Ventures Dialogue

The World Bank revised upwards its forecast on the global economic growth for 2010 to 2.7% from the 2% announced in June 2009, but the World Bank also warned that the global economic recovery may lose momentum in the second half of 2010 given that the impact of fiscal stimulus wanes, credit conditions remains tight and high unemployment persists.

In Hong Kong, seasonally adjusted unemployment rate came down further to 4.9% in October-December 2009. Sentiments among the large private businesses also improved further, with general optimism across all sectors surveyed as indicated by the latest Quarterly Business Tendency Survey. Meanwhile, Hong Kong was named the world’s freest economy for the 16th consecutive year by the Heritage Foundation.

In Asia-Pacific, Singapore’s non-oil domestic exports jumped for the second straight month in December, by 26% over a year earlier, amid rising global demand for its electronic and pharmaceutical output. Thanks to the strong Chinese demand, the value of Taiwan’s export orders surged by a record 52.6% year-on-year in December 2009.

A report in the Ottawa Citizen said Canada steel fabricator Canam Group is strengthening its ties with Asia. The company, based in the Beauce town of St. Georges,  Quebec, said recently its Technyx division has bought the assets and trademark of InteliBuild Ltd. of Hong Kong.  InteliBuild is best known for its consulting services in Asia, China and the Middle East.  The new company formed from the acquisition will operate as InteliBuild Technyx Asia, a joint venture in which Canam will hold a majority stake.  Canam, a major producer of steel joists and other building products, did not disclose the cost of the acquisition.

Hong Kong International Airport (HKIA) recently officially launched two new facilities:  the SkyPier, a new cross-boundary ferry terminal; and the North Satellite Concourse, which is equipped with 10 bridge-served parking stands for narrow-bodied aircraft. The facilities have been soft-opened since mid-December 2009.

Addressing at a ceremony marking the grand opening of the two new facilities, Dr Marvin Cheung Kin-tung, Chairman of the Airport Authority Hong Kong,  said the new SkyPier and North Satellite Concourse are part of HKIA’s near-term growth projects to enhance service levels and meet future demand.  

He  said: “The SkyPier efficiently conveys passengers travelling between the Pearl River Delta and the world via HKIA, while the North Satellite Concourse enables about 98% of our passengers to embark and disembark airplanes in an indoor, weatherproof environment.”

With an aim to actively promote dual development and co-operation between financial services in Hong Kong and Shanghai, Hong Kong and Shanghai signed a Memorandum of Understanding Concerning Advancing Hong Kong-Shanghai Financial Co-operation (MOU).  The MOU allows both places to capitalize on their respective strengths to contribute to financial reform on the Mainland China.

The signing of the  MOU was witnessed by the Financial Secretary of the Hong Kong Special Administrative Region Government, Mr John C Tsang, the Vice-Mayor of Shanghai, Mr Tu Guangshao, and other guests, Hong Kong’s Secretary for Financial Services and the Treasury, Professor K C Chan, and the Director of the Shanghai Municipal Government Financial Services Office, Mr Fang Xinghai.

Speaking at the signing ceremony on January 19th, Professor Chan said: “Hong Kong and Shanghai should step up co-operation for the country’s financial development.  As a highly international, liberal and institutionalized international financial centre, Hong Kong has relatively rich experience and advantages in facilitating Mainland financial institutions to go international step by step, attracting foreign capital and introducing financial innovation. On the other hand, Shanghai enjoys a prestigious position in mobilizing capital, talent and financial institutions on the Mainland.”

According to the MOU, the two cities would strengthen financial co-operation under the framework of the Hong Kong/Shanghai Economic and Trade Co-operation Conference and with the advice and support of the state’s financial authorities. 

The  MOU outlines three directions for advancing co-operation. Firstly, the MOU set out the overall objectives for advancing financial co-operation between Hong Kong and Shanghai, which would strengthen the international competitiveness of China’s financial services industry.  Secondly, the MOU sets out priority areas for advancing financial co-operation between Hong Kong and Shanghai, which would strengthen ties between their financial organizations under their respective regulatory frameworks.  Thirdly, the MOU advances co-operation concerned improving the dialogue and exchanges between the financial services of Hong Kong and Shanghai. 

