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U.S. Department of State
Hong Kong Country Commercial Guide for FY 95-96
Office of the Coordinator for Business Affairs
Country Commercial Guide for FY 95-96
Hong Kong
TABLE OF CONTENTS
CHAPTER I. EXECUTIVE SUMMARY
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
CHAPTER III. POLITICAL ENVIRONMENT
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
CHAPTER VII. INVESTMENT CLIMATE
CHAPTER VIII. TRADE AND PROJECT FINANCING
CHAPTER IX. BUSINESS TRAVEL
CHAPTER X. APPENDICES
APPENDIX A -- COUNTRY DATA
APPENDIX B -- DOMESTIC ECONOMY
APPENDIX C -- TRADE
APPENDIX D -- INVESTMENT STATISTICS
APPENDIX E -- U.S. AND COUNTRY CONTACTS
APPENDIX F -- MARKET RESEARCH
APPENDIX G -- TRADE EVENT SCHEDULE
This Country Commercial Guide (CCG) presents a comprehensive look
at Hong Kong's commercial environment through economic, political and
market analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies and
Consulates through the combined efforts of several U.S. government
agencies.
Country Commercial Guides are available on the National Trade Data
Bank on CD-ROM or through the Internet. Please contact STAT-USA at 1-
800-STAT-USA for more information. To locate country commercial guides
via the Internet, please use the following World Wide Web address:
WWW.STAT-USA.GOV. CCGs can also be ordered in hard copy or on diskette
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS.
CHAPTER I. EXECUTIVE SUMMARY
Hong Kong is a place U.S. business cannot afford to ignore. Perhaps the
world's best example of free enterprise, Hong Kong's dynamism, free-
market philosophy, entrepreneurial drive, absence of trade barriers,
well established rule of law, low and predictable taxes, transparent
regulations, and complete freedom of capital movement have made it one
of the most desirable places for business. U.S. exports to Hong Kong
totaled US$11.5 billion in 1994. According to U.S. statistics, two-way
trade totaled US$21.2 billion, making Hong Kong the United States'
thirteenth largest trading partner.
In 1994, the territory's open, services-dominated economy continued
its trend growth rate of 5.5%. Inflation was 8.5% and foreign currency
reserves totaled US$49 billion, the world's seventh largest. The Hong
Kong dollar is linked to the U.S. dollar at a rate of HK$7.8 = US$1; as
a result, Hong Kong interest rates tend to follow those in the U.S. A
track record of prudent fiscal management has enabled Hong Kong
consistently to realize budget surpluses.
The tremendous attractiveness of Hong Kong as a commercial and
financial center has pushed up property and rental costs, and kept the
labor market tight. Recent data indicate those pressures have
moderated, although rental costs remain among the world's highest.
Demand has stretched Hong Kong's modern air and port facilities to
capacity. Hong Kong boasts the world's busiest container port and the
third-busiest airport. The government and private sector plan to spend
some US$44.9 billion over the next decade to upgrade transportation
links and environmental facilities. A centerpiece is the US$21 billion
Chek Lap Kok airport and related airport core projects. The airport is
now expected to be operational in April 1998.
On July 1, 1997, Hong Kong will revert to Chinese sovereignty after
over 150 years under British rule. The Sino-British Joint Declaration,
signed in 1984, and the Basic Law, passed by China's National People's
Congress in 1990, form the legal basis for China's "One Country, Two
Systems" guarantees for Hong Kong when it becomes a "Special
Administrative Region" (SAR) of China in 1997. These documents
guarantee a high degree of autonomy for the HKSAR except in matters
relating to foreign affairs and defense. Beijing has pledged that the
social and economic systems, life-style, and rights and freedoms that
Hong Kong people now enjoy will remain unchanged for 50 years. The
HKSAR will also enjoy executive, legislative and independent judicial
power.
Around 1000 U.S. companies maintain offices in the territory and
34,000 Americans reside there. U.S. direct investment in Hong Kong
totaled US$12 billion at year-end 1994, making the United States one of
Hong Kong's largest investors, along with China and Japan. Over 80 of
the world's top 100 banks have operations in Hong Kong; and more than 40
U.S. financial institutions have offices in the territory.
Geographic proximity and cultural and linguistic ties, particularly
to adjacent Guangdong province, have greatly accelerated Hong Kong's
economic integration with China. Trade and investment with the PRC have
surged as China's economy continues its fast-track growth. China is
Hong Kong's largest trading partner; the PRC absorbs one-third of the
territory's total exports of US$151 billion. Hong Kong serves as the
principal transshipment point for Chinese exports. An estimated two-
thirds of cumulative foreign investment in China is from Hong Kong; some
4 million PRC workers are employed by Hong Kong-invested enterprises in
Guangdong alone.
With a per-capita GDP of US$21,750, Hong Kong's sophisticated,
bilingual consumer population offers outstanding opportunities for sales
of a full range of U.S. products and services. The government's ongoing
heavy investment in infrastructure provides abundant prospects for
export of construction services and equipment, telecommunications
services and equipment, electric power systems, and environmental
services and equipment. Medical equipment and pharmaceuticals, aircraft
and parts, scientific and analytical equipment, computers and computer
software, and electronic components also offer outstanding opportunities
for U.S. exporters, as do such other sectors as consumer goods,
financial and other services, and agricultural products.
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
A. Major Trends and Outlook
Hong Kong's real GDP increased by 5.5% in 1994, to reach US$131.8
billion, in line with government projections. GDP per capita reached
US$21,750. GDP increased by 6% in the first quarter of 1995, bolstered
by strong exports and spending on infrastructure. However, retail sales
have been flat as consumers belt-tightened in response to last year's
rising interest rates and declining equity and property prices. The Hong
Kong Government projects GDP in 1995 will grow by 5.5%. The government
projects a small (US$333 million) deficit for the current fiscal year
(4/1/95-3/31/96) against a surplus of US$984 million realized in 1994.
Unemployment, which was a seasonally adjusted 1.9% of the labor
force in 1994, increased to a nine-year high of 3% in April 1995. The
increase in the number of jobless has been attributed primarily to a
slowdown in the retail and restaurant sectors against the backdrop of a
continuing shift of manufacturing to China. Inflation in 1994 was 8.1%.
For the twelve months ended May 1995, the inflation rate was 8.9%.
Hong Kong's merchandise, or visible, trade deficit increased three-
fold in 1994 to US$10.9 billion as imports surged while exports
maintained essentially steady growth. Substantial surpluses on services
trade have traditionally more than offset merchandise trade deficits.
In 1994, the combined overall trade surplus was only US$2.4 billion, or
1.3% of the value of goods and services, marking the lowest overall
trade surplus since 1983.
Total exports grew by 10%. Re-exports, which account for 80% of
the territory's total exports, increased 14%. (Goods made in foreign
countries, principally China, which officially enter Hong Kong's customs
territory for shipment onward to other countries are classified as re-
exports.) In the first quarter of 1995, Hong Kong's total exports
jumped 18% over the year earlier figure as demand revived in Hong Kong's
major markets. Domestic exports also surged as the declining U.S.
dollar enhanced Hong Kong's export competitiveness. China is Hong
Kong's principal export market, followed by the United States, Japan,
Germany and the U.K.
Total imports grew by 14% in 1994 to reach US$162 billion.
Retained imports -- those not shipped onward to China or elsewhere --
grew by a similar rate. Total imports in the first quarter of 1995
jumped 22% over the year earlier figure to reach US$42.2 billion. The
growth reflected the surge in raw materials and equipment needed for
growing exports and an increase in retained imports of capital goods and
materials for infrastructure and building projects. China is the
largest supplier of imports, followed by Japan, Taiwan, and the United
States.
Since 1983, the Hong Kong dollar has been linked to the U.S. dollar
at a rate of HK$7.8 = US$1. The link, which authorities instituted to
ensure exchange rate stability vis-a-vis the U.S. dollar, requires local
interest rates to generally track those in the United States. As the
U.S. dollar has weakened against the yen and deutschmark, this has
increased the competitiveness of Hong Kong's domestic exports to those
economies, while correspondingly raising the cost of imports from those
countries, other things being equal. It will also increase the
competitiveness of U.S. products vis-a-vis Germany and Japan, and should
create additional opportunities to expand U.S. exports to Hong Kong,
which totaled US$11.5 billion in 1994.
B. Principal Growth Sectors
Services dominate. Hong Kong's economy is services-dominated,
accounting for some 80% of GDP and employing over 70% of the work force.
Services represent some 50% of total domestic exports, twice the level
of a decade ago. Between 1984 and 1994 exports of services grew at an
average annual rate of 8% in real terms, while services imports
increased at 11%. Major sectors include travel/tourism, transportation,
trading and financial services. Finance, insurance, real estate and
business services contributed 26% of GDP in 1993, up from 20% in 1990.
See VII (O) for a discussion of the banking/financial services sector.
Manufacturing continues to decline. Manufacturing now accounts for
only about 11% of GDP and 20% of the work force, down from 28% in 1990.
The textile and clothing/apparel industries remain the backbone of Hong
Kong's manufacturing sector. These industries employ 39% of the work
force and accounted for 39%, or US$11.4 billion of Hong Kong's 1994
domestic exports. Other principal manufactures include electronics,
watches and clocks and chemical and industrial machinery. Manufacturers
continue to shift production facilities primarily to China to take
advantage of lower labor and land costs.
(1) Tourism and Retail Sales
Tourism is Hong Kong's largest earner of foreign exchange after the
textile and apparel industries. Tourism provided revenues of US$8.3
billion during 1994, up 7.1% from the year earlier. Visitor arrivals
exceeded 9.3 million in 1994, up 4.4% compared with 1993. Visitor
arrivals from China accounted for 20.4% of the territory's total
arrivals followed by Taiwan with 17.3%, Japan at 15.4%, Southeast Asia
with 12.8%, and Western Europe with 12.1%. Visitors from the U.S.
increased 8% to 776,000. Hotel room occupancy rates nudged down two
percentage points to 85% in 1994, and fell to 75% in April 1995 due to
higher room rates.
Retail sales grew by 12% in 1994. Those sectors which enjoyed
strong growth included clothing and footwear, up 36%, and jewelry,
watches and gifts, up 13%. Car sales, though, have been quite
lethargic, slumping 4% in 1994. Tourism revenues as well as retail
sales were both sluggish in the first quarter of 1995 registering a
meager 0.5% growth.
(2) Property
Hong Kong's property market has cooled from the sizzling levels
attained in mid-1994 that earned it dubious distinction as the world's
most expensive business location. Residential property prices have
declined by more than 20% from their peak levels of April 1994. A
combination of government administrative measures, rising interest
rates, and the negative wealth effect of declining equity prices during
1994 took the steam out of relentlessly advancing private and commercial
property prices. A series of measures the Hong Kong Government
introduced in June 1994, which remain in place, have curbed property
market speculation. They are also designed to increase new home supply
through accelerated construction, fast-tracking major housing projects
and releasing more land for building.
As of June 1995, monthly rental prices for Grade A office space in
Central and Wan Chai North, two of the most popular commercial districts
for multinationals on Hong Kong Island, had fallen by 10.5% and 23%
respectively since their August 1994 peak. Office space, however, still
is expensive by regional standards. While office space in Central now
fetches on average US$9.60 per square foot (p.s.f.) per month, similar
accommodations at Wan Chai North will cost an average US$6.20 p.s.f.
Across the Harbor in Kowloon, prime office space is available for
US$4.50 to 5.20 p.s.f. According to local property agents, Grade A
office rents in all three areas are projected to fall downwards of 30%
by 1996 as an increased supply of Grade A office space becomes available
outside Central.
Adding to the downward pressure on office rents is the fact that
increasing numbers of companies, which are trying to cut overhead costs,
are moving away from the prohibitively expensive, high occupancy Central
business district to outlying areas where rents are lower. Finally,
tenants are becoming more and more resistant to high rents. Given this
trend, landlords in Central and Wan Chai North are either lengthening
the rental-free periods or simply lowering their rental premiums on
their three year leases in order to prevent the further exodus of
tenants.
Prices in the residential property market this year moved in
parallel to prices on office space. As of June 1995, rents on new
luxury flats, that is units over 1000 square feet with some added
amenities, had dropped 30% since their July 1994 peak, while prices for
existing flats fell 22.5%. In May alone, rental prices fell 10%.
Monthly rentals for luxury units on the Peak, in Wan Chai, and the
South-side of Hong Kong Island, the three most popular living quarters
for expatriates, averaged US$4.77, $3.40, and between $2.70-$5.00 p.s.f.
in that order. Because there is presently an "oversupply" of luxury
units -- many flat owners have put their properties up for lease -- it
is now a "tenants market" and rental prices are quite negotiable.
(3) Infrastructure (Construction, telecommunications, environmental
See II.e below for a discussion of these sectors
C. Government Role in the Economy
The Hong Kong Government pursues a generally non-interventionist
approach to economic policy that stresses limited government
interference and the predominant role of the private sector. However,
public housing, land sales, and infrastructure development are areas in
which the government does play an active role.
Hong Kong has consistently supported an open multilateral trading
system. The Government was a firm proponent of the recent Uruguay Round
of trade talks in the GATT and looks forward to participating in the new
World Trade Organization. Hong Kong maintains no anti-dumping laws,
countervailing duty laws, import quotas or tariffs. It urges similar
open trade policies on its neighbors and trading partners.
The tax system in Hong Kong is simple and tax rates are low. No
one pays more than 15% of their income in salaries tax. As a result of
generous allowances under the law, almost half the work force pays no
salaries tax. The business profits tax is 16.5%. It is payable only on
net profits arising in Hong Kong or derived from business carried on in
Hong Kong. There are no taxes on capital gains, dividends, or interest.
Other revenue sources include stamp duty on property and stock market
transactions, betting duties and estate duty and hotel accommodation
tax. The Hong Kong Government's low taxes and prudent fiscal policy
have enabled it consistently to achieve surpluses on its consolidated
account over the past decade.
Hong Kong Government-funded core projects including those related
to Chek Lap Kok replacement airport and environmental protection have
further fueled the development of Hong Kong's economy. Although the
Hong Kong Government is spending heavily on projects of this nature, the
financial structure is fit. In the 1994 fiscal year which ended March
31, 1995, government expenditure accounted for about 16.8% of GDP.
Government expenditure has never exceeded 20% of GDP. Prudent fiscal
management and strong reserves have obviated the need for the Hong Kong
Government to incur debt to finance expenditures.
D. Balance of Payments Situation
As indicated in II(A), Hong Kong's visible trade deficit widened
significantly during 1994. This trend has continued in 1995 as imports
have surged, albeit against the backdrop of a strong growth in exports
as Hong Kong's terms of trade have improved. The invisible, or
services, trade balance, has continued to be sufficiently positive to
offset the merchandise trade deficit. In 1994, the surplus on invisible
trade totaled US$13.3 billion against a merchandise trade deficit of
US$10.9 billion. The overall trade surplus represented approximately
1.5% of total imports. If current trends continue, it is possible that
Hong Kong will experience a current account deficit in 1995. That said,
the fixed capital formation related to the new airport and other major
infrastructure projects will significantly boost Hong Kong's
competitiveness and generate longer-term earnings from investment,
trade, tourism, and other services.
Hong Kong does not track capital flows from foreign investments.
However, net capital inflows from transfers, foreign direct investment
and investment income increased foreign currency reserves in the
Exchange Fund by HK$49 billion (US$6.3 billion). At year-end 1993,
foreign currency reserves stood at US$49.2 billion, giving Hong Kong the
world's seventh-largest foreign exchange reserves.
E. Infrastructure Situation
Hong Kong's well-developed, modern, and efficient infrastructure
has supported the territory's leading role as a trade entrepot and
regional financial and services center. However, rapid growth has
placed severe demands on that infrastructure, particularly
transportation and shipping facilities.
Public- and private-sector spending on major infrastructure is
projected to exceed US$45 billion over the next decade. The centerpiece
is the new Chek Lap Kok airport. Other significant projects include a
planned expansion of container terminal facilities, bridges, railways,
sewage facilities, telecommunications and power stations.
New Airport Core Program
Hong Kong's single-runway airport, Kai Tak, is second in the world
in terms of cargo handled (behind Tokyo's Narita) and third in terms of
international passengers. 1.25 million tons of cargo and 19.9 million
passengers passed through the airport in 1994.
The Hong Kong Government announced in 1989 plans to build Chek Lap
Kok, a completely new international airport on the north shore of Lantau
Island. Besides Chek Lap Kok, the airport core program includes nine
additional integrated projects. Among these are a railway link, one of
the world's longest suspension bridges, a third cross-harbor tunnel, new
roads, land reclamation, and a new town adjacent to the airport.
After protracted negotiations over several years, The U.K. and
China agreed in November 1994 on overall financing arrangements for the
airport and connecting railway. In late June 1995, the two sides
finalized terms for financial support agreements for the projects, thus
removing the last significant obstacle to full funding for the
megaproject. However, because of the delay in reaching agreement, the
airport is not scheduled to become operational until April 1998, almost
one year after the original target date of June 30, 1997.
The new airport will initially be capable of handling 35 million
passengers and 1.5 million tons of air cargo annually. With the later
addition of a second runway, annual passenger and air cargo handling
capacity would be raised to 80 million and nine million tons,
respectively. Work on transport links and land reclamation for the
US$21 billion airport project is well underway and at the end of April
1995, over 58% of the airport engineering projects had been completed.
Construction of the new airport and related infrastructure projects
has generated a boom for the building and construction market.
Infrastructure development has likewise increased the territory's demand
for capital goods, which should remain strong over the next decade.
Shipping and Port Activities
Hong Kong enjoys perhaps the best natural deep-water port on the
Chinese coast. It serves as a transit point both for exports and re-
exports to south China in both capital and consumer goods and for re-
exports of merchandise to North America, Europe and elsewhere. With
continued high economic growth and industrialization in China, the
development of deep water ports at Yantian and Gaolan in south China
should be complementary to Hong Kong over the medium term. Over the
longer term increased competition should generate greater efficiencies
in service.
Hong Kong's container port is the world's busiest. In 1994, Hong
Kong's eight privately operated container terminals and mid-stream
operators handled 11.05 twenty foot equivalent units (TEU) of cargo, a
20% increase over 1993. The Port Development Board projects container
throughput is expected to continue to increase by 10.9% through the year
2011.
