The Ontario Chamber of Commerce (OCC) just returned from their first trade mission to Hong Kong. The mission leader was the OCC’s very own President and CEO Len Crispino. Organized in partnership with the Hong Kong Trade Development Council (HKTDC), Consulate General of Canada in Hong Kong, and the Hong Kong-Canada Business Association (HKCBA), the mission focused on the life sciences and neutraceuticals sectors.
In total, nine Ontario companies were showcased ranging from a manufacturer of vitamin D supplements, a company specializing in needle free acupuncture and nanometer technology, to manufacturers of natural health supplements including natural and herbal varieties. The mission began with a briefing, networking reception and luncheon that seamlessly transformed into one-on-one business matching sessions. Later that day, the mission delegates had an opportunity to connect with interested parties on Mainland China though a virtual trade mission organized by the Canadian consulate general in Hong Kong. Mission delegates spoke directly with people in Beijing, Shanghai, Nanjing, Chongqing, and Shenzhen. The mission also included another networking luncheon at the China Club (the Old Bank of
China Building, a venue which has a history all its own).
From the OCC’s standpoint, we felt this is just the beginning of getting directly involved with bringing Ontario companies to global arenas. We are pleased to see Ontario businesses getting out there and seeking new export markets. Our funding program Export Market Access (EMA) also had a presence as some companies benefited from our funding to attend the mission. In case you are not aware, EMA is a 50/50 grant program assisting companies with their goals to export.
All in all, the mission was a success. The most important takeaways are that if you are going on a trade mission, no matter who is the organizing it, as a business you must do your own research, line up some meetings on your own, take advantage of every opportunity to network and showcase your company, its products and what makes them unique.
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.
Co-organized by Hong Kong Exchanges and Clearing Limited, Hong Kong Trade Development Council, Hong Kong Economic and Trade Office and Invest Hong Kong, a morning seminar on “Listing and Capital Raising in Hong Kong for Mineral and Natural Resources Companies” will be held March 8 at the Metro Toronto Convention Centre (Room 717B, South Building).
For mining and natural resources companies planning to raise funds, this seminar will provide them with an opportunity to better informed of Hong Kong’s securities market – one of the most active and liquid markets in the world. In 2009, US$31 billion was raised through new listings in Hong Kong, which was the top global IPO fund raising centre for the year.
Special guest speakers at the seminar include: Prof K.C. Chan, Secretary for Financial Services and the Treasury of the Government of Hong Kong Special Administrative Region, and Ronald Arculli, Chairman of HKEx.
Senior executives of HKEx and intermediary firm representatives and advisors will also be present to offer complimentary advice and insights on “Why and how mining companies can list in Hong Kong” including such practical subjects as “Preparing for IPO in Hong Kong: the process and common issues” and “How mining companies can attract investors in Asia through listing in Hong Kong”. On experience-sharing, the President & CEO of SouthGobi Energy Resources, Alexander Molyneux, will discuss with the audience the “Benefits of dual listing on HKEx”.
Pre-registration is required. For event details, please contact Andrew Yui, HKTDC Toronto Office at email: andrew.yui@hktdc.org or Tel: (416) 366-3594
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.
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 US is number 1, China number 3, Hong Kong number 7, and Canada number 11. No, this isn’t the latest ranking in a sports contest, but rather a ranking on CNBC.com as to which countries received the most foreign direct investment (FDI) in 2008.
Tracked by the United Nations Conference of Trade and Development (UNCTAD), global FDI inflows reached its peak in 2007 with $1.98 trillion and shrank to $1.70 trillion in 2008. A net positive FDI (inbound vs outbound) is preferable as investors view the country as a good place to invest, but it also signifies that there is room for possible job creation and business expansion, a plus for any country.
Hong Kong’s FDI inflows captured 3.7 per cent of world inflows in 2008 ($63 billion), up by one per cent from the previous year. FDI Outflows as well increased, but by a larger margin, five per cent ($59.92 billion). As for China, percentage of world FDI inflows ($108.31 billion) increased by 2.2 per cent and outflows ($52.15 billion) increased by 1.8 per cent.
You can browse the full list of 15 countries by viewing cnbc.com’s slideshow.
Photo by Chris Gin.
“The decision will usher in a new economic world order that gives rising powers such as China, India, Brazil, South Korea and other emerging nations, more say in steering the global economy. It means the G20 will assume the role long played by the smaller club of wealthy G8 countries that includes the United States, Great Britain, France, Italy, Canada, Japan Germany and Russia.”
This was the main announcement from the G-20 meeting held in Pittsburgh where it was decided that the G-20 will now take on the role as the world’s main economic body, taking over from the G-8 and representing the importance that emerging markets have in the development of global economy.
“The Time has come it get it done.”
This rather blunt, but some might say needed statement comes from Brian Mulroney, senior partner at the law firm Ogilvy Renault LLP, during a recent visit to Beijing. In his remarks, printed in the National Post, Brian comments on the need to strengthen foreign investment in both countries and calls for a Canada-China Investment Agreement. The Agreement, he notes, the two countries have been working on for more than 10 years.
Brian also gives a bit of a history lesson as he describes how Canada prepared itself for foreign business and allowed greater access from foreign markets. He noted the adherence to certain economic models and also the acknowledgement at the time, for growth in policy development.
Brian then looks to the future as Canada emerges from the recession, and comments on the importance of Asian markets in the economic recovery, the significance of the global value chains and also the need for countries to go beyond just economic responsibility.
To take a closer look at his comments, you can read the National Post’s article “The promise of a Canada-China alliance.”
Photo by storyvillegirl
A 3.3 per cent rise in Hong Kong’s gross domestic product (GDP) from April to June shows that the recession, from them, is over. This rise is a welcomed change from the first quarter, as January to March posted 4.3 per cent decline. In fact, due to the global credit crisis, Hong Kong’s economy has posted negative growth since the second quarter of 2008.
Even though the rise in GDP is a good sign, it should be noted that for 2009, Hong Kong’s economy is still expected to decline by 3.5 to 4.5 per cent. Overall, this is better than the government previously forecasted 5.5 to 6.5 per cent drop for the year.
Hong Kong is not the first to step out from under the recessionary clouds however. Singapore, Japan, France, and Germany have also announced they are experiencing growth as well.
To find out more about Hong Kong’s recovery, read these articles from the BBC and Forbes.com. As well you might be interested in Europe’s climb in this article also from the BBC.
Photo by Tearsandrain
Could China become the next big car manufacturer? Well, quite possibly if you ask Geely, China’s biggest privately owned car manufacturer. It is currently developing six model platforms, dedicated to launching nine new cars over the next year and a half, and by 2015, the company cites 42 new models will be on the market. In the recent article, The ambition of Geely, from The Economist, it highlights Geely’s aspirations, but also raises some concerns. Namely, its dependence on government tax breaks, which is likely to be a main reason of its increased sales in the first half of the year. There are also concerns surrounding the safety of its cars and not being on par with Western levels. In a crash test by a Russian car magazine of the Geely CK, the driver and passenger were given a 10 percent survival rate.
Nevertheless, this is not stopping Geely. The company aims at selling 1.3 million cars abroad by 2015 (30,000 foreign cars were sold in 2008). Geely has not only increased employment levels, but has created its own university, the Zhejiang Automotive Engineering Institute, and has assets abroad as well. It also plans to build factories in South Africa and Mexico. And, according to the article, Geely might be in the game to buy a European car company.
So Geely has big plans, we’ll just have to wait and see what develops.
Click here to read the full article from The Economist.
You might also want to visit Geely’s website and view some of their videos.
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