N/A |
| Others | 82 (6) | 121 (8.2) | 141 (9.3) | 159 (9.3) |
| Total | 1,305 | 1,476 | 1,524 | 1,707 |
Note: Figures in parentheses denote percentage share of annual stock of investment.
Table 5: Japanese Investment in Hong Kong Manufacturing by Industry, at historical cost in US$ Millions (%)
| Industry | 1992 | 1993 | 1994 | 1995 |
| Electronics | 469 (32) | 462 (25.8) | 500 (26.3) | 748 (31.2) |
| Electrical products | 241 (17) | 292 (16.3) | 339 (17.8) | 398 (16.6) |
| Textiles and Clothing | 121 (9) | 155 (8.7) | 210 (11.0) | 207 (8.6) |
| Watches and Clocks | 36 (10) | 150 (8.4) | 157 (8.2) | 179 (7.5) |
| Photographic and Optical | 95 (7) | 95 (5.3) | 126 (6.6) | 144 (6) |
| Food and Beverages | 53 (4) | 114 (6.4) | 96 (5.0) | 129 (5.4) |
| Basic Metal | 28 (2) | 46 (2.6) | 24 (1.2) | 32 (1.3) |
| Chemical Products | N/A | 22 (1.2) | N/A | N/A |
| Others | 209 (15) | 353 (19.7) | 359 (18.9) | 374 (15.6) |
| Total | 1,311 | 1,789 | 1,906 | 2,397 |
Note: Figures in parentheses denote percentage share of annual stock of investment.
Table 6: Chinese Investment in Hong Kong Manufacturing by Industry, at historical cost in US$ Millions (%)
| Industry | 1992 | 1993 | 1994 | 1995 |
| Tobacco | N/A | N/A | 350 (64.0) | 119 (27.3) |
| Transport Equipment | 355 (67) | 373 (65.9) | N/A | 291 (66.8) |
| Electronics | 54 (10) | 34 (6.1) | 73 (13.4) | N/A |
| Textiles and Clothing | 39 (7) | N/A | N/A | N/A |
| Metal Products | 23 (4) | N/A | N/A | 48 (11.1) |
| Electrical Products | 14 (3) | 17 (3.0) | 23 (4.2) | N/A |
| Plastic Products | 12 (2) | 62 (11.1) | N/A | 4 (1) |
| Chemical Products | 10 (2) | 39 (6.8) | N/A | N/A |
| Others | 27 (5) | 40 (7.1) | 101 (18.4) | -27(-6.2) |
| Total | 534 | 565 | 547 | 435 |
Note: Figures in parentheses denote percentage share of annual stock of investment.
Table 7: Overall Overseas Investment in Hong Kong at 12/31/1995 at historical cost in US$ Billions
| Country | Manufacturing | Non-manufacturing | Total |
| Japan | 2.4 | 22.1 | 24.5 |
| U.K. | 0.3 | 20.9 | 21.2 |
| China | 0.4 | 18.7 | 19.1 |
| U.S.A. | 1.7 | 10.3 | 12.0 |
| Others | 1.42 | 1.5 | 22.8 |
| Total | 6.2 | 93.5 | 99.7 |
Stock of Inward Direct Investments 5.8 62.5 68.3
Source: "Inward Direct Investments in Hong Kong" Hong Kong Monthly Digest of Statistics April 1997, Census and Statistics Department, Hong Kong
Note: U.S. Government statistics differ from the Hong Kong Government statistics. According to U.S. Government statistics, U.S. investment in Hong Kong stood at US$ 13 billion at the end of 1994, and reached US$ 13.8 billion at the end of 1995 (see Table 8, below).
TABLE 8: Amount and Growth of U.S. Investment in Hong Kong for 1993/94/95 in US$ Millions
| Category | 1993 | 1994 | 1995 | % Change |
| Petroleum | 496 | 553 | 600 | 8.5 |
| Manufacturing | 1,624 | 1,982 | 1,980 | 0 |
| Wholesale | 3,370 | 4,005 | 4,953 | 23.7 |
| Banking | 1,016 | 1,106 | 1,323 | 19.6 |
| Financial/Insurance | 2,781 | 4,145 | 3,772 | 9.0 |
| Services | 414 | 688 | 565 | 17.9 |
| Others | 475 | 538 | 587 | 9.1 |
| Total | 10,176 | 13,018 | 13,780 | 5.9 |
Note 1: U.S. Department of Commerce estimates the total U.S. direct investment position in Hong Kong at historical cost (the book value of U.S. direct investors' equity in, and net outstanding loans to, their foreign affiliates).
Note 2: USDOC statistics differ from HKG statistics. Per Table 7 above, the latter indicates total U.S. investments of US$12 billion at year end 1995.
Source: Survey of Current Business June 1996, Direct Investment Positions on a Historical Costs Basis, 1995.Country and Industry Detail.
Table 9: Japanese Investment in Hong Kong in Yearly Flows for 1990-1995 in US$ Millions
| Year | Amount |
| 1990 | 1,785 |
| 1991 | 925 |
| 1992 | 735 |
| 1993 | 1,238 |
| 1994 | 1,133 |
| 1995 | 1,125 |
Note: ** Japanese statistics differ from HKG statistics.
Source: Japan Ministry of Finance. Figures are direct investment flows per Japanese Fiscal Year (April 1 to March 31).
TABLE 10: Japanese Investment in Hong Kong Sectoral Breakdown in US$ Millions
| Sectors | 1990 | 1994 | 1995 |
| Manufacturing | | 215.00 | 276.00 |
| Finance | 113.50 | 429.00 | 424.00 |
| Trade | 398.00 | 180.00 | 188.00 |
| Services | 102.00 | 68.00 | 62.00 |
| Real Estate | 348.00 | 53.00 | 164.00 |
| Transport | 31.00 | 37.00 | 9.00 |
| Others | 36.00 | 147.00 | 2.00 |
| Total | 1,780.50 | 1,129.00 | 1,125.00 |
Source: Japanese Ministry of Finance.
TABLE 11: Hong Kong Overseas Direct Investment in Selected Economies as of May 1997 in US$ Billion
| Country | Cumulative value | Reference period | Ranking ** |
| China | 266.9 | End-1996 | 1st |
| Indonesia | 15.6 | End-Mar 1997 | 3rd |
| Thailand | 2.7 | End-Sep 1996 | 2nd |
| Taiwan | 2.0 | End-1996 | 3rd |
| Vietnam | 3.1 | End-1996 | 3rd |
| Philippines | 0.72 | End-1996 | 3rd |
| Singapore | 2.7 | End-1992 | 4th |
| South Korea | 0.65 | End-1996 | 5th |
| Malaysia | 1.1 | End-1995 | N/A |
| United States | | End-1995 | 28th |
| Australia | 0.6 | End-June 1996 | 12th |
| Japan | 0.72 | End-Mar 1995 | 7th |
Note: * Except those for Singapore, Thailand, the United States and Australia, all investment figures are compiled on approval basis. Direct comparison of the figures is not recommended, though, due to different definitions and coverages adopted by the governments of the countries concerned.
** Hong Kong's ranking in the country concerned
According to the United Nations World Investment Report 1996, Hong Kong was the fourth-largest outward investor in the world in 1995. Hong Kong, at US$25 billion, was outranked only by the United States (US$95.5 billion), the U.K. (US$37.8 billion) and Germany (US$35.3 billion ). The report also noted that Hong Kong was the sixth-largest recipient of capital inflows in Asia, with the amount reaching US$2.1 billion.
