Commerce and Economic Development Bureau

【Record high numbers of companies in HK with overseas or Mainland parent companies and startups】 Hong Kong has achieved good results in attracting enterprises and investment. According to the results of the 2024 Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong and the 2024 Startup Survey released by the Government today, the number of companies in Hong Kong with overseas or Mainland parent companies rose to 9,960 in 2024, while the number of startups in Hong Kong increased to 4,694, both reaching record highs. Secretary Yau said that these encouraging results demonstrated that Hong Kong is becoming increasingly attractive to businesses and remains an ideal place for Mainland and overseas enterprises to set up or expand their operations. The results are also a strong testimony to companies' confidence in Hong Kong. With our unique advantages under 'one country, two systems', Hong Kong is the best two-way platform for overseas enterprises to tap into the Mainland market and for Mainland enterprises to go global, and therefore is their prime destination for investment. According to the survey results, there were 9,960 companies in Hong Kong with parent companies located outside Hong Kong, representing an increase of 10% when compared with that of last year. The number of people employed reached 493,000, recording an increase of 5% year on year. Analysed by the location of parent company, the Mainland was ranked first, followed by Japan, the US, the UK and Singapore. Meanwhile, startups in Hong Kong reached 4,694, up by 10 % from last year. These startups engaged 17,651 persons, representing an increase of 7% compared to last year's figure. Secretary Yau noted that while factors such as global economic uncertainties, a shift in market behaviour after the epidemic and geopolitical tensions have affected companies' expansion plans, Hong Kong is, as always, resilient, and has maintained its unique advantages and attractiveness to the business community, offering enterprises with vast opportunities. The government will continue to promote Hong Kong's advantages globally and tell good stories of the city as well as encourage enterprises to make good use of Hong Kong to tap into the GBA and the broader Mainland market. Links to the two survey results: https://lnkd.in/gfp3RNs3 https://lnkd.in/gGMqv4HA

【Hong Kong-ASEAN Collaboration on Promoting IP Commercialisation and Fostering Industry Development and Cultural Exchanges】 To foster regional co-operation on IP commercialisationamong Hong Kong and the economies of the Association of Southeast Asian Nations (ASEAN), anASEAN Session was held successfully at the recent Business of IP Asia Forum. The ASEAN Session, themed “IP Commercialisation - An Engine to Drive Economic Growth in the Arts, Cultural and Creative Industries and Cultural Exchanges”, was spearheaded by the Intellectual Property Department (IPD) of the Government of the Hong Kong Special Administrative Region with the staunch support of the IP and culture-related agenciesof the ASEAN economies. Speaking at the opening of the ASEAN Session, Mr David WONG, Director of Intellectual Property, pointed out that creative works, designs and brands often embody cultural value.  Cultural exchanges between different places could be fostered by market forces in terms of IP commercialisation and cross-boundary trading.  The IPD would continue to actively strengthen co-operation with the ASEAN economies in the IP field and capitalise on Hong Kong’s advantages to bring about mutual benefits. Mr Victor TSANG, Commissioner for Cultural and Creative Industries said that the arts, cultural and creative industries form an important component of Hong Kong’s economy.  The Cultural and Creative Industries Development Agency is fully committed to promoting the development of cultural and creative as industries and supporting the development of Hong Kong into an East-meets-West centre for international cultural exchange. The event was supported by the Economic and Technical Co-operation Work Programme under the ASEAN-Hong Kong, China Free Trade Agreement and attracted more than 170participants, including IP and cultural affairs officers, experts and enterprise representatives from ASEAN and Hong Kong. #ASEAN #IPCommercialisation #CulturalIP #CulturalandCreativeIndustries

【Hong Kong and WIPO Co-organized a Breakout Session on “IP Commercialization - IP and Doing Business in an AI-Driven World”】 At the 14th Business of IP Asia Forum, a breakout session themed “IP Commercialization - IP and Doing Business in an AI-Driven World”, organized for the first time by the Intellectual Property Department (IPD) of Hong Kong and the Hong Kong Trade Development Council in collaboration with the World Intellectual Property Organization (WIPO), was held successfully.   Speakers from Hong Kong and around the globe shared their experiences and insights into this emerging field, and explored how AI could change the landscape of IP portfolio management.   Mr David WONG, Director of Intellectual Property, remarked in his speech that the rapid advancement of AI had brought about revolutionary impact in different fields and industries. As IP was precisely the core of the intangible economy, commercializing intangible assets was crucial in serving as a key engine for driving the transformation and upgrading of enterprises. The IPD would proactively foster exchanges and co-operation with stakeholders from different places to facilitate the convergence of global resources and production factors, and make greater contributions to the building of an IP powerhouse and the high quality development of our country.