Hong Kong's container throughput will continue to experience
double-digit growth through the turn of the century. Hong Kong projects
it will require some 20 new container berths by the year 2006, providing
new annual terminal capacity for 8 million TEU. There are currently
eight terminals with 19 berths. Construction of CT9, which the Hong
Kong Government had hoped to have operational by mid-1995, has as of
April 1995 been put on hold indefinitely by Beijing's concerns with the
award of the contract to a consortium involving a well known British
trading firm and also the manner in which the project was originally
tendered. China has also not yet given its approval to proceed with
construction of container terminals 10 and 11, citing environmental
concerns.
Roads
Hong Kong's roads have one of the highest vehicle densities in the
world. At the end of 1994, there were 454,932 licensed vehicles and
about 1661 kilometers of roads, hence 274 vehicles per kilometer of
road. This high vehicle density, combined with difficult terrain and
dense building development, poses a constant challenge to transport
planning, road construction and maintenance. To cope with worsening
traffic congestion, largely due to the rapid growth in the number of
private cars, the Highways Department has launched an extensive road
construction program. Roughly 60 road projects are under way and 30 are
planned. The department's budget for the financial year ending March
1995 totals HK$9.26 billion (US$1.1 billion). Of this, HK$8.69 billion
is slated for major highway construction and HK$569 million for road and
public lighting maintenance work.
Telecommunications
Hong Kong's telecommunications infrastructure ranks among the most
technically advanced in the world. During the summer of 1995, the
government will open local voice service to three new operators.
Thereafter, the only remaining telecommunications service under monopoly
control will be international voice service. American service and
equipment providers will have substantial opportunities in the Hong Kong
telecommunications market. In fact, many are already doing very well.
Moreover, year-end 1995, Hong Kong Telecom will offer video-on-demand
over its telecommunications lines, making the territory a pace-setter on
the information superhighway. As telecommunications and broadcasting
technologies converge, the demand and opportunities for TV programming
will also increase.
One misperception about the Hong Kong telecommunications market is
the belief of some that by establishing oneself in Hong Kong, one will
automatically gain access to the China market. Setting up shop in Hong
Kong does provide excellent exposure to and experience with the China
telecom market. However, after Hong Kong reverts to Chinese sovereignty
in 1997, operating in Hong Kong will not automatically permit one to
operate in China since post 1997, as Hong Kong will continue to retain
its own telecommunications law and regulations.
Environmental
Over US$1 billion of environmental infrastructure project awards
will be made in 1995. Projects currently being awarded include: Refuse
transfer stations (US$450 million), municipal sewage systems and related
equipment (US$300 - 400 million), landfill restorations ($200 million),
special waste incinerators ($30 million), indoor air quality baseline
study ($1.5 million), and low-level radioactive waste storage ($1.5
million). As of June 1995, all of these projects are in advanced stages
of the bidding process.
The next round of environmental infrastructure projects to be
awarded by the government will include a US$1 billion livestock
slaughterhouse with a significant portion of air and water pollution
control equipment (to be awarded in 1996) and several municipal solid
waste incinerators, each valued at US$1 billion (awards possible
beginning in 1998 or 1999). Overall, however, the value of public
project awards related to environmental infrastructure is expected to
drop beginning in 1996 due to the 1997 transition of Hong Kong's
sovereignty from Great Britain to China.
Additional niche markets exist in Hong Kong for the following types
of environmental technology:
- Electric Vehicles (US$5 million in 1996, US$50 million by 2002)
- Diesel particulate control equipment (US$5-10 million)
- Energy-efficient building technology (US$5-10 million),
including lighting, insulation, and air conditioning systems
- Industrial air pollution control (US$5 to 10 million)
- Indoor air pollution equipment (US$5 to 10 million)
The following is a list of major projects underway in Hong Kong.
Authorities have awarded many of the major contracts. Even in these
cases, however, significant opportunities for subcontractors remain.
MAJOR INFRASTRUCTURE DEVELOPMENTS IN HONG KONG
PROJECT TARGET
COMPLETION DATE
Airport Core Program
Chek Lap Kok Airport 1998
Northern Lantau Expressway 1997
Tung Chung New Town Phase 1 1997
Lantau Fixed Crossing 1997
Route 3 (Tsing Yi & Kwai Chung Sections) 1997
West Kowloon Reclamation 1997
West Kowloon Expressway 1997
Airport Railway 1998
Central-Wanchai Reclamation 1997 & Beyond
Western Harbor Crossing 1997
Port Facilities
Container Terminal 9 1996 /1/
Container Terminals at Lantau Island Through 2011
River Trade Terminal at Tuen Mun 1997
Transport
Ting Kau Bridge 1997
Country Park Section - Route 3 1998
Mass Transit Railway Extension 2001
Western Corridor Railway 2001
Other
Drainage and sewage facilities 2003
Redevelopment of Kai Tak and Kowloon
Bay Reclamations 1997 and Beyond
Telecommunications 2003
Power Stations at Lamma Island 1998
Black Point Power Station and upgrading
of Transmission Networks 1999
Estimated Total Cost HK$350 billion
/1/ Delayed Indefinitely
Source: Economic Report, 5/94 Hong Kong Bank (with updates)
CHAPTER III. POLITICAL ENVIRONMENT
A. Nature of Bilateral Relationship with the U.S.
The U.S. relationship with Hong Kong is broad and deep. Hong Kong
is our thirteenth-largest trading partner and U.S. direct investment in
the territory at year-end 1994 totaled close to US$12 billion on a
historical cost basis. The U.S. maintains a wide number of cultural and
educational exchanges, and enjoys excellent cooperation in law
enforcement matters. Over 34,000 Americans reside in Hong Kong.
B. Major Political Issues Affecting Business Climate
Hong Kong will become a "Special Administrative Region" (HKSAR) of
the People's Republic of China in 1997. The Sino-British Joint
Declaration, signed in 1984, and the Basic Law of the HKSAR, passed by
China's National People's Congress in 1990, form the legal basis for
China's "One Country, Two Systems" guarantees for Hong Kong. The HKSAR
is to have a high degree of autonomy, and enjoy executive, legislative
and independent judicial power. The social and economic systems, life-
style, and rights and freedoms currently enjoyed by Hong Kong people
will remain unchanged for at least 50 years. Beijing will be
responsible for foreign affairs and defense of the HKSAR.
Sino-British consultations on transition issues take place chiefly
in the Joint Liaison Group (JLG). The JLG (or other joint bodies) must
approve Hong Kong's laws, economic agreements with third countries, and
economic decisions that straddle 1997. Sino-British disagreement on
major transition issues has generated some uncertainty over the
territory's political future. Hong Kong Governor Patten's proposals for
modest reforms of Hong Kong's three tiers of governmental bodies (the
Legislative Council, district boards, and municipal councils) were not
agreed to by Beijing after 17 rounds of negotiations. When the
Legislative Council voted to approve the proposals in 1994, despite
China's objection, Beijing announced that it would disband the
Legislative Council elected in September 1995 upon resumption of
sovereignty over Hong Kong. Beijing further indicated that it may
establish a provisional legislature after reversion until new elections
are held under unspecified rules. The future of the legislature,
therefore, remains unclear.
The difficulties in Sino-British political relations have had some
impact on Hong Kong's new infrastructure development, most notably in
delaying progress on the new Chek Lap Kok airport and the construction
of Container Terminal 9. In late June 1995, however, the two sides
finalized terms for financial support agreements for the airport
projects, thus removing the last significant obstacle to full funding
for this megaproject. The fate of CT9 remains unresolved.
A breakthrough occurred in June 1995, when Chinese and British
negotiators reached agreement on the establishment of a Court of Final
Appeal, which will replace the British Privy Council as the highest
appeal body on July 1, 1997. This development was widely seen as a step
forward in assuring the continuity of the rule of law, which has been
fundamental to Hong Kong's success as an international business and
financial center. Many hope that this agreement will lead to better
cooperation in other areas, which will be important to maintaining
business confidence in the territory beyond 1997.
C. Political System, Elections, Orientation of Major Political Parties
As a British dependency, Hong Kong is a free society with legally
protected rights. Its constitutional arrangements are defined by the
letters patent and royal instructions. Executive powers are vested in a
British crown-appointed governor who holds extensive authority. The
judiciary is an independent body adhering to English common law with
certain variations. Fundamental rights ultimately rest on oversight by
the British Parliament. In practice, however, Hong Kong largely
controls its own internal affairs. The governor appoints an advisory
executive council, and a partially representative Legislative Council
has limited powers. The main functions of the 60-member Legislative
Council (Legco) are to enact laws, control public expenditure and
monitor performance of the government by putting forward questions on
matters of public interest.
Of the 39 elected councilors to Legco, 18 were elected by universal
suffrage in 1991, and this number will increase by two in the next
elections in September 1995. Twenty-one councilors were elected by
functional constituencies which disproportionately represent the
economic and professional elites and, moreover, violate the concept of
one person-one vote, since voters in functional constituencies may vote
both in a functional and a geographic constituency. This
disproportionality was mitigated in 1994 when Legco approved Governor
Patten's proposal to allow for broad-based constituencies in nine new
functional groupings. Legco further extended political franchise in the
territory by lowering the voting age from 21 to 18 and opening up all
seats on district and municipal boards, which provide a forum for
public consultation and participation, to direct elections.
Three major political parties are represented in Legco: the
Democratic Alliance for the Betterment of Hong Kong, the Democratic
Party, and the Liberal Party. The first has a pro-Beijing orientation,
the second strongly advocates broader democracy in the territory, and
the third is pro-business.
When Hong Kong becomes a Special Administrative Region under China
in July 1997, the Basic Law will guarantee the rights and freedoms that
Hong Kong residents now enjoy: the continued rule of law, and the
maintenance of Hong Kong's capitalist system for 50 years. The HKSAR
will maintain its capitalist economic and trade systems, shall retain
the status of a free port and continue a free trade policy with free
movement of goods and capital. It will retain its status as an
international financial center. It will, on its own, formulate monetary
and financial policies and safeguard the free operation of business and
financial markets. The Basic Law states that the HKSAR will maintain
its own currency and use revenues exclusively for its own purposes. The
Hong Kong Dollar will continue to be freely convertible and foreign
exchange, gold and securities markets will continue to operate. Systems
currently in place, including Hong Kong's regulatory and supervisory
framework, will remain unchanged. Hong Kong's legal system, including
the independence of the judiciary and obligation of the executive
authorities to abide by the law, are slated to continue. Beijing will
be responsible for foreign affairs and defense of the HKSAR.
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
For most American products and services, initial market penetration
in Hong Kong does not require an investment of millions of dollars of
company funds. With the propensity of Hong Kong citizens to buy
American products, and the fact that Hong Kong is a "Free Port" with
virtually no duties or tariffs and a wide ranging network of agents and
distributors, a well-managed market penetration program with a moderate
investment in market development is generally all that is required
initially. In the longer term, this could be followed with more
ambitious investments in marketing, assembly or even a production
facility. The market for U.S. service firms is also quite open, with
the exception of medical and legal professionals, as discussed in
Section VII. A, below.
Most American products do have a market in Hong Kong, and in many
cases through Hong Kong to the PRC. The best agents and distributors
for China are mostly located in Hong Kong, although given China's size
and diversity, it is often necessary to work with different agents for
different regions of China. Hong Kong companies are eager to talk to
potential exporters and have a strong interest in representing U.S.
products.
A. Distribution and Sales Channels
One of the best ways to sell products in the Hong Kong market is
through the use of agents or distributors. It is also an excellent way
of minimizing the initial investment in the market. As outlined below,
there is a wide range of companies who can serve as agent or distributor
for U.S. firms.
B. Use of Agent/Distributors; Finding a Partner
Working with agents and distributors in Hong Kong is very much like
working with an agent in the United States. An agent takes orders in
the supplier's name. Distributors act in their own name and may stock
products purchased from the manufacturer for resale. The choice depends
on the relationship with which the manufacturer/supplier is most
comfortable and the nature of the business.
Hong Kong has no special legislation regarding agents and
distributors. Virtually anything which both sides can agree to and put
into a written contract is acceptable and enforceable, including
restrictions on territory and a grace period for termination of the
agreement. While not required by Hong Kong law, the more complex the
contract, the more helpful legal counsel can be in drafting the text.
Items that are "musts" for any contract include:
- Exclusivity and sales territories (always a sensitive issue;
business people should be careful about granting an exclusive agency too
soon or in too large a territory if the agent is to cover beyond Hong
Kong.)
- Proprietary information (theft of intellectual property is
prohibited by local law, but prevention of piracy is always less
expensive and more effective than post-facto legal action.)
- Levels of sales activity -- set specific targets and goals to
qualify for maintaining or renewing the agreement
- Time duration
- Payment terms
- Quality control -- inspection -- verification
- Rule of law -- jurisdiction in the USA vs. Hong Kong (It is
generally Hong Kong, but another location may be specified -- for
arbitration, for example.)
- Covenants restricting activity following cancellation of the
contract.
There are many types of agents and distributors in Hong Kong,
ranging from those who simply stock retail stores with standard items to
agents who provide sales, engineering and technical support for complex
systems. It is common for a single company to deal in a wide variety of
products - everything from chicken parts to airplane parts, for example.
As long as the potential agent/distributor has relevant experience in
the sector of interest, American firms should not be concerned. Each
sector within the standard (which usually means Chinese family) Hong
Kong trading company is usually run as a discrete unit, led by a family
member with specialized training who reports to the pater familia - the
Managing Director.
C. Franchising
During the past decade, Hong Kong and the region have been catching
up with the concept of franchising. In fact, franchising has become one
of the fastest growing forms of business in Hong Kong. In 1994,
franchising contributed US$750 million to Hong Kong's gross domestic
product (GDP). U.S. firms have dominated this industry mainly through
well known hamburger and pizza fast food outlets. Other kinds of retail
outlets ranging from bakeries to shoe repair are also expanding
significantly. The field is wide open.
D. Direct Marketing
Direct marketing is not a well-accepted sales channel in Hong Kong,
although recently there has been some growth in direct marketing through
television. Mail-order and other forms of direct marketing are very
small although some consumer products are sold very successfully via
person to person marketing. Shopping is one of the major leisure time
activities in Hong Kong which, given Hong Kong's small size and its
efficient transportation system, effectively limits the growth of this
form of marketing technique.
E. Joint-Ventures/Licensing
Joint-ventures or strategic alliances can be very helpful in
entering the market and are particularly important in competing for
major projects. (For additional information on joint ventures, see
Section VII, Investment Climate.) Companies may also choose to
establish an office here themselves or rely on one of the many
international trading companies to act as agents or distributors for
imported products.
Licensing is not a particularly common practice except in the field
of brand name product manufacturing and marketing.
F. Steps to Establishing an Office
Foreign interests are allowed to incorporate their operations
freely in Hong Kong, to register branches of foreign operations, or to
set up representative offices. There is no restriction on the ownership
of such operations. Company directors are not required to be citizens
of, or resident in Hong Kong. Reporting requirements are
straightforward and not onerous. There is no distinction in law or
practice between investment by foreign controlled companies and those
controlled by local interests. There are no disincentives to foreign
investment such as limitations on the use or transfer of foreign
currency, or any system of quotas, performance requirements, bonds,
deposits, or other similar regulations. The high costs of labor and
rents as well as the shortage of international schools are the major
disincentives to establishing a presence in Hong Kong.
G. Selling Factors/Techniques
The major selling factors are the same as in the U.S.: price,
quality, timeliness in delivery and service. Initial sales require more
face-to-face contact as Asians generally place a premium on developing
personal connections.
H. Advertising and Trade Promotion (including listing of Major
Newspapers and Business Journals)
Many promotional vehicles are open to suppliers to introduce and
develop their services in the Hong Kong market. These include:
- special trade fairs and exhibitions
- advertising in the media and other public relations activities
- holding seminars
- in-store promotions
- joint promotions with wholesale and retail outlets
Hong Kong is a major conference and exhibition center. Hundreds of
international exhibitions are held annually. The Hong Kong Conference
and Exhibition Center has 180,000 square feet of exhibition space and
will soon be expanding. Television is a widely used medium with an
estimated daily audience of 5.3 million out of a population of 6.1
million. A list of the major trade shows and trade show organizers is
supplied in the appendix.
Suppliers should provide technical catalogs in English, and at
least some information in Chinese, for distribution to agents and firms.
Company brochures are particularly useful when visiting Hong Kong for
the first time. English-Chinese business cards are a must. Business
people should also be aware that business cards are exchanged far more
frequently in Hong Kong and China than in the United States.
As one of the largest centers in the world for Chinese language
publications, the territory produces 600 publications, including 51
Chinese newspapers and 3 English daily newspapers. Advertising
agencies, including many of international standing, offer a full range
of services. A list of the major newspapers and magazines follows.
Newspapers:
South China Morning Post
South China Morning Post Publishers Limited
Morning Post Building
Tong Chong Street
Quarry Bay, Hong Kong
Tel: (852) 2565-2222
Fax: (852) 2565-5380
Hong Kong Standard
Hong Kong Standard Newspapers Ltd.
4/Fl., Sing Tao Building
1 Wang Kwong Road
Kowloon Bay
Kowloon, Hong Kong
Tel: (852) 2798-2798
Fax: (852) 2795-3027, 2795-3009
Eastern Express
Eastern Express Publisher Ltd.
Oriental Press Center
Wang Tai Road
Kowloon Bay
Kowloon, Hong Kong
Editorial: Tel: (852) 2707-1111
Fax: (852) 2707-1122
Display advertising:Tel: (852) 2707-3333
Fax: (852) 2707-2233
Trade Journals:
AmCham (Monthly)
American Chamber of Commerce in Hong Kong
Room 1030, Swire House
Central
Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289
Asian Business (Monthly)
Far East Trade Press Ltd.
Block C, 10/F., Seaview Estate
2-8 Watson Road
North Point
Hong Kong
Tel: (852) 2566-8381
Fax: (852) 2508-0197
Construction & Contract News (Monthly)
Trend Publishing (HK) Ltd.