Source: Hong Kong Government
TABLE 12: Hong Kong's Pledged and Actual Direct Investment in China in US$ Billions and Percent Share of Total Investment in China
| Year | Amount Pledged | Actually Invested | Share of Total
Investment |
| 1990 | 3.8 | 1.9 | 58 |
| 1991 | 7.2 | 2.4 | 60 |
| 1992 | 4.00 | 2.5 | 69 |
| 19931 | 7.4 | 17.2 | 66 |
| 1994 | 4.9 | 20.0 | 60 |
| 1979-95 | 233 | 76.8 | 59 |
Source: PRC Ministry of Foreign Trade and Economic Cooperation (MOFTEC), Hong Kong Government estimates, Hong Kong Commercial Daily, April 12, 1996 citing MOFTEC.
Table 13. Major Foreign Investor Firms
United States : Motorola, Chase Manhattan, Sea-land, Exxon, Citibank, Mobil, Caltex, AT&T, IBM, Kodak, Bank of America, American International Group, Coca-Cola, Pepsi-Co, Pacific Waste Management.
Japan : Kumagai Gumi, Yaohan, Jusco, Daimaru, Mitsubishi, Uny, Nishimatsu, Daido Concrete, C. Itoh.
United Kingdom : Inchcape Pacific, Cable and Wireless, Hong Kong and Shanghai Banking Corporation, Standard Chartered Bank, Jardine Matheson, Swire Pacific Group, P & O Shipping.
West Europe : Carlsberg (Denmark), Hong Kong Petrochemicals (Italian/Korean/Chinese joint venture), Siemens, Heraeus (Germany), Philips (Netherlands); Bouygues/Dragages, Bachy-Soletanches, Banque National de Paris, Banque Indosuez, Chanel, Cartier, Christian Dior, Remy (France), Erikson, Asea Brown Boveri, Tetrapak, Electrolux (Sweden).
China : China Investment and Trust Corporation (CITIC), China Resources, China Merchants, Bank of China, China Travel Services, China Overseas Construction, Guangdong Enterprises, Yue Xiu Enterprises, China Everbright, Shanghai Industrial.
Asia : San Miguel Brewery (Philippines), News Corp., Pioneer (Australia), Sime Darby, Shangri-la/Kerry Trading (Malaysia), Park View Properties (Taiwan), Lippo Group (Indonesia), C.P. Pokphand (Thailand).
1NOTE : This list is not in rank order nor is it comprehensive.
VIII. TRADE AND PROJECT FINANCING
A. Brief Description of Banking System
Hong Kong has an open financial system, with no controls on currency movement. A more complete description is contained in VII (H) above.
B. Foreign Exchange Controls affecting trading
The local currency, the Hong Kong Dollar (HK$), is freely convertible and there are no foreign exchange controls.
C. General Financing Availability
Commercial trade financing is readily available in Hong Kong for qualified customers. Bank loans have been increasing at double digit rates over the past five years. All licensed banks are authorized to provide loans to residents and non-residents in the currency of their choice. Letters of credit and other financial instruments are widely used to protect participants in trade arrangements. All banks maintain close working relationships with correspondent banking institutions. The financial system is highly developed and efficient.
D. How to Finance Exports/Methods of Payment
The preferred method of quoting is "CIF" or "C and F" in HK$. The U.S. dollar and other freely convertible currencies may be accepted for bids and pro forma invoicing. Terms of payment depend on the relative negotiating strength of the buyers and sellers. U.S. suppliers should seek to obtain letters of credit or sight draft terms when dealing with buyers who are not well known to them. Asking for a letter of credit is a standard business practice, and your potential customer will not generally interpret this as a sign of mistrust.
The importance of trade finance to Hong Kong has resulted in a high level of bank efficiency in providing import payment services. Letters of Credit, document collection and international remittance are widely available. All licensed banks are authorized to provide loans to residents and nonresidents. The risk of financing receivables can be readily evaluated via locally available credit information. Prospective exporters should make use of banking relationships to determine credit risk.
E. Types of Available Export Financing and Insurance
The U.S. ExIm Bank offers both trade financing and insurance for U.S. exports. Commercial vendors are also readily available.
F. Project Financing Availability
Hong Kong and Macau are not recipients of official development assistance. Projects are financed on commercial terms. U.S. Trade and Development Agency programs are available for Hong Kong and Macau. Hong Kong is also a major center for commercial project financing for China.
G. List of Banks with Correspondent U.S. Banking Arrangements
The list of Hong Kong based banks with correspondent U.S. banking arrangements is too large to include here. Appendix E(f) provides a list of U.S. banks licensed in Hong Kong. Hong Kong's five largest local banks are indicated in Section VII (H), above.
H. The Asian Development Bank
The Asian Development Bank, headquartered in Manila, is an international financial development institution owned by 56 member countries of which the United States and Japan are the largest shareholders. The bank lent $5.8 billion in 1996 to promote economic and social progress in its developing member countries. The transport and communications sectors received the largest share of lending, followed by energy, agriculture, and natural resources, and social infrastructure. The bank's medium-term strategy focuses on poverty reduction, improving the status of women, population planning and environmental protection. Going into the next century, the Bank has also assumed the role as a catalyst for development. In implementing this policy, the Bank leverages its own financial resources through co-financing and other modalities to attract additional private capital in funding the development needs of its member countries.
A Commercial Liaison Office, which reports directly to the Office of Multilateral Development Banks at the Commerce Department in Washington, assists U.S. suppliers and consultants in winning contracts on projects and activities funded by the Bank. The office includes a Senior Commercial Officer and two (2) Commercial Specialists. One of the Specialists represents the United States-Asia Environmental Partnership (US-AEP) at the Bank. The Liaison works closely with the U.S. Executive Director who represents the United States on the Bank's Board of Directors.
Since 1967, the U.S. has won $2.8 billion in overall procurement. For the period 1995-1996, the United States ranked number 1 in overall procurement among donor countries, receiving $533.3 million in contracts awards. The U.S. has consistently ranked first in consulting services awards, capturing about 20% of total awards every year.
Interested parties should contact Cantwell Walsh, U.S. Liaison to The Asian Development Bank, Fax: (632) 890 9713, E-mail: CWalsh@doc.gov
The Asian Development Bank Internet web site address is: http://www.asiandevbank.org
IX. BUSINESS TRAVEL
A. Business Customs
Over the years, Hong Kong has developed as a unique society based on Chinese tradition and western technology. It is a society which practices religious and racial tolerance. Above all, it is a society that emphasizes hard work and success.
Americans encounter few if any cultural problems when conducting business in Hong Kong. Americans should be aware that Hong Kong people tend to be more formal than many Americans. Business acquaintances are addressed as Mr. or Ms. unless they state that their first name should be used. Business cards are exchanged frequently and the exchange should be fairly formal: the card should be accepted with both hands and a moment taken to read it carefully. "Face" is very important, and problems or areas of disagreement are handled indirectly to avoid loss of "face." While a study of local customs and practices may be helpful, most people in Hong Kong are sufficiently familiar with Western customs that they are tolerant of cultural differences. Business contacts should be treated the same as a formal business relationship in the U.S. Western business attire (suit and tie for men, business suits for women) is appropriate.
B. Travel Advisory and Visas
Visas allowing residence and local employment for expatriates are granted on the basis of simple, comprehensible procedures, are handled in a timely manner and managed in a way that is consistent with the interests of employees. There are no quotas, bonds, or guarantees required. All residents are equal under the law, enjoy freedom of movement, access to public education, and basic civil freedoms.
Visiting Americans generally fit in well. Most Hong Kong business executives speak excellent English, and are accustomed to dealing with Westerners.