Led by Secretary Yau, a business delegation comprising the Commissioner for Belt and Road, Mr Nicholas Ho, and representatives from major chambers of commerce and enterprises visited Urumqi, Xinjiang, to promote Hong Kong's business opportunities and explore the full range of opportunities arising from the Belt and Road Initiative. The delegation met with the Secretary of the CPC Xinjiang Uyghur Autonomous Regional Committee, Mr Ma Xingrui; the Chairman of Xinjiang Uyghur Autonomous Region, Mr Erkin Tuniyaz; and Deputy Prime Minister of Kazakhstan Mr Serik Zhumangarin on December 5 to exchange views on promoting economic and trade co-operation among the three places. The Commissioner for Belt and Road, Mr Nicholas Ho, and other members of the delegation also attended a co-operation and exchange forum between China (Xinjiang, Hong Kong) and Kazakhstan to promote Hong Kong's advantages and participated in sharing sessions focusing on various areas including cultural exchanges, energy industries, digital economy, commerce and logistics and finance, with a view to exploring opportunities. In addition, the delegation visited local enterprises engaging in manufacturing of energy equipment and textile products respectively to gain an understanding of the development of the related industries. Mr Yau noted that Kazakhstan is a hub connecting Europe and Asia, while Xinjiang serves as a key link for the Silk Road on land, whereas Hong Kong is the premier gateway to the Mainland market. By strengthening exchanges and co-operation, the three places will be able to achieve complementarity for greater benefits, contributing to the prosperity of the Belt and Road regions. The Hong Kong Special Administrative Region Government will continue to support enterprises and professional services in exploring global markets and business opportunities along the Belt and Road, as well as assist Belt and Road countries and regions to enhance professional capacities and promote people-to-people bonds.

【Hong Kong and Peru sign Free Trade Agreement】 We are very pleased that in the witness of the Chief Executive and the President of Peru, Ms Dina Boluarte, Hong Kong and Peru just signed a Free Trade Agreement (FTA) on November 15 in Lima, Peru. The FTA, which will create opportunities for businesses and investors in the two places, marked the closer economic and trade partnership between Hong Kong and its trading partners in Latin America.   This is the first FTA signed by the current-term Government. The FTA encompasses trade in services, trade in goods, investment and other areas.  Under the FTA, Hong Kong’s trader can be benefited from elimination or reduction of tariffs (zero tariffs for 98.3% tariff lines), and reduction of trade barriers.  Service providers (in 150 services sectors) and investors can likewise be benefited in market of Peru. Peru ranked 5th among Hong Kong's merchandise trading partners in Latin America, with bilateral merchandise trade amounted to HK$5.2 billion. We encourage Hong Kong's traders and investors to grasp the opportunities brought by the FTA, and expand their businesses in Peru and the Latin American markets. We also look forward to more Peruvian businesses to expand into Hong Kong, and use Hong Kong as a gateway to tap into the Mainland market in particular the Greater Bay Area. Being Hong Kong's second FTA forged with Latin American economies, the FTA will further expand our commercial and trade networks in Latin America, and also create synergy with the FTA signed between Hong Kong and Chile. Including the FTA with Peru, Hong Kong has so far signed 9 FTAs with 21 economies. Hong Kong is actively seeking to expand its economic and trade network, and explore emerging markets including regions along the Belt and Road so as to bring more business opportunities for enterprises. Capitalising on our unique advantages of enjoying strong support of the motherland and being closely connected to the world, we will strive to promote more mutually beneficial co-operation with other economies, with a view to reinforcing and enhancing Hong Kong’s status as an international trade centre for further economic development. Algernon Yau Secretary for Commerce and Economic Development

【APEC Ministerial Meeting in Peru】   Secretary Yau shared Hong Kong's efforts in promoting digitalisation, and inclusive and sustainable growth of trade to benefit all at the Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting held in Lima, Peru, on November 14.    Speaking at the meeting, Secretary Yau highlighted the importance of harnessing digital technologies to facilitate formalisation, and briefed other ministers on Hong Kong's investment in digital infrastructure to create an enabling environment for businesses, such as the launch of the Commercial Data Interchange to facilitate data sharing among banks and businesses.    He also said that APEC member economies should scale up finance and investment in innovation, research and development to support the transition to a green and low-carbon economy. Hong Kong has also invested substantial resources in building a vibrant innovation and technology ecosystem, focusing on key sectors such as new energy and new materials.   Meanwhile, Secretary Yau pointed out that both the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership (RCEP) serve as crucial pathways towards realising the Free Trade Area of the Asia-Pacific proposed by the APEC Business Advisory Council some 20 years ago. He reiterated that Hong Kong is actively seeking to join the RCEP, adding that we are glad to see the recent adoption of its accession procedures and look forward to launching substantive discussions between RCEP members and Hong Kong.   On the sidelines of the meeting, Secretary Yau met with the Minister of Commerce of Thailand, Mr Pichai Naripthaphan, and the Minister of Trade of Indonesia, Mr Budi Santoso, respectively on November 13 to update them on Hong Kong's latest developments and exchange views on collaboration opportunities. He also thanked the two economies for their continued support for Hong Kong’s early accession to RCEP.