19/F., Washington Plaza
230 Wanchai Road
Hong Kong
Tel: (852) 2832-9298
Fax: (852) 2832-9667
Far Eastern Economic Review (Weekly)
Review Publishing Company Limited
25/F., Citicorp Center
18 Whitfield Road
Causeway Bay
Hong Kong
Tel: (852) 2508-4300
Fax: (852) 2503-1537
Hong Kong Industrialist (Monthly)
Federation of Hong Kong Industries
4/F., Hankow Center
5-15 Hankow Road
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2723-0818
Fax: (852) 2721-3494
Productivity News (Monthly)
Hong Kong Productivity Council
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Kowloon
Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5900
I. Pricing Product
If possible, quote in metric, on a deliverable basis to Hong Kong
i.e. CIF or C&F rather than FOB. Hong Kong companies have lots of
options; American companies must make it as easy as possible to deal
with them.
J. Sales Service/Customer Support
Some sort of local presence, whether it is a branch office or an
agent or distributor, is very important in getting established in the
market. Business in Hong Kong and elsewhere in Asia requires
relationships which can only be developed with some sort of full time
presence. Prompt after-sales service is also crucial to succeeding in
this very competitive market.
K. Selling to the Hong Kong Government
The Hong Kong Government Supplies Department (GSD) is the central
purchasing, storage and supply organization for the Hong Kong
Government, serving over 80 government departments and agencies, and
many subsidiary organizations. The GSD usually purchases by open
tender, with decisions based on price, quality and delivery. The GSD
gives no preference to any particular source of supply from any country
or organization. GSD spent about US$540 million in 1994, with American
companies winning around 32% of the total procurement contracts (about
US$171.2 million).
Tenderers generally have about six weeks to prepare their offers.
Invitations to open tender are published in the Hong Kong Government
Gazette and in leading Hong Kong newspapers. Tenderers are urged to
submit offers with at least a 30-day validity period. Payment is
usually effected by check within 30 days of delivery of the goods, but
terms are often amended to suit special conditions of the contract.
Total bid prices and names of the successful tenderers are published
weekly in the Government Gazette.
For information about a subscription to the Hong Kong Government
Gazette, contact:
Information Officer
Publications Sales Section
Information Services Department
Ground & 1st Floors
French Mission Building
1 Battery Path, Central
Hong Kong
Tel: (852) 2842-8802
Fax: (852) 2537-1543
The GSD maintains lists of registered suppliers. To become a
"Registered Supplier" and regularly receive the GSD's tender documents,
companies must submit questionnaires detailing business activities,
licensing arrangements, financial resources, the goods and services they
offer. The GSD evaluates this information and selects qualified
suppliers for inclusion on their register. The Commercial Service, Hong
Kong office regularly reports on government tenders. These reports are
available via the Economic Bulletin Board from the Department of
Commerce.
Companies seeking more information on the GSD are encouraged to
contact:
The Director of Government Supplies
Government Supplies Department
12 Oil Street
North Point
Hong Kong
Tel: (852) 2802-6100
Fax: (852) 2510-7904
Telex: 61675 HKGSD HX
L. Protecting your product from IPR Infringement
The best protection for an American company is to aggressively
market in Hong Kong. By using a good local agent, American
manufacturers or suppliers can make their product legally available.
Dealers have a strong incentive to stop any piracy, and with good local
connections, have a better chance of making that happen than an American
company which is not participating in the market. Hong Kong's laws are
effective and include a full set of tools to raid, enjoin, and seek
damages from unauthorized producers and sellers of infringing works.
The chief law enforcement body for IPR is the Customs and Excise
Department. However, protecting copyrights or trademarks takes
vigilance, and even with the U.S. Government vigorously pressing Hong
Kong and other Asian governments on this issue, enforcement is still
dependent on reporting incidents of product piracy to the authorities.
This requires a strong local presence. Substantially stiffer penalties
for copyright infringement passed in 1995 will hopefully reduce IPR
infringing products. For more information on intellectual property
legislation and registration, see Section VII. H, below.
M. Need for a Local Attorney
Hong Kong follows the Common Law System and disputes which cannot
be resolved between the interested parties are commonly pursued through
the court system. Attorneys are needed for most court processes and are
extremely expensive.
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Hong Kong, with the second-highest per capita income in East Asia,
offers bountiful opportunities to U.S. businesses. No tariffs and few
government imposed obstacles hinder U.S. imports. The demand for
capital goods and consumer goods is expanding. Some of the best
prospects include computers and telecommunications equipment for the
information technology needs of Hong Kong's burgeoning trading and
financial offices; construction machinery for the major infrastructure
projects as well as the private office and housing markets; and electric
power generating equipment to meet the demands of a growing economy.
There is also potential growth for U.S. grocery line items as the
number of existing and new food retail outlets continues to increase.
Because of established ties and advantageous trading arrangements, most
of Hong Kong's grocers traditionally looked to the United Kingdom,
Europe, Australia, New Zealand and other commonwealth countries for
supplies. In recent years, however, those buying habits are shifting
and many American items are now available on local shelves, at highly
competitive prices. The most significant and phenomenal development has
been the establishment of the first U.S. style warehouse/club retail
stores in Hong Kong. Grandmart, established in 1993, was the first and
now has eight stores which primarily carry food (and non-food) products
from the United States. Unlike most supermarket chains, there are no
slotting fees, giving U.S. suppliers, big and small alike, an
unprecedented advantage in gaining access to this highly competitive
market. While GrandMart was the first to introduce the warehouse
concept to the territory, over the past two years a variety of new
players are quickly joining the local retail scene. These include Value
Club, a joint venture of Wal-Mart and Charoen Pokphand Agro-Industry
Co., M-Mart and U-Save. While the Hong Kong dollar is linked to the
U.S. dollar at US$1.00 = HK$7.80, the recent weakening of the U.S.
dollar against most world currencies has helped strengthen the
competitiveness of American products here.
The Hong Kong people like new products, and will experiment with
different foreign products. In the consumer market Hong Kong is
definitely an international conglomerate. U.S. suppliers have been
successful in Japanese supermarkets, and even Chinese grocery chains.
U.S. Department of Agriculture food shows and in-store promotions also
offer an excellent way for U.S. firms to offer new products to the Hong
Kong markets. With ATO's service, and Hong Kong's strong economy, this
is an ideal location for foreign products.
A. Best Prospects for Non-Agricultural Goods and Services
Following is a list of the non-agricultural goods and services best
prospects sectors for U.S. exporters to Hong Kong:
No. Code Sector Description
1 CON Construction Equipment
2 TEL Telecommunications Equipment
3 ELP Electric Power Systems
4 ELC Electronic Parts/Components
5 INS Insurance
6 DRG Drugs and Pharmaceuticals
7 TRA Travel and Tourism Services
8 LAB Scientific and Analytical Equipment
9 POL Waste Water Treatment Technologies
10 PMR Plastic Materials and Resins
11 AIR Aircraft and Parts
12 CSF Computer Software
13 CPT Computers and Peripherals
14 PGS Printing Equipment
15 MED Medical Equipment
16 COS Cosmetics and Toiletries
17 CON Building Products
Note: All Figures in U.S. Dollar millions unless otherwise indicated
1 - CONSTRUCTION EQUIPMENT (CON)
Narrative:
The construction industry has been the backbone of Hong Kong's economy.
According to a government report, the total value of Hong Kong's
construction was US$11.5 billion in 1994. The construction and property
sectors together contribute to Hong Kong's GDP as much as the wholesale,
retail, import and export, restaurant, and hotel sectors combined.
Public housing development, private residential and commercial
development, major infrastructure projects, and the China market will
continue to create demand for construction equipment for the next few
years. Major infrastructure projects in Hong Kong include the US$21
billion Airport Core Program, which is half completed, and the US$15
billion railway network expansion project, which is scheduled to begin
as early as 1996. Imports of construction equipment from the U.S. will
continue to increase as many major U.S. brands are well known for
superior quality.
1994 1995 1996
D. Total Market Size 300 330 360
E. Total Local Production 0 0 0
F. Total Exports 180 200 220
G. Total Imports 480 530 580
H. Total Imports from U.S. 15 30 40
The above statistics are unofficial estimates.
2 - TELECOMMUNICATIONS EQUIPMENT (TEL)
Narrative:
Telecommunications is one of Hong Kong's most dynamic industries. 1993
turnover (the latest figures available) reached US$4 billion, accounting
for 2% of the territory's domestic product.
As a major international business center, Hong Kong can well be proud of
its telecommunication infrastructure. It is the first city in the world
with an entirely digital fixed network. Its fax penetration rate is
second in the world in terms of fax lines per person. Its 65% telephone
density is second only to Japan in Asia, and 20% of its 6 million
population are pager subscribers.
Deregulation of the local telecommunications industry will provide
foreign telephone service providers and equipment manufacturers with an
admission ticket to this multi billion US$ telecommunication market.
From July 1, 1995 onward, Hong Kong Telecom has been joined by three
other newly formed consortia to provide fixed wired voice service to
Hong Kong. These three consortia are together investing a total of
HK$11.5 billion (US$1.44 billion) to set up their networks.
In addition to the fixed networks, the Hong Kong mobile
telecommunications market is also undergoing tremendous change. The
Telecommunications Authority, the body responsible for regulating the
Hong Kong telecommunication market, will issue up to 6 Personal
Communications Services (PCS) licenses and up to 4 Cordless Access
Services (CAS) licenses in the 1.7-2.0 GHz band. A total of 14
interested parties have submitted their tenders for PCS licenses.
Demand for advanced telecommunications equipment will also increase from
Mainland China, as the Chinese government recently committed to invest
US$6 billion to expand and modernize the country's communications
network. Hong Kong will continue to serve as an effective entrepot for
sales to China. U.S.-made telecommunication facilities enjoy a good
reputation for their high technological level, and U.S.
telecommunication equipment manufacturers and system integrators are
advised not to miss the opportunities arising in Hong Kong and China.
Most promising subsectors:
. Transmission Systems
. Switch & networking facilities
. Fiber optic cable
1994 1995 1996
Total Market Size 3,050 3,010 3,612
Total Local Production 1,372 1,302 1,107
Total Exports 2,148 2,578 2,638
Total Imports 3,827 4,286 5,143
Total Imports from U.S. 574 643 804
The above statistics are unofficial estimates.
3 - ELECTRIC POWER SYSTEMS (ELP)
Narrative:
Thermal power remains the core source of electricity supply both in Hong
Kong and China. Demand for thermal power generating equipment including
boilers, turbines, generators, etc. will be flat in Hong Kong after the
completion of the Lamma 7, 350MW coal-fired unit of Hong Kong Electric
Holdings Limited, scheduled for commissioning in late 1995. However,
demand for such equipment from China remains strong. China's installed
generation capacity at the end of 1994 was 199 gigawatts. China is
planning to increase this to 300 gigawatts by the year 2000. Estimates
are that China will need to invest US$100 billion over the next ten
years to ease its power shortage problems. In 1994, the market demand
for power plant facilities was about US$14 billion, of which about
US$3.4 billion of equipment had to be imported. This leaves plenty of
room for foreign power equipment such as boilers, turbines and generator
suppliers.
As most of Hong Kong's imported power equipment is re-exported to China,
U.S. suppliers should target Hong Kong as part of their marketing
strategy for China. Although U.S. equipment maintains only about an 8%
share of the Hong Kong import market, huge demand in China still
provides lots of room for U.S. suppliers.
1994 1995 1996
Total Market Size 500 540 675
Total Local Production 0 0 0
Total Exports 1,250 1,560 1,950
Total Imports 1,750 2,100 2,625
Total Imports from U.S. 144 180 225
The above statistics are unofficial estimates.
4 - ELECTRONIC PARTS/COMPONENTS (ELC)
Narrative:
Although Hong Kong's electronic industry is facing strong competition
from its neighboring countries, it remains Hong Kong's 2nd largest
export earner, second only to clothing/textiles. In 1994, it employed
45,896 workers (10.5% of total manufacturing employment), and earned
about US$7.5 billion in exports. (32.9% of Hong Kong's total domestic
exports).
Hong Kong produces a large variety of sophisticated and less
sophisticated finished products, including radio and television sets,
MODEM, computers, printers etc. Most of the production is conducted on
an original equipment manufacture (OEM) basis. Hong Kong is both a top
exporter of finished electronic products, and a sizable importer of
electronic parts and components, especially in the sector of computers &
peripherals, telecommunications, and consumer electronics. The total
market for electronic parts and components in 1995 was US$11.5 billion,
expected to increase 15-20% annually over the coming three years. In
1994, Japan dominated the component market with a 29% share. China came
second with a 17% share, and the U.S. was third by capturing a 11%
share.
Hong Kong is gradually losing its competitive edge in price advantage to
its less developed neighboring countries, such as Thailand, Indonesia,
Malaysia, Philippines, and China on low-end electronic products. In
order to compete, local manufacturers have re-geared their production
tactics by switching to high value-added products. U.S. companies
should be aware of the structural change in Hong Kong's electronic
industries, as demand for high-end electronic components and parts are
in great demand. China with its rising living standards is also seen as
a major growth area for Hong Kong consumer products. China overtook the
United States for the first time in 1993 as the largest export market
for Hong Kong-made electronic goods. The large number of factories set
up by Hong Kong electronic manufacturers in Southern China are the major
consumers of parts and components exported by Hong Kong. The strong
sales of electronics products in China have created high demand for
parts and components, which China's domestic component industry can
hardly satisfy.
Most promising subsectors:
. Digital monolithic integrated units
. Non-digital monolithic integrated units
. Parts & accessories for computers
. Parts & accessories for audio/video equipment
. Memory Card International Association (PCMCIA) cards, printed circuit
boards
1994 1995 1996
Total Market Size 10,560 11,515 13,818
Total Local Production 8,425 8,846 9,288
Total Exports 17,553 21,941 25,002
Total Imports 19,688 24,610 29,532
Total Imports from U.S. 2,953 3,692 4,430
The above statistics are unofficial estimates.
5- INSURANCE (INS)
Narrative:
Over the past few years, the insurance industry has enjoyed above
average growth in Hong Kong. The market penetration of the life
insurance industry remains below western standards, however, which means
that the potential for growth is still great. In addition, Hong Kong's
increasing role in China trade creates another rapidly expanding market
for the insurance industry. Finally, the insurance industry is ideally
placed to administer the proposed compulsory provident fund scheme,
which will be put forth for debate by the Legislative Council in the
summer of 1995.
As of October 1994, there were 228 insurance companies in Hong Kong, 40
of which were authorized to do long term business (life insurance and
retirement schemes), 169 general insurance (accident, health, motor
vehicle and marine insurance) and 19 composite insurance. Of these 228
insurers, a total of 103 insurers are incorporated in Hong Kong while
U.K., U.S. and Bermuda have 29, 21 and 9 respectively. The rest are
incorporated in 26 different countries. As of September 1994, there are
a total of 15,079 retirement schemes approved by the local government.
U.S. insurers may consider exploring the life insurance and retirement
funds industry as these two sectors are expected to demonstrate
substantial growth.
1994 1995 1996
Total Sales 4,218 5,062 6,074
Sales by Local Firms 928 1,114 1,336
Overseas Sales by Local Firms 0 0 0
Sales by Foreign Owned Firms 3,290 3,948 4,738
Sales by U.S.-Owned Firms 1,160 1,392 1,670
The above statistics are unofficial estimates.
6 - DRUGS AND PHARMACEUTICALS (DRG)
Narrative:
In Hong Kong, the 1994 average annual medicine consumption of an
individual was US$54. This figure will continue to increase as people
become more affluent. U.S. pharmaceutical products are well regarded and
welcome in Hong Kong. Pharmaceutical products are distributed through
three channels: hospitals, private practitioners and over-the-counter
sales. These channels occupy a distribution share of 33%, 18% and 49%
respectively. There are 37 public hospitals managed by the Hospital
Authority and 13 private hospitals, with a total 27,000 beds. The
population is served by 7,500 doctors and 950 pharmacists. There are
1,500 drugstores in the territory. Hong Kong also re-exports a lot of
pharmaceutical products to China.
1994 1995 1996
Total Market Size 328 426 553
Total Local Production 139 153 168
Total Exports 834 934 1,046
Total Imports 1,023 1,207 1,431
Total Imports from U.S. 71 85 102
The above statistics are unofficial estimates.
7 - TRAVEL AND TOURISM SERVICES (TRA)
Narrative:
Hong Kong is a crowded city with a population of 6.1 million. 1994 per
capita GDP was US$21,760. As Hong Kong residents become more affluent,
they are traveling abroad in record numbers. Hong Kong's outbound
tourism is characterized by the following two factors:
- Economic: When the economy is in a downturn, Hong Kong people will
opt for shorter trips instead of long haul travel. Yet overall tourist
growth will not be affected.
- Price: Hong Kong tourists are quite sensitive to price. A discount
on airfare or tour package prices will usually increase the number of
outbound tourists.
In recent years, emigration has been growing rapidly. According to the
latest statistics, the number of emigrants in 1994 was estimated at
62,000, with the majority going to Canada. As a result, many people
travel to Canada to visit their families and friends during their
holidays. Many of these people are interested in visiting the U.S. on
their trips to Canada.
Remarks: *The figure excludes departures to China and Macau.
#The figure is calculated by multiplying the average travel
receipts generated by each foreign visitor to the U.S. by the number of
departures of Hong Kong residents to the U.S.
1994 1995 1996
* Total Outbound Travel ('000) 2,798 3,134 3,510
- in terms of departures
Outbound Travel to USA ('000) 188 225 270
- in terms of departures
# Travel Receipts (Millions) 240 300 375
The above statistics are unofficial estimates.
8 - SCIENTIFIC AND ANALYTICAL EQUIPMENT (LAB)
Narrative:
The Hong Kong government is playing a more active role in the
Territory's industrial transformation process. More funding is being
allocated to research and development. Under the Industrial Support
Scheme, a provision of approximately HK$200 million (US$25 million) will
be made available during 1995/96. This program aims to enhance the
competitiveness of local manufacturing industries. More and more local
manufacturers are realizing that only by gearing their production
capability to hi-tech items can they effectively compete with less
developed countries, such as Indonesia, Thailand, Malaysia, Vietnam. In
order to upgrade their production capability, they will increase imports
of advanced equipment. This should increase opportunities for U.S.
firms, as demand for U.S. origin scientific and analytical instruments
is high because of the reliability of these products. U.S. companies,
however, face increasing challenges from Europe and Japan. They also
face competition from Taiwan, Korea, and Singapore for less
sophisticated machinery.