C. Holidays
1997 |
| |
August 18 | | Sino Japanese War Victory Memorial Day |
September 17 | | The day following the Chinese Mid-Autumn Festival |
October 1 | | National Day |
October 2 | | The day following National Day |
October 10 | | Chung Yeung Festival |
December 25 | | Christmas Day |
December 26 | | First week-day after Christmas Day |
| |
1998 |
| |
January 1 | | New Year's Day |
January 28 | | Lunar New Year's Day |
January 29 | | The second day of Lunar New Year |
January 30 | | The third day of Lunar New Year |
April 6 | | The day following the Ching Ming Festival |
April 10 | | Good Friday |
April 11 | | The day following Good Friday |
April 13 | | Easter Monday |
May 30 | | Tuen Ng Festival |
July 1 | | Special Administrative Region Establishment Day |
August 17 | | Sino Japanese War Victory Memorial Day |
October 1 | | National Day |
October 2 | | The day following National Day |
October 5 | | The day following the mid-Autumn Festival |
October 28 | | Chung Yeung Festival |
December 25 | | Christmas Day |
December 26 | | The first week-day after Christmas Day |
Note: The official holiday schedule for 1998 will not be promulgated until after July 1, 1997.
D. Business Infrastructure (eg. transportation, language, communications, housing, health, food)
Housing, food, telecommunications, transportation and healthcare are all available at levels comparable to major American cities. Hong Kong is one of the most expensive cities in the world, especially for housing, but it is also a very efficient city making it possible to accomplish a great deal in a short time.
Your business partners will often speak English, and will negotiate on a very business-like basis. It should be noted, however, that as companies from China continue to expand their business activities in Hong Kong, more business is being conducted in Mandarin. When conducting business with these companies, U.S. business people may be well advised to bring along a Mandarin-English interpreter.
X. APPENDICES
APPENDIX A -- COUNTRY DATA
a. | Population | 6.42 million (end-1996) |
b. | Population Growth Rate | 2.1% |
c. | Religion(s) | Buddhist, Taoist, Christian, small numbers of Moslems, Hindus, Jews, and Sikhs. |
d. | Government System | Colonial administration by the United Kingdom; territory reverts to Chinese sovereignty and becomes a Special Administrative Region of China on July 1, 1997 with a high degree of autonomy until 2047. |
e. | Language(s) | English and Cantonese are the languages of administration and commerce. Mandarin Chinese is becoming increasingly common. |
f. | Work Week | Business hours are 9 to 5, Monday through Friday. Saturday has traditionally been a half day but, due to the competition to keep staff, many companies now advertise a 5 day workweek. |
APPENDIX B -- DOMESTIC ECONOMY
(US$ Millions, unless otherwise noted)
| | | 1996 | 1997 | 1998 |
a. | GDP (current prices) | 153,246 | 172,926 | 196,271 |
b. | Real GDP Growth (%) | 4.7 | 5.5 | 6.0 |
c. | GDP Per Capita (US$) (current prices) | 24,282 | 26,645 | 29,294 |
d. | Government Spending as % of GDP (FY) | 18.2 | 18.3 | 18.4 |
e. | Inflation (%) | 6.0 | 7.0 | 7.5 |
f. | Unemployment (%) | 2.8 | 2.5 | 2.3 |
g. | Foreign Exchange Reserves | 63,833 | 92,612 | 103,726 |
h. | Average Exchange Rate for US$1.00 | 7.734 | 7.733 | 7.77 |
I. | Debt Service Ratio* | N/A | N/A | N/A |
j. | U.S. Military/Economic Assistance | N/A | N/A | N/A |
Sources: Hong Kong Government; except exchange rate, unemployment rate and foreign exchange reserves for 1997 and forecast for 1998 by U.S. Consulate General unofficial projections.
Note: After July 1, 1997, the Land Fund, estimated to be US$ 19.2 billion, will be included in the Foreign Exchange Reserves.
* Hong Kong has no foreign debt.
APPENDIX C -- MERCHANDISE TRADE
(US$ Millions, unless otherwise noted)
| | | 1996 | 1997 | 1998 |
| a. | Total Country Exports |
| | Total Exports
(including re-exports)
of which: Domestic Exports | 179,220
27,200 | 196,062
27,430 | 217,629
27,622 |
| b. | Total Country Imports |
| | Total Imports
of which: Retained Imports | 196,869
71,220 | 216,323
75,713 | 248,771
89,996 |
c. | U.S. Exports |
| | U.S. Exports to Hong Kong | 15,520 | 17,010 | 19,562 |
d. | U.S. Imports |
| | Hong Kong Exports to the U.S. (domestic exports)
(re-exports) | 6,905
31,069 | 7,092
33,835 | 7,305
36,880 |
e. | U.S. Share of Host-country |
| | Imports (%) | 7.9 | 7.9 | 7.9 |
Note: The above statistics are based on Hong Kong Government trade statistics. U.S. Department of Commerce statistics show U.S.
exports to Hong Kong in 1996 of $14 billion, and imports from Hong
Kong of $9.9 billion.
The 1997 numbers are based on the Hong Kong Government's forecast in real growth rates. The 1998 numbers are based on U.S. Consulate General unofficial projections.
Sources: Hong Kong Government
f. Merchandise Trade Balances with Three Leading Partners (US$ Millions)*
| 1994 | 1995 | 1996 | 1997 First Quarter |
| China | -52,547 | -61,016 | -65,234 | -14,924 |
| Japan | -23,664 | -26,843 | -25,244 | -5,974 |
| USA | -3,580 | -6,901 | -8,615 | -2,468 |
*Domestic Exports minus Imports (Imports include both retained and non-retained imports).
Sources: Hong Kong Government
g. Principal U.S. Exports (six)
(by tariff line item in US$ Millions)
| | 1996 | 1997* |
| HS 8542 - Electronic Integrated Circuits | 1,736 | 286 |
| HS 8471 - Automatic Data Process Machines | 713 | 109 |
| HS 8802 - Aircraft, powered | 501 | 43 |
| HS 0207 - Meat, poultry | 414 | 66 |
h. Principal U.S. Imports (six)
(by tariff line item in Million US$)
| | 1996 | 1997* |
| HS 6110 - Sweaters | 1,100 | 117 |
| HS 8542 - Electronic Integrated Circuits | 1,035 | 160 |
| HS 6204 - Women's or Girls' Suits | 704 | 118 |
HS 9801 - Exports of repaired imports; Imports of returned exports | 407 | 82 |
| HS 8473 - Parts for Office Equipment | 360 | 47 |
| HS 6205 - Men's or Boys' Suits | 342 | 53 |
* Remark: ** 1996 - Data from January to February **
Source: U.S. Government Statistics
i. Agricultural Trade
| |
| 1996 | 1997 | 1998 |
| 1. | Total Imports | 5,335 | 5,868 | 6,337 |
| | of which, from the U.S. | 1,959 | 2,252 | 2,590 |
| 2. | Total Exports | 10,468 | 10,991 | 11,540 |
| | of which, to the U.S. | 206 | 210 | 220 |
| 3. | Imports from the U.S. to H.K. | | | |
| 4. | U.S. Share of Host-country Imports (%) | 19 | 19 | 19 |
| 5. | U.S. Products Projected Growth Rate (%) | 3 | 5 | 5 |
| 6. | Agricultural Goods Trade Balance with U.S. | 1,813 | 1,869 | 1,962 |
APPENDIX D -- FOREIGN INVESTMENT STATISTICS
(See V. Investment Climate, Section O. Foreign Direct Investment Statistics)
APPENDIX E -- U.S. AND HONG KONG CONTACTS
a. U.S. Consulate General Trade-Related Contacts
Foreign Commercial Service -- Hong Kong
Senior Commercial Officer: David Katz
Commercial Officers: Ira Kasoff, Rosemary Gallant, Constance Taube
U.S. Consulate General
26 Garden Road
Hong Kong
Tel: (852) 2521-1467
Fax: (852) 28459800
Economic/Political Section -- Hong Kong
Chief: Douglas Spelman
Economic-Political Section
U.S. Consulate Genera
26 Garden Road
Hong Kong
Tel: (852) 2841-2101
Fax: (852) 2526-7382
Foreign Agricultural Service -- Hong Kong
Agricultural Trade Officer: LaVerne E. Brabant
Asst. Agricultural Trade Officer: Garth Thorburn
U.S. Consulate General
26 Garden Road
Hong Kong
Tel: (852) 2841-2350
Fax: (852) 2845-0943
Department of Commerce -- International Trade Administration
Country Desk Officer:Sheila Baker
U.S. Department of Commerce
Room 2317
Office of China,Hong Kong and Mongolia
14th & Constitution Ave, NW
Washington, D.C. 20230 U.S.A.
