Ventures Dialogue

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.

International companies, including those in Canada, engaging in the field of architecture, planning and engineering, as well as general public, are invited to submit their innovative ideas and concepts for the design and construction of the Hong Kong Boundary Crossing Facilities (HKBCF) of the Hong Kong-Zhuhai-Macao Bridge (HZMB).

At the launching ceremony on the commencement of detailed ground investigation works for the HKBCF of the HZMB held recently, Secretary for Transport and Housing of the Hong Kong Special Administrative Region (HKSAR) Government, Ms Eva Cheng, said the HKBCF was a very important part of the HZMB’s construction works within Hong Kong territory – it will fit in with the Hong Kong Link Road, Tuen Mun-Chek Lap Kok Link and Tuen Mun Western Bypass to form a strategic road network, which would further enhance Hong Kong’s status as an international transportation and aviation hub.

To cope with the schedule of the HZMB project and allow detailed design of the HKBCF to begin next year, a design ideas competition was launched.  Interested parties are invited to submit their innovative designs to either the Professional Group or the Open Group. 

Headed by renowned architect Mr Richard Hawkins of Foster + Partners, the jury comprises six other professionals and celebrities from the Mainland China, Hong Kong and overseas. The jury will assess the entries based on five criteria, which are:  innovation and creativity; aesthetics and identity/icon; environmental friendliness; functionality, effectiveness and buildability; and harmony with the neighbourhood.

The competition is now open for entries.  Closing date for registration is February 8, 2010. 

Details of the competition are available on the website.  The winning list will be announced in May 2010 and the winning design ideas will be the reference for the future detailed design of the HKBCF.

Hong Kong’s strategies and measures to cope with climate change by reducing carbon emissions and at the same time creating business opportunities, were explained to political and business leaders in Copenhagen by the Secretary for the Environment, Mr Edward Yau.

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.

“Hong Kong Trader” – Complimentary e-delivery of business intelligence that matters to you (http://www.hktdc.com/info/mi/hkti/en/index.htm)

Canadian businesses interested in accessing business opportunities in Hong Kong, the Chinese Mainland and the region may be interested to note that the HKTDC e-Hong Kong Trader has recently been revamped into a weekly publication. The new content-enriched Trader features news and insights that matter to businesses, with a focus on dynamic Hong Kong and the rapidly evolving Chinese mainland market. 

In today’s extremely challenging business environment, the HKTDC research and editorial teams have re-engineered the Hong Kong Trader to maximize its information value to China-focused businesses around the world by:

• Enhancing overseas companies’ awareness of Hong Kong’s unique strengths as the gateway to the Chinese mainland and the region.
• Providing information on how HKTDC’s world-class trade fairs are enhancing Hong Kong’s role as Asia’s sourcing centre. HKTDC fairs are becoming the preferred platform for launching products and services into the Asian market, and the Trader will keep its recipients informed on how and when to realize these opportunities. 
• Ensuring that readers are up-to-date on Hong Kong’s growing role as a technology trading platform for Asia, and particularly the mainland. Hong Kong is strengthening its international presence in this area through tech-focused trade fairs and growing technology alliances with overseas partners.

To benefit from the Hong Kong Trader for free, and customize your newsfeed to the industries and areas you want to focus on, please complete the simple subscription at:  http://info.hktdc.com/enews_en/index.asp. For further information, interested parties are also welcome to contact Lily Kam of HKTDC Toronto Office at Tel. No.: (416) 366-3594 or email: lily.kam@hktdc.org.

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The Investment Industry Association of Canada (IIAC), in partnership with The Hong Kong Trade Development Council (HKTDC) and The Hong Kong Economic and Trade Office (HKETO) in Canada, would like to invite Canadian companies to join the

Canadian Financial Mission to Hong Kong

January 19 – 23, 2010

The major objectives of this Mission are:

• To attend the Asian Financial Forum (AFF), January 20 – 21, 2010, Hong Kong Convention and Exhibition Centre
• To join the optional additional programmes for overseas and Chinese Mainland delegates, January 22, 2010

The Asian Financial Forum (AFF) 2010 (www.asianfinancialforum.com)

January 20 – 21, 2010, Hong Kong Convention and Exhibition Centre

The Asian Financial Forum (AFF) is a unique platform for our Canadian delegates to network with over 1,000 international delegates, obtain intelligence and exchange views on the opportunities and challenges facing Asia in the current dynamic global financial environment. Co-organized by the Hong Kong Special Administrative Region Government and the Hong Kong Trade Development Council, AFF 2010 will bring together the most influential members of the global financial community to discuss developments and trends in the dynamic markets of Asia. Under the theme “Asia in the New Economic Order”, the event will provide participants with insights on various current issues like Asia’s role in global financial markets, the investment opportunities in different regions, the implications of China’s domestic market and the internationalization of the RMB for the global economy, as well as topics relating to energy, natural resources and infrastructure financing. A “Deal Source” business matching session will also provide interested delegates the platform to discuss individual projects and business interests with potential partners.

Who should join this Mission?

This mission is organized for Canadian bankers, institutional investors, fund managers, business leaders, senior executives of leading corporations and other key financial players to build new contacts, gather the latest intelligence and explore business opportunities with the focus on China and the rest of Asia.

