Ventures Dialogue

With an aim to actively promote dual development and co-operation between financial services in Hong Kong and Shanghai, Hong Kong and Shanghai signed a Memorandum of Understanding Concerning Advancing Hong Kong-Shanghai Financial Co-operation (MOU).  The MOU allows both places to capitalize on their respective strengths to contribute to financial reform on the Mainland China.

The signing of the  MOU was witnessed by the Financial Secretary of the Hong Kong Special Administrative Region Government, Mr John C Tsang, the Vice-Mayor of Shanghai, Mr Tu Guangshao, and other guests, Hong Kong’s Secretary for Financial Services and the Treasury, Professor K C Chan, and the Director of the Shanghai Municipal Government Financial Services Office, Mr Fang Xinghai.

Speaking at the signing ceremony on January 19th, Professor Chan said: “Hong Kong and Shanghai should step up co-operation for the country’s financial development.  As a highly international, liberal and institutionalized international financial centre, Hong Kong has relatively rich experience and advantages in facilitating Mainland financial institutions to go international step by step, attracting foreign capital and introducing financial innovation. On the other hand, Shanghai enjoys a prestigious position in mobilizing capital, talent and financial institutions on the Mainland.”

According to the MOU, the two cities would strengthen financial co-operation under the framework of the Hong Kong/Shanghai Economic and Trade Co-operation Conference and with the advice and support of the state’s financial authorities. 

The  MOU outlines three directions for advancing co-operation. Firstly, the MOU set out the overall objectives for advancing financial co-operation between Hong Kong and Shanghai, which would strengthen the international competitiveness of China’s financial services industry.  Secondly, the MOU sets out priority areas for advancing financial co-operation between Hong Kong and Shanghai, which would strengthen ties between their financial organizations under their respective regulatory frameworks.  Thirdly, the MOU advances co-operation concerned improving the dialogue and exchanges between the financial services of Hong Kong and Shanghai. 

With the signing of the MOU between Hong Kong and Shanghai, Professor Chan hoped both places could make joint efforts, advance exchanges, further complement each others’ competitive edges and advance strategic collaboration, to promote the development of the country’s financial services industry.

A positive reaction to the wine duty exemption and various other wine industry supportive measures have seen Canada-based Wines to Go Ltd enter Hong Kong’s vibrant wine industry with the opening December 17 of its first retail shop in Hong Kong, located in the Mong Kok East MTR station concourse on the East Rail Line.

Wines to Go Ltd aims to bring a fresh and exciting selection of fine wines from around the world into Hong Kong and the Asia region. The company’s goal is to open up the market to wines other than Bordeaux and to let consumers discover other quality wines at competitive prices in an open and attractive space where wines are featured based on their style and taste profiles.

The company’s first wine shop in Hong Kong is the first such licensed premises to operate inside the MTR station. The wine retailer is endeavouring to present wine in a user-friendly location to capture passing young professionals who have a burgeoning interest in wine. The company plans to further expand its business in Hong Kong by opening several more shops along the MTR lines in the next 12 months.

President of Wines to Go Ltd, Mr Leo Baduria, said, “The trend in wine appreciation in Asia continues to grow and will affect the global wine industry in the coming decades. Our decision to expand Wine to Go Ltd into Hong Kong is the result of the rapid growth and promising prospects of the city’s wine industry. Hong Kong provides the best combination of efficiency, world-class infrastructure and sophisticated culture, the key determinants behind our investment in this city.”

Commenting on the strategic regional role of its Hong Kong operation, Mr Baduria said, “Hong Kong remains the best hub in Asia for the wine market because of its highly efficient systems and zero duty on wine. We will keep Hong Kong as our regional headquarters as we grow, enabling us to manage our business operations in other cities in Asia from our hub in Hong Kong.”

Officiating at the opening ceremony of Wines to Go Ltd’s first retail outlet in Hong Kong, Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Charles Ng, warmly welcomed the company’s establishment in Hong Kong. He said, “We are delighted to have a Canadian wine retailer expanding its business into the Hong Kong market. The presence of Wines to Go Ltd not only enriches the portfolio of the wine industry in our city, but also enhances our position as a regional hub for wine-related businesses. Our investment promotion teams stand ready to provide further support and assistance to Wines to Go Ltd in its future business expansion here and regionwide.”

Mr Ng also said that since the exemption of wine duty in early 2008, many wine sector-related companies have set up or expanded their businesses in Hong Kong to provide support in areas such as trading, storage, distribution, auctions, etc. He noted that the new policy has also brought benefits to related economic activities such as tourism, catering and hospitality and exhibitions.