Tel: 1 (202) 482-3932
Fax: 1 (202) 482-1576
US&FCS Director, East Asia and Pacific: Alice Davenport
U.S. Department of Commerce
Office of International Operations
Room 1229, 14th & Constitution Ave, NW
Washington, D.C. 20230, U.S.A.
Tel: 1 (202) 482-2422
Fax: 1 (202) 482-5179
Department of State
Country Desk Officer: Ted Allegra
U.S. Department of State
Office of Chinese and Mongolian Affairs
Room 4318
Washington, D.C.
20520, U.S.A.
Tel: 1 (202) 647-6802
Fax: 1 (202) 647-6820
Coordinator for Commercial Affairs: Kathleen Harrington
East Asian and Pacific Affairs
U.S. Department of State
Washington, D.C.
20520, U.S.A.
Tel: 1(202) 647-6904
b. American Chamber of Commerce and/or Bilateral Business Councils
Frank G. Martin, President
American Chamber of Commerce in Hong Kong
1904 Bank of America Tower
12 Harcourt Road
Central, Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289
Pamela Baldinger
U.S. China Business Council
2802 Admiralty Centre
Tower I
18 Harcourt Rd.
Tel: (852) 2527-5397
Fax: (852) 2527 1516
c. Hong Kong Trade or Industry Associations in Key Sectors
American Chamber of Commerce in Hong Kong
1904 Bank of America Tower
12 Harcourt Road
Central
Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289
Association of Building Management
G.P.O. Box 13012
Hong Kong
Tel: (852) 2679-5744
Fax: (852) 2679-5753
Chartered Institution of Building Services Engineers
(Hong Kong Advisory Panel)
P.O. Box 20342, Hennessy Road Post Office
Hong Kong
Tel: (852) 2766-5849
Fax: Nil
Chartered Institute of Building (Hong Kong Branch)
G.P.O. Box 9874
Hong Kong
Tel: (852) 2365-8666
Fax: (852) 2364-0185
Chinese General Chamber of Commerce, Hong Kong
7th Floor, 24-25 Connaught Road
Central
Hong Kong
Tel: (852) 2525-6385
Fax: (852) 2845-2610
Chinese Manufacturers' Association of Hong Kong
CMA Building
64-66 Connaught Road
Central
Hong Kong
Tel: (852) 2542-8600
Fax: (852) 2541-4541
Computer Club Hong Kong Ltd.
Room 9A, 9/F.
Go-Up Commercial Bldg
998 Canton Road
Mongkok, Hong Kong
Tel: (852) 2374-1328
Fax: (852) 2374-0859
The Cosmetic & Perfumery Association of Hong Kong Ltd.
Room 308 Winning Commercial Building
46-48 Hillwood Road
Tsimshatsui, Hong Kong
Tel: (852) 2366-8801
Fax: (852) 2312-0348
Federation of Hong Kong Industries
4th Floor, Hankow Center
5-15 Hankow Road, Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2732-3188
Fax: (852) 2721-3494
Graphic Arts Association of Hong Kong Ltd.
Block C, Room 1625
16/F. Metropole Building
416 King's Road
North Point, Hong Kong
Tel: (852) 2408-1515
Fax: (852) 2856-9765
Hong Kong Air Traffic Control Association
Air Traffic Management Division
Civil Aviation Department
Hong Kong International Airport
Kowloon, Hong Kong
Tel: (852) 2769-8322
Fax: (852) 2362-8101
Hong Kong Association for the Advancement of Science & Technology
2A, Tak Lee Commercial Bldg.
113-117 Wanchai Road
Wanchai, Hong Kong
Tel: (852) 2891-3388
Fax: (852) 2838-1823
Hong Kong Association of Certification Laboratories Ltd.
1/F. CMA Bldg
64-66 Connaught Road
Central, Hong Kong
Tel: (852) 2542-8620
Fax: (852) 2541-4541
Hong Kong Association of Energy Engineers Ltd.
10/F. Dah Sing Financial Center
108 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2507-7777
Fax: (852) 2507-7700
Hong Kong Association of the Pharmaceutical Industry
Room 2, 10/F. Sincere Insurance Building
4-6 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2528-3061
Fax: (852) 2865-6283
Hong Kong Aviation Club Ltd.
Sung Wong Toi Road
Kowloon, Hong Kong
Tel: (852) 2713-5171
Fax: (852) 2761-9511
The Hong Kong Chinese Importers' & Exporters' Association
7-8th Floors, Champion Building
287-291 Des Voeux Road
Central, Hong Kong
Tel: (852) 2544-8474, 2545-5998
Fax: (852) 2544-4677
Hong Kong Computer Society
Unit D, 1/F. Luckifast Bldg
1 Stone Nullah Lane
Wanchai, Hong Kong
Tel: (852) 2834-2228
Fax: (852) 2834-3003
Hong Kong Construction Association Ltd.
3/F. 180-182 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2572-4414
Fax: (852) 2572-7104
The Hong Kong Electronics Association
Unit 208-209, HK Industrial Technology Center
72 Tat Chee Ave., Kowloon
Hong Kong
Tel: (852) 2778-8328
Fax: (852) 2788-2200
Hong Kong Federation of Insurers
9th Floor, First Pacific Bank Center
56 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2520-1868
Fax: (852) 2520-1967
The Hong Kong General Chamber of Commerce
22nd Floor, United Center
95 Queensway
Hong Kong
Tel: (852) 2529-9229
Fax: (852) 2527-9843
Hong Kong Industry & Commerce General Association Ltd.
Room 7, 2nd Floor, Fu Yip Building
21-27 Station Lane
Hung Hom
Kowloon, Hong Kong
Tel: (852) 2764-4321
Fax: (852) 2764-4144
Hong Kong Information Technology Federation Ltd.
Suite 25A, One Capital Place
18 Luard Road
Wanchai, Hong Kong
Tel: (852) 2527-2127
Fax: (852) 2527-1960
Hong Kong International Aerospace Forum
c/o Saab Aircraft International Ltd
606 Peregrine Tower
Lippo Center
89 Queensway
Hong Kong
Tel: (852) 2810-4220
Fax: (852) 2810-4135
Hong Kong Medical Association
5/F., Duke of Windsor Social Service Building
15 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2527-8285
Fax: (852) 2865-0943
Hong Kong PATA (Pacific Asia Travel Association) Chapter
Room 1003, Tung Ming Building
40 Des Voeux Road
Central, Hong Kong
Tel: (852) 2869-8624
Fax: (852) 2869-8632
Hong Kong Pharmaceutical Manufacturers Association Ltd.
c/o Neochem Pharmaceutical Laboratories Ltd.
5B Cheung Wah Industrial Building
10-12 Shipyard Lane
Quarry Bay, Hong Kong
Tel: (852) 2562-6255
Fax: (852) 2563-4018
Hong Kong Plastic Material Suppliers Association
5/F. Eader Center
39-41 Hankow Road
TST, Hong Kong
Tel: (852) 2375-2686
Fax: (852) 2317-1129
Hong Kong Plastic Technology Center Ltd.
