Hong Kong Foreign Direct Investment Issue 1 ... - Invest Hong Kong

www.investhk.gov.hk
“W
e are delighted to have helped
303 businesses to set up or
expand in Hong Kong in 2011,”
Simon Galpin, Director-General
of Investment Promotion at InvestHK, said, following
the announcement of the Department’s end-of-year
numbers.
2011 was the 11th consecutive year that InvestHK
has exceeded its annual targets for completed projects.
“It’s a testament to the enduring advantages that Hong
Kong offers overseas and mainland investors. It’s a vote
of confidence in our city,” Galpin added.
“We know this has been a tough year for many
of our key markets, so to have supported this many
companies is a real achievement,” he said. “Most
importantly for Hong Kong, these businesses have told
us that they plan to create more than 2,700 jobs in their
first year of operation or expansion,” he added.
Mainland China Largest Investor; US and UK Also Strong
The completed projects came from 39 countries,
with Mainland China being the largest source of
investors, with 56 clients, followed by the US (48), UK
(30), Japan (23) and Australia (19). For the first time,
InvestHK also welcomed client companies from Iceland,
Mongolia, Peru, Samoa and Vietnam. In terms of
business sectors, the most popular were tourism and
hospitality, transport and industrial, and innovation and
technology.
ISSUE 1, 2012
InvestHK Continues Upward Trend
by Helping a Record Number of Companies in 2011
Companies from Mainland China made up almost 20 percent of the 303 completed projects,
and 81 percent of clients rated InvestHK services as “very useful”
303
projects completed
2,700
jobs created
81%
rated our services “very useful”
contents
International Forward Calendar 3
Sector Focus:
Hong Kong Design Year 4
East Kowloon 5
Market Focus:
Australia/New Zealand 6
Singapore/Malaysia 7
Special Feature:
SME Support 8
IPA Programme 9
Successful Investors 10-15
New Investors 16

2
Galpin pointed out that major
multinationals, such as General
Electric and Schneider Electric, had
demonstrated their confidence
in Hong Kong as a regional hub
by relocating sizeable global
operations to the city in 2011. At
the other end of the spectrum,
small and medium-sized companies,
the growth engine for Hong Kong’s
GDP, continued to find strong
business opportunities in the
city and beyond. “These are the
companies that often benefit most
from the support our teams offer
both overseas and here in Hong
Kong. It was great to see that, of
all our clients, 81 percent rated our
services as very useful,” Galpin said
One such firm was Lion
International, which set up a
subsidiary in Hong Kong to provide
and manage large institutions’
uniforms.“Without InvestHK’s
support we would have never been
able to set up as rapidly as we did.
Within three months we could
focus entirely on our core business.
One year later, we are already
launching three additional product
lines,” Jil Janine Hellman, Business
Development Manager, said.
Volatile Outlook for 2012
While announcing the strong
results, however, Galpin cautioned
that InvestHK would be closely
monitoring developments in the
global economy to prepare for
any impact on Foreign Direct
Investment (FDI) into Hong Kong.
Without InvestHK’s support we would have
never been able to set up as rapidly as we did.
Within three months we could focus entirely on
our core business. One year later, we are already
launching three additional product lines
He noted that the extent of any
impact on Hong Kong remained
to be seen, but that he saw two
potential scenarios in the year
ahead. “Businesses in harder hit
economies may look to increase
their presence in Asia to offset
low demand in their domestic
markets. But if companies find it
difficult to raise funds, they may
delay expansion plans which would
have an impact on FDI,” Galpin
explained.
However, he said that Hong
Kong was known for its resilience
and adaptability and that InvestHK
would be taking a highly targeted
approach in 2012. “Obviously
Jil Janine Hellman
Business Development Manager, Lion International
Mainland China remains a strong
focus, as well as economies in the
ASEAN region and South America.
We also continue to see strong
prospects out of our traditional
source markets, the US, UK and
Japan.”
On a sector basis, Galpin
pointed to particularly strong
opportunities in the financial
services, creative industries, and
innovation and technology sectors.
“As we look ahead, we know
there are serious challenges, but
rather than discouraging us, this
motivates us to work harder and it
reinforces the importance of what
we do,” Galpin said.
InvestHK colleagues gathered in Hong Kong at the end of 2011 to discuss strategies for the
year ahead.

2012
16-17 Jan, Hong Kong
Asian Financial Forum
AFF brings together some of the
world’s most influential business
and political leaders in the world
of finance. With a focus on trends
in Asian markets, the event offers
a platform for frank exchange,
policy development and intelligence
gathering.
Organiser: The HKSAR Government,
Hong Kong Trade Development
Council (HKTDC)
www.asianfinancialforum.com
30-31 Jan, Berlin, Germany
HotelExpo, Berlin
With hotel occupancy at almost 90
percent, there are strong opportunities
in hotel-related sectors in Hong
Kong. Visit our team of experts at
booth M32 to learn more about
opportunities in Hong Kong and how
InvestHK can help.
Organisers: Deutscher Hotelkongress,
The Conference Group, Allgemeine
Hotel-und Gastronomie-Zeitung
9 Feb, Perth, Australia
“Hong Kong: Where Global and
China Advantages Converge”
Seminar
With a strong focus on Hong Kong’s
role as a fundraising and financial
management centre, this practical
seminar offers companies a deeper
understanding of the opportunities in
Hong Kong and Mainland China.
Organiser: InvestHK
16 Feb, Hong Kong
Mainland Spring Reception
This annual reception brings together
the Mainland Chinese business
community in Hong Kong. It’s an
opportunity to network in a relaxed
and welcoming environment.
Organiser: InvestHK
21-22 Feb, Moscow, Russia
Hong Kong Business Seminars and
Chinese New Year Reception
This two-day event includes a seminar
focusing on opportunities for Russian
companies in Hong Kong, followed
by a networking reception. A Hong
Kong Cinema Night will be held on 22
February.
Organiser: Hong Kong Economic and
Trade Office London and HKTDC
23 Feb, Zwolle, The Netherlands
Seminar: “Doing Business with
Hong Kong”
A practical seminar offering advice
on how Hong Kong can help expand
your business into the dynamic Asian
region. InvestHK will be on hand to
advise on the advantages of setting up
a company.
Organiser: HKTDC, Kentfort
28 Feb, Hong Kong
Hong Kong Dialogue 2012
Built on the success of the Edinburgh
Dialogue, this inaugural forum in Hong
Kong focuses on sovereign wealth
funds.
Organiser: Forrest Research
28-29 Feb, London, UK
Bond Investors Congress
This event gathers together
bondholders with more assets under
management than any other event.
It explores the latest developments in
the bond market and strategies for
dealing with the current economic
uncertainty.
Organiser: Euromoney Conferences
www.euromoneyconferences.com
29 Feb-1 Mar, Hong Kong
Asia Hedge Forum
Over 250 people will attend this forum,
which focuses on the challenges and
strategies in the industry. It is also an
excellent networking opportunity for
the region’s most experienced managers
and investors.
Organisers: Hedgefund Intelligence
12-15 Mar, Los Angeles (12),
Chicago (14), New York (15)
Seminar: “Hong Kong: China’s
Global Financial Centre”
An ideal opportunity for US asset
management firms to gain a stronger
understanding of the challenges and
opportunities in Hong Kong and
Mainland China, and to look at the
practical steps in setting up a business in
Hong Kong.
Organisers: InvestHK, Financial Services
and Treasury Bureau
www.hkcgfc.com
19 Mar, Hong Kong
Networking Reception: Transport &
Industrial Sector
This informal networking reception
allows professionals from the
transportation and industrial sectors
to come together to discuss the
business environment and develop new
prospects.
Organiser: InvestHK
19-23 Mar, Hong Kong
Mines and Money
More than 150 mining companies will
participate in this exhibition, making
it Asia’s largest and fastest growing
capital-raising forum for the mining
sector.
Organisers: Beacons Events and Mining
Journal
www.minesandmoney.com
Organised by InvestHK
3