Hong Kong also serves as a window for the export of hi-tech analytical
equipment to China. Market prospects have been further improved with
the April 1994 dissolution of COCOM (Co-ordination Committee for
Multilateral Export Controls). As such, advanced hi-tech laboratory
testing equipment can now be exported to China via Hong Kong more
easily.
Most promising subsectors:
oscilloscopes; spectrum analyzers; instruments and apparatus for
measuring/ checking electrical quantities (HS 9030)
1994 1995 1996
Total Market Size 56 67 77
Total Local Production 14 17 18
Total Exports 126 152 179
Total Imports 168 202 238
Total Imports from U.S. 54 65 78
The above statistics are unofficial estimates.
9 - WASTE WATER TREATMENT TECHNOLOGIES (POL)
Narrative:
The implementation of a Water Control Zone in Hong Kong's Victoria
Harbor in early 1995 has put substantial pressure on over 2,000
factories to upgrade or install waste water control equipment. The
maximum fine for non-compliance with effluent standards now stands at
US$25,000 for the first offence, US$50,000 for additional violations.
Hong Kong's Industry Department projects that the total cost of
compliance for Hong Kong factories now affected by the Water Control
Zone will reach US$250 million, spread over a period of several years.
This should provide excellent opportunities for U.S. firms, as U.S.
technology for process controls, water quality monitoring instruments,
reverse osmosis, ultrafiltration, and biological chemicals are all
considered highly competitive in Hong Kong's market.
The key industries needing waste water control equipment are:
Electroplating, electronics, bleaching and dyeing, and food processing.
Equipment that creates a payback period for the factory resulting from
saved energy, water, or raw materials will have the best chance for
success in Hong Kong's waste water control equipment market.
1994 1995 1996
Total Market Size 42 55 72
Total Local Production 7 8 12
Total Re-Exports 30 35 36
Total Imports 65 82 101
Total Imports from U.S. 18 23 27
The above statistics are unofficial estimates.
10 - PLASTIC MATERIALS AND RESINS (PMR)
Narrative:
Plastic raw materials produced in Hong Kong can only satisfy about 10%
of local demand. The rest have to be imported, mainly from Taiwan,
Japan and the U.S. The Hong Kong dollar is pegged to the U.S. dollar,
so the slide of the dollar in 1995 has increased the competitiveness of
U.S. products against products from other places in terms of prices.
Coupled with the fact that the U.S. has high quality plastic raw
materials, Hong Kong presents good potential for U.S. products. Major
local end-users include factories producing toys, packaging materials,
shoes, housewares and casings of electrical and electronic consumer
goods. Hong Kong is a major world supplier of such consumer products,
hence there are good prospects for exporting plastic raw materials to
Hong Kong.
1994 1995 1996
Total Market Size 951 1,428 1,856
Total Local Production 77 85 98
Total Exports 4,125 5,156 6,445
Total Imports 4,999 6,499 8,203
Total Imports from U.S. 552 635 730
The above statistics are unofficial estimates.
11 - AIRCRAFT AND PARTS (AIR)
Narrative:
Hong Kong is served by 55 airlines which operate about 1,200 direct
flights in and out of Hong Kong weekly to 94 other cities. In 1994,
these airlines accounted for more than 140,000 aircraft movements and
brought about 27 million passengers and 1.2 million tons of cargo
throughput at the Hong Kong International Airport at Kai Tak, making the
Hong Kong airport one of the busiest in the world. Hong Kong's three
home-based airlines own a total of 65 aircraft. Replacement and
expansion needs definitely create a demand for more aircraft
particularly after the new replacement airport at Chek Lap Kok becomes
operational in 1997.
At present, the Hong Kong Aviation Engineering Company (HAECO) handles
all aircraft maintenance at Kai Tak. It is expected that three
franchisees will provide service at the new Chek Lap Kok airport. The
expected increase in aircraft movements when Chek Lap Kok opens in late
1997 or early 1998 will increase the demand for aircraft parts for
maintenance use.
The U.S. already maintains a 76% share of the import market for aircraft
and parts, and the U.S.'s long established reputation in Hong Kong
should enhance its competitiveness still further in the expanded market
after 1997.
1994 1995 1996
Total Market Size 415 478 550
Total Location Production 0 0 0
Total Exports 69 79 91
Total Imports 484 557 641
Total Imports from U.S. 369 424 488
The above statistics are unofficial estimates.
12 - COMPUTER SOFTWARE (CSF)
Narrative:
Hong Kong has become one of the most sophisticated software markets in
the Asia-Pacific region. As an integrated manufacturing and
transportation center and a center for finance, communications, design
and marketing, quality computer software is indispensable to support the
rapid development of this city. A rough estimate of the current
software market is US$170 million, and it has been growing at an annual
rate of over 20% since 1991. Since the U.S. software industry is the
world's most advanced, Hong Kong end-users have a preference for U.S.
origin software. This is reflected in the lion's share of the market
(48%) captured by the U.S. in 1994.
Among imported software, accounting and financial software remain the
most common applications. There is, however, increasing demand for
CAD/CAM programs. Industry sectors such as trading, distribution and
retailing also affect the growth of the local software market.
Networking software for commercial organizations is also gaining
significance. Other imported software for general applications, such as
word-processing and database, are used extensively in Hong Kong.
Pursuant to the signing of the Sino-U.S. agreement on intellectual
property rights in February 1995, enforcement task forces are being
established in cities and provinces of China to control copyright and
software infringements. Coupled with the removal of quotas and
licensing requirements for software products, software sales through
legitimate channels in Hong Kong to China are expected to expand
substantially.
With US$7.5 million software imports re-directed to China in the first
quarter of 1995 (representing an 80% increase over 1994), Hong Kong's
role in distributing imported software products and providing service
support to the Chinese market is growing.
1994 1995 1996
Total Market Size 159 170 185
Total Local Production 35 50 60
Total Exports 95 140 185
Total Imports 219 260 310
Imports from U.S. 77 91 105
The above statistics are unofficial estimates.
13 - COMPUTERS AND PERIPHERALS (CPT)
Narrative:
As an international finance center and an integrated manufacturing and
transportation center, Hong Kong's need for information processing has
been on the rise. Meanwhile, office workers' salaries have doubled in
the last ten years. This generates a huge demand for sophisticated
computer equipment.
Although Hong Kong produces a wide variety of computer hardware
products, major components such as central processing unit (CPU) chips,
integrated circuits, disk drives, key boards and monitors are imported
from around the world (principally the United States, Japan and Taiwan.)
Imports in the personal computer market alone are currently estimated to
be worth more than US$230 million. The latest market trend is in
notebook or laptop computers with desktop-compatible features.
Although high quality U.S. brand PC's are well received in this market,
price is still a major impediment to increasing sales volume. In view
of that, most U.S. vendors have set up production facilities in Asia to
keep product prices competitive.
With China's open door policy, China has become Hong Kong's largest
computer re-export market. In 1994, over 25% of Hong Kong's total
computer imports were destined there. With the majority of China's
foreign investments coming from Hong Kong, the established Hong Kong
linkage provides the convenience and network for expanding Hong Kong's
computer re-exports.
1994 1995 1996
Total Market Size 1,526 1,200 1,300
Total Local Production 1,975 2,320 2,400
Total Exports 5,375 6,790 7,300
Total Imports 4,926 5,670 6,200
Imports from U.S. 958 1,020 1,150
The above statistics are unofficial estimates.
14 - PRINTING EQUIPMENT (PGS)
Hong Kong's excellent telecommunications infrastructure provides local
publishers and news media instantaneous information access to the world,
helping to establish Hong Kong's leading position in printing and
publishing in Asia. With over 4,800 printing establishments and 200
publishing houses, Hong Kong produces a wide range of printed materials.
They include books, brochures, pamphlets, packaging materials,
newspapers, periodicals and advertising catalogues.
Large printers in Hong Kong handle job orders from renowned publishers
such as Oxford University Press, Longman and Macmillans, and specialize
in printing books. Over 20 newspaper printers are now serving the 76
daily newspapers. Meanwhile, smaller establishments are self-sustaining
by providing printed materials for local consumption.
Because of the escalating production costs, a number of smaller local
printers are shifting their production bases to Southern China in search
of more cost-effective operations. Along with this transition, Hong
Kong has become a re-export center for new printing machinery to China.
Total re-exports to China in this respect amounted to US$163 million in
1994. For those larger printers based in Hong Kong, they have invested
substantially in high-tech machinery and equipment to expand their
production capacity in order to maintain competitiveness in the world
market.
In the past, the United States has not been able to dominate the local
printing machinery market. In 1994, it ranked third behind Germany and
Japan. However, with the market's awareness of and interest in the
latest technology, which the U.S. is famous for, the United States is
now in a favorable position to increase its market share.
1994 1995 1996
Total Market Size 103 100 105
Total Local Production 58 55 55
Total Exports 205 175 180
Total Imports 250 220 230
Imports from U.S. 18 16 18
The above statistics are unofficial estimates.
15 - MEDICAL EQUIPMENT (MED)
Narrative:
Hong Kong's 6.1 million residents are provided with a comprehensive
range of medical and health services by the public and private sectors.
As such, there exists a good market for U.S. medical products,
particularly high-end diagnostic equipment. Hong Kong has 37 public
hospitals managed by the Hospital Authority and 13 private hospitals,
with a total of 27,000 beds.
Hong Kong does not manufacture any medical equipment at all. It relies
entirely on imports. And a large portion of its imports are re-exported
to China. As import tariffs for medical equipment range from 25% to
40%, and an import permit is required for the China market, some
companies take the risk of smuggling the equipment into China. As a
result, the 1994 total exports which included re-exports to China is
probably more than US$347 million, the official figure recorded by the
Hong Kong government.
1994 1995 1996
Total Market Size 73 87 104
Local Production N/A N/A N/A
Total Exports 347 364 382
Total Imports 420 451 486
Total Imports from U.S. 128 140 154
The above statistics are unofficial estimates.
16 - COSMETICS AND TOILETRIES (COS)
Narrative:
In his budget speech in March 1993, the Financial Secretary announced
the lifting of the 30% duty on cosmetics and perfumery products in Hong
Kong. As a result, demand leapt upwards as Hong Kong's 9 million plus
annual visitors and 3 million female population took advantage of the
lower prices. The import of cosmetics rose from US$266.12 million to
US$342.3 million (an increase of 28.6%) in 1993, and in 1994 imports
increased another 31.4% to US$449.77 million. Hong Kong continues to
remain a strategic marketing and distribution center for the beauty
industry.
Research on visitor spending in 1993 conducted by the Hong Kong Tourist
Association revealed that visitors spent more than US$129 million on
cosmetics and a further US$47.93 million on perfumery. In 1994, the
import of perfumery from the U.S. rose from US$4.38 million to US$10.83
million (an increase of 147%). U.S. skin care and color cosmetics also
increased by 32% (from US$31.2 million to US$41.04 million). The
statistics given below are for products such as perfumery, skin care and
color cosmetics, shampoo and toiletries.
1994 1995 1996
Total Market Size 309 339 373
Total Local Production 18 20 22
Total Exports 14 16 17
Total Re-Exports 145 159 175
Total Imports 450 495 544
Imports from the U.S. 68 75 82
The above statistics are unofficial estimates.
17 - BUILDING PRODUCTS (CON)
Narrative:
As a result of the on-going construction boom in Hong Kong, building
products will continue to be in great demand over the next several
years. The major driving forces for the escalating demand include
public housing development, private residential and commercial
development, infrastructure projects, and the China market.
Hong Kong relies a great deal on imports because local production is
insufficient to support the US$11.5 billion construction industry.
Competition is stiff in the imports market. Major players in the market
include Japan, Italy, Germany, Spain, the U.K., and the U.S. U.S.
products, in general, are well positioned in the market and enjoy a good
reputation for their quality.
1994 1995 1996
Total Market Size 1,050 1,150 1,250
Total Local Production 500 550 600
Total Exports 450 500 550
Total Imports 1,000 1,100 1,200
Total Imports from U.S. 50 55 60
The above statistics are unofficial estimates.
B. Best Prospects for Agricultural Products
Sector Description
Poultry
Ginseng
Oranges
Grapes
Apples
Beer and Malt
Lettuce
Prunes and Plums
Potatoes Frozen
Shell Eggs
Almonds
Wine
(All Figures in Metric Tons unless otherwise indicated)
Narrative:
Hong Kong is the largest export market for U.S. poultry meats. In
particular, chicken wings and feet are used in traditional Chinese
dishes and are extremely popular in this market. Of the 291,029 MT of
poultry exports, roughly 90% are exported to China through Shenzhen and
Zhuhai, where tariffs are considerably lower. This 90% includes many
tons of poultry that are shipped unofficially. Domestic production of
poultry meat is decreasing as new environmental legislation from the
government makes it difficult for chicken farms to stay open. The Waste
Disposal Bill, effective in 1996, will shut down many farms that cannot
meet the new requirements.
POULTRY
1994 1995 1996
Total Production 16,000 15,000 9,500
Total Exports* 291,029 300,000 320,000
Total Imports 533,436 640,000 700,000
Total Imports from U.S. 319,783 400,000 470,000
* Includes Re-exports
GINSENG
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 3,675 4,000 4,200
Total Imports 32,305 34,000 35,000
Total Imports from U.S. 932 1,250 1,400
ORANGES
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 17,455 18,200 19,000
Total Imports 183,802 186,000 195,000
Total Imports from U.S. 124,933 120,000 130,000
GRAPES
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 10,210 11,000 12,500
Total Imports 398,863 400,000 410,000
Total Imports from U.S. 21,082 22,000 22,900
APPLES
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 16,770 20,000 22,000
Total Imports 85,930 90,000 92,300
Total Imports from U.S. 67,692 73,000 79,200
BEER & MALT (in Kilolitres)
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 82,906 90,000 110,000
Total Imports 173,966 180,000 182,000
Total Imports from U.S. 83,527 90,000 94,000
LETTUCE
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 954 1,000 1,200
Total Imports 25,159 27,000 28,500
Total Imports from U.S. 20,978 21,000 22,000
PRUNES AND PLUMS
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 1,025 1,200 1,350
Total Imports 14,546 15,000 15,400
Total Imports from U.S. 10,503 10,200 11,000
FROZEN POTATOES
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 20 50 70
Total Imports 17,670 19,300 21,100
Total Imports from U.S. 13,734 16,460 18,000
SHELL EGGS
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 414 500 520
Total Imports 1,247,262 1,300,000 1,320,000
Total Imports from U.S. 42,266 44,600 50,000
WINE (KiLolitres)
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 393 420 500
Total Imports 4,517 5,000 5,200
Total Imports from U.S. 788 800 980
ALMONDS
1994 1995 1996
Total Production N/A N/A N/A
Total Exports 2,081 2,300 2,500
Total Imports 3,721 4,000 4,800
Total Imports from U.S. 2,972 3,200 3,850
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
A. Trade Barriers, Including Tariffs, Non-Tariffs Barriers and Import
Taxes
The Hong Kong Government levies no import tariffs. However,
domestic consumption taxes (referred to as duties in Hong Kong) are
imposed on certain goods, including tobacco (including cigarettes),
alcoholic beverages, methyl alcohol and some fuels. These taxes are
levied equally on local manufactures and imports. In addition, a steep
tax, called a "First Registration Tax," which ranges from 40 - 60% of
the price, is levied on new car purchases.
Useful contact for inquiring about specific products:
Customs and Excise Department
8/F, Harbor Building, 38 Pier Road
Central, Hong Kong
Tel: (852) 2852-3324
Fax: (852) 2541-9827 (Dutiable Commodities Division)
B. Customs Valuation
Customs valuation is only an issue for the taxable items listed in
VI A above. The tax on tobacco is by volume. The tax on distilled
spirits is 100%, on wine is 90% and on beer is 30%. The tax on
petroleum products is by both volume and value. The value is based on
the bill of lading as long as it represents a reasonable market value.
The tax on automobiles is based on both retail price and engine size.
C. Import Licenses
Textiles are subject to import and export licensing because of the
territory's obligations under agreements with the U.S. and other
countries. Importers of "Reserved Commodities" which include rice and
frozen meat must obtain an importer's license before they can import
these commodities. Frozen/chilled meat imports must be accompanied by
appropriate health certificates issued by a recognized authority of the
country of origin. Plant and animal imports must be accompanied by
appropriate phytosanitary health certificates. Quarantine is required
for both livestock and pets.
D. Export Controls
The Hong Kong Government imposes restrictions on the export of
high-technology products to countries proscribed under the former COCOM
regime, such as the People's Republic of China. Restrictions on trade
with China were relaxed significantly by the United States in 1991,
allowing Hong Kong to re-export to the PRC on a more liberal basis.
Textiles are subject to import and export licensing because of the
territory's obligations under agreements with the USA and other
countries.
E. Import/Export Documentation
U.S. standard trade documentation is acceptable.
F. Temporary Entry
There are no problems, as there are no duties which need to be
waived.
G. Labeling, Marking Requirements
Non-tariff barriers such as labeling requirements, standards, etc.
are also virtually nonexistent.
H. Prohibited Imports
The import of munitions, firearms and fireworks is strictly
forbidden.
I. Standards
Few product safety standards are required for the domestic Hong
Kong market. What little there are relate to fire control (gas and
electricity) in the city's high rise buildings. Other standards of
quality and safety control imposed on domestic manufacturers are for
goods made for export or re-export outside the territory. It is fairly
safe to assume, therefore, that industrial or retail products built to
American standards will have no problem selling in Hong Kong.
Another guideline to use regarding quality control is the "ISO
9000" series, published by the International Organization for
Standardization (ISO). These standards, now in the process of being
adopted in Hong Kong via the Hong Kong Quality Assurance Agency, provide
a framework for all types of manufacturing industries. The local
Housing Authority has also adopted ISO 9000 for all of its
consultants/contractors, and the Works Branch is considering extending
ISO 9000 to engineering and architectural consultants by April 1, 1996.