U509 Hong Kong Polytechnic
Hung Hom
Kowloon, Hong Kong
Tel: (852) 2766-5577
Fax: (852) 2766-0131
Hong Kong Printers Association
1/F. 48-50 Johnston Road
Wanchai, Hong Kong
Tel: (852) 2527-5050
Fax: (852) 2861-0463
Hong Kong Productivity Council
Electronics Services Division
HKPC Building
78 Tat Chee Ave.
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5770
Hong Kong Telecom Association
GPO Box 13461
Hong Kong
Tel: (852) 2881-2333
Fax: (852) 2881-2332
Hong Kong Trade Development Council
36-39th Floors, Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
Hong Kong/United States Economic Co-operation Committee
c/o Hong Kong Trade Development Council
36th Floor, Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4226
Fax: (852) 2583-9275
Office of the Telecommunications Authority
29th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6333
Fax: (852) 2803-5110
Pharmaceutical Trade Federation Ltd.
Room 3905, 39/F. Hong Kong Plaza
186-191 Connaught Road West
Hong Kong
Tel: (852) 2548-0068
Fax: (852) 2559-5689
Society of Builders Hong Kong
Rm 801-802, On Lok Yuen Building
25 Des Voeux Road
Central, Hong Kong
Tel: (852) 2523-2081
Fax: (852) 2845-4749
Travel Industry Council of Hong Kong
Room 1706-1709, Fortress Tower
250 King's Road
North Point, Hong Kong
Tel: (852) 2807-1199
Fax: (852) 2510-9907
World Energy Council Member Committee of Hong Kong
c/o China Light & Power Co. Ltd.
147 Argyle Street
Kowloon, Hong Kong
Tel: (852) 2760-6111
Fax: (852) 2760-4448
d. Hong Kong Government Offices Relating to Key Sectors and/or Significant Trade Related Activities
Government & Quasi Government Offices Relating to Key Sectors
Agriculture and Fisheries Department
13/F, Canton Road Government offices
393 Canton Road
Kowloon
Hong Kong
Tel: (852) 2733-2174
Fax: (852) 2311-3731
Buildings Department
3rd-12th Floors, Murray Building
Garden Road
Central, Hong Kong
Tel: (852) 2848-2327
Fax: (852) 2840-0451
Census & Statistics Department
16th-22nd Floors, Wanchai Tower
12 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2582-4807
Fax: (852) 2802-4000
Civil Aviation Department
46th Floor, Queensway Government Offices
66 Queensway
Hong Kong
Tel: (852) 2867-4332
Fax: (852) 2869-0093
Consumer Council
22nd Floor, K. Wah Center
191 Java Road
North Point, Hong Kong
Tel: (852) 2856-3113
Fax: (852) 2856-3611
Customs & Excise Department
6th-9th Floors, Harbor Building
38 Pier Road
Central, Hong Kong
Tel: (852) 2852-1411
Fax: (852) 28
Drainage Services Department
43rd Floor, Revenue Tower
5 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2877-0660
Fax: (852) 2827-8605
Electrical & Mechanical Services Department
98 Caroline Road
Causeway Bay, Hong Kong
Tel: (852) 2895-8620, (852) 2895-8817
Fax: (852) 2890-7493
Environmental Protection Department
24th-28th Floors, Southorn Center
130 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2835-1018
Fax: (852) 2838-2155
Government Supplies Department
12 Oil Street
North Point, Hong Kong
Tel: (852) 2802-6104
Fax: (852) 2887-6591
Department of Health
17th & 21st Floors, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-8989
Fax: (852) 2836-0071
Industry Department
14th Floor, Ocean Center
5 Canton Road
Tsimshatsui, Hong Kong
Tel: (852) 2737-2208
Fax: (852) 2377-0730
Industry Department
Technology Development Division
14th Floor, Ocean Center
5 Canton Road
Tsimshatsui, Hong Kong
Tel: (852) 2737-2216
Fax: (852) 2377-0730
Office of the Commissioner of Insurance
21st Floor, Queensway Government Offices
66 Queensway
Central, Hong Kong
Tel: (852) 2867-2565
Fax: (852) 2869-0252
Intellectual Property Department
24th & 25th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6810
Fax: (852) 2838-6276
Hong Kong Productivity Council
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5900
Hong Kong Trade Development Council
38th Floor, Office Tower
Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
Hospital Authority
25th Floor, World Trade Center
Causeway Bay, Hong Kong
Tel: (852) 2805-6555
Fax: (852) 2890-5969, (852) 2881-8058
Airport Authority
25th Floor, Central Plaza
18 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2824-7111
Fax: (852) 2824-0717
Office of the Telecommunications Authority
29th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6333
Fax: (852) 2803-5110
Trade Department
Ground Floor, Trade Department Tower
700 Nathan Road
Kowloon, Hong Kong
Tel: (852) 2398-5333
Fax: (852) 789-2491, (825) 395-3182
e. Hong Kong Market Research Firms
Arthur Anderson & Co.
25th Floor Wing On Centre
111 Connaught Road Central
Central, Hong Kong
Tel: 2852-0222
Fax: 2815-0548
Asian Strategies Ltd.
4404 China Resources Bldg.
26 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2827-4627
Fax: (852) 2827-6097
Boston Consulting Group, The
34th Floor, Times Square
Shell Tower, 1 Matheson Street
Causeway Bay, Hong Kong
Tel: (852) 2506-2111
Fax: (852) 2506-9084
Dataquest Hong Kong
4A01 HKPC Building
78 Tat Chee Avenue
Kowloon, Hong Kong
Tel: (852) 2788-5432
Fax: (852) 2788-5433
Hong Kong Productivity Council
Marketing Group
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5042
International Data Corporation China/Hong Kong Ltd.
Suite 3004 Universal Trade Center
3 Arbuthnot Road
Central, Hong Kong
Tel: (852) 2530-3831
Fax: (852) 2547-0154
International Market Research (HK) Ltd.
2802 Admiralty Centre, Tower 1
18 Harcourt Road
Central, Hong Kong
Tel: (852) 2529-0356
Fax: (852) 2861-3420
Macneil Pacific Ltd.
10th Floor, Allied Capital Resources Bldg.
32-38 Ice House Street
Central, Hong Kong
Tel: (852) 2521-1676
Fax: (852) 2845-2950
Nomura Research Institute (HK) Ltd.
20/F, Citibank Tower
3 Garden Road
Central, Hong Kong
Tel: (852) 2536-1800
Fax: (852) 2536-1818
Ogilvy & Mather (Asia) Pte. Ltd.
8th Floor, Mount Parker House
Taikooshing
Quarry Bay, Hong Kong
Tel: (852) 2567-4461
Fax: (852) 2885-3227
Pacific Rim Consulting Group
8th Floor, California Tower
30-32 D'Aguilar Street
Central, Hong Kong
Tel: (852) 2526-4061
Fax: (852) 2810-4845
Research Asia Ltd.
2103 Sino Plaza
255-257 Gloucester Road
Causeway Bay, Hong Kong
Tel: (852) 2882-8730
Fax: (852) 2882-5649
Ringe Marketing Services Ltd
1204 New World Office Bldg, East Wing
24 Salisbury Road
Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2366-3089
Fax: (852) 2722-6300
SRG China (Survey Research Group)
2/F East Wing, Warwick House
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
Tel: (852) 2563-9497
Fax: (852) 2856-7442
Marketing & Management Solutions
6th Floor, Success Commercial building
245 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2511-2021
Fax: (852) 2519-3910
f. Licensed U.S. Commercial Banks in Hong Kong
American Express Bank Ltd.
