Fostering a dialogue about opportunities for business between Ontario, Hong Kong and China
“Southeast Asia has emerged resilient in the midst of the global economic crisis. Many of the region’s countries are fertile ground for new investment, whether in infrastructure, retail or as an alternative production base.”
Read further and find out what how Loretta Wan, Hong Kong Trade Development Council’s Regional Director for Southeast Asia sums up this region and more, in six questions in the latest release: ASEAN’s Rising Stars.
In what seems like movement to a closer relationship between Canada and China, China’s President Hu Jintau arrived in Ottawa ahead of the G20 summit in Toronto and got to work signing deals that will hopefully improve the trading, tourism and economic relationship between the two countries; and in effect be advantageous to Canadian firms.
One of the most important things accomplished is the signing of a co-operative agreement whereby China will again begin to import Canadian beef and beef products. The opening of the Chinese market is estimated, in an article from the Toronto Sun, to be worth $100 million to Canada’s farmers. China banned Canadian beef in 2003 after the first Canadian case of mad cow disease (Bovine Spongiform Encephalopathy – BSE) was discovered.
Another important move stemming from the visit is that China will allow its tourists to visit Canada more freely. Presently, Chinese tourists were only allowed to travel to countries with approved destination status (ADS). ADS was previously not applied to Canada, but will now be. The Toronto Sun further comments that ADS was first discussed in 2005 by the then Canadian Prime Minister Paul Martin.
There were other deals signed as well, touching on fighting crime and setting up a working group on environmental protection and energy.
To read more about the Canada-China relationship and the G20 summit you can also read this article by the Globe and Mail and also view this YouTube video Harper Says China Move May Temper Canada Dollar Rise from Bloomberg.
Imports from Asian Pacific countries accounted for more than 20 per cent of total Canadian imports in 2009. An article from the Asia Pacific Foundation of Canada notes that this is a decrease from the previous year. However, the foundation attributes this to the decrease of imports from China and Japan. This in turn can also be linked to the global credit crunch. Nevertheless, China was by far the leader with 10.9 per cent of Canada’s total imports. Japan and South Korea rounded off the top three spots with 3.4 per cent and 1.6 per cent, respectively.
East Asian countries garnered 15.9 per cent of Canada’s imports. This is a bit higher than the imports from Europe with 15.6 per cent in 2009. To see where China and the 16 other counties fits, take a look at the article from the Foundation.
The Ontario Chamber of Commerce (OCC), in partnership with the Consulate General of Canada in Hong Kong, Hong Kong-Canada Business Association (HKCBA), and the Hong Kong Trade Development Council (HKTDC) would like to invite Ontario companies to join the Canadian Life Sciences & Nutraceuticals Trade Mission to Hong Kong & China August 10 – 18, 2010.
This mission is designed for participation by those Ontario companies which are involved in natural health products, life sciences, and nutraceuticals that are interested in expanding their business to China and Hong Kong.
Co-organized by the Consulate General of Canada in Hong Kong, the Ontario Chamber of Commerce (OCC), the Hong Kong Trade Development Council (HKTDC), and the Hong Kong Economic and Trade Office (HKETO), this mission aims at assisting participants to find potential business and partnership opportunities, access to targeted business networks and first-hand market intelligence.
Highlights of the programmes include: A special programme consisting of briefing session, roundtable discussion, pre-arranged one-on-one business meetings, and networking activities on August 11, 2010, and participation in the International Conference & Exhibition of the Modernization of Chinese Medicine & Health Products (ICMCM) starting on Aug 12, a networking dinner for Ontario companies on Aug 13, and an optional side trip to China (Aug 15-18).
There is no registration fee required for joining this mission.
Funding Opportunities:
Delegates can apply for an Export Market Access (EMA) grant offered by the OCC. EMA is designed to assist small to medium size organizations (SMEs) to access and expand their growth in new foreign markets. If your company has 5 or more employees and annual sales of $500,000 or more, you may qualify for a grant covering up to 50% of eligible costs incurred to develop export sales. To find out if your company qualifies, please visit: www.exportaccess.ca. For further details, please contact Lesley Cole by email:(lesleycole@occ.on.ca) or by Tel: 416-482-5222 x 239. EMA is an initiative of the Ontario Chamber of Commerce, with support and funding from the Government of Ontario and the Government of Canada.
For the full announcement, and to register for this mission, please contact Adrian Cheng of HKTDC Toronto Office at Tel. No: (416) 366-3594 or email: adrian.ch.cheng@hktdc.org.
The full announcement of the mission and registration form can be downloaded from the following website:
Moving up one spot from last year’s position, Hong Kong grabs the second highest spot in a world competitiveness ranking done by the Institute of Management Development (IMD). The 2010 World Competitiveness Yearbook ranked Singapore in first place as it too moved up one sport from last year. The United States, who ranked first last year slid back three spots to third place.
IMD notes in their press release:
“Singapore and Hong Kong have displayed great resilience through the crisis – despite suffering high levels of volatility in their economic performance – and they are now taking full advantage of strong expansion in the surrounding Asian region.”
Countries were evaluated on more than 320 criteria to compose the list. The rankings of all 58 countries studied can be found here.