Tentative Programme

January 19, 2010 or before          Arrival in Hong Kong

January 20 – 21, 2010                   Participation in the Asian Financial Forum

January 22, 2010                           Participation in the optional additional programmes for overseas delegates

• Option A: Visit to the Pearl River Delta, Chinese Mainland including visit to the Shenzhen Stock Exchange and meetings with local government officials and business representatives; Or
• Option B: Programme in Hong Kong including visit to the Hong Kong Stock Exchange, Hong Kong Monetary Authority, and networking events

January 23, 2010                           Departure from Hong Kong or extended stay

Participation Fee and Registration

There is no administration fee required for Canadian companies registering to join this mission. Delegates are responsible for their respective airfares, hotel accommodation and incidental expenses. The registration fee for the January 20 – 21, 2010 Asian Financial Forum is US$800. However, there are a limited number of complimentary AFF registrations for members of this Canadian Mission, first-come-first-served. Participation in the January 22, 2010 additional programme in Hong Kong is complimentary, and in the Pearl River Delta programme is at cost (details to be announced).

To register for this mission or for additional information, please contact Andrew Yui, Director, Canada, Hong Kong Trade Development Council Toronto Office, at Tel. No.: (416) 366-3594, email: andrew.yui@hktdc.org, or Fax: (416) 366-1569.

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Question: What retailer in China has over 250 stores in 90 cities and is considered a trusted and upscale retailer?

Answer: Walmart

Surprised?  While Walmart China may not be your first thought, check out this podcast from the Economist as Ed Chan, head of Walmart’s operations in China, discusses how Walmart is viewed in China, the role of the emerging middle class is playing in redifining the chain, and much more. 

Photo by Str1ke

One of the outcomes of Canadian Prime Minister Stephen Harper’s trip to China and Hong Kong is the signing of a Memorandum of Understanding to mark the establishment of a bilateral working holiday arrangement to benefit young people of the two places from March 1, 2010.

The Memorandum was signed Saturday, following a meeting between Prime Minister Harper and Hong Kong’s Chief Executive Donald Tsang, at the Government House by Canada’s Minister of International Trade, Mr Stockwell Day, and Hong Kong’s Secretary for Labour and Welfare, Mr Matthew Cheung.
 
Canada is the sixth country and the first in North America to establish such bilateral arrangement with Hong Kong. The arrangement provides an opportunity for young people to broaden their horizons and to gain first-hand living and working experience while they are travelling.

“It is encouraging that Canada and Hong Kong has entered into this bilateral arrangement,” said Ms Maureen Siu, Director of the Hong Kong Economic & Trade Office, the representative of the Hong Kong SAR Government in Canada. “It will further strengthen our long-standing relations and make Canada a popular destination for our youngsters.”

The MOU will allow qualified young people aged 18 to 30 from Canada and Hong Kong to travel and take up employment in each other’s territory for up to one year.  There are 200 places available on each side for 2010 under the arrangement. Hong Kong established bilateral working holiday schemes with New Zealand and Australia in 2001, Ireland in 2005, and Germany and Japan in 2009.
 
So far, more than 9,450 Hong Kong youngsters have benefited from participating in the schemes while about 1,280 young people from New Zealand, Australia, Ireland and Germany have experienced Hong Kong’s cosmopolitan and vibrant way of life.
 
The Hong Kong Immigration Department or the Consulate General of Canada in Hong Kong will issue a working holiday visa to a successful applicant from Canada or Hong Kong respectively who meets the following eligibility criteria among others:
 
- The applicant must be either a Canadian citizen possessing a valid Canadian passport, or a HKSAR passport or British National (Overseas) passport holder ordinarily residing in Hong Kong, who is aged between 18 and 30 and intends primarily to holiday in Canada or Hong Kong for a specified period of not more than one year;

- The applicant must not be accompanied by dependent family members;

- The applicant must possess a departure ticket or sufficient funds to purchase such a ticket, and sufficient funds for his/her maintenance during the period of initial stay in Canada or Hong Kong; and

 The applicant must hold insurance for medical and health care for the duration of stay.
 
Details on visa application procedures for Hong Kong applicants can be found via the website of the Consulate General of Canada at www.hongkong.gc.ca.

Canadian applicants may contact the Hong Kong Immigration Department by telephone on 2824 6111 or download the necessary information from the Department’s website www.immd.gov.hk.

Primer Minister Stephen Harper has chalked up some important accomplishments during his mission to China.  Chief among them is the announcement that Canada has approved destination status in China.  The tourism industry has been seeking this status for many years.  Here is the Canadian government’s release and a story from the Niagara region with reaction from the tourism industry.

Canadian beef producers will be pleased that Hong Kong is once again open to their products.  Hong Kong represents a sizable market for beef producers as was emphasized in January when the Minister of Agriculture spent some time in Hong Kong. 

Also on the Prime Minister’s agenda, an address to the Canada China Business Council where he spoke about investments in clean technology and new Canadian commercial offices,

The Prime Minister emphasized in today’s speech the importance of Canada and China working together on energy and clean technology and working with other G-20 partners to help ensure global economic recovery. He stressed the need to remain committed to sustained economic stimulus, coordinated exit strategies and to fighting protectionism given the role trade plays in creating new opportunities for both countries.

“Pacific nations like Canada and China have much to gain by increased cooperation as the centre of gravity of the world economy swings toward the Pacific,” said the Prime Minister. “Now is the time to enhance and expand our relationship, to build upon our mutual successes, and to use the authority those successes have afforded us to set an example for others in the world.”

Read more about the Prime Minister’s mission.