sector focus
hong kong design year
4
2012, Hong Kong Design Year
Hong Kong’s creative juices are fl owing in 2012 with more than 35 designfocused
events on the calendar showcasing local and international talent, and
drawing attention to the business opportunities in a city driven by design
Several new events are coming
to Hong Kong in 2012,
demonstrating the diversity of
the city’s design and creative
community. Highlights include
the Alliance Graphique Internationale,
an event normally held in Europe
for graphic design professionals;
Muscon 2012 a pan-Asian networking
forum for museum professionals;
“Colours of Asia”, an exhibition of
the unique culture and designs of 13
Asian countries; and a major Youth
Programme featuring, among other
things, a programme of Terracotta
Warrior-inspired designs.
“The 2012 Hong Kong Design
Year (2012HKDY) aims to communicate
the close relationship between design
and everyday life. The events focus
on ‘nurturing talent’ in the creative
industries, ‘creating value’ for business,
‘bettering life’ for the public and
‘celebrating design excellence’,”
explained Dr Edmund Lee, Executive
Director of the Hong Kong Design
Centre.
Lee said 2012HKDY aims to
engage people and professionals from
different walks of life to raise the level
of understanding of the impact of
design on the economy, environment,
education, economics, culture and
living.
Creating Value Across Businesses
Lee is a strong advocate of the role of
design across the business spectrum.
Design is not limited to the aesthetic,
Lee explained. “Look at Hong Kong’s
Octopus card, or our international
airport, or Li & Fung’s value chain
creation. Behind all of these hugely
successful – but very different –
commercial operations is innovation
and design excellence in business
services.”
Good design ideas can quickly
flourish in Hong Kong, Lee explained.
“Hong Kong is a cosmopolitan,
innovative and efficient city. Good
design can drive value creation and
improve the well-being of society across
strategy, system, products and services.”
As an example of improving
productivity and ease-of-use in social
or community projects, the Hong Kong
Design Centre has been working with
the Government on projects to revamp
the Mongkok Post Office and a public
park near the Kowloon Tong MTR
station.
Even Bigger and Better
In December, 2012HKDY will end with a
bang, with the Business of Design Week
(BODW), Design Fest Asia, DETOUR and
cultural exchange programmes.
“The whole year is an opportunity
to showcase the vibrancy of our design
community, and to attract new talent
and companies from overseas to enjoy
the opportunities here in the heart of
Asia,” Lee said.
For details on HKDY2012, please visit:
www.hkdesignyear.hk
Strong Fundamentals Attract Design
Firms
• Easy and open business
environment for SMEs and
entrepreneurs
• Level playing field for local and
foreign companies
• Clear understanding of the valueadded
features of design
• Strong IP protection for patents
and copyrights
• Dynamic design culture combining
Western and Asian influences
• Strong design community with
easy networking and referrals

sector focus
east kowloon
East Kowloon Creates Opportunities
for Urban Planning and Construction
The Hong Kong Government’s decision to create another major business district –
adding four million square metres of new offi ce space – has been warmly welcomed
by fi rms in the construction, engineering and design sectors
The Chief Executive of
the HKSAR Government,
Donald Tsang, recently
outlined plans to develop
the East Kowloon area into
a premier business district. Covering
an area 10 times the size of the West
Kowloon Cultural Development site,
East Kowloon includes Kowloon Bay,
Kwun Tong and the site of the former
international airport, Kai Tak.
The initiative, which will create a
further four million square metres of
office space, has been applauded by
firms across a range of sectors most
likely to benefit from the ambitious
development project.
SMEs Welcome More Office Space
The move is also popular with
companies across the business
spectrum, in particular small and
medium sized companies (SMEs),
which are looking forward to more
cost effective office rentals in the
East Kowloon area. The development
could also alleviate traffic congestion
on Hong Kong Island and in
Kowloon, and increase the popularity
of residential areas close to the new
business district.
Announcing the plan in his
annual Policy Address, Tsang said,
“Hong Kong’s traditional core
business districts can no longer satisfy
the growing demand for office space,
so the Government must develop
another core business district in East
Kowloon.”
East Kowloon was formerly
dominated by industrial and
warehousing buildings serving the
Kai Tak airport. Since the relocation
of the airport in 1997 to Lantau
Island, the East Kowloon area has
gradually transformed into an office
and retail area. Grade A office space,
for example, has more than doubled
over the past decade. Construction
on and around the old Kai Tak
airport and runway area is already
well underway, with cruise terminal
facilities, tourism and office facilities
taking shape.
Opportunities in Urban Design
The announcement by the Chief
Executive looks set to accelerate
the transformation. A development
strategy would include internal
and external transportation
connectivity, Tsang said. “This
may include improving pedestrian
access networks, building an
environmentally friendly linkage
system through the entire district,
and strengthening connectivity
through the MTR Kwun Tong Line
and the future Sha Tin-to-Central
Link,” Tsang added.
Urban design concepts with
greening features and pedestrian
promenades would also be used,
and proposals would be sought
for cultural, leisure and water
sports activities to energise the East
Kowloon business district.
The initiative has been
applauded by fi rms across a
range of sectors most likely
to benefi t from the ambitious
development project
Sectors likely to benefit:
• Construction
• Engineering
• Transportation
• Architecture
• Environmental services
• Leisure and hospitality
• Retail
5