The Provisional Airport Authority also requires suppliers and
contractors to conform to ISO 9000.
J. Free Trade Zones/Warehouses
There are no special zones since the whole territory is basically a
free trade zone.
K. Special Import Provisions
None
L. Membership in Free Trade Arrangements
Hong Kong has been a GATT member in good standing, and is a
founding member of the WTO.
CHAPTER VII. INVESTMENT CLIMATE
A. Openness to Foreign Investment
Hong Kong pursues a free market philosophy with minimum
interference with corporate initiative. The territory welcomes foreign
investment. It offers no special incentives nor does it impose
disincentives for foreign investors. Hong Kong's well established rule
of law is applied consistently and without discrimination. There is no
distinction in law or practice between investments by foreign-controlled
companies and those controlled by local interests. The Independent
Commission Against Corruption, created in 1974, is responsible for
investigating corruption.
There are no direct subsidies to domestic industries and, as a duty
free port, no tariff barriers. There is no discrimination against
foreign investors either at the time of initial investment or
afterwards. There is no capital gains tax nor are there withholding
taxes on dividends and royalties. Profits can be freely converted and
remitted. Foreign-owned and domestically owned firms are taxed at the
same rate, 16.5% of profits. There are no preferential or discriminatory
export and import policies which affect foreign investors.
There are no disincentives to foreign investment such as
limitations on the use or transfer of foreign currency, or any system of
quotas, performance requirements, bonds, deposits, or other similar
regulations. No laws per se regulate acquisition and takeover
activities, and there is no antitrust law. However, the Hong Kong Code
on Takeovers and Mergers (1981) sets out general principles for
acceptable standards of commercial behavior.
With few exceptions, the Hong Kong government does not attempt to
limit the activities of foreign investors either in specified projects
or sectors. Foreign investment in Hong Kong flows freely into the
industrial sector as well as into services, franchises, restaurants, the
entertainment industry, and the ownership of property, both residential
and commercial. There are certain exceptions as indicated below:
Foreign ownership of local broadcasting stations or cable operators
may not exceed 49%.
U.S. trained doctors, nurses and psychiatrists face burdensome
licensure requirements in order to practice medicine.
Foreign lawyers are not allowed to practice Hong Kong law; foreign
law firms may now hire local lawyers, which allows them to become "full
service" firms. However, there are still impediments and disadvantages
a foreign law firm faces in trying to compete in the Hong Kong market.
In September 1994, a one-branch restriction on overseas banks
licensed after 1978 was relaxed. Overseas banks are now permitted to
set up one regional office and one back office, in separate buildings,
to conduct such activities as strategic planning, general liaison with
correspondent banks and corporate entities, and processing and
settlement of transactions already entered into by the branch office.
Moreover, foreign banks may acquire a controlling interest in a local
bank that has unlimited branching rights.
Foreign firms and individuals are freely allowed to incorporate
their operations in Hong Kong, to register branches of foreign
operations, and to set up representative offices without discrimination
or undue regulation. There is no restriction on the ownership of such
operations. Company directors are not required to be citizens of, or
resident in Hong Kong. Reporting requirements are straightforward and
not onerous.
Hong Kong's extensive body of commercial and company law generally
follows that of England and Wales, including the common law and rules of
equity. Most statutory law is made locally. The local court system
provides for effective enforcement of contracts, dispute settlement and
protection of rights, including intellectual property. Hong Kong is a
member of the World Trade Organization in its own right as a separate
customs territory -- a status it will retain after reversion to Chinese
sovereignty in 1997.
Formalities are minimal for company incorporation and business
registration. Foreign and domestic companies register under the same
rules and are subject to the same set of business regulations.
Regulations governing the relative degree of local participation in
ownership apply in broadcasting.
The Hong Kong Government's Industry Department encourages inward
investment as a means to introduce new or improved products, processes,
designs and management techniques. U.S. and other foreign firms can
participate in government financed and subsidized research and
development programs on a national treatment basis.
B. Conversion and Transfer Policies
There are no restrictions on conversion and inward or outward
transfer of funds for any purpose. The HK dollar is a freely
convertible currency that, since late 1983, has been linked to the U.S.
dollar at an exchange rate of HK$7.8 = US$1. Authorities are committed
to exchange rate stability through maintenance of the linked rate.
There is no allocation of foreign exchange; reserves at the end of 1994
totaled US$49.7 billion.
C. Expropriation and Compensation
Post is aware of no expropriation actions in the recent past.
However, expropriations of private property may occur if it is clearly
in the public interest, but only for well-defined purposes such as
implementation of public works projects. If this is the case, then
expropriations should be conducted through negotiations, and then, in a
nondiscriminatory manner in accordance with established principles of
international law. Due process and transparency of purposes are
observed. Investors in and lenders to expropriated entities receive
prompt, adequate, and effective compensation.
Property may be acquired under the Crown Land Resumption Ordinance,
the Land Acquisition Ordinance, the Mass Transit Railway (Land
Resumption and Related Provisions) Ordinance or the Roads Ordinance.
These ordinances provide for payment of compensation. If agreement
cannot be reached on the amount payable, either party can refer the
claim to the Land Tribunal for jurisdiction.
D. Dispute Settlement
Post is aware of no investor-state disputes in recent years
involving U.S. or other foreign investors or contractors and the Hong
Kong Government. Private investment disputes are normally handled in the
courts or via private negotiation. Alternatively, disputes may be
referred to the Hong Kong International Arbitration Center.
The Hong Kong Government accepts international arbitration of
investment disputes between itself and investors. Via the United
Kingdom, Hong Kong is a member of both the International Center for the
Settlement of Investment Disputes (ICSID, the Washington Convention) and
the New York Convention of 1958 on the Recognition and Enforcement of
Foreign Arbitral Awards. The local court system provides effective
enforcement of contracts, dispute settlements and protection of rights,
including intellectual property. Secured interests in property are
recognized and enforced.
Hong Kong's legal system is firmly based on the rule of law and the
independence of the judiciary. Courts of justice in Hong Kong include
the Supreme Court, which comprises the Court of Appeal and the High
Court, the District Court, the Magistrate's Court, the Coroner's Court
and the Juvenile Court. There is also a Lands Tribunal, Labor Tribunal,
and other statutory tribunals. Pursuant to the Sino-British Joint
Declaration, the power of final judgment in the HKSAR shall be vested in
a five-member Court of Final Appeal.
The Hong Kong Government owns all land in the territory. When land
is sold, it is done by way of granting a long-term lease, not by
transfer of freehold title. Local and foreign leaseholders are given
equal treatment. Under the Joint Declaration, rights under existing
leases will be protected. Up until June 30, 1997, the Hong Kong
Government may continue to create new leases which can run until 2047.
E. Political Violence
Hong Kong is economically stable and secure. The territory enjoys
an enviable reputation for tranquility. The Consulate General is not
aware of any incidents over the past few years involving politically
motivated damage to projects or installations. There has been no major
unrest in the territory since the 1967 Cultural Revolution spilled
across the border.
F. Performance Requirements/Incentives
Consistent with its generally laissez faire economic philosophy,
Hong Kong imposes no export performance or local content requirements as
a condition for establishing, maintaining or expanding a foreign
investment. Hong Kong offers no special privileges to attract foreign
investment. There are no requirements that Hong Kong residents own
shares, that foreign equity be reduced over time, or that technology be
transferred on certain terms. Such matters are left to the market.
G. Right to Private Ownership and Establishment
Hong Kong law and regulations provide for the right of foreign and
domestic private entities to establish, own and to dispose of interests
of business enterprises. Foreign investors are generally allowed to
engage in all lawful forms of remunerative activity. Restrictions on
the latter involve regulated entry of practice in the mass transit,
electric power generation, medical services, legal, telecommunications
and broadcasting sectors. The Hong Kong Government does not generally
engage directly in business activity via public enterprises, preferring
to leave this to the private sector. In general, business privileges,
franchises and land development rights are granted on the basis of
competitive equality.
H. Protection of Property Rights
The territory's commercial and company laws provide for effective
enforcement of contracts and protection of corporate rights. The
Intellectual Property Department, which includes the Trademarks and
Patents Registries, is the focal point for the development of Hong
Kong's intellectual property regime. The Customs and Excise Department
is the principal enforcement agency for intellectual property rights.
Hong Kong has acceded to the Paris Convention for the Protection of
Industrial Property, the Bern Convention for the Protection of Literary
and Artistic Works, and the Geneva and Paris Universal Copyright
Conventions. Hong Kong has developed comprehensive laws covering
trademarks, trade descriptions, copyrights, industrial designs and
patents. Hong Kong's patent and copyright laws are currently dependent
on the United Kingdom. The Registration of Patent Ordinance provides
for the registration of U.K. patents with the Hong Kong Registrar of
Patents. Patent protection extends as long as the original patent in
the U.K. Hong Kong provides full patent protection for chemical
compounds and foodstuffs. There are no restrictions on the licensing of
patents, nor is licensing compulsory.
After conducting a comprehensive review of copyright law at the
request of the Hong Kong Government, the Law Reform Commission in
January 1994 released to the Hong Kong Government its recommendations
for updating Hong Kong's copyright and design law in line with
international developments and for localizing appropriate provisions to
reflect Hong Kong's transfer of sovereignty in 1997. The Hong Kong
Government plans that English statute law which applies to Hong Kong
will be replaced by Hong Kong enactments.
Copyrights are protected under the U.K. Copyright Act and the Hong
Kong Copyright Ordinance. Foreign works are protected provided
ownership is vested in a country which is a signatory to one of the
international conventions. There is no need to register a copyright;
protection under the Copyright Ordinance is automatic. Three-
dimensional representations of two-dimensional works are protected as
are registered designs. In March 1994, legislation was enacted to
provide specific statutory protection for the layout-designs
(topographies) of integrated circuits. Most of the provisions of the
bill are based on similar legislation in the U.K. and Australia. The
bill also meets standards set out in the Treaty on Intellectual Property
in Respect of Integrated Circuits (The Washington Treaty 1989) and the
agreement on Trade Related Aspects of Intellectual Property Rights
(TRIPS).
All trademark registrations originally filed in Hong Kong are valid
for seven years and renewable for 14-year periods. Proprietors of
trademarks registered elsewhere must apply anew and satisfy all
requirements of Hong Kong law. When evidence of use is required, such
use must have been in Hong Kong. Trademarks are registered under the
Trademarks Ordinance, with provisions similar to trademarks legislation
in the United Kingdom. The Trademarks (Amendment) Ordinance, which came
into effect in 1992, extends the trademarks law to allow for
registration of trademarks relating to services.
The Patent Registry registers patents that have been granted in the
United Kingdom and European Patents registered in the United Kingdom.
Hong Kong has no specific ordinance to cover trade secrets. Under
the Trade Description Ordinance, however, the government has the duty to
protect the information being disclosed to other parties. The Trade
Description Ordinance prohibits false trade descriptions, forged trade
marks and misstatements in respect of goods supplied in the course of
trade.
The Customs and Excise Department is responsible for the
enforcement of protection for intellectual property rights. The
Department has a special IPR unit with over 100 investigators. In
addition to conducting raids on local establishments and street vendors,
this unit works closely with the Hong Kong Government anti-smuggling
task force to combat suspected smuggling operations. For 1994, there
were 1302 court cases involving copyright violations and a total of
HK$29.47 million (US$3.7 million) worth of goods seized. 1,041 cases
involving trademark violations and trade description counterfeiting were
heard in court in the same year and a total of HK$214 million (US$27.6
million) were seized.
Most pirate manufacturers have been driven out of Hong Kong in the
past several years. However, many have since re-established operations
across the border in south China. Despite numerous seizures of pirate
goods in Hong Kong and at the PRC-Hong Kong border, customs officials
are fighting an uphill battle. Software piracy continues to be a
serious problem in Hong Kong, as does compact disc music piracy. The
Hong Kong Government's enactment of substantially stiffer penalties in
1995 should help to deter retailers from carrying pirate products.
I. Regulatory System: Laws and Procedures
Hong Kong's body of law and regulation implicitly and explicitly
promotes competition in all forms of economic endeavor. The only
exceptions are those previously mentioned, where entry is restricted.
Tax, labor, health and safety and other laws and policies avoid
distortions or impediments to the efficient mobilization and allocation
of investment. Bureaucratic procedures and "red tape" are held to the
minimum and are equally transparent to local and foreign investors.
While Hong Kong's pro-business approach is almost universally applauded,
the lack of any anti-trust enforcement powers may act to curb
competition in some sectors.
J. Bilateral Investment Agreements
Hong Kong is negotiating a series of bilateral investment
agreements -- the Hong Kong Government calls them "Investment Promotion
and Protection Agreements" -- with major foreign investors. To date,
Hong Kong has signed agreements with Australia, Switzerland, the
Netherlands, Denmark, Sweden and New Zealand. The Hong Kong Government
has initialed agreements with Canada, Italy, France, Germany, Austria,
Belgium, and Vietnam. It is negotiating agreements with other
investment partners in the Asia/Pacific region. All such agreements
have been based on a model text approved by the PRC through the Sino-
British Joint Liaison Group. The United States and Hong Kong held a
first round of negotiations on a bilateral investment treaty; however,
progress has been limited over questions of format and substance.
K. OPIC and Other Investment Insurance Programs
OPIC coverage is not available in Hong Kong. Hong Kong is a member
of the Multilateral Investment Guarantee Agency (MIGA). Its membership
will continue after the territory reverts to Chinese sovereignty in
1997.
L. Labor
For most of the last decade, Hong Kong's unemployment rate hovered
around 2% as the economy continued a rapid structural transformation
from manufacturing to a financial and services center. The burgeoning
services sector easily absorbed displaced manufacturing workers.
With the recent slowdown in retail sales and restaurant receipts,
the unemployment rate in the first four months of 1995 rose to 3%, the
highest rate in nine years. As part of a package of measures introduced
in June 1995 to combat rising unemployment, the Hong Kong Government
will review its labor importation schemes by October. In the interim,
in response to union and pro-labor legislators, it stopped new quota
approvals under three labor importation programs: 1) the General
Importation of Labor Scheme for skilled and semi- skilled workers (which
has a quota of 25,000 workers), 2) construction workers for the Chek Lap
Kok airport and related infrastructure projects (with a quota of
17,000), and 3) a separate 1,000-worker quota scheme for mainland
professionals. Qualified foreign professionals, technical staff,
administrators and managerial personnel are not affected, nor are
foreign domestic helpers.
Labor-management relations are generally smooth. The average
number of days lost due to industrial conflicts is one of the lowest in
the world. In 1992, the latest year for which statistics are available,
membership in Hong Kong's 522 unions totaled 542,700, for a
participation rate of about 21%. Hong Kong has implemented 29
conventions of the International Labor Organization in full and 19
others with modifications. The PRC maintains that Hong Kong will
continue to adhere to these conventions after 1997.
M. Foreign Trade Zones/Free Ports
All of Hong Kong is a duty-free zone, as the territory is a free
port. Subject to nondiscriminatory application of excise taxes and
restricted entry in some sectors, as noted above (e.g. broadcasting,
electric power, telecommunications), local and foreign firms are free to
take advantage of investment opportunities in the territory.
N. Capital Outflow Policy
Hong Kong has no restrictions on capital outflows nor does it
maintain incentives for investment outside the territory.
O Efficient Capital Markets and Portfolio Investment
There are no impediments to the free flow of financial resources.
Laissez faire economic policies, complete freedom of capital movement
and a well-understood regulatory and legal environment have greatly
facilitated Hong Kong's growing role as a regional and international
financial center. At year-end 1994, eighty five of the world's top 100
banks operated in Hong Kong. There were 148 foreign incorporated banks
operating in the territory. Moreover, 155 subsidiaries or related
companies of foreign banks operated as restricted license banks and
deposit-taking companies. Forty-four U.S. financial institutions
maintain operations in Hong Kong. U.S. banks licensed in Hong Kong are
listed in Appendix E(f) below. Most banks in Hong Kong maintain U.S.
correspondent relationships.
Hong Kong's five largest banks and their assets are as follows:
Total Assets
Rank Institution (US$ millions)
1 Hong Kong & Shanghai 145,073
Banking Corporation (HSBC)
2 Hang Seng Bank Ltd. 35,798
3 Bank of East Asia, Ltd. 10,310
4 Dao Heng Bank 8,596
5 Nan Yang Commercial Bank 7,732
Source: KPMG Peat Marwick Banking Survey Report 1994-95
Hong Kong has a three-tier system of deposit-taking institutions:
licensed banks, restricted license banks and deposit-taking companies.
Only licensed banks can offer current (checking) or savings accounts.
The Hong Kong & Shanghai Banking Corporation (HSBC) is the territory's
largest banking group. With its majority-owned subsidiary Hang Seng
Bank, and 340 branches, the group controls more than 40% of Hong Kong
dollar deposits.
Credit is allocated strictly on market terms and is available to
foreign investors on a nondiscriminatory basis. The private sector has
access to the full spectrum of credit instruments as provided by Hong
Kong's banking and financial system. Legal, regulatory, and accounting
systems are transparent and consistent with international norms. The
Hong Kong Monetary Authority (HKMA) functions as the territory's de
facto central bank. The HKMA is responsible for maintaining the
stability of the banking system and managing the Exchange Fund backing
Hong Kong's currency -- linked to the U.S. dollar at HK$7.8 = US$1.
Stock and Futures Markets: With a total capitalization of
US$269.72 billion and 529 listed firms at year-end 1994, the Stock
Exchange of Hong Kong (SEHK) was ranked eighth in the world in terms of
capitalization and eleventh in trading volume.
There are no discriminatory legal constraints to foreign securities
firms establishing in Hong Kong via branching, acquisition, or
establishing subsidiaries. In practice, foreign firms typically
establish in Hong Kong as subsidiaries. Rules governing operations are
the same, irrespective of ownership. There are no restrictions on
cross-border capital flows.
The SEHK plays a significant role in raising capital for PRC state-
owned enterprises. A memorandum of understanding on regulatory
cooperation between PRC and Hong Kong stock and regulatory authorities
signed in June 1993 provides a framework for Chinese state enterprises
to raise equity in Hong Kong provided they meet Hong Kong regulatory and
accounting requirements. "H" shares are denominated in renminbi, but
must be purchased in Hong Kong dollars. At year-end 1994, a total of
fifteen Chinese enterprises had raised US$2.14 billion through "H" share
listings on the SEHK. Several more from a group of 22 PRC enterprises
approved to list overseas will likely apply for primary listing status
in Hong Kong.