35th Floor, One Pacific Place
88 Queensway, Hong Kong
Tel: (852) 2844-0688
Fax: (852) 2845-3637
Bank of America NT & SA
1st Floor, Bank of America Tower
12 Harcourt Road, Hong Kong
Tel: (852) 2847-5333
Fax: (852) 2847-5410
Bank of California, The
1006-8, 10th Floor Asia Pacific Finance Tower
Citibank Plaza, 3 Garden Road
Hong Kong
Tel: (852) 2826-0600
Fax: (852) 2877-2666
Bank of New York, The
7th Floor, New Henry House
10 Ice House Street
Hong Kong
Tel: (852) 2840-9888
Fax: (852) 2810-5279
Bankers Trust Company
36th Floor, Two Pacific Place
88 Queensway, Hong Kong
Tel: (852) 2533-8000
Fax: (852) 2845-1868
Chase Manhattan Bank NA, The
12th Floor, World Trade Center
280 Gloucester Road, Hong Kong
Tel: (852) 2837-5111
Fax: (852) 2837-5099
Citibank NA
40-50 Floors, Citibank Tower Citibank Plaza
Citibank Plaza, 3 Garden Road
Central, Hong Kong
Tel: (852) 2868-8888
Fax: (852) 2868-8111
First National Bank of Boston, The
Suites 801-809 Jardine House
Connaught Place
Central, Hong Kong
Tel: (852) 2526-4361
Fax: (852) 2845-9222
First National Bank of Chicago, The
13th Floor, Jardine House
1 Connaught Place
Hong Kong
Tel: (852) 2844-9222
Fax: (852) 2844-9318
NationsBank NA
32/F Dah Sing Finance Centre
108 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2586-9388
Fax: (852) 2586-9350
NBD Bank, NA
Room 804 Lippo Tower Lippo Center
89 Queensway, Hong Kong
Tel: (852) 2523-1189
Fax: (852) 2810-6582
Norwest Bank Minnesota, NA
4102-3 Central Plaza
18 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2519-2500
Fax: (852) 2827-8290
Note: This list does not include U.S. restricted license banks, deposit taking companies, and representative offices
g. TPCC Trade Information Center in Washington
Trade Information Center (TIC)
Tel: 1-800-USA-TRADE (1-800-872-8723)
Fax: (202) 482-4473
TIC specialists provide basic export counseling and information on export services and programs offered by 19 federal agencies of the Trade Promotion Coordinating Committee (TPCC). The annual report of the TPCC, "The National Export Strategy", designates "the Trade Information Center, situated in the U.S. Department of Commerce, as the single TPCC-wide information office that will coordinate specialized non-agricultural export information offices."
h. U.S. Department of Agriculture
Trade Assistance and Planning Officer
Mr. Karl Hampton
Room 4939, South Building
14th & Independence, SW
Washington, D.C. 20250-1000
Tel: (202) 690-0207
Fax: (202) 690-4374
North Asia Area Officer
Mr. Wayne Molstad
Room 5098, South Building
14th & Independence, SW
Washington D.C. 20250-1000
Tel: (202) 720-3080
Fax: (202) 720-8316
APPENDIX F -- MARKET RESEARCH
A. Industry Sector Analyses
FCS Hong Kong prepares a number of Industry Subsector Analyses (ISAs) every year. These reports are on subsectors of our Best Prospects or other market segments which offer good opportunities for US exports. These reports are available on the National Trade Data Bank (NTDB) CD-ROM.
In FY97 we are submitting the following reports:
Sector Code | | Descriptions |
(TOY) | | Amusement Games |
(TEL) | | Videoconferencing |
(CPT) | | CD Products |
(BLD) | | Energy Efficient Building Supplies |
(DRG) | | Pharmaceuticals |
(ACE) | | Engineering Consulting Services-Railroad |
(POL) | | Air Pollution Control |
(SEC) | | Security and Safety Equipment |
(MED) | | Cardiovascular Equipment |
(BLD) | | Flooring Products |
(AIR) | | Aircraft Parts |
(GIE) | | Mechanical Handling Equipment |
(LFP) | | Leather and Fur |
For FY98, we plan to complete ISAs on the following topics:
Sector Code/Proposed ISA Topics FY 98 | | Due Date |
(MCS) | | ISO 14000 and Environmental Management Systems | | Dec. 1, 1997 |
(EDS) | | Study USA | | Dec. 15, 1997 |
(TEL) | | Personal Communications Systems (PCS) Handsets | | Feb. 1, 1998 |
(CPT) | | Smart Card Technology | | Feb. 1, 1998 |
(COS) | | Hair Care Products | | Apr. 1, 1998 |
(PVC) | | Pumps | | May 1, 1998 |
(FPP) | | Food Processing Equipment | | May 1, 1998 |
(POL) | | Solid Waste Reduction, Recycling and Reuse | | Jun. 1, 1998 |
(TEL) | | Cabling Equipment | | Jul. 1, 1998 |
(CAD) | | CAD/CAM | | Jul. 1, 1998 |
(MED) | | Dental Surgical Equipment | | Aug. 1, 1998 |
(PAP) | | Newsprint | | Aug. 31, 1998 |
(BLD) | | Curtain Wall Systems | | Sep. 1, 1998 |
(FRA) | | Franchising | | Sep. 1, 1998 |
B. Reports Prepared by FAS
Market Overviews
The Agricultural Trade Office (ATO) Hong Kong prepares a broad range of market overviews which are available to the public by contacting the Foreign Agricultural Service, PSC 464, Box 30, FPO AP 96522-0002 or fax 852 2845-0943. (E-Mail address: 106122.2744@Compuserve.com) Market overviews are updated as often as possible, and new overviews are added according to market trends. The current list of overviews include the following subjects:
- Beer
- Bourbon
- Cakes Cookies & Crackers
- Canned Food
- Cheese
- Confectionery
- Cooking Oils and Fats
- Dried Fruits and Tree Nuts
- Fast Food
- Fish, Shellfish and Seafood
- Food Retailing
- Fresh Fruit and Vegetables
- Frozen Fruit and Vegetables
- Frozen Desserts
- Fruit Juice
- Herbs Spices and Ginseng
- Microwaveable Foods
- Milk, Milk Products & Ice Cream
- Pet Foods
- Sauces, Relishes and Condiments
- Snack Foods
- Soft Drinks
- Sparkling and Still Wine
U.S. Market Development Cooperator Organizations represented in Hong Kong
USA Poultry & Egg Export Council
Ms. Sarah Li
Director of Market
Rm 2010 Hang Lung Centre
2-20 Paterson Street
Causeway Bay, Hong Kong
Tel: (852) 2890-2908
Fax: (852) 2895-5546
American Forest & Paper Assn., Inc
Mr. John Chan
Development Director
Room 528 New World Office Bldg.
West Wing, 20 Salisbury Road
Kowloon, Hong Kong
Tel: (852) 2724-0228
Fax: (852) 2366-8931
Sunkist Growers, Inc.
Ms. Maria Kwok
Room 1242 Swire House
11 Chater Road, Hong Kong
Tel: (852) 2524-9219
Fax: (852) 2845-3454
U.S. Potato Board
California Tree Fruit Agreement
Mr. Wong
Michael Wong & Co.
3B Harvard Commercial Bldg.
105 Thomson Road
Wanchai
Hong Kong
Tel: (852) 2891-3889
Fax: (852) 2891-3702
U.S. Meat Export Federation
Mr. Joel Haggard
8th Floor, Zoroastrian Bldg.
101 Leighton Road Unit A
Causeway Bay, Hong Kong
Tel: (852) 2890-7408
Fax: (852) 2576-7345
Washington Apple Commission
Northwest Cherry Growers
Mr. Philander Fan
Marketing Channels
Rm 2107 Progress Comm. Bldg.
9 Irving Street
Causeway Bay
Hong Kong
Tel: (852) 2815-6773
(852) 2815-9375
Fax: (852) 2544-7858
Cotton Council International
Mr. Timothy C. Heberlein
Managing Director
20/F Zoroastrian Bldg.