market focus
australia/new zealand
6
Mining and resources are
big money businesses,
so while Hong Kong
was famously described
by the British as a
“barren rock” in the 1840s, it is far
from lacking in financial commodities.
In the past two years alone, the
number of mining, energy, resources
and infrastructure companies opening
offices, raising capital and consolidating
Asian operations in the city has surged.
Finance, Legal and Professional Services
To support resource-related companies,
in 2010 Hong Kong’s stock exchange
updated its listing and capital-raising
rules. Today, more than 150 such
companies are listed on the exchange,
with a combined market cap close to
US$380 billion.
Mainland Chinese resource
companies, ranging from the giants of
the industry to the smaller players, have
converged on Hong Kong over the past
10 years to raise a massive US$177.6
billion in initial public offerings. These
include CNOOC, PetroChina, China
Petroleum, China Coal, Jiangxi Cooper,
Chalco and Zijin Mining. Foreign
companies soon followed suit, including
major resource groups from Russia,
Canada, Mongolia and Brazil.
Consolidating Asia-wide Business
Functions
Opportunities in Hong Kong are not
limited to finance. Companies are also
using the city’s legal, engineering, HR,
insurance and procurement services.
Many of the mineral companies have
projects in multiple locations across
Asia and Hong Kong allows them
to consolidate business functions in
one city. Major firms minimise risk by
structuring contracts in Hong Kong
and their CFOs and stakeholders
rarely overlook the appeal of the city’s
famously low corporate tax.
Similarly, mining related
professional services companies
including Australia’s Runge and Mining
Associates are increasingly using Hong
Resource and Engineering Firms
Find a Home in Hong Kong
InvestHK is reaching out to engineering and resource fi rms in Perth, the capital of
Western Australia and of Australia’s booming mining industry, to update them on
opportunities in Asia
Kong as a base to provide technical
support across the region.
Another aspect that shouldn’t be
underestimated is the lifestyle that
Hong Kong offers. Given the typically
remote locations of most mining and
resource projects, senior executives
would rather locate their families in the
city, while they manage projects around
the region. With regular flights to a
wide range of locations, Hong Kong
does make running a regional business
and having family time a viable option.
Proximity to Your Customers
Another major business driver is
proximity to potential customers.
Mainland China is currently the world’s
largest consumer of coal and iron ore
and companies with operations across
the region are well-positioned to
finance and organise trade deals with
the Mainland from the commercial
security of a Hong Kong-based
company.
This rings true for Aramco Overseas
Company (AOC), which describes its
Hong Kong office as its “intelligence
hub in Asia”. AOC manages joint
ventures in Korea and Japan from its
Hong Kong office and also supports
its China-based subsidiary (SASC) with
financial, legal and administrative
functions.
Rusal, the world’s largest producer
of aluminium, and the first Russian
firm to list in Hong Kong, also chose
to open its Hong Kong office based
on growth prospects for the region.
Majority owner, Oleg Deripaska, told
shareholders ahead of its IPO that,
“Hong Kong is the gateway to Asia,”
adding simply that, “I focus more and
more on Asia because I believe we
can do better business here than in
struggling economies.”
Hong Kong: Where Global and
China Advantages Converge
9 February, Perth, WA
InvestHK is hosting an afternoon
seminar in Perth to update
companies on business opportunities
in Hong Kong. There will be a strong
focus on the city’s role in raising
finance and investor relations
for resource and engineering
companies. The event will be
followed by a networking Chinese
New Year reception.
For more information,
contact Yin Robards:
yin_robards@hketosydney.gov.hk

Familiar Market – with an Added Advantage
for Singaporean and Malay Firms
Singaporean companies have been quick off the mark to appreciate what
Hong Kong has to offer and Malay fi rms now increasingly have their sights
set on regional opportunities in Asia’s business capital
As major East Asian
economies with strong
expatriate business
communities, Hong Kong,
Singapore and Malaysia
enjoy many cultural and economic
similarities. All three, for example, are
considered easy places for international
companies to set up. Singapore and
Hong Kong hold the top two spots
in The World Bank’s Ease of Doing
Business annual survey, while Malaysia’s
ranking has improved rapidly in the
past 12 months moving up five places
to 18th. On a community level, all three
share a cross-cultural appreciation for
Asian and western influences, as well
as a strong and internationally-focused
work ethic.
Spectacular Growth
Between 2006 and 2010, a period
marked by economic uncertainty in
Europe and North America, the average
annual growth rate in bilateral trade
between Hong Kong and Singapore
and Hong Kong and Malaysia both rose
by eight percent.
InvestHK has expert teams in
both Singapore and Kuala Lumpur
to encourage and support companies
from their markets to expand into
Hong Kong. Hong Kong offers a
familiar business environment, with its
affluent local consumers and serviceoriented
businesses which allows for
an easy transition for Malaysian and
Singaporean companies.
“But Hong Kong offers a lot more
than its domestic market,” Olivia Quah,
InvestHK’s Kuala Lumpur Consultant,
commented. “Hong Kong also plays
a valuable role in allowing Malaysian
companies to introduce their products
to millions of Mainland Chinese visitors
who come to Hong Kong every year.”
In 2011, for example, more than 28
million visitors came from Mainland
China to Hong Kong.
Savvy business people from
Singapore and Malaysia also understand
the role Hong Kong plays in developing
a business strategy for key cities in
Mainland China. “Mainland China
can be a large and complex market
for newcomers, so building contacts
in Hong Kong can be a good way to
start,” Quah explained.
Several hundred Singaporean
companies have already moved into
Hong Kong, including BreadTalk, Hour
Glass, Helutrans, EMC Corporation,
Frasers Hospitality and Imaginasia
Group.
“Hong Kong is the gateway to
the Mainland and there’s an increasing
economic force that is benefiting
the Hong Kong market,” Dick Chia,
GroupCEO of art storage and logistics
company Helutrans Group, said. “We
have expanded into Hong Kong to
capitalise on the market vibrancy as well
as to pave our way into the Mainland,”
he added.
According to a 2011 annual survey
of overseas companies, the trend
market focus
singapore/malaysia
towards Hong Kong looks strong. The
number of Singaporean companies
setting up in the city, for example, has
risen by over 90 percent since 2001 to
over 330.
“We’ve been delighted to be able
to support some of these companies
as they go through the process of
setting up in Hong Kong,” Willie Tan,
InvestHK’s Manager in Singapore, said.
Hong Kong plays a
valuable role in allowing
Malaysian companies to
introduce their products to
millions of Mainland
Chinese visitors
Olivia Quah, InvestHK’s
Kuala Lumpur Consultant
7

