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.

“China has become the world’s second biggest economy according to data released on Monday August 16th.”  This is the latest from The Economist.  Read more about China’s climb and see an interesting chart about world gross domestic product (GDP).

Photo by Brad & Ying

“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.

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.

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: 

http://202.64.102.92/hktdc/download.php?fid=_phpkx43Kx

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.

• 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.

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.

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.

But market liquidity is only one reason why Hong Kong is the financial centre of choice by Asian companies seeking to raise capital, including over 520 Mainland enterprises having a total market capitalization of over C$1.3 trillion. Hong Kong has always been an important gateway to China and close cooperation between the two, such as with the Closer Economic Partnership Arrangement (CEPA) and a variety of specific projects with Guangdong Province and the Pearl River Delta Region to enhance financial products, capital and talent, further strengthen Hong Kong’s intermediary role.

“With a highly open and international financial platform and the unique advantage under the ‘One Country, Two Systems’, Hong Kong is best positioned to serve as a gateway to China to capitalise on China’s growth,” Professor Chan said. Investors have a fair and open playing field in Hong Kong which attaches great importance to corporate governance and transparency in maintaining a high quality market.

Hong Kong has also weathered the financial tsunami better than most of the world’s countries and the government is cautiously optimistic that 2010 will bring continuing improvement. The job market and overall economic performance both indicate that Hong Kong’s economy has shown great resilience in the face of external economic shocks. Residing next door to the world’s strongest economy, Professor Chan said, Hong Kong provides an abundance of business opportunities. For, despite the world recession, China’s economy still grew at astounding 8.7% in 2009 and will reach 10% in 2010. Now is the time, he said, for Hong Kong and Canada to ride the wave of a rising China.

Immediately upon his arrival in Toronto, the Secretary for Financial Services and the Treasury delivered a keynote speech at the Confederation of Greater Toronto Chinese Business Association annual gala “Oriental Fantasia – Hong Kong and Shanghai”. He told the 700 guests there that “Hong Kong and Shanghai serve different financial markets,” and both have different skill sets and are at different stages of development.

“We look forward to co-operating with Shanghai to exploit our relative strengths, share our experiences and maximise the synergy between us in becoming the twin engines of growth for our nation,” Professor Chan said.

The Secretary also spoke on “China’s Rise as an Economic Power” at the Rotman School of Management of the University of Toronto during his whirlwind visit. He reminded his audience that “the new wave of financial globalisation has brought a new wave of financial talent to Asia, and to Hong Kong.”

“As countries in the West continue to grapple with the aftermath of the financial tsunami, Asia is rebuilding, refocusing and rebounding,” Professor Chan said. “Hong Kong is a vantage point, actually the best available platform, for seeking out the best opportunities in China and throughout Asia.”