Unlimited Business Opportunities Chapter V Unlimited Business Opportunities
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Chapter V Unlimited Business Opportunities Chapter V Unlimited Business Opportunities Chapter V Unlimited Business Opportunities –71 My Belief “To maintain a city’s competitiveness is like sailing a boat against the current and it must forge ahead in order not to be driven back. Hence, Hong Kong must keep consolidating its existing strengths, exploring new advantages, expanding economic and trade ties with the world, and fostering closer exchange and co-operation with the Mainland.” “The Hong Kong Special Administrative Region (HKSAR) Government is determined to boost the development of new and emerging industries in addition to our traditional industries, and considers that both innovation and technology and the creative industries have a competitive edge and much potential. They will not only promote a diversified economy, but also create more quality employment opportunities for our young people.” Hong Kong has been acclaimed as the world’s most open, freest and most competitive city by many international organisations. Leveraging our unique strengths under “One Country, Two Systems”, we will continue to provide a business-friendly environment, uphold operation of the market and promote free trade. We will also strive to develop new areas of economic growth. The National 13th Five-Year Plan pledges support for Hong Kong to reinforce and enhance its status as an international financial, transport and trade centre; develop its innovation and technology (I&T) industry; and establish itself as a centre for international legal and dispute resolution services in the Asia-Pacific region. The Belt and Road Initiative, as well as the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) development have brought enormous opportunities for the economic development of Hong Kong. The HKSAR Government will do its best as a “facilitator” and “promoter”, seizing opportunities to actively connect with the world to explore more business opportunities. International Financial Centre Green Finance Stock Market (Main Board) Hang Seng Index Movement Growing size and diversity of green bonds arranged and issued in Hong Kong Daily Average Turnover Value 28,000 2017 Sector September 2020 Financial Institutions 0% $122 billion 26,000 Corporate - Real Estate 4% Corporate - Energy 32% 2017 Amount 24,000 Corporate - Others 12% US$ (%) 60.5% Policy/ Development Banks 52% 22,000 Multilateral Development Banks 0% 3.2 September 2019 billion Government 0% $76 billion 20,000 (%) 0 20 40 60 Jan'20 Mar'20 May'20 Jul'20 Sep'20 As of 30 Sep 2020 2019 Sector Financial Institutions 49.4% Stock Connect Bond Connect Corporate - Real Estate 18.8% 2019 Stock Connect average Foreign holding of Mainland Corporate - Energy 6.2% Amount daily trade value onshore bonds (RMB billion) Corporate - Others 11.2% US$ Policy/ Development Banks 4% 10 Multilateral Development Banks 0.3% billion 12 Times Government 10.1% 2,802.9 90 0 20 40 60 (%) The average daily turnover Sources: Climate Bonds Initiative and the Hong Kong Monetary Authority of Bond Connect increases 23 882.4 10 10 by 12 times from RMB 1.5 billion in July 2017 2017 2020 2017 2020 to RMB 19 billion in FinTech Development (as of August) (as of August) September 2020. Figures at a glance Northbound Stock Connect (RMB billion) Soundbound Stock Connect (HK$ billion) Asset and wealth management centre Initial Public Offering (IPO) Size of asset and wealth management business Hong Kong’s global fundraising ranking No. of FinTech Accumulated Fintech adoption rate Percentage of banks #3 #1 #1 #3 companies in investment in Hong by consumers in adopted or plan to 64% of assets sourced from Hong Kong (2020): Kong-based FinTech Hong Kong adopt Fintech 218 non-Hong Kong investors companies (from 2017 to 2019): solutions3 : 183 (2014 - 2019): 174 314.2 99 From 1 32% 288 Over 600 US$1.47 billion 2 86% 29 Private equity business: 211 to 67% 24 Hong Kong ranks 2nd in Asia 128.5 by asset under management 2017 2019 (US$163 billion in June 2020) 2017 2018 2019 2020 (as of September) 1: Accenture data HK$ trillion No of IPOs 2: Ernst & Young Global Fintech Adoption Index 2019 3: Survey on Fintech Adoption and Innovation in the Hong Kong Banking Industry Total IPO funds raised (HK$ billion) International Financial Centre Green Finance Stock Market (Main Board) Hang Seng Index Movement Growing size and diversity of green bonds arranged and issued in Hong Kong Daily Average Turnover Value 28,000 2017 Sector September 2020 Financial Institutions 0% $122 billion 26,000 Corporate - Real Estate 4% Corporate - Energy 32% 2017 Amount 24,000 Corporate - Others 12% US$ (%) 60.5% Policy/ Development Banks 52% 22,000 Multilateral Development Banks 0% 3.2 September 2019 billion