8
special feature
sme support
Funding and Incubator Schemes
For Overseas SMEs and Entrepreneurs
Hong Kong offers a range of fi nancial and business assistance programmes to support
the development of small and medium sized companies (SMEs) and start-ups.
This support is available to all companes, regardless of their country of origin
Hong Kong may feel like a city of glittering
skylines, glamorous shopping and international
financiers. But a little known fact is that more
than 93% of Hong Kong-based companies are
small and medium sized. Hong Kong SMEs –
whether locally born or from overseas – are the backbone of
Hong Kong’s economy.
To support this valuable business community, the
Government has a range of schemes available to local and
overseas SMEs. For entrepreneurial firms these incubator and
financial support initiatives are often essential to the early
stages of commercial development.
Financial Aid for Equipment and Marketing
The SME Loan Guarantee Scheme (SGS) secures loans for
companies either looking to buy business equipment or for
working capital needs. The maximum guarantee amount for
each SME is HK$6 million, but this is based on a guarantee
ratio of 50 percent, meaning that the loan amount can be as
much as HK$12 million.
The SME Export Marketing Fund (EMF) aims to help
companies to participate in overseas exhibitions and business
missions and to place adverts in trade publications. The EMF
will fund up to 50 percent of approved expenses, up to a
limit of HK$50,000 for each application.
Another recently introduced programme is the SME
Financing Guarantee Scheme, launched by the Hong Kong
Mortgage Corporation. The scheme provides guarantee
coverage of 50 to 70 percent, with the maximum loan
amount being HK$12 million.
Technology and Innovation Funding
You don’t have to be a technology company to benefit from
the Innovation and Technology Fund (ITF). The fund aims
to support companies looking to upgrade their technology
and inject innovative ideas into their businesses. One of the
leading programmes under the ITF is the Small Entrepreneur
Research Assistance Programme (SERAP). SERAP provides
pre-venture capital funding to technology entrepreneurs
and technology-based companies, with the focus being on
funding the R&D of technologies that can be brought to
market within two years.
Generous Incubator Schemes Offer Invaluable Support
One of Hong Kong’s most widely used incubator programmes
is provided by the Hong Kong Science and Technology
Parks Corporation. The scheme includes subsidised office
space, consultancy services, investment matching and a small
financial aid package to facilitate R&D. Programmes range
from two to four years depending on the sector. The aim is
to support companies from the research stage through to
product development and manufacturing.
Promoting Design and Creativity
The DesignSmart Initiative encourages SMEs to invest
in design projects by providing funding support up to
50 percent of the approved project cost or HK$100,000,
whichever is the less. Another design-focused scheme is the
Design Incubation Programme (DIP) which provides office
space for design tenants at The InnoCentre in Kowloon Tong,
as well as professional courses, exhibitions, seminars and
workshops.
Similarly, Hong Kong’s Cyberport supports the
creative digital media industries through the Cyberport
Entrepreneurship Centre, Hong Kong Wireless Development
Centre and Technology Centre. Its incubation programmes
help SMEs and start-ups to commercialise their creative ideas
and build their business.
Finally, Create Hong Kong’s CreateSmart Initiative
provides financial support to SMEs in the creative industries,
funding them to participate in overseas exhibitions and
competitions to brand build their services and products.
Please contact your nearest InvestHK office for more details
on these SME support programmes.
InvestHK has helped a broad range
of companies to apply for funding under
various schemes

First Hand Experience
from Business Leaders
Helps Newcomers
InvestHK’s Investment Promotion
Ambassadors represent a wide section
of Hong Kong’s business community:
local, foreign, male, female, experienced
and newcomers. What they have in
common is a desire to encourage more
overseas and Mainland companies to
come and set up in Hong Kong
“I
think it’s true to say
that there is no better
endorsement of Hong
Kong than the success of
companies that are based
here,” Charles Ng, Associate Director-
General at InvestHK, explained. “This
is why our investment promotion
ambassadors – or IPAs – are so
valuable,” he added.
The Investment Promotion
Ambassador scheme was set up in
2003 and encourages people who run
successful businesses in Hong Kong to
share their advice and experience with
potential new investors. Current IPAs
range from chairmen of multinationals
to entrepreneurs that have set up
successful small businesses.
“It’s important to include IPAs
from different size companies and
different sectors,” Ng said. “Sometimes
we need a highly experienced and
respected business leader to talk to a
large audience in London, New York
or Shanghai, and other times we want
a young entrepreneur who has been
through the experience of setting up
and is able to give some relevant advice
one-on-one,” he added.
Smaller Business Fuels Hong Kong’s
Success
Many people view Hong Kong as a city
of multinationals. But Ng is keen to
point out that entrepreneurs, start-ups
and small and medium sized companies
(SMEs) are the backbone of the city’s
economic success. “More than 90
percent of our GDP is generated by the
hard work of SMEs,” Ng said. “This is
why it is so important for us to include
smaller business owners among our
IPAs.”
Recent additions to the IPA
database include young business
owners and executives who have
started companies in the past five
years in the fields of design, retail,
manufacturing and wine. “Our new
IPAs are excellent mentors to other
new business owners who want to
understand the opportunities in Hong
Kong at the current time,” Ng said.
special feature
ipa programme
Newly appointed IPAs, clockwise from left, Keith Griffiths, Chairman, Aedas Ltd;
Nicolas Borit, Managing Director, Dragages Hong Kong Ltd; Deborah Leung, General
Manager – Greater China, CPA Australia Hong Kong China Division.
Women Business Leaders Offer Practical
Tips
Another update to the scheme has been
the inclusion of more women business
managers and owners. “Hong Kong is
rare among Asian cities in allowing the
spouses of overseas executives living in
Hong Kong to easily find work, or set up
their own business,” Ng said. “We need
to encourage and support more women
to see the opportunities in Hong Kong
and to set up business ventures that
create new jobs,” he added.
Finally, the IPAs play a key role
in raising awareness of the services
that InvestHK offers overseas business
people. “About one in five of our
IPAs live overseas, but have strong
experience of working in Hong Kong,”
Ng explained. “These business people
network widely in their own countries
and are excellent at identifying
companies that are keen to expand into
China or the wider Asia region. They
are an invaluable resource to InvestHK
and the business community in Hong
Kong,” he said.
9