A Framework Agreement on Hong Kong-Guangdong co-operation was signed earlier in April in Beijing. The Framework Agreement, which builds on years of close co-operation between Hong Kong and Guangdong Province, is a significant embodiment of the principle of “One Country, Two Systems”. It represents a deepening of the co-operation between the two places. It sets clear targets and development positioning for Hong Kong/Guangdong co-operation, and outlines specific polices and measures, including:
To achieve the objectives, Hong Kong and Guangdong have put forward specific policies and measures, and set out major initiatives for 2010.
Following the listing of the world’s biggest aluminum firm, Rusal, and Mongolian coal miner SouthGobi Energy Resources in Hong Kong earlier this year, the Hong Kong Stock Exchange (HKEx) is looking to attract South American and African companies to list on the Hong Kong bourse.
According to the HKEx Chairman Ronald Arculli, it is part of HKEx’s three-year strategic plan to have more international companies to list in Hong Kong and establish the city as an international financial centre. He said mining and resource companies from South America and Africa like Brazil and Nigeria could benefit from proposed improvements in the HKEx rules to make it easier for them to list in Hong Kong. Meanwhile, companies come to list in Hong Kong can tap funds from Asian investors through HKEx, and get closer to the Mainland China and Asian markets, which are the fastest-growing in the world. Since 1993, more than 300 Mainland China firms have listed in Hong Kong, representing 58 per cent of the bourse’s market capitalization.
After a fantastic year for IPO’s on the Hong Kong Stock Exchange (HKEx), it was not at all surprising that a standing-room only crowd at the Prospectus and Developers Association of Canada (PDAC 2010) Convention in Toronto was eager to hear from visiting Secretary for Financial Services and the Treasury, Professor K.C. Chan, and HKEx Chairman, Ronald Arculli, about Hong Kong and on how HKEx has become one of the most active markets in the world.
HKEx ranked Number 1 globally in 2009 for IPO fundraising (US$31.3 billion), and Number 4 globally in terms of total fund raised, including post-IPO, of US$81.4 billion. A total of 73 companies were newly listed on HKEx and they included overseas companies which have listed their Greater China related business operations in Hong Kong. “Companies are attracted to list in Hong Kong to benefit from our market’s liquidity, attractive valuations and access to investors in Asia,” said Professor Chan.
2010 has already started off well, Professor Chan said at the PDAC Seminar in March on “Listing and Capital Raising in Hong Kong for Mining and Natural Resources Companies”, with SouthGobi Energy Resources, owned by Canada’s Ivanhoe Mines, raising USD$439 million through a secondary listing on the HKEx, just days after Russia’s UC Rusal, the world’s largest aluminium producer and the first ever non-Asian company to have a primary listing in Hong Kong, raised USD$2.24 billion.
It is expected that at least nine other foreign mining companies will be listing in HKEx this year, said the Secretary, some of which are from Canada. Professor Chan encouraged Canadian natural resources companies in particular to list on the HKEx so as to take advantage of China’s seemingly insatiable appetite for raw materials, as well as the liquidity afforded by the Mainland’s wealthy, upper and middle-class who are very active investors on the HKEx. He pointed out that companies incorporated in British Columbia and Ontario are acceptable for listing in Hong Kong and that HKEx has adopted international standards and practices to facilitate dual listings, with no capital controls and no capital reporting requirements. Continue reading ‘Hong Kong – A Global Centre for Raising Capital’
Olympic stadium in Beijing, China, for the 2008 summer olympics, so-called "the nest" made of steel; architectural designed by Herzog & deMeuron
China and Brazil announced the signing of trade deals aimed at enhancing trade and energy cooperation. This comes out of the recent BRIC summit held in Yekateringburg, Russia. While the summit was shortened due to the earthquake in Western China, this agreement is slated to be China’s biggest investment in Brazil and also China’s biggest foreign investment in the steel industry.
The deal is estimated to include a $5 billion steel plant in Brazil, and it hinted that China will bid on the rights to construct Brazil’s high speed rail link between Rio De Janeiro and Sao Paulo. All of this is part of five year action plan which builds on Brazil becoming China’s top trade partner in 2009.
Also stemming from the meeting, the BRIC countries, Brazil, Russia, India and China called for their group to have greater influence in the World Bank, International Monetary Fund and other such global financial institutions. They stressed that together BRIC has about 40 per cent of the world’s population along with noting the significance of emerging markets during the financial crisis, they should have more say in global financial matters.
To read more about the summit check out these articles:
China, Brazil sign deals at shortened BRIC summit
China and Brazil sign trade deals at Bric summit
Photo by nozoomii
China replaces the US as the leading investor in renewable energy technology. This is according to Pew Charitable Trusts’ new study that ranks China investing $34.6 billion in 2009. This is almost two times the investment amount as US. Rounding off the top five spots for clean tech investment include the UK, Spain and Brazil, respectively. Pew does note that even despite the global recession, global investment in renewable technology has more than doubled over the last five years. South Korea alone posted a 250 per cent increase in this period.
An article from BBC news quotes Phyllis Cuttino, director of Pew’s climate change movement as saying, “They know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs and businesses.”
To read more about China’s energy diversification needs/aims head over to the article.
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