The Hong Kong Futures Exchange Ltd. provides a market for Hang Seng
Index futures and options. In April 1995, it launched two local stock
futures contracts for HSBC Holdings, PLC and Hong Kong
Telecommunications Ltd.
The Securities and Futures Commission, an independent statutory
body outside the civil service, has licensing and supervisory powers to
ensure the integrity of markets and to protect investors. (More
detailed information on Hong Kong's securities markets is contained in
the Department of the Treasury's December 1994 National Treatment
Study.)
Portfolio investment decisions are left to the private sector.
Cross shareholding agreements have been used by at least one large Hong
Kong firm. In this well publicized case, the cross shareholding
agreement was implemented to stabilize control of its majority
shareholders and protect against all hostile takeovers, not primarily
foreign hostile takeovers. There are no laws or regulations that
specifically authorize private firms to adopt articles of
incorporation/association which limit or prohibit foreign investment,
participation or control.
P. Major Foreign Investors /1/
United States: Motorola, Digital Equipment Corp., Sea-land, Exxon,
Citibank, Caltex, AT&T, IBM, Kodak, Bank of America, Dun and Bradstreet,
American International Group, Coca-Cola, Pepsi-Co.
Japan: Kumagai Gumi, Yaohan, Jusco, Daimaru, Mitsubishi, Uny,
Nishimatsu, Seibu, Daido Concrete, C. Itoh.
United Kingdom: Inchcape Pacific, Cable and Wireless, Hong Kong
and Shanghai Banking Corporation, Standard Chartered Bank, Jardine
Matheson, Swire Pacific Group, P & O Shipping.
West Europe: Carlsberg (Denmark), Hong Kong Petrochemicals
(Italian/Korean/Chinese joint venture), Siemens, Heraeus (Germany),
Philips (Netherlands); Bouygues/Dragages, Bachy-Soletanches, Banque
National de Paris, Banque Indosuez, Chanel, Cartier, Christian Dior,
Remy (France), Erikson, Asea Brown Boveri, Tetrapak, Electrolux
(Sweden).
China: China Investment and Trust Corporation (CITIC), China
Resources, China Merchants, Bank of China, China Travel Services, China
Overseas Construction, Guangdong Enterprises, Yue Xiu Enterprises, China
Everbright.
Asia: San Miguel Brewery (Philippines), News Corp., Pioneer
(Australia), Sime Darby, Shangri-la/Kerry Trading (Malaysia), Park View
Properties (Taiwan), Lippo Group (Indonesia), C.P. Pokphand, Chai Thai
(Thailand).
/1/NOTE: This list is not in rank order nor is it comprehensive as Hong
Kong does not register foreign investment.
CHAPTER VIII. TRADE AND PROJECT FINANCING
A. Brief Description of Banking System
Hong Kong has an open financial system, with no controls on currency
movements. A more complete description is contained in VII (O)
B. Foreign Exchange Controls affecting trading
The local currency, the Hong Kong Dollar (HK$), is freely convertible
and there are no foreign exchange controls.
C. General Financing Availability
Commercial trade financing is readily available in Hong Kong for
qualified customers. Bank loans have been increasing at double digit
rates over the past five years. All licensed banks are authorized to
provide loans to residents and non-residents in the currency of their
choice. Letters of credit and other financial instruments are widely
used to protect participants in trade arrangements. All banks maintain
close working relationships with correspondent banking institutions.
The financial system is highly developed and efficient.
D. How to Finance Exports/Methods of Payment
The preferred method of quoting is "CIF" or "C and F" in HK$. The U.S.
dollar and other freely convertible currencies may be accepted for bids
and pro forma invoicing. Terms of payment depend on the relative
negotiating strength of the buyers and sellers. U.S. suppliers should
seek to obtain letters of credit or sight draft terms when dealing with
buyers who are not well known to them. Asking for a letter of credit is
a standard business practice, and your potential customer will not
interpret this as a sign of mistrust.
The importance of trade finance to the territory has resulted in a high
level of bank efficiency in providing import payment services. Letters
of credit, document collection and international remittance are widely
available. All licensed banks are authorized to provide loans to
residents and nonresidents. Risk of financing receivables can be
readily evaluated via locally available credit information. Prospective
exporters should make use of banking relationships to determine credit
risk.
E. Types of Available Export Financing and Insurance
The U.S. ExIm Bank offers both trade financing and insurance for U.S.
exports. Commercial vendors are also readily available.
F. Project Financing Availability
Hong Kong is not a recipient of official development assistance.
Projects are financed on commercial terms. U.S. Trade and Development
Agency programs are available for Hong Kong. Hong Kong is also a major
center for commercial project financing for China.
G. List of Banks with Correspondent U.S. Banking Arrangements
The list of Hong Kong based banks with correspondent U.S. banking
arrangements is too large to include here. Appendix E(f) provides a
list of U.S. banks licensed in Hong Kong. Hong Kong's five largest
local banks are indicated in Section VII (O), above.
CHAPTER IX. BUSINESS TRAVEL
A. Business Customs
Over the years, Hong Kong has developed as a unique society based
on Chinese tradition and western technology. It is a society which
practices religious and racial tolerance. Above all, it is a society
that emphasizes hard work and success.
Americans encounter few if any cultural problems when conducting
business in Hong Kong. Americans should be aware that Hong Kong people
tend to be more formal than many Americans. Business acquaintances are
addressed as Mr. or Ms. unless they state that their first name should
be used. Business cards are exchanged frequently and the exchange
should be fairly formal: the card should be accepted with both hands and
a moment taken to read it carefully. "Face" is very important, and
problems or areas of disagreement are handled indirectly to avoid loss
of "face." While a study of local customs and practices may be helpful,
most people in Hong Kong are sufficiently familiar with Western customs
that they are tolerant of cultural differences. Business contacts
should be treated the same as a formal business relationship in the U.S.
Western business attire (suit and tie for men, business suits for women)
is appropriate.
B. Travel Advisory and Visas
Visas allowing residence and local employment for expatriates are
granted on the basis of simple, comprehensible procedures, are handled
in a timely manner and managed in a way that is consistent with the
interests of employees. There are no quotas, bonds, or guarantees
required. All residents are equal under the law, enjoy freedom of
movement, access to public education, and basic civil freedoms.
Visiting Americans generally fit in well. Most Hong Kong business
executives speak excellent English, and are accustomed to dealing with
Westerners.
C. Holidays
1995
August 28 Liberation Day
November 1 Chung Yeung Festival
December 25 Christmas Day
December 26 First week-day after Christmas Day
1996
January 1 First week-day after New Year's Day
February 19 Lunar New Year's Day
February 20 The second day of Lunar New Year
February 21 The third day of Lunar New Year
April 4 Ching Ming Festival
April 5 Good Friday
April 6 The day following Good Friday
April 8 Easter Monday
June 15 The Birthday of Her Majesty the Queen
June 17 The Monday following the Queen's Birthday
June 20 Dragon Boat Festival
August 24 The Saturday preceding the last Monday in August
August 26 Liberation Day, being the last Monday in August
September 28 The day following the Chinese Mid-Autumn Festival
October 21 The day following Chung Yeung Festival
December 25 Christmas Day
December 26 First week-day after Christmas Day
D. Business Infrastructure (eg. transportation, language,
communications, housing, health, food)
Housing, food, telecommunications, transportation and healthcare
are all available at levels comparable to major American cities. Hong
Kong is one of the most expensive cities in the world, especially for
housing, but it is also a very efficient city making it possible to
accomplish a great deal in a short time.
Your business partners will almost always speak English, and will
negotiate on a very business-like basis.
CHAPTER X. APPENDICES
APPENDIX A -- COUNTRY DATA
a. Population: 6.06 million (mid-year 1995)
b. Population Growth Rate: 2.4%
c. Religion(s): Buddhist, Taoist, Christian, small numbers of Moslems,
Hindus, Jews, and Sikhs.
d. Government System: Colonial administration by the United Kingdom;
territory reverts to Chinese sovereignty July 1, 1997.
e. Language(s): English and Cantonese are the languages of
administration and commerce. Mandarin Chinese is becoming increasingly
common.
f. Work Week: Business hours are 9 to 5, Monday through Friday.
Saturday has traditionally been a half day but, due to the competition
to keep staff, many companies now advertise a 5 day workweek.
APPENDIX B -- DOMESTIC ECONOMY
(US$ Millions, unless otherwise noted)
(Projected) (Projected)
1994 1995 1996
a. GDP (current) 131,855 149,655 164,001
b. Real GDP Growth 5.5 5.5 5.4
c. GDP Per Capita (dollars)
(current prices) 21,750 24,100 26,343
d. Government Spending
as % of GDP (FY) 16.8 17.6 17.5
e. Inflation (%) 8.5 9.0 8.7
f. Unemployment (%) 2.0 2.9 3.3
g. Foreign Exchange Reserves 49,276 54,000 59,000
h. Average Exchange Rate
for US$1.00 7.728 7.728 7.730
i. Debt Service Ratio* N/A N/A N/A
j. U.S. Military/Economic Assistance N/A N/A N/A
Source: 1994: Hong Kong Government
1995 and 1996 are unofficial U.S. Consulate General projections
* Hong Kong has no foreign debt.
APPENDIX C -- TRADE
(US$ Millions, unless otherwise noted)
(Projected) (Projected)
1994 1995 1996
a. Total Country Exports
Total Exports
(including re-exports) 151,399 172,443 189,331
of which: Domestic Exports 21,965
b. Total Country Imports
Total Imports 162,322 183,910 203,460
of which: Retained Imports 71,590
c. U.S. Exports
U.S. Exports to Hong Kong 11,561 12,948 14,255
d. U.S. Imports
Hong Kong Exports to the U.S.
(domestic exports) 7,948 8,106 7,947
(re-exports) 27,184 31,805 35,910
e. U.S. Share of Host-country
Imports (%) 7.1 7.1 7.4
Note 1: Projections for 1995 and 1996 are unofficial U.S. Consulate
General Estimates
Note 2: The above statistics are based on official Hong Kong Government
trade statistics. U.S. Department of Commerce statistics show U.S.
exports to Hong Kong in 1994 of $11.5 billion, and imports from Hong
Kong of $9.7 billion.
Source: Hong Kong Government Census and Statistics Department
f. Trade Balances with Three Leading Partners in US$ Millions.*
1993 1994
China -8,303 -11,262
Japan -16,055 -16,800
USA -2,472 -3,313
* Domestic Exports minus Imports (Imports include both retained and non-
retained imports).
Source: Hong Kong Government
g. Principal U.S. Exports (five)
(by tariff line item in US$ Millions)
1994 1995*
HS 8542 - Electronic Integrated Circuits 1,355 384
HS 7108 - Gold 825 222
HS 8471 - Automatic Data Process Machines 485 121
HS 7102 - Diamonds 406 125
HS 8703 - Motor Cars & Vehicles 356 117
h. Principal U.S. Imports (five)
(by tariff line item in Million US$)
HS 6110 - Sweaters 1,062 168
HS 6204 - Women's or Girls' Suits 710 200
HS 8542 - Electronic Integrated Circuits 616 176
HS 8473 - Office Machinery 433 89
HS 6205 - Men's or Boys' Suits 375 80
* Remark: 1995 - Data from January to March.
Source: U.S. Government Statistics
g. Agricultural Trade
(Projected) (Projected)
1994 1995 1996
1. Total Exports 4,400 5,000 5,200
2. Total Imports 9,000 9,200 9,350
3. Exports to the U.S. 420 450 480
4. Imports from the U.S. 1,700 1,970 2,210
5. U.S. Share of Host-country
Imports (%) 17 16 18
6. U.S. Products Projected
Growth Rate (%) 7 9 11
7. Agricultural Goods Trade
Balance with U.S. -1,280 -1,100 -1,300
APPENDIX D -- FOREIGN INVESTMENT STATISTICS
TABLE 1
Overseas Investment in Hong Kong
Manufacturing Number, Cumulative Values, and Employment in 1993
(Major Source Countries)
Number of Investment Number of
Country Investments (US$ Million) Employees
Japan 147 1,788 19,292
U.S.A. 89 1,474 18,499
China 37 565 6,099
Netherlands 12 213 9,319
U.K. 46 200 4,231
Switzerland 23 169 3,076
Singapore 20 79 2,567
Others 133 653 3,239
--- ----- ------
TOTAL 507 5,141 66,322
Source: Tables 1-6, 1994 Survey of Overseas Investment in Hong Kong's
Manufacturing Industries, Hong Kong Government Industry Department.
Notes: Investment refers to total investment at original cost which
includes stock of fixed assets at original cost plus working capital.
Exchange rate used US$1 = HK$7.8
The Hong Kong Government gathers statistics on foreign direct investment
only in the manufacturing sector. Data for United States' total inward
investment is from U.S. Department of Commerce statistics. No official
statistics are available on the amount of PRC investment in Hong Kong,
estimated at between US$20 - US$25 billion at the end of 1994.
TABLE 2
Overseas Manufacturing Investment in Hong Kong
By Industry, 1991, 1992, and 1993
US$ Millions (%)
Industry 1991 1992 1993
Electronics 1,429 (32) 1,510 (31) 1,582 (30.2)
Textiles and Clothing 410 (9) 530 (11) 505 (9.6)
Electrical Products 575 (13) 534 (11) 480 (9.2)
Chemical Products 225 (5) 277 (6) 447 (8.5)
Food and Beverages 215 (5) 335 (7) 361 (6.9)
Printing and Publishing 191 (4) 184 (4) 252 (4.8)
Transport Equipment 176 (4) 180 (4) 185 (3.5)
Watches and Clocks 138 (3) 190 (4) 163 (3.1)
Others 1,068 (25) 1,076 (22) 1,267 (24.2)
---------- ---------- ------------
TOTAL: 4,427 4,816 5,242
Note: Figures in parentheses denote percentage share of annual stock of
investment.
TABLE 3
U.S. Manufacturing Investment in Hong Kong
By Industry
US$ Millions (%)
Industry 1991 1992 1993
Electronics 675 (54) 713 (54.6) 848 (57.5)
Electrical Products 183 (15) 194 (15) 123 (8.4)
Chemical Products 100 (8) 105 (8) 121 (8.2)
Metal Products 65 (5) 67 (5) 71 (4.8)
Textiles and Clothing 46 (4) 64 (5) 115 (7.8)
Paper Products N/A 23 (1.8) 29 (1.9)
Plastic Products 18 (2) 21 (1.6) 24 (1.6)
Food and Beverages N/A 19 (1.4) 19 (1.3)
Printing and Publishing 18 (2) 11 (1) N/A
Jade and Jewelry 15 (1) 6 (0.6) 5 (0.3)
Others 120 (9) 82 (6) 121 (8.2)
------- ------ ---------
TOTAL 1,240 1,305 1,476
TABLE 4
Japanese Manufacturing Investment in Hong Kong
by Industry
US$ Millions (%)
Industry 1991 1992 1993
Electronics 324 (26) 469 (32) 462 (25.8)
Electrical Products 204 (16) 241 (17) 292 (16.3)
Textiles and Clothing 115 (9) 121 (9) 155 (8.7)
Watches and Clocks 177 (14) 36 (10) 150 (8.4)
Photographic and
Optical Goods 59 (5) 95 (7) 95 (5.3)
Printing and Publishing 82 (7) 59 (4) 100 (5.6)
Food and Beverages N/A 53 (4) 114 (6.4)
Basic Metal N/A 28 (2) 46 (2.6)
Chemical Products N/A N/A 22 (1.2)
Others 289 (23) 209 (15) 353 (19.7)
-------- -------- ----------
TOTAL 1,250 1,311 1,789
TABLE 5
Chinese Manufacturing Investment in Hong Kong
by Industry US$ Millions (%)
Industry 1991 1992 1993
Tobacco N/A N/A N/A
Transport Equipment 270 (56) 355 (67) 373 (65.9)
Electronics 67 (14) 54 (10) 34 (6.1)
Textiles and Clothing 42 (9) 39 (7) N/A
Metal Products 21 (4) 23 (4) N/A
Electrical Products 12 (3) 14 (3) 17 (3.0)
Plastic Products 28 (6) 12 (2) 62 (11.1)
Chemical Products 10 (2) 10 (2) 39 (6.8)
Others 32 (6) 27 (5) 40 (7.1)
-------- -------- -----------
TOTAL 482 534 565
TABLE 6. Dutch Manufacturing Investment in Hong Kong
by Industry US$ Millions (%)
Industry 1993
Electronics 143 (67.8)
Electrical Products 52 (24.7)
Chemical Products 16 (7.5)
----------
TOTAL 211 (100)
Note: 1992 Dutch industrial investment statistics for Hong Kong not
available.
TABLE 7. Amount and Growth of U.S. Direct Investment in Hong Kong
1992/93/94 US$ Millions
% Change
Category 1992 1993 1994 1994/93
Petroleum 450 496 552 11.3
Manufacturing 1,433 1,624 1,902 17.1
Wholesale 2,804 3,370 4,209 24.9
Banking 914 1,016 1,094 7.7
Financial/Insurance 2,335 2,781 3,013 8.3
Services 312 414 698 68.6
Others 483 475 517 8.8
----- ------ ------ ------
TOTAL 8,731 10,176 11,985 17.8
Note 1: Breakdown of 1994 U.S. Foreign Overseas Investment in Hong
Kong not available at time of publication.
Note 2: U.S. Department of Commerce estimates total U.S. direct
investment position in Hong Kong at historical cost (the book value of
U.S. direct investors' equity in, and net outstanding loans to, their
foreign affiliates) at year-end 1993 was US$10.5 billion.
Source: Survey of Current Business June 1995.
Direct Investment Positions on a Historical Costs Basis, 1994.
Country and Industry Detail.
TABLE 8. Japanese Direct Foreign Investment in Hong Kong
Yearly Flows, 1990-1993, US$ Millions
Year Amount
1990 1,785
1991 925
1992 735
1993 1,238
1994 1,133
------
Cumulative Total (since 1951) 13,151
Source: Japan Ministry of Finance. Figures are direct investment
flows per Japanese Fiscal Year (April 1 to March 31).