101 Leighton Road
Causeway Bay, Hong Kong
Tel: (852) 2890-2755
Fax: (852) 2882-5463
Almond Board of California
California Cherries Advisory Board
California Tomato Commission
U.S. Dairy Export Council
USA Dry Pea & Lentil Council
Western U.S. Agricultural Trade Assn. (WUSATA)
Wine Institute of California
Mr. Daniel Chan
PR Consultants Ltd.
Unit D, 14/F., Vulcan House
21-23 Leighton Road, Hong Kong
Tel: (852) 2833-5977
Fax: (852) 2893-7538
National Renderers Assn., Inc.
Dr. Yu Yu
Asia Regional Director
22/F Circle Tower
28 Tang Lung Street
Causeway Bay, Hong Kong
Tel: (852) 2890-2529
Fax: (852) 2576-8045
Asparagus USA (Hong Kong)
California Avocado Export (Hong Kong)
California Cling Peach Advisory Board (Hong Kong)
California Pistachio Commission (China)
California Raisin Administrative Committee (China and Hong Kong)
California Table Grape Commission (China and Hong Kong)
Florida Department of Citrus
(China) Oregon-Washington-California Pear Bureau (China and Hong Kong)
Washington State Potato Commission (Hong Kong & Taiwan)
Mr. Louis Ng
Louis Ng & Associates Ltd.
Suite B, 3/F Luen Wai Comm. Bldg
93-97 Des Voeux Road West
Hong Kong
Tel: (852) 2858-2230
Fax: (852) 2559-5896
Washington Apple Commission
Asia Regional Office
Mr. Brent Evans
Asia Marketing Director
Flat 4-B, Block 2, Vista Avenue
Discovery Bay
Hong Kong
Tel: (852) 2987-1286
Fax: (852) 2987-7936
U.S. Wheat Associates
Mr. Matt Weimar
Far East Director
12/F Zoroastrian Bldg.
101 Leighton Road
Causeway Bay
Hong Kong
Tel: (852) 2890-2815
Fax: (852) 2576-2676
Hong Kong Market
- Annual Report of Poultry
- Annual Report of Cotton
- Annual Report of Livestock
- Annual Report of Tobacco
- A Brief Overview of the 8th Largest Export Market for U.S. Agricultural Commodities
- Survival of the Fittest in Hong Kong's Retail Market
- Hong Kong's Changing Fruit Trade
- Asia Consumer Trends-Retails's Upward Spiral
- The Role of Produce Branding
- Competitor Report
- Food Importer Lists
APPENDIX G -- TRADE EVENT SCHEDULE
A. FY98 Events include:
Event Name: | | Cosmoprof Asia '97 |
Date of Event: | | October 6 - 8, 1997 |
Industry Theme: | | Cosmetics |
Type of Event: | | Certified Trade Fair |
Event Location: | | Hong Kong |
| |
Event Name: | | World Trade Center St. Louis Trade Delegation |
Date of Event: | | October 1997 |
Industry Theme: | | Horizontal |
Type of Event: | | Trade Mission |
Event Location: | | Hong Kong |
| |
Event Name: | | World Trade Center Cleveland Trade Mission |
Date of Event: | | October 9 - 11, 1997 |
Industry Theme: | | Horizontal |
Type of Event: | | Trade Mission |
Event Location: | | Hong Kong |
| |
Event Name: | | State of South Carolina Trade Mission |
Date of Event: | | October 14 - 17, 1997 |
Industry Theme: | | Horizontal |
Type of Event: | | Trade Mission |
Event Location: | | Hong Kong |
| |
Event Name: | | Retail/Franchise Trade Mission |
Date of Event: | | October 19 - 22, 1997 |
Industry Theme: | | Horizontal |
Type of Event: | | Trade Mission |
Event Location: | | Hong Kong |
| |
Event Name: | | State of Nebraska Trade Mission |
Date of Event: | | late October/November, 1997 |
Industry Theme: | | Horizontal |
Type of Event: | | Trade Mission |
Event Location: | | Hong Kong |
| |
Event Name: | | The 8th Education & Careers Expo |
Date of Event: | | February 19 - 22, 1998 |
Industry Theme: | | Education |
Type of Event: | | Post Initiated Event (US Pavilion) |
Event Location: | | Hong Kong |
| |
Event Name: | | 13th Hong Kong Gifts & Housewares Show |
Date of Event: | | April 15-18, 1998 |
Industry Theme: | | Household Consumer Goods and Giftware |
Type of Event: | | Product Literature Center |
Event Location: | | Hong Kong |
| |
Event Name: | | Dental & Medical Equipment Matchmaker |
Date of Event: | | April, 1998 |
Industry Theme: | | Dental & Medical Equipment |
Type of Event: | | Matchmaker Mission |
Event Location: | | Hong Kong |
| |
Event Name: | | Asia IT Expo '98, Asian Information Technology Exhibition |
Date of Event: | | September 1998 |
Industry Thems: | | CAD, CPT, CSS, TEL, TES |
Type of Event: | | Post Initiated Event (US Pavilion) |
Event Location: | | Hong Kong |
B. Trade Event Schedule (July 1997 - September 1998)
The following major trade shows are also scheduled for Hong Kong, although the U.S. Commercial Service Hong Kong is not directly involved with them.
July 16 - 19, 1997
APP - 30th Hong Kong Fashion Week - Spring/Summer
Hong Kong Convention and Exhibition Centre
Organized by: HKTDC
July 16 - 19, 1997
SPT - Sports and Recreation '97
Hong Kong Convention and Exhibition Centre
Organized by: Miller Freeman Asia Ltd., HKTDC
July 23 - 28, 1997
BOK - Hong Kong Book Fair
Hong Kong Convention and Exhibition Centre
Organized by: HKTDC
July 24 - 27, 1997
MHM - MEX '97 - The 18th International Machinery and Materials Exhibition for Asia
Hong Kong Convention and Exhibition Centre
Organized by: BITFL
July 24 - 27, 1997
14th International Electronics Industry Exhibition for Asia, Special Exhibitions on: (1)Testing Equipment & Instruments; (2)Electronic Components; (3)Surface Mount Technology
Hong Kong Convention and Exhibition Centre
Organized by: BITFL
July 24 - 27, 1997
14th International Plastics Machinery, Materials, Production Technology and Ancillary Equipment Exhibition for Asia
Hongkong International Trade & Exhibition Center
Organized by: BITFL
July 24 - 27, 1997
11th International Packaging & Printing Machinery & Materials Exhibition for Asia
Hong Kong International Trade & Exhibition Center
Organized by: BITFL
August 8 - 10, 1997
9th Wedding Fashion Expo '97
Hong Kong Convention & Exhibition Center
Organized by: HKAECL
August 13 - 16, 1997
Garmentec '97 - 10th International Garment Machinery and Technology
Hong Kong International Trade & Exhibition Center
Organized by: BITFL
August 15 - 18, 1997
5th International Hi-Tech Show '97
Hong Kong Convention and Exhibition Centre
Organized by: HKAECL
August 14 - 18, 1997
FOD - 8th Food Expo
Hong Kong Convention and Exhibition Centre
Organized by: HKTDC
September 3 - 5, 1997
YAR - INTERYARN (International Trade Fair for Yarns and Fibres) (Annual)
International Trademart, Kowloon Bay, Hong Kong
Organized by: MFHKL
September 10 - 14, 1997
JLR - 16th Hong Kong Watch and Clock Fair (Annual)
Hong Kong Convention and Exhibition Centre
Organized by: HKTDC
September 19 - 23, 1997
JLR - 20th Hong Kong Watch and Jewelry Fair
Hong Kong Convention and Exhibition Centre, HK
Organized by: Miller Freeman Asia, Ltd.