Hong Kong has offered fertile ground for the
growth of Coach’s Asian business over the past
decade. Starting with a sourcing office in early
2000, Coach later developed its retail business
via a local distributor. In 2008-2009, however,
the company decided to make a larger commitment to
Asia and began to take back its retail operations under the
management of its Hong Kong regional office.
Perfect Showcase for International Brands
Andre Cohen, President and Chief Executive Officer-Coach
Asia, Coach Hong Kong Ltd, sees Hong Kong as a strategic
location for its retail brand in Asia. “It’s a vibrant city with
a well-informed, demanding and sophisticated consumer,
who influences fashion trends across the rest of Asia. So,
being successful in Hong Kong has really helped us to build
awareness and credibility in the rest of Asia,” he said.
With more than 28 million visitors from Mainland China
last year, the company is well aware of the impact of its
flagship store in the prime Central shopping district. “It’s an
excellent place for Coach to showcase our brand to Mainland
Chinese consumers,” Cohen added.
Efficient Sourcing Underpins Retail Success
Behind its retail outlets sit a sophisticated sourcing operation
which Coach recently expanded to accommodate its growing
Asia business. “When we decided to set up our direct retail
operation in Hong Kong, we relied strongly on our sourcing
office’s infrastructure – ideas, people and systems – to get
everything set up in a quick and cost-effective way,” Cohen
said.
Despite fierce competition in Hong Kong’s retail market,
Coach has already opened and operates 14 retail stores with
200 employees in Hong Kong and Macau. The latest addition
was its third flagship store in Hong Kong on Nathan Road at
the Mira Hotel, which was opened in December 2011.
Regional Functions Based in Hong Kong
Operated as a regional headquarters, Coach Hong Kong’s
office manages all its retail activities in Asia, except those in
Mainland China and Japan. A rolling programme of buying
back its operations in Singapore, Taiwan and Malaysia will
bring these markets under the regional office over the next
two years.
The decision to locate the regional office in Hong
Kong was largely based on the city’s business ease and
versatility. “Hong Kong is a great place to do business, with
a very talented workforce and business-friendly legislative
environment,” he said.
10
Coach Opens Regional HQ in Hong Kong
After major buybacks of its retail operations in Asia, the upscale US handbag maker
successfully listed on the Hong Kong Stock Exchange in December 2011 and is aiming
at aggressive expansion in its fastest growing market – Mainland China
Being successful in Hong Kong has
really helped us to build awareness and
credibility in the rest of Asia
Coach
Andre Cohen
President and Chief Executive Offi cer – Coach Asia
Coach Hong Kong Ltd
While its retail operations in Mainland China sit under
another subsidiary, Coach’s experience in Hong Kong has
helped ease its way into the world’s largest market. Building
on its presence in cities such as Beijing, Shanghai and
Shenzhen, it is now expanding into a next phase of cities.
“We’re using our experience of men’s business in Hong Kong,
which has been a very fast-growing sector, to help develop
this business across the rest of Asia. Hong Kong provides this
kind of invaluable market research,” Cohen concluded.
www.coach.com
� A maker and marketer of fi ne accessories, leather goods and
gifts for women and men
� Established in New York City in 1941
� Listed on the New York Stock Exchange and Hong Kong
Stock Exchange
� The Hong Kong offi ce manages retail operations in Asia,
except Mainland China and Japan

Germany’s Leading Textile Testing Lab
Sets Up in Hong Kong
The Hohenstein Institutes, one of the world’s leading providers of testing and certifi cation for
fabrics and garments, has chosen Hong Kong for its fi rst research and testing outside Europe
as part of a strategic expansion in Asia
For the Hohenstein Institutes, the desire to get closer
to its main customers was the key driver behind
its move to Hong Kong. With so many textile and
garment manufacturers based in Mainland China’s
Pearl River Delta region, immediately to the north
of Hong Kong, it made business sense to set up its first
overseas testing facility in the city.
“We primarily chose Hong Kong because of its
proximity to Mainland China where most of our clients
– the textile or fashion manufacturing companies – are
based,” Dr Manfred Hirning, Managing Director, Hohenstein
Laboratories (HK) Ltd, said.
Hong Kong was also selected because of its wellestablished
status as a regional sourcing centre for textiles,
and the ease with which Hohenstein staff and their clients
could fly in and out of the city. “With its excellent transport
and telecommunications infrastructure, it’s a fast and
convenient base for us to respond to our clients’ needs,”
Hirning said.
The availability of qualified staff was the final factor.
“There are few places that have such highly competent
textile experts as we find here in Hong Kong,” he added.
Science Park a Premium Location for R&D
The Hohenstein story dates back to the late 1940s when it
was a small family-run business. Since then the company
has grown steadily and now has offices in over 30 countries
worldwide. It pins its success down to a simple formula:
its dedication to textile materials and the development of
innovative fabrics. Hohenstein put the same rigour into
its choice of location and was determined to find a facility
which would give it the same high standards as its central
laboratory in German.
“After a long search, we found the Biotech Centre,
which is part of the Hong Kong Science Park, and it
immediately suited our needs. The space is specifically
designed for chemical labs to operate in full compliance
with the safety and environmental protection regulations
here. On top of that, it has easy accessibility, and a friendly
environment and there are professional support teams on
hand,” Hirning said.
Officially opened on 9 December 2011, the Hohenstein
Institutes – which spans a full floor of the Biotech Centre –
already employs about 10 local staff including a laboratory
manager, chemists, textiles technicians and customer
relations officers. Hirning said Hohenstein had already put
in place an experience-exchange programme, which rotates
experts between Hohenstein Hong Kong and Germany. “This
exchange of skills, ideas and experience is a programme that
will benefit our staff both in Hong Kong and Germany,”
Hirning said.
After a long search, we found the Biotech
Centre, and it immediately suited our
needs. The space is specifi cally designed for
chemical labs to operate in full compliance
with the safety and environmental protection
regulations here
Dr Manfred Hirning, Managing Director
Hohenstein Laboratories (HK) Ltd
Long-term Success Through Collaboration
As well as experience sharing between Hohenstein staff,
the company looks forward to strengthening collaboration
with the local universities, many of which have strong textile
research capabilities. “Hong Kong has a firm foundation
of R&D in the textile and garment industry, and the skills
exchange between companies and local research universities
is very strong,” Hirning said. “This is an area where we feel
we can benefit from new ideas, and share our best practice
and experience with Hong Kong,” he added.
Hohenstein Institutes
www.hohenstein.de
� Leading testing, certifi cation and research laboratory for
textiles based in Bönnigheim, Germany
� Serves about 4,500 international customers
� Has a global network of offi ces spanning 30+ countries
� Hong Kong offi ce with laboratory facilities opened in
December 2011 at the Biotech Centre, Hong Kong
Science Park
11

