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.

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.

• to promote joint socio-economic development in Hong Kong and Guangdong;
• to enhance Hong Kong’s position as an international financial centre and expedite the development of financial-services industries in Guangdong;
• to capitalize on the competitiveness of Hong Kong’s service industries and Guangdong’s manufacturing industries to build an advanced global manufacturing and modern services base;
• to facilitate the flow of key factors such as people, goods, information and capital across the boundary, with a view to building an international aviation, shipping and logistics hub and a world-class modern economic circulation sphere;
• to implement a regional ecology and environment protection regime operating at a leading level by the national standards; and
• to promote collaborative development among Hong Kong and the Pearl River Delta cities to form a world-class metropolis cluster.

To achieve the objectives, Hong Kong and Guangdong have put forward specific policies and measures, and set out major initiatives for 2010.

To read further, head over to the post.

Photo by by dcmaster

Over 45 per cent, that’s the latest figure released from China’s General Administration of Customs (GAC) about the February year-over-year increase in China’s trade. Exports lead the way with $94.52 billion for a 45.7 per cent upswing. Imports as well posted a gain with a 44.7 increase at $86.91 billion.

The European Union and the US remain China’s top trading partners with the EU capturing $65.53 billion, which is up 34.5 per cent in the first two months of 2010. The US had $49.32 billion in Chinese trade, which as well posted an increase, up 25.1 per cent.

One other relationship that was noted was trade with the Association of Southeast Asian Nations (ASEAN). Chinese trade with ASEAN was up 66 per cent in January and February, with $39.12 billion. This increase moves ASEAN ahead of Japan in terms of trade. This surge is most likely attributed to the free trade area that was established between China and ASEAN countries in January.

While these numbers are positive, there is caution as some believe this “could bring pressure of yuan appreciation and possible trade disputes,” as quoted from an article from an official news release.   

Photo bY by jiazi

Speaking at a seminar on “Listing and Capital Raising in Hong Kong for Mining and Natural Resources Companies” of the Prospectors and Developers Association of Canada Convention (PDAC 2010), Professor Chan said Hong Kong could serve as the financial gateway for Canadian companies to reach the Asian market in the same way that Canada served as a gateway for Hong Kong companies to invest in the North American market.
 
He called on Canadian companies to consider listing in Hong Kong to tap the local liquidity pool, quoting the examples of British Columbia and Ontario of Canada which are overseas jurisdictions already accepted by the Hong Kong Exchanges and Clearing Limited (HKEx).

“At the same time, companies listed in Hong Kong and other Asian markets can also consider a listing on the Canadian exchange to tap the liquidity there. We would also welcome Canadian fund management companies to market their services to Asia through Hong Kong,” he added.
     
Turning to market regulation, he said Hong Kong believed in being predictable and consistent in regulation, and had been careful in striking a balance between the goals of having a quality market and being market friendly.

Using the HKEx as an illustration, he said listing decisions were made by a committee of market professionals who applied their expertise in reviewing listing applications in a dual filing system overseen by the securities regulator.

He described such regulatory environment in the listing process as  working well.  “The HKEx has full control over its development strategy, and it has responded to market needs. The efficiency and quality of the listing process are further ensured with the regulatory oversight,” he added.

In 2009, Hong Kong was the most active market for IPO funds raised globally.  Hong Kong ranked number one globally in IPO fund raised for 2009 (US$31.3 billion), and number four in the world in 2009 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.

“Earlier this year, we saw the first Russian company listed on our stock market, and I am confident that more foreign based companies will be looking to list on the Hong Kong stock exchange in the near future,” he added.

In the afternoon, Professor Chan also spoke at the Rotman School of Management, University of Toronto, on “China’s Rise as an Economic Power – Implications for HK, Canada and the Rest of the World”.

He told his audience that the new wave of financial globalisation has brought a new wave of financial talent to Asia, and to Hong Kong, and that as countries in the West continued to grapple with the aftermath of the financial tsunami, Asia was rebuilding, refocusing and rebounding. 

He said financial and trade experts not only looked to Hong Kong for future growth potential these days, they were also based right in Hong Kong which was a vantage point and actually the best available platform for seeking out the best opportunities in China and throughout Asia.

The economy improved further and resumed year-on-year growth of 2.6% in the fourth quarter, led by strong domestic demand and improving external sector.  For 2009 as a whole, GDP fell by 2.7%.  The outlook for 2010 is cautiously optimistic.  GDP is forecast to grow by 4% to 5% in 2010, with headline and underlying consumer price inflation forecast at 2.3% and 1.5% respectively.

The economy continued to recover on entering 2010.  Merchandise exports rose notably further in January by 18.4% in value terms over a year earlier, while headline inflation remained modest at 1.0%.

Invest Hong Kong

Director-General of Investment Promotion at Invest Hong Kong, Mr Simon Galpin, said, “In the face of the global economic downturn, 2009 was a challenging year for Invest Hong Kong. The positive investment promotion results last year demonstrate that Hong Kong remains the base in Asia from which overseas, Mainland and Taiwanese companies prefer to expand their business.

“In these times of economic uncertainty, the enduring advantages of Hong Kong such as its rule of law, low and simple taxes, level playing field, free economy, world-class communications and transportation infrastructure, and available talent pool, have become increasingly important. They continue to enable the city to act as a stable and secure platform for companies looking to do business in the region and beyond,” Mr Galpin said.

Highlights of 2009
In total, the 265 companies that Invest Hong Kong helped last year planned to create more than 6,000 new jobs within the first two years of their operation or expansion in Hong Kong.