TABLE 9. Japanese Direct Investment in Hong Kong
Sectional Breakdown for 1990 and 1994 US$ Millions
Sectors 1990 1994
Manufacturing 113.5 215
Banking/Insurance 398 429
Commerce 752 180
Services 102 68
Real Estate 348 53
Transport 31 37
Others 36 147
------- -----
TOTAL 1,780.5 1,129
Source: Japanese Ministry of Finance.
TABLE 10. Hong Kong Overseas Direct Investment
in Selected Economies 1993-1994
US$ Millions
Destinations 1993 (Stock) 1994 (Stock)
Indonesia 7,600 13,700
Thailand 2,100 N/A
Malaysia 780 N/A
Taiwan 1,900 N/A
Vietnam 1,200 1,600
United States 2,000 N/A
Source: Recipient Government Statistics.
TABLE 11. Hong Kong's Direct Investment in China
US$ Billions
Hong Kong's Hong Kong's Share Hong Kong's
Pledged Foreign in China's Total Actual Direct
Direct Investment Direct Investment Investment
1990 3.8 58 Percent 1.9
1991 7.2 60 Percent 2.4
1992 40 69 Percent 2.5
1993/1/ 74 66 Percent 17.2
1994 49 60 Percent 20.0
1979-94 200 60 Percent 60.0
Source: PRC Ministry of Foreign Trade and Economic Cooperation.
Hong Kong Government estimates.
APPENDIX E -- U.S. AND COUNTRY CONTACTS
a. U.S. Consulate General Trade-Related Contacts
Foreign Commercial Service -- Hong Kong
Sr. Commercial Officer David Katz U.S. Consulate General
Tel: (852) 2521-1467 26 Garden Road
Fax: (852) 2845-9800 Hong Kong
Commercial Officer Ira Kasoff U.S. Consulate General
Tel: (852) 2521-1467 26 Garden Road
Fax: (852) 2845-9800 Hong Kong
Commercial Officer Rosemary Gallant U.S. Consulate General
Tel: (852) 2521-1467 26 Garden Road
Fax: (852) 2845-9800 Hong Kong
U.S. Consulate General Economic/Political Section
Chief Douglas Spelman U.S. Consulate
General Economic-
Political Section
Tel: (852) 2841-2101 26 Garden Road
Fax: (852) 2526-7382 Hong Kong
Foreign Agricultural Service -- Hong Kong
Agricultural Trade Officer LaVerne E. Brabant U.S. Consulate
General
Tel: (852) 2841-2350 26 Garden Road
Fax: (852) 2845-0943 Hong Kong
Asst. Agricultural Garth Thorburn U.S. Consulate
General Trade
Officer
Tel: (852) 2841-2350 26 Garden Road
Fax: (852) 2845-0943 Hong Kong
Department of Commerce -- International Trade Administration
Country Desk Officer Sheila Baker U.S. Department of
Tel: 1 (202) 482-3932 Commerce
Fax: 1 (202) 482-1576 Room 2317
Office of China, Hong
Kong and Mongolia
Herbert C. Hoover Bldg.
14th & Constitution Ave, NW
Washington, D.C. 20230
U.S.A.
US&FCS Director Herbert Cochran U.S. Department
of East Asia and Pacific Tel: 1 (202) 482-2422 Commerce
Fax: 1 (202) 482-5179 Room 1229
Office of International
Operations
Herbert C. Hoover Bldg.
14th & Constitution Ave,
NW
Washington, D.C. 20230
U.S.A.
Department of State
Country Desk Officer Ted Allegra U.S. Department of State
Tel: 1 (202) 647-6802 Office of Chinese and
Fax: 1 (202) 647-6820 Mongolian Affairs
Room 4318
Washington, D.C. 20520
U.S.A.
Special Advisor to the Kathleen Harrington East Asian and Pacific
Assistant Secretary Tel: 1 (202) 647-6904 Affairs
and Coordinator for U.S. Department of State
Commercial Affairs Washington, D.C. 20520
U.S.A.
b. American Chamber of Commerce and/or Bilateral Business Councils
American Chamber of Commerce -- Hong Kong
Frank G. Martin, President
1030 Swire House
Central
Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289
c. Country Trade or Industry Associations in Key Sectors
American Chamber of Commerce - Hong Kong
1030 Swire House
Central
Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289
Association of Building Management
G.P.O. Box 13012
Hong Kong
Tel: (852) 2679-5744
Fax: (852) 2679-5753
Chartered Institution of Building Services Engineers
(Hong Kong Advisory Panel)
P.O. Box 20342, Hennessy Road Post Office
Hong Kong
Tel: (852) 2766-5849
Fax: Nil
Chartered Institute of Building (Hong Kong Branch)
G.P.O. Box 9874
Hong Kong
Tel: (852) 2365-8666
Fax: (852) 2364-0185
Chinese General Chamber of Commerce, Hong Kong
7th Floor, 24-25 Connaught Road
Central
Hong Kong
Tel: (852) 2525-6385
Fax: (852) 2845-2610
Chinese Manufacturers' Association of Hong Kong
CMA Building
64-66 Connaught Road
Central
Hong Kong
Tel: (852) 2542-8600
Fax: (852) 2541-4541
Computer Club Hong Kong Ltd.
Room 9A, 9/F.
Go-Up Commercial Bldg
998 Canton Road
Mongkok, Hong Kong
Tel: (852) 2374-1328
Fax: (852) 2374-0859
The Cosmetic & Perfumery Association of Hong Kong Ltd.
Room 308 Winning Commercial Building
46-48 Hillwood Road
Tsimshatsui, Hong Kong
Tel: (852) 2366-8801
Fax: (852) 2312-0348
Federation of Hong Kong Industries
4th Floor, Hankow Center
5-15 Hankow Road, Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2732-3188
Fax: (852) 2721-3494
Graphic Arts Association of Hong Kong Ltd.
Block C, Room 1625
16/F. Metropole Building
416 King's Road
North Point, Hong Kong
Tel: (852) 2408-1515
Fax: (852) 2856-9765
Hong Kong Air Traffic Control Association
Air Traffic Management Division
Civil Aviation Department
Hong Kong International Airport
Kowloon, Hong Kong
Tel: (852) 2769-8322
Fax: (852) 2362-8101
Hong Kong Association for the Advancement of Science & Technology
2A, Tak Lee Commercial Bldg.
113-117 Wanchai Road
Wanchai, Hong Kong
Tel: (852) 2891-3388
Fax: (852) 2838-1823
Hong Kong Association of Certification Laboratories Ltd.
1/F. CMA Bldg
64-66 Connaught Road
Central, Hong Kong
Tel: (852) 2542-8620
Fax: (852) 2541-4541
Hong Kong Association of Energy Engineers Ltd.
10/F. Dah Sing Financial Center
108 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2507-7777
Fax: (852) 2507-7700
Hong Kong Association of the Pharmaceutical Industry
Room 2, 10/F. Sincere Insurance Building
4-6 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2528-3061
Fax: (852) 2865-6283
Hong Kong Aviation Club Ltd.
Sung Wong Toi Road
Kowloon, Hong Kong
Tel: (852) 2713-5171
Fax: (852) 2761-9511
The Hong Kong Chinese Importers' & Exporters' Association
7-8th Floors, Champion Building
287-291 Des Voeux Road
Central, Hong Kong
Tel: (852) 2544-8474, 2545-5998
Fax: (852) 2544-4677
Hong Kong Computer Society
Unit D, 1/F. Luckifast Bldg
1 Stone Nullah Lane
Wanchai, Hong Kong
Tel: (852) 2834-2228
Fax: (852) 2834-3003
Hong Kong Construction Association Ltd.
3/F. 180-182 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2572-4414
Fax: (852) 2572-7104
The Hong Kong Electronics Association
Unit 208-209, HK Industrial Technology Center
72 Tat Chee Ave., Kowloon
Hong Kong
Tel: (852) 2778-8328
Fax: (852) 2788-2200
Hong Kong Federation of Insurers
9th Floor, First Pacific Bank Center
56 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2520-1868
Fax: (852) 2520-1967
The Hong Kong General Chamber of Commerce
22nd Floor, United Center
95 Queensway
Hong Kong
Tel: (852) 2529-9229
Fax: (852) 2527-9843, 2866-2035
Hong Kong Industry & Commerce General Association Ltd.
Room 7, 2nd Floor, Fu Yip Building
21-27 Station Lane
Hung Hom
Kowloon, Hong Kong
Tel: (852) 2764-4321
Fax: (852) 2764-4144
Hong Kong Information Technology Federation Ltd.
Suite 25A, One Capital Place
18 Luard Road
Wanchai, Hong Kong
Tel: (852) 2527-2127
Fax: (852) 2527-1960
Hong Kong International Aerospace Forum
c/o Sabb Aircraft International Ltd
606 Peregrine Tower
Lippo Center
89 Queensway
Hong Kong
Tel: (852) 2810-4220
Fax: (852) 2810-4135
Hong Kong Medical Association
5/F., Duke of Windsor Social Service Building
15 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2527-8285
Fax: (852) 2865-0943
Hong Kong PATA (Pacific Asia Travel Association) Chapter
Room 1003, Tung Ming Building
40 Des Voeux Road
Central, Hong Kong
Tel: (852) 2869-8624
Fax: (852) 2869-8632
Hong Kong Pharmaceutical Manufacturers Association Ltd.
c/o Neochem Pharmaceutical Laboratories Ltd.
5B Cheung Wah Industrial Building
10-12 Shipyard Lane
Quarry Bay, Hong Kong
Tel: (852) 2562-6255
Fax: (852) 2563-4018
Hong Kong Plastic Material Suppliers Association
5/F. Interlanche House
39-41 Hankow Road
TST, Hong Kong
Tel: (852) 2375-2686
Fax: (852) 2317-1129
Hong Kong Plastic Technology Center Ltd.
U509 Hong Kong Polytechnic
Hung Hom
Kowloon, Hong Kong
Tel: (852) 2766-5577
Fax: (852) 2766-0131
Hong Kong Printers Association
1/F. 48-50 Johnston Road
Wanchai, Hong Kong
Tel: (852) 2527-5050
Fax: (852) 2861-0463
Hong Kong Productivity Council
Electronics Services Division
HKPC Building
78 Tat Chee Ave.
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5770
Hong Kong Telecom Association
GPO Box 13461
Hong Kong
Tel: (852) 2881-2333
Fax: (852) 2881-2332
Hong Kong Trade Development Council
36-39th Floors, Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
Hong Kong/United States Economic Co-operation Committee
c/o Hong Kong Trade Development Council
39th Floor, Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2573-0249
Office of the Telecommunications Authority
29th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6333
Fax: (852) 2803-5110
Pharmaceutical Trade Federation Ltd.
Room 3905, 39/F. Hong Kong Plaza
186-191 Connaught Road West
Hong Kong
Tel: (852) 2548-0068
Fax: (852) 2559-5689
Society of Builders Hong Kong
Rm 801-802, On Lok Yuen Building
25 Des Voeux Road
Central, Hong Kong
Tel: (852) 2523-2081
Fax: (852) 2845-4749
Travel Industry Council of Hong Kong
Room 1706-1709, Fortress Tower
250 King's Road
North Point, Hong Kong
Tel: (852) 2807-1199
Fax: (852) 2510-9907
World Energy Council Member Committee of Hong Kong
c/o China Light & Power Co. Ltd.
147 Argyle Street
Kowloon, Hong Kong
Tel: (852) 2760-6111
Fax: (852) 2760-4448
d. Country Government Offices Relating to Key Sectors and/or
Significant Trade Related Activities
Government & Quasi Government Offices Relating to Key Sectors
Buildings Department
3rd-12th Floors, Murray Building
Garden Road
Central, Hong Kong
Tel: (852) 2848-2327
Fax: (852) 2840-0451
Census & Statistics Department
16th-22nd Floors, Wanchai Tower
12 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2582-4807
Fax: (852) 2802-4000
Civil Aviation Department
46th Floor, Queensway Government Offices
66 Queensway
Hong Kong
Tel: (852) 2867-4332
Fax: (852) 2869-0093
Consumer Council
22nd Floor, K. Wah Center
191 Java Road
North Point, Hong Kong
Tel: (852) 2856-3113
Fax: (852) 2856-3611
Customs & Excise Department
6th-9th Floors, Harbor Building
38 Pier Road
Central, Hong Kong
Tel: (852) 2852-1411
Customs & Excise Department
Intellectual Property Investigation Bureau
6th-9th Floors, Harbor Building
38 Pier Road
Central, Hong Kong
Tel: (852) 2852-1411
Drainage Services Department
43rd Floor, Revenue Tower
5 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2877-0660
Fax: (852) 2827-8605
Electrical & Mechanical Services Department
98 Caroline Road
Causeway Bay, Hong Kong
Tel: (852) 2895-8620, (852) 2895-8817
Fax: (852) 2890-7493
Environmental Protection Department
24th-28th Floors, Southorn Center
130 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2835-1018
Fax: (852) 2838-2155
Government Supplies Department
12 Oil Street
North Point, Hong Kong
Tel: (852) 2802-6104
Fax: (852) 2887-6591
Department of Health
17th & 21st Floors, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-8989
Fax: (852) 2836-0071
Industry Department
14th Floor, Ocean Center
5 Canton Road
Tsimshatsui, Hong Kong
Tel: (852) 2737-2208
Fax: (852) 2730-4633
Industry Department
Technology Development Division
14th Floor, Ocean Center
5 Canton Road
Tsimshatsui, Hong Kong
Tel: (852) 2737-2216
Fax: (852) 2377-0730
Office of the Commissioner of Insurance
21st Floor, Queensway Government Offices
66 Queensway
Central, Hong Kong
Tel: (852) 2867-2565
Fax: (852) 2869-0252
Intellectual Property Department
24th & 25th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6810
Fax: (852) 2838-6276
Hong Kong Productivity Council
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5900
Hong Kong Trade Development Council
38th Floor, Office Tower
Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
Hospital Authority
25th Floor, World Trade Center
Causeway Bay, Hong Kong
Tel: (852) 2805-6555
Fax: (852) 2890-5969, (852) 2881-8058
Provisional Airport Authority
25th Floor, Central Plaza
18 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2824-7111
Fax: (852) 2802-7703
Office of the Telecommunications Authority
29th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6333
Fax: (852) 2803-5110
Trade Department
Ground Floor, Trade Department Tower
700 Nathan Road
Kowloon, Hong Kong
Tel: (852) 2398-5333
Fax: (852) 789-2491, (825) 395-3182
e. Country Market Research Firms
International Data Corporation China/Hong Kong Ltd.
Suite 3004 Universal Trade Center
3 Arbuthnot Road
Central
Hong Kong
Tel: (852) 2530-3831
Fax: (852) 2547-0154
Lou Rauscher Associates
Block A 1313 Hoi Luen Industrial Center
55 Hoi Yuen Road
Kwun Tong
Kowloon, Hong Kong
Tel: (852) 2341-6256
Fax: (852) 2341-6643
Asian Strategies Ltd.
4404 China Resources Bldg.
26 Harbor Road
Wanchai
Hong Kong
Tel: (852) 2827-4627
Fax: (852) 2827-6097
Dataquest Hong Kong
2E04 HKPC Building
78 Tat Chee Avenue
Kowloon, Hong Kong
Tel: (852) 2788-5432
Fax: (852) 2788-5433
Hong Kong Productivity Council
Marketing Group
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5042
Macneil Pacific Ltd.
10th Floor, Allied Capital Resources Bldg.
32-38 Ice House Street
Central
Hong Kong
Tel: (852) 2521-1676
Fax: (852) 2845-2950
Boston Consulting Group, The
Room 1603-6 Times Square
Shell Tower
1 Matheson Street
Causeway Bay
Hong Kong
Tel: (852) 2506-2111
Fax: (852) 2506-9084
Nomura Research Institute (HK) Ltd.
20/F, Citibank Tower
3 Garden Road
Central
Hong Kong
Tel: (852) 2536-1800
Fax: (852) 2536-1818
Ogilvy & Mather (Asia) Pte. Ltd.
8th Floor, Mount Parker House
Taikooshing
Quarry Bay
Hong Kong
Tel: (852) 2568-0161
Fax: (852) 2567-7240
Researchasia Ltd.
1st Floor, China-Hong Kong Tower
8-12 Hennessy Road
Wanchai
Hong Kong
Tel: (852) 2527-7881
Fax: (852) 2520-0079
Win Concept Consulting Company
Unit 2911, 29th Floor
Metroplaza, Tower II
Hing Fong Road
Kwai Chung
Hong Kong
Tel: (852) 2410-8618
Fax: (852) 2426-1233
Survey Research HK Ltd. (SRH Ltd.)
7th Floor, Warwick House, East Wing
979 King's Road
Quarry Bay
Hong Kong
Tel: (852) 2880-3388
Fax: (852) 2565-0418
SRG China (Survey Research Group)
26th Floor Devon House
979 King's Road
Quarry Bay
Hong Kong
Tel: (852) 2856-7333
Fax: (852) 2516-6856
Pacific Rim Consulting Group
8th Floor, California Tower
30-32 D'Aguilar Street
Central
Hong Kong
Tel: (852) 2526-4061
Fax: (852) 2810-4845
International Market Research (HK) Ltd.
2803 Admiralty Center Tower
Hong Kong
Tel: (852) 2529-0356
Fax: (852) 2861-3420
Salem & Associates
University Heights
D3/6th Floor
42-44 Kotewall Road
Hong Kong
Tel: (852) 2517-0043
Fax: (852) 2517-8614
f. Country Commercial Banks
(Licensed U.S. Commercial Banks)
American Express Bank Ltd.