12
Chinese Clients Hold Appeal
for Japan Beauty Firm
Japanese beauty salon group, Miss Paris, found Hong Kong’s low tax, business friendly
environment and discerning Chinese customers the main reasons to expand into Hong
Kong and from there to Mainland China
When it comes to beauty, Asians and
westerners have different views,
according to Akemi Shimomura,
Founder and CEO, Miss Paris Group
Ltd. That’s why Miss Paris, a successful
beauty salon chain with over 130 branches in Japan,
chose to expand into Hong Kong for its first overseas store.
Established in 2009, Miss Paris currently operates four beauty
centres in Hong Kong and two in Mainland China.
Using Hong Kong as a hub, we look
forward to making Asia the new centre of
beauty in the world
Miss Paris Group Ltd
Akemi Shimomura
Founder and CEO, Miss Paris Group Ltd
� Established in 1982, its parent company, Shape Up House,
has more than 800 staff and 130 branches in Japan
� Currently has 20 staff in Hong Kong managing Dandy
House for men and Miss Paris for women in Central,
Causeway Bay and Tsim Sha Tsui
� Miss Paris The Beauty School Ltd offers beauty courses,
and Shape Up House China Ltd oversees business in
China, with two salons in Shanghai
� The beauty salon has ISO 9001 certifi cation
“Initially, we considered cities in Switzerland and France
because we also treasure western beauty. But we found
that beauty concepts in the West and Asia are completely
different. For example, whitening is sought after by Asian
women but not in the West,” Shimomura explained.
Conversely, Chinese customers share similar beauty goals
as Japanese counterparts and so Hong Kong was a natural
choice and a perfect platform from which to understand
the Mainland market in order to expand into Greater China,
Shimomura added.
“Being such an international city, Hong Kong has the
right mix of customers from across the world. We want to
prove to ourselves that we can be the best, even in this very
competitive market,” she said.
“We also see Hong Kong as an excellent entry point for
our plans in Mainland China,” she added.
Setting up and finding retail locations is easier in Hong
Kong than elsewhere in the world, she explained. “Hong
Kong is also a popular choice because it is politically stable,
has low tax and it’s such an easy place to do business. Every
step is very clear and efficient,” she added.
Caring Beauty Business
A smooth and efficient set-up allowed Miss Paris to start
operations quickly, and it was soon offering local customers
many of the beauty technologies and hospitality that had
brought it success in Japan.
The company has also found that its commitment to
corporate social responsibility has reaped rewards both in its
home country and in Hong Kong. After the earthquake and
tsunami in Japan last year, Miss Paris provided free showers
and services to the victims and sent student volunteers to the
disaster areas to offer comfort and free massages.
“We felt very strongly that we wanted to give back to
our local community, and it’s been comforting to see the
response to our efforts with customers rewarding us with
increased business,” Shimomura said.
Not Without Challenges
Like all new businesses, Miss Paris has seen challenges as well
as opportunities. “We have had some cultural differences
with our staff, but I feel that the sense of freedom and
dynamic nature of Hong Kong can offset any challenges. The
economic freedom and flexibility here is unparallel compared
with other countries in the region,” she enthused.
Looking to the future, she sees strong potential in the
beauty industry, fuelled by the city’s prosperous and beautyconscious
population. “Using Hong Kong as a hub, we look
forward to making Asia the new centre of beauty in the
world,” she concluded.
www.miss-paris-group.com.hk