Geographically, Asia Pacific, Europe and North America accounted for 43 percent, 35 percent and 18 percent, respectively, of the total number of Invest Hong Kong’s completed investment projects in 2009.  The Mainland continued to be the single largest market by source of completed projects, followed by the US and UK.

By priority sector, the top three performers were Business and Professional Services including education services and design, Technology including renewable energy, and Special Projects, which includes environmental technology and the wine sector.

Commenting on the role of Hong Kong as a base from which companies can expand their businesses, Mr Galpin said, “Hong Kong’s strategic location and international exposure make it an ideal two-way service platform for Mainland companies to go global and for foreign companies to access opportunities in the Mainland.”

Looking forward
Invest Hong Kong has realigned its priority sectors and strengthened its research and aftercare capabilities in order to encompass the six new growth industries where Hong Kong has a clear competitive advantage: namely, testing and certification, medical services, innovation and technology, culture and creative industries, environmental industry and education services.

In 2010, the Department will increase its activities to attract companies from emerging markets such as India, Latin America, the Middle East and Russia. In addition, Invest Hong Kong will continue to strengthen its marketing promotion efforts on the Mainland to assist corporations to expand internationally by using Hong Kong as their hub. It will also continue to organise joint promotion seminars with Mainland partners in key overseas cities to promote the combined advantages of Hong Kong and the Mainland, in particular the Pearl River Delta region.

Mr Galpin added that the Department’s pipeline of live projects is stronger than ever. He said, “Investment promotion is crucial to our economic development and our long-term objectives of maintaining the status of Hong Kong as a leading location for international direct investment. Our target for this year is to achieve 270 completed investment projects.”

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.
 
The site formation for Kai Tak Cruise Terminal is implemented by Civil Engineering and Development Department. The scope of works comprises the construction of a sloping seawall of about 1 100 metres and a 35-metre wide and 850-metre long apron area for berthing of cruise vessels of different sizes and capacities, as well as the dredging of about 1.38 million cubic metres of marine sediments to allow manoeuvring and berthing of mega cruise vessels.

The first berth is expected to commence operation in mid-2013 and will be capable of berthing the world’s largest cruise vessel. The second berth will be available in 2014 to berth medium-sized cruise vessels and will begin to accommodate mega cruise vessels after the relocation of submarine gas mains.

The HKSARG is assessing tenders for the design-and-build contract for the cruise terminal building. The construction is expected to begin in 2010 and complete in 2014/15. The cruise terminal building will be iconic, and highly functional and efficient to facilitate the operator to provide world-class services.

Apart from hardware development, the Government has continued to strengthen liaison with the cruise market and neighbouring ports, as well as improve the service standards to enhance the competitiveness of Hong Kong in the regional cruise market.

The Advisory Committee on Cruise Industry, comprising representatives from the Hong Kong Tourism Board, four key international cruise operators and the tourism trade, was established to advise the Government on policies to develop Hong Kong as a regional cruise hub. The Committee focuses on strengthening co-operation with neighbouring coastal Mainland provinces to develop cruise itineraries, promoting cruise tourism in the region, and encouraging manpower training in the cruise market and related industries.

In addition, China introduced a measure in April to allow China tour groups travelling to Taiwan to take cruise vessels homeporting in Hong Kong, bringing the development of cruise tourism in the Mainland, Taiwan and Hong Kong to a new stage. The first sailing was completed smoothly in August. About 20 sailings from Hong Kong to Taiwan with a total capacity of some 30 000 passengers will be launched next year.

Hong Kong is committed to enhancing tourism infrastructure and supporting software to further strengthen Hong Kong’s position as a premier cruise hub in the region. The ground breaking of Kai Tak Cruise Terminal marks a milestone in the development of Hong Kong’s cruise tourism.

The ground breaking ceremony was officiated by Hong Kong Chief Executive, Mr Donald Tsang. Other officiating guests were Secretary for Commerce and Economic Development, Mrs Rita Lau; Secretary for Development, Mrs Carrie Lam; Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism), Miss Yvonne Choi; Permanent Secretary for Development (Works), Mr Mak Chai-kwong; Acting Commissioner for Tourism, Miss Joey Lam; and Acting Director of Civil Engineering and Development, Mr Adrian Ng.

In a panel discussion of the Copenhagen Climate Summit for Mayors held December 16, Mr Yau gave an account of what Hong Kong was doing in promoting a low carbon economy, particularly in engaging the private sector, in tackling the climate change.

Joining the panel discussion, with “Public-Private Partnerships” as the theme, were international leaders of various economies including World Bank President Mr Robert Zoellick, Governor of California Mr Arnold Schwarzenegger and mayors of major cities. It presented leading examples of innovative partnerships between cities and private partners in fighting the climate change.

Fielding questions from the participants, Mr Yau said Hong Kong adopted a multi-pronged strategy to tackle sources of greenhouse gas (GHG) emissions with building energy efficiency as the core action as buildings accounted for about 55 per cent of our GHG emissions. Other measures included the promotion of green transport including the use of electric vehicles (EV) as well as strategic waste treatment program.

Mr Yau added that the discussion was a valuable opportunity for Hong Kong to share with participants its efforts in combating climate change and to draw references from others’ experiences in reducing GHG emissions.

On behalf of Hong Kong, Mr Yau also took part in the C40’s announcement on EV in Copenhagen. Eleven member cities of C40, including Hong Kong, were committed to actions in areas critical to the successful introduction of EVs with a view to accelerating its deployment.