35th Floor, One Pacific Place
88 Queensway
Hong Kong
Tel: (852) 2844-0688
Fax: (852) 2845-3637
Bank of America NT & SA
1st Floor, Bank of America Tower
12 Harcourt Road
Hong Kong
Tel: (852) 2847-5333
Fax: (852) 2847-5410
Bank of California, The
1006-8, 10th Floor Asia Pacific Finance Tower
Citibank Plaza
3 Garden Road
Hong Kong
Tel: (852) 2826-0600
Fax: (852) 2877-2666
Bank of New York, The
7th Floor, New Henry House
10 Ice House Street
Hong Kong
Tel: (852) 2840-9888
Fax: (852) 2810-5279
Bankers Trust Company
36th Floor, Two Pacific Place
88 Queensway, Hong Kong
Tel: (852) 2533-8000
Fax: (852) 2845-1868
Chase Manhattan Bank NA, The
12th Floor, World Trade Center
280 Gloucester Road
Hong Kong
Tel: (852) 2837-5111
Fax: (852) 2837-5099
Citibank NA
40-50 Floors, Citibank Tower Citibank Plaza
3 Garden Road, Central
Hong Kong
Tel: (852) 2868-8888
Fax: (852) 2868-8111
First National Bank of Boston, The
Suites 801-809 Jardine House
Connaught Place
Central
Hong Kong
Tel: (852) 2526-4361
Fax: (852) 2845-9222
First National Bank of Chicago, The
13th Floor, Jardine House
1 Connaught Place
Hong Kong
Tel: (852) 2844-9222
Fax: (852) 2844-9318
NBD Bank, NA
Room 804 Lippo Tower Lippo Center
89 Queensway
Hong Kong
Tel: (852) 2523-1189
Fax: (852) 2810-6582
Norwest Bank Minnesota, NA
4102-3 Central Plaza
18 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2519-2500
Fax: (852) 2827-8290
Note: This list does not include U.S. restricted license banks, deposit
taking companies, and representative offices
g. TPCC Trade Information Center in Washington
Trade Information Center (TIC)
Tel: 1-800-USA-TRADE (1-800-872-8723)
Fax: (202) 482-4473
TIC specialists provide basic export counseling and information on
export services and programs offered by 19 federal agencies of the Trade
Promotion Coordinating Committee (TPCC). The annual report of the TPCC,
"The National Export Strategy", designates "the Trade Information
Center, situated in the U.S. Department of Commerce, as the single TPCC-
wide information office that will coordinate specialized non-
agricultural export information offices."
h. U.S. Department of Agriculture
Trade Assistance and Planning Officer
Ms. Margaret Thursland
Room 4939, South Building
14th & Independence, SW
Washington D.C. 20250-1000
Tel: (202) 690-0519
Fax: (202) 690-4374
Area Officer
Ms. Robin Tilsworth
Room 5092, South Building, USDA
14th & Independence, SW
Washington D.C. 20250-1000
Tel: (202) 720-3253
Fax: (202) 720-6138
APPENDIX F -- MARKET RESEARCH
A. Industry Subsector Analyses
FCS Hong Kong prepares a number of Industry Subsector Analyses (ISAs)
every year. These reports are on subsectors of our Best Prospects, and
are based on the contribution we feel this reporting will make to U.S.
exporters. These reports are available on the National Traders Data
Bank (NTDB) CD-ROM diskettes, through Department of Commerce District
Offices, and Commercial Service Offices overseas.
In FY '95, we prepared the following ISAs:
Sector Code Descriptions
(MCS) Management Consultancy Services
(ELC) Electronic Parts and Components
(STR) Selling to the Hong Kong Government
(CON) Construction Equipment
(BLD) Lifts and Escalators
(AUT) Electric Vehicles
(COS) Make-Up Preparation
(TRA) Travel and Tourism
(BLD) Curtain Wall Glass
(FPP) Food Packaging Equipment
(CPT) PC/LAP Top Computers
(STR) Chinese Enterprises in Hong Kong
(CAD) CAD/CAM/CAE
(PMR) Plastic Resins
(POL) Air Pollution Control Equipment
For FY '96, we plan to complete ISAs on the following topics:
Sector Code Proposed ISA Topics FY'96 Due Date
(BLD) Fire Proof Doors March 31, 1996
(CON) Earth Moving Equipment April 30, 1996
(MED) Cardiovascular Equipment April 30, 1996
(COS) Perfumery May 30, 1996
(TEL) Telecommunications Equipment May 30, 1996
(PGS) Printing Machinery June 30, 1996
(LAB) Lab/Scientific Analytical Equipment June 30, 1996
(POL) Industrial Waste Water Control Technologies June 30, 1996
(POL) Infrastructure Projects - Environmental June 30, 1996
(ELP) Power Generating Boilers July 30, 1996
(INS) Retirement Fund Scheme July 30, 1996
B. Reports Prepared by FAS
Market Overviews
The Agricultural Trade Office (ATO) Hong Kong prepares a broad
range of market overviews which are available for the public by
contacting the Foreign Agricultural Service, PSC 464, Box 30, FPO AP
96522-0002 or fax 852 845-0943. Market overviews are updated as often
as possible, and new overviews are added according to market trends.
The current list of overviews include the following subjects:
Beer Sauce/Condiment/Spice
Bottled Water Seafood
Convenience Stores Snack Foods
Cut Flowers Timber and Wood Products
Dairy Products Vegetables
Dried Fruits/Nuts Vegetable Oil
Eggs Water
Fast Food Wine
Food Retailing
Fresh Fruits
Fruit Juice
Ginseng
High Value Products
Hotel/Club/Restaurant
Indulgent Desserts
Microwave Foods
Poultry
Packaged, Canned & Frozen Meat
ATO Information
ATO Hong Kong Summary
FAS Brochure
U.S. Cooperators Directory
U.S. State Offices Directory
Hong Kong Market
Planning to Enter the Hong Kong Market: Things to Consider
Topic Specific
ATO Helps GrandMart's Grand Team Become a Grand Scheme
Time for Change: Fresh Food Retailing in Hong Kong
U.S. Market Development Cooperator Organizations represented in Hong
Kong
USA Poultry & Egg Export Council American Forest & Paper
Association, Inc
Ms. Sarah Li Mr. John Chan
Director of Market Development Director
303 Sunning Plaza Room 528 New World Office Bldg.
10 Hysan Avenue West Wing, 20 Salisbury Road
Hong Kong Kowloon, Hong Kong
Tel: (852) 2890-2908 Tel: (852) 2724-0228
Fax: (852) 2895-5546 Fax: (852) 2366-8931
Sunkist Growers, Inc. Cotton Council International
Ms. Maria Kwow Mr. Timothy C. Heberlein
Room 1242 Swire House Managing Director
11 Chater Road, Hong Kong 302 Sunning Plaza
Tel: (852) 2524-9219 10 Hysan Avenue, Hong Kong
Fax: (852) 2845-3454 Tel: (852) 2890-2755
Fax: (852) 2895-5546
U.S. Potato Board California Cherries Advisory Board
California Tree Fruit Agreement National Dairy Promotion & Research
Board
California Table Grape Commission Wine institute
Mr. Michael Wong Florida Department of Citrus
Michael Wong & Co. California Cut Flower Commission
3B Harvard Commercial Building Mr. Daniel Chan
105 Thomson Road PR Consultants Ltd.
Wanchai Unit D, 14/F., Vulcan House
Hong Kong 21-23 Leighton Road, Hong Kong
Tel: (852) 2891-3889 Tel: (852) 2833-5977
Fax: (852) 2891-3702 Fax: (852) 2893-7538
U.S. Meat Export Federation National Renderers Association,
Inc.
Mr. Joel Haggard Dr. Robert Rowland
303 Sunning Plaza Acting Regional Director
10 Hysan Avenue 302 Sunning Plaza
Hong Kong 10 Hysan Avenue, Hong Kong
Tel: (852) 2890-7408 Tel: (852) 2890-2529
Fax: (852) 2576-7345 Fax: (852) 2576-8045
Blue Diamond U.S. Wheat associates
Mr. Enoch Y. Sun Mr. Matt Weimar
Eastern Zone Industrial Co., Ltd. Far East Director
21-A Chai Wan Industrial Center 302 Sunning Plaza
20 Lee Chung Street 10 Hysan Avenue
Chai Wan, Hong Kong Hong Kong
Tel: (852) 2898-8632 Tel: (852) 2890-2815
Fax: (852) 2898-8440 Fax: (852) 2895-5546
Washington Apple Commission California Cling Peach Advisory
Board
WUSATA California Raisin Advisory Board
Northwest Cherry Growers California Pistachio Commission
Mr. Philander Fan California Avocado Commission
Marketing Channels Oregon Washington California Pear
Bureau
Room 403, Cheung's Building American Legend Mink
1 Wing Lok Street Mr. Louis Ng
Central Louis Ng & Associates Ltd.
Hong Kong Suite B, 3/F Luen Wai Commercial
Building
Tel: (852) 2815-6773, 2815-9375 93-97 Des Voeux Road West, Hong Kong
Fax: (852) 2544-7858 Tel: (852) 2858-2230
Fax: (852)2559-5896
Washington Apple Commission
Asia Regional Office
Mr. Brent Evans
Asia Marketing Director
Flat 4-B, Block 2, Vista Avenue
Discovery Bay
Hong Kong
Tel: (852) 2987-1286
Fax: (852) 2987-7936
APPENDIX G -- TRADE EVENT SCHEDULE
A. FY96 Events include:
Event Name: Textile Homefurnishing Trade Mission
Date of Event: November 2 - 3 or 16 - 17, 1995
Industry Theme: Textile Homefurnishing Goods
Type of Event: Trade Mission
Event Location: Hong Kong
Event Name: Sporting Goods Matchmaker
Date of Event: October 29 - November 1, 1995
Industry Theme: Sporting Goods
Type of Event: Matchmaker
Event Location: Hong Kong
Event Name: Construction Equipment Trade Mission
Date of Event: December 1995
Industry Theme: Construction Materials
Type of Event: Trade Mission
Event Location: Hong Kong
Event Name: Environmental Equipment and Services Trade Mission
Date of Event: December 9-13, 1995
Industry Theme: Pollution Control Equipment
Type of Event: Trade Mission
Event Location: Hong Kong
Event Name: Education and Career Expo
Date of Event: February 1996
Industry Theme: Education and Manpower Training
Type of Event: Certified Trade Show (USA Pavilion)
Event Location: Hong Kong
Event Name: U.S. Pleasure Boat Trade Mission
Date of Event: March or Summer 1996
Industry Theme: Sporting Goods and Pleasure Boats
Type of Event: Trade Mission
Event Location: Hong Kong
Event Name: Asia Beauty '96
Date of Event: July 3 - 6, 1995
Industry Theme: Beauty and Cosmetics Goods
Type of Event: Certified Trade Show (USA Pavilion)
Event Location: Hong Kong
Event Name: Jewelry Trade Mission
Date of Event: September 1996
Industry Theme: Jewelry
Type of Event: Trade Mission
Event Location: Hong Kong
B. Trade Event Schedule (October 1995 - September 1996)
The Following major trade shows are also scheduled for Hong Kong
although the Commercial Service Hong Kong is not directly involved with
them.
October 3 - 6, 1995
FOT - The 11th Hong Kong International Footwear Fair
Hong Kong Convention and Exhibition Center
Organized by: HTFL
October 3 - 6, 1995
LFP - The 10th Hong Kong International Handbags and Leather Goods Fair
Hong Kong Convention and Exhibition Center
Organized by: HTFL
October 11 - 14, 1995
ELC - The 15th Hong Kong Electronics Fair
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
October 18 - 20, 1995
FOD - Food Marketing Institute (AsiaMart '95)
Hong Kong Convention and Exhibition Center
Organized by: FMI
October 18 -20, 1995
TXF - Interstoff Asia '95 (International Fabric Show)
Hong Kong Convention and Exhibition Center
Organized by: MFHKL
November 1 - 5, 1995
AUV - The 7th International Audio and Visual Show
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
November 2 - 5, 1995
FUR, BLD - The 12th Hong Kong International Furniture Fair (For Home,
Offices and Special Projects)
Hong Kong Convention and Exhibition Center
Organized by: HTFL
November 7 - 11, 1995
SPT - Hong Kong Golf Conference and Exhibition
Hong Kong Convention and Exhibition Center
Organized by: GMG
December 5 - 7, 1995
PGA - Screen Printing Asia '95 (The 9th International Exhibition of
Screen Making and Screen Printing Equipment and Services for Asia)
International Trademart, Hong Kong
Organized by: EPL
December 15 - 19, 1995
GFT - The 8th Christmas Showcase
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
December 15 - 19, 1995
BLD, FUR, HCG - The 6th Ideal Home Expo
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
January 10 - 13, 1996
TOY - The 22nd Hong Kong Toys and Games Fair
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
January 19 - 20, 1996
APP - The 27th Hong Kong Fashion Week - Fall/Winter
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
February 8 - 11, 1996
EDS - The 6th Education and Careers Expo
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
February 28 - March 2, 1996
APP, LFP - 1996 Hong Kong International Fur and Fashion Fair
Hong Kong Convention and Exhibition Center
Organized by: FFMDHKL
March 11 - 14, 1996
JLR - The 14th Hong Kong International Jewelry Show
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
March 28 - 31, 1996
MTL - Hong Kong International Machine Tool -- Linkage Industry
Exhibition '96
Hong Kong Convention and Exhibition Center
Organized by: PCES
March 28 - 31, 1996
LAB, PKG, PME - Exhibition of Modern Laboratory Equipment, Supplies and
Services 96, Plastics and Packaging '96
Hong Kong Convention and Exhibition Center
Organized by: PCES
April 17 - 20, 1996
GFT, HCG - The 11th Hong Kong Gifts and Houseware Fair
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
April 17 - 20, 1996
GFT - The 6th Hong Kong Premium Show
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
April 22 -25, 1996
APP, LFP - Asia Pacific Leather Fair Part I
Hong Kong Convention and Exhibition Center/China Resources Exhibition
Center
Organized by: HKTFG
April 29 - 1 May, 1996
APP, LFP - Asia Pacific Leather Fair Part II
Hong Kong Convention and Exhibition Center
Organized by: HKTFG
April 1996
FUR, HCG - The 7th Electric Home Appliances Expo
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
May 30 - June 2, 1996
TRA - International Travel Expo Hong Kong 1996
TRA - The Annual International Tourism Exposition of Asia 1996
Hong Kong Convention and Exhibition Center
Organized by: ITEHKL
May 1996
CPT, CSF - COMPUTER '96 (The 12th International Computer Expo)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
May 1996
PME, PMR - PLASTIC ASIA '96 (The 13th International Plastics Machinery,
Materials, Production Technology and Ancillary Equipment Exhibition for
Asia)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
May 1996
PGA, PKG - The 10th International Packaging and Printing Machinery and
Materials Exhibition for Asia
Hong Kong Convention and Exhibition Center
Organized by: BITFL
June 1996
JLR - The 10th Hong Kong International Fashion Jewelry and Accessories
Fair
Hong Kong Convention and Exhibition Center
Organized by: HTFL
June 1996
GCG, GFT, PAP - The 7th Hong Kong International Stationery and Premium
Fair
Hong Kong Convention and Exhibition Center
Organized by: HTFL
June 1996
APP - The 10th Hong Kong International Apparel Fair
Hong Kong Convention and Exhibition Center
Organized by: HTFL
July 3 - 6, 1996
COS - The Asia Pacific Beauty Fair '96
Hong Kong Convention and Exhibition Center
Organized by: HKTFG
July 25 - 29, 1996
BOK - Hong Kong Book Fair
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
July 1996
APP - The 28th Hong Kong Fashion Week - Spring/Summer
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
July 1996
MHM, MTL - MEX '96 (The 17th International Machinery and Material
Exhibition for Asia -- Machine Tools and Tools Manufacturing Technology)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
July 1996
EIP - EIE '96 (The 13th International Electronics Industry, Testing
Equipment and Instrument Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
July 1996
ELC - ECA '96 (The 8th International Electronic Component Exhibition for
Asia)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
July 1996
MTL - SMT '96 (The 10th International Surface Mount Technology
Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
August 21 - 25, 1996
FOD - The 7th Food Expo
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
September 5 - 8, 1996
GCG - The 15th Hong Kong Watch and Clock Fair
Hong Kong Convention and Exhibition Center
Organized by: HKTDC
September 1996
GCG, JLR - The 18th Hong Kong Jewelry and Watch Fair
Hong Kong Convention and Exhibition Center
Organized by: HTFL
September 1996
TXM - GARMENTEX '96 (The 10th International Garment Machinery, Materials
and Accessories Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
September 1996
TXM - TEXTILE MACHINERY EXPO '96 (The 6th International Textile
Machinery, Materials and Accessories Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by: BITFL
Contact Address for Organizers:
Headway Trade Fairs Ltd. (HTFL)
907 Great Eagle Center
23 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2827-5121
Fax: (852) 2827-7064
Hong Kong Trade Development Council (HKTDC)
36-39 Floors, Office Tower
Convention Plaza, 1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249
Food Marketing Institute (FMI)
800 Connecticut Ave., N.W.
Washington DC, 20006-2701
U. S. A.
Tel: (202) 452-8444
Fax: (202) 429-4519
Messe Frankfurt (Hong Kong) Ltd. (MFHKL)
1808 Harbor Center
25 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2802-7728
Fax: (852) 2511-3466
Golf Media Group (GMG)
Level 1, 36 Kings Park Road
West Perth, Western Australia 6005
Australia
Tel: (619) 322-3222
Fax: (619) 321-6461
Expoconsult Pte Ltd. (EPL)
100 Beach Road
#26-00 Shaw Tower
Singapore 0718
Tel: (65) 299 9273
Fax: (65) 299-9782
Federation of Fur Manufacturers and Dealers (HK) Ltd. (FFMDHKL)
Room 603, Chevalier House
45-51 Chatham Road South
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2367-4646
Fax: (852) 2739-0799
Paper Communication Exhibition Services
Room 16, 12 Floor, Wah Shing Center
11 Shing Yip Street
Kwun Tong, Kowloon
Hong Kong
Tel: (852) 2763-9012
Fax: (852) 2341-0379
Hong Kong Trade Fair Group
44 Floor, China Resources Building
26 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2827-6211
Fax: (852) 2827-7831
International Travel Expo HK Ltd.
Room 1702B, Fortress Tower
250 King's Road
North Point, Hong Kong
Tel: (852) 2508-6655
Fax: (852) 2510-7016
Business and Industrial Trade Fairs Ltd.
18 Floor, First Pacific Bank Center
51 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2865-2633
Fax: (852) 2866-1770
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