Liebherr and the Necessity of Invention
Liebherr, a privately owned Swiss company dating back to 1949, has been
in Hong Kong for more than 20 years. It stays ahead of the competition by
constantly innovating to exceed clients’ expectations
It was the construction boom of the late 1980s that first
drew Liebherr to Hong Kong. “We’d been supplying
companies in this region for some time, but the demand
was strong enough to prompt us to open a small rep
office,” explained Francis Kwok, managing director,
Liebherr (HKG) Ltd, a subsidiary of the Group’s Austrian
holding company Liebherr-Werk Nenzing GmBH.
“At the time there were people still digging piles by
hand even down to bedrock, it’s a dangerous and timeconsuming
exercise,” Kwok added.
But Liebherr had special heavy duty equipment that
its clients had been using in Europe and demand for these
machines subsequently took off in Hong Kong.
From the outset, Liebherr Hong Kong realised that it
needed to grow its own distinctly Asia-focused business. “Our
parent company believes passionately in giving all global
business units the freedom and independence to identify
and seize new opportunities,” Andreas Ganahl, managing
director, Liebherr (HKG) Ltd said.
Regional Training Centre
True to its word, Liebherr’s Hong Kong operations have moved
rapidly from its early roots as a sales rep office supplying local
contactors, to adopt a much broader range of services to
support clients in Hong Kong and across the region.
Today its 80+ strong workforce operates from a 240,000
square foot facility in the northern New Territories. The site
includes a manufacturing and assembly plant, a workshop
where it services and refurbishes existing construction
machinery and, most recently, a state-of-the-art training
centre.
“We used to send people to Europe for training, but we
quickly realised that we had the skills and staff here in Hong
Kong to create a regional training hub,” Kwok explained.
The new facility allows Liebherr staff and clients to
travel from as far afield as Australia, Singapore and Japan,
creating strong cost-savings for the company and clients, and
avoiding some of the cultural and language issues that arose
from sending people back to Europe.
Safe Option for Major Investment
Hong Kong was considered the ideal location for such a
major investment due to its international business standards,
free port status and regional connectivity.
“If you’re putting together heavy duty machinery, or
flying people in and out for training and client services, being
in a place like Hong Kong is really important,” Kwok said.
But Hong Kong’s appeal is not just about the logistics
and transportation infrastructure, he added. “Whether it’s
our people or the technology in our equipment, protecting
our expertise, know-how and intellectual property is an
essential aspect of our business success, and few places in
Asia offer the same level of staff loyalty and intellectual
property (IP) protection as Hong Kong.”
If you’re putting together heavy duty
machinery, or fl ying people in and out for
training and client services, being in a place
like Hong Kong is really important
Francis Kwok, Managing Director
Liebherr (HKG) Ltd
Asia Potential, Quality Staff, Flexible Thinking
Looking ahead, Liebherr has big plans. It’s already scouting
for additional land in Hong Kong to further develop its
regional equipment and training capabilities. The company
is not feeling the squeeze from lower cost competitors, but
understands the need to focus strongly on what’s important
to its Asian clients.
“A competitor can always make a piece of equipment
that looks the same but it’s much harder to copy the kind
of technological and client services support that we offer,”
Ganahl explained. “Our machinery has to cope in the
toughest of conditions, and you can only gain this kind of
expertise through a long track record.
“We have a lot of confidence in the Asia market and
in the people that we’ve got here, to be looking at further
investment in our Hong Kong business,” he concluded.
Liebherr (HKG) Ltd
www.liebherr.com
� Liebherr Group employs almost 33,000 people in 120
companies
� Manufacturing, servicing and training for construction,
offshore and other maritime equipment
� 81-strong team in Hong Kong operates major training
centre, equipment workshops and servicing contracts
13

Hong Kong’s Business Partnering
Environment Ideal for Carbon Strategy Firm
For Jessica Robinson, Director of Enecore and head of
the company’s advisory services, relocating to Hong
Kong was an important move for the successful
expansion of the company.
“Hong Kong is a dynamic place where people
see opportunities and come together to do deals, and that’s
central to what we do,” Robinson explained. “Developing
a carbon strategy is not just about reducing energy
consumption in a building or project, it’s also about helping
people to understand that increased regulation is around the
corner, and that it’s essential to assess readiness and develop
a long-term strategy right now. Being on the front foot will
ensure that businesses reduce costs and maximise value.”
Emissions trading, Robinson explains, is a market-based
approach used to reduce greenhouse gases. It provides
economic incentives for achieving emission reductions
creating opportunities for polluting businesses to partner
with developers of green projects, such as wind farms or tree
plantations.
One of Enecore’s roles is to bring together the various
stakeholders – including project owners and project financers
– involved in this process. “It’s a business deal like any
other,” Robinson explained. “And when you’re facilitating
partnerships, Hong Kong is the place to be.”
14
Enecore
Despite most of its projects being based outside Hong Kong, Enecore, a market
leader in carbon strategies, emission reduction and green investments, knew that
Hong Kong was the right place for its regional headquarters
� Head offi ce in Hong Kong, regional offi ces in Beijing and
Hanoi
� 30+ full time staff across the region
� Advises companies in emission reduction and carbon
management strategies
� Brings together companies developing ER projects, such as
wind farms, with fi nanciers
� Offers a range of consultancy services on carbon fi nancing
and strategies, sustainability issues and environmental
markets
Huge Market for Emissions Reduction
Enecore started business in Beijing almost six years ago and
continues to have a strong presence in China. “It’s a huge
market for emission reductions and has taken a leading
role in carbon reduction projects. We work with local and
international stakeholders to develop projects, including
due diligence and advice on registration for United Nations
carbon financing,” Robinson said.
Regional Expansion Pointed to Hong Kong
As the business grew, there was a strong need to assess
whether a second and third office was needed. “As well
as China, Vietnam was also proving a strong market, but
we realised that neither Beijing nor Hanoi offered the
right environment for a long-term regional headquarters,”
Robinson added.
A range of factors finally drove the decision to set up
the Hong Kong regional office. “The obvious one is that
Hong Kong is very close to China, not only geographically,
but also commercially and politically,” she explained.
“When you’re in Hong Kong, you get a strong
impression that you’re in the heart of Asia, and that this
is where things are happening. There’s an easy business
networking community and an entrepreneurial spirit that
we’ve not felt so keenly elsewhere in the region,” she added.
“It’s also a financial centre, with a strong financial solutions
community, so we’re close to the people who are making
the money decisions on major projects that are seeking some
kind of carbon or other financing.”
Hong Kong is a dynamic place where people see
opportunities and come together to do deals, and that’s
central to what we do
Jessica Robinson, co-Director, Enecore
Business Functions in Hong Kong
The Hong Kong office now plays a key regional role,
overseeing the two offices in Beijing and Hanoi and dealing
with clients from Europe to Australia, Robinson said. “The
ease with which you can fly in and out of Hong Kong is
another great reason to be here.”
For Robinson, who came to Hong Kong after four years
in Beijing, the move south has been a welcome relocation.
“China continues to be a tricky environment for foreign
companies, and so being in Hong Kong has been a real
breath of fresh air.”
Looking ahead, Robinson says she expects Hong Kong
to be a good catalyst for their business. “We’re in a tough
global economic situation at the moment, but if you have to
be running a business then this is definitely the place to be.
You need to be here on the ground in Asia and Hong Kong
is a platform that allows us to reach out to our clients and
projects across the Asia Pacific region.”
www.enecore.com

