Ventures Dialogue

Olympic stadium in Beijing, China, for the 2008 summer olympics, so-called "the nest" made of steel; architectural designed by Herzog & deMeuron

China and Brazil announced the signing of trade deals aimed at enhancing trade and energy cooperation.  This comes out of the recent BRIC summit held in Yekateringburg, Russia.  While the summit was shortened due to the earthquake in Western China, this agreement is slated to be  China’s biggest investment in Brazil and also China’s biggest foreign investment in the steel industry. 

The deal is estimated to include a $5 billion steel plant in Brazil, and it hinted that China will bid on the rights to construct Brazil’s high speed rail link between Rio De Janeiro and Sao Paulo.  All of this is part of five year action plan which builds on Brazil becoming China’s top trade partner in 2009.

Also stemming from the meeting, the BRIC countries, Brazil, Russia, India and China called for their group to have greater influence in the World Bank, International Monetary Fund and other such global financial institutions.  They stressed that together BRIC has about 40 per cent of the world’s population along with noting the significance of emerging markets during the financial crisis, they should have more say in global financial matters. 

To read more about the summit check out these articles:

China, Brazil sign deals at shortened BRIC summit
China and Brazil sign trade deals at Bric summit

Photo by nozoomii

China replaces the US as the leading investor in renewable energy technology.  This is according to Pew Charitable Trusts’ new study that ranks China investing $34.6 billion in 2009.  This is almost two times the investment amount as US.  Rounding off the top five spots for clean tech investment include the UK, Spain and Brazil, respectively.  Pew does note that even despite the global recession, global investment in renewable technology has more than doubled over the last five years.  South Korea alone posted a 250 per cent increase in this period. 

An article from BBC news quotes Phyllis Cuttino, director of Pew’s climate change movement as saying,   “They know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs and businesses.” 

To read more about China’s energy diversification needs/aims head over to the article. 

Photo by Sebastiano Pitruzzello (aka gorillaradio)

Hong Kong’s academic research and education on biological science and medicine had a good reputation and ranked among the best in the Asia-Pacific region, the Permanent Secretary for Commerce and Economic Development (Communications and Technology) of the Hong Kong Special Administrative Region Government, Mr Duncan Pescod, said recently at a conference.

Speaking at the Hong Kong Denmark Joint Conference on Nanomedicine and Synthetic Biology at Hong Kong Science Park, Mr Pescod said the conference marked a step towards closer collaboration on science and technology as a direct result of the collaboration agreement on science and technology signed by Hong Kong and Denmark in May 2009.

“Under the agreement, biotechnology and medical life science, nanotechnology and advanced materials, solar energy and energy efficiency were identified as areas where our initial collaboration efforts are most likely to bear fruit,”  he added.

Deputy Director General, Danish Agency for Science, Technology and Innovation of the Ministry of Science, Technology and Innovation, Mr Hans Muller Pedersen, said the co-operation agreement was an important point to enhance the exchange of knowledge between Hong Kong and Denmark.

As a follow-up to this agreement, the Hong Kong and Danish governments have jointly organised the conference to explore the latest issues in the development of nanotechnology and synthetic biology.  Continue reading ‘Hong Kong among best in biological science and medicine in Asia-Pacific’

China’s high speed trains have caught the eye of reports everywhere. In a recent posting on Gulliver from The Economist, it discusses not only of the existing rail line, but reported plans that China wants to build a high speed rail system stretching across 17 countries by 2025 (ambitious indeed).

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

China is gaining increasing influence on the global economy and it is time for Hong Kong and Canada to strengthen co-operation by collaborating and complementing each other to make the most of these opportunities, the Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government, Professor K C Chan, said in Toronto on March 8 at a mining convention.

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.

In the 2010-11 Budget, the Financial Secretary of the Hong Kong Special Administrative Region Government announced a wide range of initiatives with a view to consolidating the economic recovery, developing the economy and building a caring society.  On the economic front, measures are introduced to ensure a stable and healthy development of the property market, develop the four pillar industries, promote the six new economic areas, and enhance regional integration.  A relief package worth roughly HK$20 billion was announced to help support the recovery and relieve the burden of the community. 

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%.

Hong Kong and the Mainland recently  signed a co-operation agreement on customs facilitation measures for wine entering the Mainland market through Hong Kong.

Hong Kong’s  Financial Secretary, Mr John C Tsang, the Secretary for Commerce and Economic Development, Mrs Rita Lau, and the Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism), Miss Yvonne Choi, witnessed the signing of the co-operation agreement by the Commissioner of Customs and Excise, Mr Richard Yuen, and the Vice Minister of the General Administration of Customs, Mr Sun Yibiao.

Speaking at the signing ceremony, Mrs Rita Lau said that against the backdrop of growing demand for wine on the Mainland, Hong Kong’s zero wine duty policy and favourable business environment helped create room for wine traders in the territory to tap the Mainland market.  She also made reference to the large number of Mainland tourists visiting the city, who might buy in Hong Kong fine wines from different parts of the world.

She said that the signing of the agreement would enhance co-operation between the Hong Kong and Mainland Customs on wine-related matters, and fortify Hong Kong’s position as a regional wine trading and distribution hub. Continue reading ‘Hong Kong and Mainland sign agreement on customs facilitation measures for wine’

Invest Hong Kong, department of the Hong Kong Special Administrative Region (HKSAR) Government responsible for Foreign Direct Investment, supporting overseas, Mainland and Taiwanese businesses to set up and expand in Hong Kong, announced that  the department assisted 265 overseas, Mainland and Taiwanese companies in setting up or expanding their business presence in Hong Kong in 2009. This achievement marked a record for the Hong Kong Government’s investment promotion arm in attracting Foreign Direct Investment (FDI) into the city. It also signified external investors’ strong vote of confidence in Hong Kong despite the challenging global economic environment.

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. Continue reading ‘Invest Hong Kong sets record in 2009 for completed investment projects’

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