With the signing of the MOU between Hong Kong and Shanghai, Professor Chan hoped both places could make joint efforts, advance exchanges, further complement each others’ competitive edges and advance strategic collaboration, to promote the development of the country’s financial services industry.

Hong Kong’s Chief  Secretary Mr  Henry Tang  says the  Government is determined to make Hong Kong Asia’s cultural hub, and the West Kowloon Cultural District will have enormous potential to become the cultural focus for the Pearl River Delta.

Addressing at a reception held in New York City on January 12, Mr Tang said the West Kowloon project will transform Victoria Harbour into “Asia’s West End” with a Broadway skyline making Hong Kong the cultural hub of Asia.

“People who have visited the two cities, New York and Hong Kong, often draw a number of comparisons. They are both cities that never sleep. We each have shimmering skyscrapers, great shopping, wonderful food and a spectacular harbour. We are both international business and financial centres and melting pots for culture.” Continue reading ‘Hong Kong’s West Kowloon to be Pearl River cultural focus’

The ground breaking ceremony of the site formation for Hong Kong’s Kai Tak Cruise Terminal was held December 23, marking a significant milestone in developing the city into a premier regional cruise hub.

Upon the commissioning of the new cruise terminal, together with the Ocean Terminal in Tsim Sha Tsui, Hong Kong will have a total of four berths for cruise vessels. Conveniently located, these terminal facilities can berth cruise vessels of different types and sizes, providing high quality infrastructure for the long-term development of the cruise industry in Hong Kong and in the region.

The Hong Kong Special Administrative Region Government (HKSARG) will fund, design and build the cruise terminal, and lease the terminal to a cruise terminal operator for a rent, while retaining the ownership of the site and the terminal. The new cruise terminal will have two alongside berths with no air draft limit. Upon completion, it will be able to berth the world’s largest cruise vessel with a gross tonnage of 220 000 tonnes.
 
The HKSARG is developing the Kai Tak Cruise Terminal through two works contracts. The first one is the site formation works contract, which involves the construction of berthing facilities. The second contract is for the design and build of the cruise terminal building. Continue reading ‘Ground breaking of Kai Tak Cruise Terminal marks a milestone in the development of Hong Kong’s cruise tourism’

A positive reaction to the wine duty exemption and various other wine industry supportive measures have seen Canada-based Wines to Go Ltd enter Hong Kong’s vibrant wine industry with the opening December 17 of its first retail shop in Hong Kong, located in the Mong Kok East MTR station concourse on the East Rail Line.

Wines to Go Ltd aims to bring a fresh and exciting selection of fine wines from around the world into Hong Kong and the Asia region. The company’s goal is to open up the market to wines other than Bordeaux and to let consumers discover other quality wines at competitive prices in an open and attractive space where wines are featured based on their style and taste profiles.

The company’s first wine shop in Hong Kong is the first such licensed premises to operate inside the MTR station. The wine retailer is endeavouring to present wine in a user-friendly location to capture passing young professionals who have a burgeoning interest in wine. The company plans to further expand its business in Hong Kong by opening several more shops along the MTR lines in the next 12 months.

President of Wines to Go Ltd, Mr Leo Baduria, said, “The trend in wine appreciation in Asia continues to grow and will affect the global wine industry in the coming decades. Our decision to expand Wine to Go Ltd into Hong Kong is the result of the rapid growth and promising prospects of the city’s wine industry. Hong Kong provides the best combination of efficiency, world-class infrastructure and sophisticated culture, the key determinants behind our investment in this city.”

Commenting on the strategic regional role of its Hong Kong operation, Mr Baduria said, “Hong Kong remains the best hub in Asia for the wine market because of its highly efficient systems and zero duty on wine. We will keep Hong Kong as our regional headquarters as we grow, enabling us to manage our business operations in other cities in Asia from our hub in Hong Kong.”

Officiating at the opening ceremony of Wines to Go Ltd’s first retail outlet in Hong Kong, Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Charles Ng, warmly welcomed the company’s establishment in Hong Kong. He said, “We are delighted to have a Canadian wine retailer expanding its business into the Hong Kong market. The presence of Wines to Go Ltd not only enriches the portfolio of the wine industry in our city, but also enhances our position as a regional hub for wine-related businesses. Our investment promotion teams stand ready to provide further support and assistance to Wines to Go Ltd in its future business expansion here and regionwide.”