1.618 Brings Italian Design
Excellence to Hong Kong
With its 100-strong team of professionals in six locations worldwide, the award-winning
branding agency, 1.618, was keen to set up in Hong Kong to inspire brand-conscious
clients to success during an exciting period for Asian development
The intriguing part about 1.618 is its name.
Pronounced “one six one eight”, the name refers
both to a pathway to prosperity in Chinese, and
the Golden Ratio, the answer to an equation
originating from the Italian Renaissance and
now often used in design and architecture. Before
venturing into the Asian market, Gianluca Cinquepalmi,
1.618’s Managing Director, wanted to rebrand the jointventure
agency to show its enthusiasm for Asia and its
connections with Italy.
“We want a number that is relevant to and
represents both eastern and western cultures,” Gianluca
explained. “My business partners and I love Hong Kong so
much that we wanted to bring Italian design excellence to
this market and the region.”
Convenience is a major factor for
people with regional operations. Here the
fl ight time to any major city in the region
is between one and four hours. This really
helps us save cost and time
1.618
Gianluca Cinquepalmi, Managing Director, 1.618
� Originating in Italy, with 100+ professionals across 15
disciplines
� More than 30 years of experience in branding, web design
and advertising
� One of the most awarded design companies in Italy
� Opened its Hong Kong offi ce in July 2011 and currently
employs six staff
With an impressive list of international clients including
Ferrari, Microsoft and Samsung, 1.618 started work with its
first local client, the AC Milan Soccer School in Hong Kong,
soon after setting up the agency in the city.
Easy Access to Asia
Gianluca said he was eager to learn from successful local
brands, such as Maxim’s and Vitasoy, which had developed
through the talent of local entrepreneurs. This talent was
supported, he said, by the city’s business-friendly and
high-income environment. “From an economic perspective,
the economy in Hong Kong is better than other cities in
the region. The growth in the number of wealthy people
exceeds that of Mainland China, and it’s in a very compact
city,” he said.
Another advantage, Gianluca explained, was that
Hong Kong provides easy access to other cities across Asia.
“Convenience is a major factor for people with regional
operations. Here in Hong Kong, the flight time to any major
city in the region is between one and four hours. This really
helps us save cost and time.”
Go With the Flow
With his passion for branding, Gianluca first created a
successful agency in Milan, Italy before extending into
Barcelona, Doha, London, Moscow and now, Hong Kong.
He also lectured about branding and how the brand
experience works. But his background was not always
in branding, something that Gianluca sees as an asset to
his business. With a degree in mechanical engineering,
followed by an MBA, he started his career in product
development and quality.
“I’ve always been obsessed with two things. Firstly, I
like to look at common objects and see them from different
perspectives, and secondly, I like to really examine things
and see how things work,” he said. It was this lifelong
passion that led him to work with clients to see how they
could improve their products and services by looking at
things in a different way.
“Our approach is to look for long-term benefits, not
imminent sales results. We help brands to consolidate their
position in the market, and understand the importance of
keeping the existing customers, not just finding new ones,”
Gianluca explained.
With his young and growing team in Hong Kong,
Gianluca is looking for “new blood” to join his team,
especially in account servicing.
In the meantime, he’s happy to enjoy all Hong Kong
has to offer. “It’s an amazing city. It’s convenient, dynamic
and lively. You can easily hop on a boat or a junk at the
weekends or go hiking in the nearby countryside. The work
life balance here is just the right mix for design companies
like us,” he enthused.
www.1618group.hk
15

16
InvestHK recently facilitated the following companies to establish or expand their business
presence in Hong Kong. InvestHK welcomes them to our city and wishes them a prosperous future.
Company name Sector
Australia
Bartco Ltd Road Transport Equipment
Boral Plasterboard Building Materials
Logistics Executive Recruitment Services
WineSpace Concepts Ltd Wine Retail
Belgium
bpost Asia Mail and Express Delivery
China
Enecore Carbon Strategy
Fuqiao New Home Healthcare Personal Healthcare Services
Centre
Lichen Logistics (Hong Kong) Co Ltd International Trade,
Trade Financing, Shipping
Unifortune (HK) Company Ltd Supply Chain Services
Wanhua Holding (HK) Ltd Industrial Urban Operation
Yesmywine Hongkong Ltd Wine Trading and Distribution
Denmark
Mannaz Ltd Global Leadership
Development
Dubai
Heels & Deals Ltd Business Networking Support
Finland
3 Step IT (Hong Kong) Ltd IT Equipment Consultancy
France
ID’S Information Technology in
Financial Services
Jeanneau Asia Pacifi c Ltd Yachts Manufacturing
Germany
Hohenstein Laboratories (HK) Ltd Textiles Testing and Certifi cation
Liebherr (HKG) Ltd Heavy Machinery
Manufacturing
Tritron Asia Ltd Development and
Manufacturing of Inkjet Inks
Greece
Greco Pi Ltd Food and Beverage
Company name Sector
Italy
1.618 Brand Design Services
Japan
Daikokuya Retail and Wholesale of
Second-hand Luxury Goods
Mark’s Asia Pacifi c Ltd Wholesale of Stationery
MDSI (HK) Ltd Retail and Wholesale of Stationery
Miss Paris Group Ltd Beauty Services
Sake Bar GINN Restaurant and Bar
Korea
Bico TS (HK) Ltd Travel Services
Luxembourg
Banque Degroof Luxembourg Financial Services
Spain
Centre Tecnològic de Information and Communications
Telecomunicacions de Catalunya Technology
Eguren Wines Asia Ltd Winery
Vinoasia Ltd Wine Retail and Distribution
Zigor HK Ltd Winery
Switzerland
NetModule Asia Ltd Engineering Services, Consulting
and Manufacturing
UK
Acentic Asia Ltd Hotel Interactive TV and Broadband
Services
Slurp.asia Ltd Wine Retail and Wholesale
US
Coach Hong Kong Ltd Luxury Handbags Maker and
Marketer
Data Systems International Enterprise Mobility Solutions
Microdia (Greater China) Ltd Data Storage Media Manufacturer
Peninsula Real Estate Capital Financial Services
Advisors Asia
StatPro Asia Ltd Financial Software and Market
Data
Tetra Tech Consulting and Engineering
Management