September 29 - October 1, 1997
Asia Pacific Leather Fair Fashion & Finished Products - Autumn Show
Hong Kong Convention & Exhibition Center
Organized by: Miller Freeman Asia, Ltd
October 14 - 17, 1997
Hong Kong Electronics Fair 97/Electronic Asia '97
Hong Kong Convention Center
Organized by: HKTDC
October 15 - 17, 1997
Interstoff ASIA '97
Hong Kong Convention Center
Organized by: Messe Frankfurt (HK) Ltd
October 22 - 25, 1997
ASIAN IT EXPO '97 - Asian Information Technology Exhibition
Hong Kong Convention Center
Organized by: Adsale Exhibition Services Ltd
October 22 - 26, 1997
The 9th International Audio and Visual Show
Hong Kong Convention Center
Organized by: HKTDC
October 28 - 30, 1997
Asiaflor '97
Hong Kong Convention Center
Organized by: Asiaflor Ltd
October 28 - 30, 1997
Cerasia '97
Hong Kong Convention Center
Organized by: Asiaflor Ltd
October 28 - 30, 1997
Hong Kong International Hardware Show '97
Hong Kong Convention Center
Organized by: HKTDC
October 29 - 31, 1997
PEN & PAPER - International Trade Fair for Stationery, Office Supplies and Educational Systems
Hong Kong Convention Center
Organized by: HKTDC
October 31 - November 3, 1997
Hong Kong International Furniture Fair
Hong Kong Convention & Exhibition Center
Organized by: Miller Freeman Asia Ltd
November 4 - 7, 1997
Asia Broadcast 97, Asia CommuniTech 97, Asia Internet 97, Asia Networks 97
Hong Kong Convention & Exhibition Center
Organized by: Hong Kong Exhibition Services Ltd
November 6 - 8, 1997
5th Hong Kong Optical Fair
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
November 19 - 21, 1997
Sign & Screen Printing Asia
Hong Kong Convention & Exhibition Center
Organized by: Miller Freeman Asia Ltd
December 1997
Cable & Satellite Asia 97
Hong Kong Convention & Exhibition Center
Organized by: Reed Exhibition Ltd
December 1997
Christmas Parade '97
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
January 7 - 10, 1998
24th Hong Kong Toys & Games Fair
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
January 14 - 17, 1998
Hong Kong Fashion Week - Fall/Winter '98
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
January 1998
New World Telephone Health & Fortune Expo
Hong Kong Convention & Exhibition Center
Organized by: HKTA
February 19 - 22, 1998
The 8th Education & Careers Expo
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
February 1998
1998 Hong Kong International Fur and Fashion Fair
Hong Kong Convention & Exhibition Center
Organized by: Hong Kong Fur Federation
March 18 - 21, 1998
15th Hong Kong International Jewelry Show
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
March 27 - 30, 1998
Hong Kong International Machine Tool - Linkage Industry Exhibition '98
Hong Kong Convention & Exhibition Center
Organized by: Paper Communication Exhibition Services
March 1998
4th Interior - International Trade Fair for International Furnishings and Contract Business
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
March 1998
Easter Wedding Expo
Hong Kong Convention & Exhibition Center
Organized by: HKAECL
April 1998
13th Hong Kong Gifts & Housewares Fair
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
April 1998
Interstoff ASIA Spring International Fabric Fair
Hong Kong International Trade & Exhibition Center
Organized by: Messe Frankfurt (HK) Ltd
May 28 - 31, 1998
International Travel Expo Hong Kong '98
Hong Kong Convention & Exhibition Center
Organized by: International Travel Expo HK Ltd
May 1998
COMPUTER '98
Hong Kong Convention & Exhibition Center
Organized by: Business & Industrial Trade Fairs Ltd
July 1998
ASIAN INDUSTRIAL EXPO
Hongkong International Trade & Exhibition Center
Organized by: BITFL
July 1998
Hong Kong Book Fair
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
July 1998
Hong Kong Fashion Week - Spring/Summer '98
Hong Kong Convention & Exhibition Center
Organized by: HKTDC
August 1998
10th Wedding Fashion Expo '98
Hong Kong Convention & Exhibition Center
Organized by: HKAECL
September 1998
ASIA IT EXPO '98
Hong Kong Convention & Exhibition Center
Organized by: AESL
Contact Address for Organizers:
Adsale Exhibition Services Limited (AESL)
4/F Stanhope Tower
734 King's Road
Quarry Bay, Hong Kong
Tel: (852) 2811 8897
Fax: (852) 2516 5024
Business and Industrial Trade Fairs Ltd. (BITFL)
Unit 1223, 12/F
Hong Kong International Trade & Exhibition Center
No.1 Trademart Drive
Kowloon Bay, Hong Kong
Tel: (852) 2865-2633
Fax: (852) 2866-1770
E. J. Krause & Associates
Rm 2013 Hang Lung Centre
2-20 Paterson Street
Causeway Bay, Hong Kong
Tel: (852) 2577 3343
Fax: (852) 2577 6426
Hong Kong (Asia) Exhibition Co. Ltd (HKAECL)
15/F Matheson Center
3 Matheson Street
Causeway Bay, Hong Kong
Tel: (852) 2591 9823
Fax: (852) 2573 3311
Hong Kong Exhibition Services Ltd
Unit 902, 9/F
Shiu Lam Building
23 Luard Road
Wanchai, Hong Kong
Tel: (852) 2804 1500
Fax: (852) 2528 3103
Hong Kong Fur Federation (HKFF)
Room 603, Chevalier House
45-51 Chatham Road South
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2387 4646
Fax: (852) 2739 0799
Hong Kong Industrial Technology Centre Corporation
1/F., Hong Kong industrial Technology Centre
72 Tat Chee Avenue
Kowloon, Hong Kong
Tel: (852) 2788 4433
Fax: (852) 2788 4261
Hong Kong Productivity Council (HKPC)
HKPC Building
78 Tat Chee Avenue
Kowloon, Hong Kong
Tel: (852) 2788 5574
Fax: (852) 2788 5011
Hong Kong Trade Development Council (HKTDC)
36-39 Floors, Office Tower
Convention Plaza, 1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
Hong Kong Trade Fair Group
44 Floor, China Resources Building
26 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2827-5121
Fax: (852) 2827-7831
International Travel Expo HK Ltd.
Room 1702B, Fortress Tower
250 King's Road
North Point, Hong Kong
Tel: (852) 2508-6655
Fax: (852) 2510-7016
Meeting Planners (HK) Ltd
5/F Pico Tower
66 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2509 3430
Fax: (852) 2667 6927
Messe Frankfurt (Hong Kong) Ltd. (MFHKL)
1809 China Resources Building
26 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2802-7728
Fax: (852) 2511-3466
Miller Freeman Asia Ltd.
44/F., China Resources Building
26 Harbour Road
Wanchai, Hong Kong
Tel: (852) 2827 5121
Fax: (852) 2827 7831
Paper Communication Exhibition Services
Room 15, 5 Floor, Wah Shing Center
11 Shing Yip Street
Kwun Tong, Kowloon
Hong Kong
Tel: (852) 2763-9012
Fax: (852) 2341-0379
The Hong Kong Institution of Engineers
9/F., Island Centre
No. 1, Great George Street
Causeway Bay, Hong Kong
Tel: (852) 2895 4446
Fax: (852) 2577 7791
Reed Exhibition Ltd
19/F Eight Commercial Tower
8 Sun Yip Street
Chaiwan, Hong Kong
Tel: (852) 2824-0330
Fax: (852) 2824-0246
*International Copyright, United States Government, 1997 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U. S. Copyright Law, Title17, United States Code.
[end document]
Key Government Documents
U.S. and Hong Kong