Mr Ng also said that since the exemption of wine duty in early 2008, many wine sector-related companies have set up or expanded their businesses in Hong Kong to provide support in areas such as trading, storage, distribution, auctions, etc. He noted that the new policy has also brought benefits to related economic activities such as tourism, catering and hospitality and exhibitions.

Photo by Robert S. Donovan

Hong Kong, having raised US$13.82 billion in the first 10 months this year, has become world’s premier destination for initial public offerings.

According to the World Federation of Exchanges, Hong Kong was ranked No.1 as the largest listing market by fund-raising size, surpassing Shanghai and New York. Shanghai’s IPO take for the year now stands at US$12.37 billion.

The number of offerings this year until last week of November was 62 per cent up on last year, with 47 companies turning to Hong Kong for flotation. It is said that Hong Kong is now seeing investment capital pouring into the listing market “as there is no other way to go due to the low interest rate.”

Hong Kong-based global consumer goods exporter Li & Fung Limited  and the Hudson’s Bay Trading Company  announced a global sourcing strategic partnership for Hudson’s Bay Trading Company’s four main retail banners, the Bay, Zellers, Home Outfitters and Lord & Taylor.

According to Jeff Sherman, Chief Executive Officer, Hudson’s Bay Trading Company, the consolidation of the company’s global sourcing requirements and activities into one North American shared services group with a best-in-class partner will accelerate the company’s overall business strategy to integrate and improve operating effectiveness of each of the retail brand merchandising entities.

“The signing of buying agency agreement with Li & Fung complements our shared services strategy to consolidate and align global sourcing needs into one group for all of our banners. By partnering with the world’s leading consumer goods sourcing company, we will be able to leverage Li & Fung’s scale and expertise,” said Mr. Sherman.

Mr. Bruce Rockowitz, President of Li & Fung (Trading) Company, said, “We are delighted to see the execution of this outsourcing deal with one of the oldest companies and one of the leading retail groups in North America. We are very excited about this strategic relationship as the four main retail banners are well-established and we see great potential in them. With our strong network of offices in over 40 economies, we are confident that we will be able to contribute to the long term success of Hudson’s Bay Trading Company in North America.”

The new buying agency arrangement with Li & Fung will go into effect in 2010.

The Hong Kong Special Administrative Region (HKSAR) Government invited expressions of interest (EOI) from overseas parties, including Canadian, in developing private hospitals at sites in Wong Chuk Hang, Tseung Kwan O, Tai Po and Lantau.  Deadline for submitting EOI is March 31, 2010.

The Secretary for Food and Health, Dr York Chow, of the HKSAR Government said: “Promoting private hospital development is one of the initiatives under the healthcare reform and a major government policy announced by the Chief Executive in his 2009-10 Policy Address.

“The Hong Kong Government aims to increase the overall capacity of the healthcare system of Hong Kong through the promotion of private hospital development, so as to address the imbalance between the public and private sectors in hospital services and to ensure our healthcare system can continue to provide quality healthcare services to the public, and to cope with the increasing service demand.

“Besides, Hong Kong is renowned for its high standard of professional healthcare as well as advancement in medical technology and equipment, and we have the advantages and potential in further developing our medical services.

“Through developing private hospitals, it is hoped that our medical industry can turn into one of the industries crucial to the development of Hong Kong’s economy,”  Dr Chow added.

To achieve the goal, the Food and Health bureau has proposed a set of special requirements for development of the four sites that have been identified and reserved for private hospital development. The special requirements cover aspects of restriction on land use, date of commencement of operation of the new hospital, bed capacity, service scope, price transparency, service standard and remedy for non-compliance.

“We will work out the appropriate land disposal arrangements for the four reserved hospital sites, including the means and timing for land disposal, the detailed special requirements and the land premium for the four sites, after considering all the responses and feedback received in the EOI exercise,” Dr Chow said.

The EOI exercise is conducted on a non-committal basis and does not form part of the process for acquiring the sites by interested parties.

Details of the EOI requirements and relevant information are available at the website of the bureau.   An advertisement on the “Private Hospital Development” was published in the December 15 edition of the Globe and Mail.

Interested parties should submit the EOI in English in accordance with the instructions given in the EOI document before 5pm on March 31, 2010, Hong Kong time (GMT +8 hours).

For enquiries, please email EOIenquiry@fhb.gov.hk.