Photo by Robert S. Donovan

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.

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.

Local expertise in providing high value-added services such as design of testing protocols and manufacturing processes positioned Hong Kong as a potential hub for testing and certification, the Deputy Commissioner for Innovation and Technology of the Hong Kong Special Administrative Region (HKSAR) Government, Mr Andrew Lai, said recently.

Speaking at the 30th anniversary dinner of the Gemmological Association of Hong Kong, Mr Lai said the local testing and certification industry for such things as jade, diamonds and other gemstones was well-established after a long history of development and possessed various advantages, including:

• a sound accreditation system;
• high international reputation;
• widely recognised services; and,
• the capability to win the confidence of overseas and local clients by acting as an independent third party in providing services to Mainland enterprises.

Mr Lai said the HKSAR Government would set up the Hong Kong Council for Testing and Certification in three months to enhance the professional standards and global recognition of local testing and certification services. The council will work with the industry in mapping out a three-year market-oriented development blueprint within six months after its establishment.

Canadian shoe retailer ALDO entered the Hong Kong market with the opening of its first flagship store on May 25th at the IFC mall, Central which houses over 100 international brands.

ALDO, the ALDO Groupe’s flagship brand, delivers total high fashion at prices that make keeping up with seasonal style a luxury within reach. ALDO footwear, handbags, and accessories are young in sprit, urban in mindset, and on the cutting edge of international style. Bursting with personality, ALDO is the lifestyle brand for people stepping up in the world.

The ALDO store at the IFC mall, which is the brand’s first foray into the Hong Kong retail market, will offer a wide product range of women’s and men’s footwear, handbags, and accessories to cater to every consumer’s fashion needs. Continue reading ‘Canadian fashion footwear giant ALDO puts best foot forward in the Hong Kong retail market.’

Cathay Pacific was honored as the world’s best airline at the Skytrax World Airline Awards on April 1.  This prestigious prize was the result of an eight month-long survey of almost 16 million travelers from 97 countries. 

The Hong Kong airliner, Cathay Pacific, was not the only Asian airline honored.  In fact, carriers from Asia and the Pacific were overwhelmingly present.  Singapore Airlines, Asiana Airlines, Qatar Airways, Emirates, Qantas, Etihad Airways, Air New Zealand, Malaysia Airlines and Thai Airways round of the top 10, respectively.  Continue reading ‘Hong Kong’s Cathay Pacific flies off with world’s best airline title’

Currently, if you wanted to get from Hong Kong to Shanghai or Beijing by train, it will take about 20 and 24 hours, respectively.  In about seven years, however, travel time will be cut down to eight and 10 hours, a definite improvement.

Scheduled for completion in 2014-2015, Hong Kong SAR’s Executive Council has given the go ahead for a HK$39.5 billion ($5.2 billion CAD), 26 km underground high-speed railway link.  It will fully connect with mainland China’s rail network.   Travel between Hong Kong and Guangzhou, on the mainland, will be halved to just under 50 minutes.  In essence, Guangzhou will become a regional railway hub, linking the express rail network, and billed as a gateway into mainland China.

The Hong Kong government will pay for the initial construction cost, but the Mass Transit Railway Corporation Limited (MTRCL) will operate the line for 50 years with annual concession fees under a build-operate-transfer arrangement.  A similar arrangement was reached for the Shatin to Central link (SCL).  Guangzhou already boasts the terminus at Shibi, one of the four biggest passenger transport centers in China.

Along with the new link and transportation hub in West Kowloon, Eva Cheng Yu-wah, Secretary for Transport and Housing said the area would also be built into a commercial center.  Expecting to facilitate 10 trains in both directions, Cheng expects that 37 percent of travelers would be new transit passengers and the other 63 percent would be from commuters who already using either the train, cross-boundary coaches or other means of transport.  Although funding approval from the Legislative Council is still required before any work can begin, the project is expected to break ground next year.  A total of 15,000 jobs, which includes 5,000 construction jobs are expected to be created.  It is estimated that the project will boast around 100,000 passengers a day in 2020 and 120,000 in 2030.  In the next 50 years, this is expected to bring a $83 billion ($10 billion CAD) economic benefit in terms of travel time saved.

The Executive Council approved planning for the previously mentioned SCL and the Kwun Tong Line Extension, also by MTRCL in March of this year.  The former will have nine stations linking existing railway lines, and thereby creating east-west and north-south train corridors.  It is expected to facilitate one million passengers a day by 2021 and produce $4 billion ($500 million CAD) in time saving economic benefit.  Construction costs for SCL is HK$37.4 billion ($4.9 billion CAD)