🌍 Belt and Road Initiative: Building a shared future with Hong Kong 🚀   Premiered at the 9th Belt and Road Summit, the video showcases Hong Kong's role as a functional platform, a "super connector" and a "super value-adder" for the Belt and Road Initiative. Watch it again here! 🎬✨   Belt and Road Office, HKSAR Government #BeltandRoad #BeltandRoadOffice #SuperConnector #SuperValueAdder #Sustainability #Innovation #GoldenDecade

Watch the English version of "Belt and Road: HK in Action" on TV this Sunday!   Co-produced by the Belt and Road Office and Radio Television Hong Kong (RTHK), the English version will air on RTHK TV 31 at 6:25 PM for four consecutive Sundays – 20/10 - Innovation & Technology 27/10 - Green Development 3/11 - Clean Silk Road 10/11 - Youth Chapter   🎥 Cantonese version: https://lnkd.in/gHmYPVvB   Tune in and discover how Hong Kong is playing the role of “super connector” and “super value-adder” in the next golden decade of the Belt and Road Initiative. 🌏🎥   Belt and Road Office, HKSAR Government #BeltandRoad #BeltandRoadOffice #RTHK

【Hong Kong ranks as the world's freest economy 】 According to the Economic Freedom of the World 2024 Annual Report published by the Fraser Institute today, Hong Kong ranks as the world's freest economy among 165 economies, up by one place from last year. The result is encouraging. For long, Hong Kong has fully leveraged the advantages of a free market, and maintained a free, open, effective and fair business environment. The ranking fully reflects the international recognition of these advantages.        Hong Kong's free market and premier business environment are attributable to our distinctive institutional strengths of the 'one country, two systems' arrangement. Indeed, over 9,000 overseas and Mainland companies have chosen Hong Kong as their base to fully leverage Hong Kong's roles and functions as a 'super connector' and a 'super value-adder'. In the first 9 months of this year, Invest Hong Kong assisted 470 Mainland and overseas enterprises to establish or expand their businesses in Hong Kong, up by around 57% from the same period last year. With the staunch support of the country, we will proactively integrate into the overall national development, align with national development strategies, maintain and improve a free and open business environment, and continue to serve as a two-way springboard for attracting international enterprises to Hong Kong and supporting Mainland enterprises to 'go global'.

“The Chief Executive’s 2024 Policy Address” CEDB Major Initiatives 📍 Liquor duty From today (Oct 16), the duty rate for liquor with an import price of over $200 will be reduced from 100% to 10% for the portion above $200, while the duty rate for the portion of $200 and below, as well as liquor with an import price of $200 or below will remain unchanged (Liquor with value up to $200 constitutes around 84% of the volume of duty-paid liquor (by bottles) in Hong Kong) 📍 Build a high value-added supply chain service centre Attract Mainland enterprises to establish international or regional headquarters in Hong Kong for managing offshore trading and supply chain, providing one-stop, diversified professional advisory services for enterprises in Hong Kong 📍 Provide greater export protection for enterprises Raise the statutory maximum indemnity percentage of the Hong Kong Export Credit Insurance Corporation from 90% to 95% 📍 Relaunch the principal moratorium Allow borrowing enterprises under the SME Financing Guarantee Scheme to apply for principal moratorium for up to 12 months. Extend the maximum loan guarantee periods of the 80% and 90% guarantee products to 10 years and 8 years respectively. Offer partial principal repayment options to new loans. 📍 Expand the geographical coverage of “E-commerce Easy” to the 10 ASEAN countries 📍 Inject $1 billion into the BUD Fund, expand “E-commerce Easy” to the ASEAN market, and provide targeted funding support for enterprises to implement green transformation projects 📍 Allocate an additional provision of $500 million for launching the Incentive Scheme for Recurrent Exhibitions 2.0 📍 Regional Intellectual Property (IP) Trading - Put forward a proposal next year on further enhancement to the Copyright Ordinance regarding the protection for AI technology development  - Launch a consultation within next year on the registered designs regime currently under review - Propose legislative amendments to streamline IP litigation processes 📍 Set up a Working Group on Promoting Silver Economy and implement measures in five areas More details： www.policyaddress.gov.hk