Government 0% $76 billion 20,000 (%) 0 20 40 60 Jan'20 Mar'20 May'20 Jul'20 Sep'20 As of 30 Sep 2020 2019 Sector Financial Institutions 49.4% Stock Connect Bond Connect Corporate - Real Estate 18.8% 2019 Stock Connect average Foreign holding of Mainland Corporate - Energy 6.2% Amount daily trade value onshore bonds (RMB billion) Corporate - Others 11.2% US$ Policy/ Development Banks 4% 10 Multilateral Development Banks 0.3% billion 12 Times Government 10.1% 2,802.9 90 0 20 40 60 (%) The average daily turnover Sources: Climate Bonds Initiative and the Hong Kong Monetary Authority of Bond Connect increases 23 882.4 10 10 by 12 times from RMB 1.5 billion in July 2017 2017 2020 2017 2020 to RMB 19 billion in FinTech Development (as of August) (as of August) September 2020. Figures at a glance Northbound Stock Connect (RMB billion) Soundbound Stock Connect (HK$ billion) Asset and wealth management centre Initial Public Offering (IPO) Size of asset and wealth management business Hong Kong’s global fundraising ranking No. of FinTech Accumulated Fintech adoption rate Percentage of banks #3 #1 #1 #3 companies in investment in Hong by consumers in adopted or plan to 64% of assets sourced from Hong Kong (2020): Kong-based FinTech Hong Kong adopt Fintech 218 non-Hong Kong investors companies (from 2017 to 2019): solutions3 : 183 (2014 - 2019): 174 314.2 99 From 1 32% 288 Over 600 US$1.47 billion 2 86% 29 Private equity business: 211 to 67% 24 Hong Kong ranks 2nd in Asia 128.5 by asset under management 2017 2019 (US$163 billion in June 2020) 2017 2018 2019 2020 (as of September) 1: Accenture data HK$ trillion No of IPOs 2: Ernst & Young Global Fintech Adoption Index 2019 3: Survey on Fintech Adoption and Innovation in the Hong Kong Banking Industry Total IPO funds raised (HK$ billion) Support for Small and Medium Enterprises (SMEs) Innovation and Technology (I&T) Injected Input Introduced $20 billion into Implemented enhanced tax Research new pro-innovation deduction Endowment Fund government incentives for SME Financing Dedicated Fund on SME Export and launched procurement policy qualifying R&D Guarantee Scheme Branding, Upgrading Marketing Fund Technology Talent and TechConnect expenditure (From July 2017 to (SFGS) and Domestic Sales (EMF) Scheme (block vote) end September 2020) (BUD Fund) Secured Grants/loans $3 billion for approved $63 billion $1.1 billion $740 million Hong Kong Science Earmarked and Technology Parks $8.5 billion for Number of Corporation (HKSTPC) expansion of enterprises 22 000 over 1 600 12 000 to develop research Science Park and benefited and development (R&D) Cyberport Number of related facilities employees over 300 000 19 000 82 000 benefited Distance Business Committed over $100 billion Reserved Technology Voucher Secured $7 billion Programme funding for I&T development $20.8 billion for (From July 2017 to Programme for HKSTPC and developing the end September 2020) (Introduced in May 2020) $200 million for Lok Ma Chau Loop into Cyberport to Hong Kong’s I&T Hong Kong-Shenzhen Grants support tenants I&T Park approved $864 million $460 million Ecosystem (5th in the IMD World Applications Digital Competitiveness approved 15 548 (95% cases for SMEs) 2 900 Output Ranking 2020*) (11th in 2018) Hong Kong Export Hong Kong Monetary InnoHK Credit Insurance Authority Pre-approved Research Clusters Venture (From June to Corporation 100% Credit (From April to Principal Payment The first batch of capital investment end August 2020) end September 2020) Limit Top-Up Scheme Holiday Scheme R&D Centres will in Hong Kong Additional open in Q4 2020/ Aggregate coverage Q1 2021 $36.9 $6.6 billion amount of loan $580 billion approved billion (2017-2019) Applications Applications approved 6 424 approved 48 000 Start-ups Research fellows 3 360 Total number of One-stop services for SMEs supported (2020) Locally developed tech applications government 70/year in fighting COVID-19: funding schemes “Four-in-one” SME Centres: • Electronic wristband one-stop consultation and referral services • “StayHomeSafe” mobile app for enterprises: • Local Situation Dashboard • CuMask+TM SME ReachOut Service Team: * Published by the International Institute 40 promote and help identify suitable funding for Management Development (IMD) schemes and loan guarantee schemes Support for Small and Medium Enterprises (SMEs) Innovation and Technology (I&T) Injected Input Introduced $20 billion into Implemented enhanced tax Research new pro-innovation deduction Endowment Fund government incentives for SME Financing Dedicated Fund on SME Export and launched procurement policy qualifying R&D Guarantee Scheme Branding, Upgrading Marketing Fund Technology Talent and TechConnect expenditure (From July 2017 to (SFGS) and Domestic Sales (EMF) Scheme (block vote) end September 2020) (BUD Fund) Secured Grants/loans $3 billion