HK Foreign Direct Investment, July 2018

Quarterly Newsletter July 2018

FIRST CROSS-BORDER FINTECH WEEK 29 OCT – 2 NOV 2018

Hong Kong FinTech Week will present the world’s first cross‑border financial technology (FinTech) event from 29 October to 2 November 2018.

This Issue 3 International Forward Calendar 4 Special Feature: Annual RHQ Survey 5 Market Focus: Japan 6 Special Feature: HKEX New Listing Regime 7-15 Case Studies 16 New Investors 2

Taking place in Hong Kong and Shenzhen,  In November 2017, the Hong Kong Event Calendar the conference is expecting to attract Monetary Authority (HKMA) and the more than 8,000 senior executives and Monetary Authority of Singapore (MAS) featuring over 200 of the world’s top announced the joint development of Days 1 – 2 Finovate Asia FinTech founders, investors, regulators, the Global Trade Connectivity Network and academics, who are shaping the (GTCN), a cross-border infrastructure 29 – 30 October 2018 (Mon – Tue) future of financial services by driving a based on distributed ledger technology, Hong Kong Convention & technological revolution in the industry to digitalise trade and trade finance Exhibition Centre across Asia and globally. between the two cities and potentially with an aim to expanding the network in This only one Asian stop will bring together the entire global FinTech the region and globally. Highlights community to showcase cutting-edge World’s first cross-border FinTech  The Stock Exchange of Hong Kong banking, financial and payments event – Hong Kong and Shenzhen launched a new listing regime on technology in a unique, short-form, 30 April 2018 which allows listings of demo format. Hong Kong is a fantastic base for FinTech companies with weighted voting right companies that aspire to a share in what is (WVR) structures in order to attract more the largest FinTech market in the world – technology and emerging companies to Mainland China. This year the FinTech Days 3 – 4 Hong Kong. Main Conference Week will focus on Hong Kong’s vital position and appeal as a conduit to the  In May 2018, HKMA has issued a revised 31 October – 1 November 2018 Guangdong-Hong Kong-Macao Bay Area, guideline on the authorisation of virtual (Wed – Thur) which comprises Hong Kong, Macao and banks. Interested parties can submit Hong Kong Convention & nine major cities and 68 million people their applications to HKMA before Exhibition Centre around the Bay Area. 31 August 2018. The two-day conference and expo will Fast Track Programme feature four stages, over 100 exhibition Dedicated FinTech Team Organised by InvestHK in partnership with booths and more than 200 speakers from across the world. It is ideal for Finnovasia, the new programme will help InvestHK’s dedicated FinTech team in interested parties seeking business startups from all over the world to get their Hong Kong with correspondents located expansion to Hong Kong, Mainland key to success in doing business in Hong in London and San Francisco aims to China and the APAC region. Kong. Selected companies will go through attract top innovative FinTech enterprises, the programme by meeting and following- startup entrepreneurs, investors and other up with the relevant stakeholders – the stakeholders from all over the world to Government, regulators, investors, VCs, Hong Kong and assist them to establish Day 5 Shenzhen Day accelerators, associations and institutions their presence here. The team provides in one simple track. Companies will benefit practical support such as business 2 November 2018 (Fri) from the basic business set-up in Hong evaluation, set-up (office, visa applications, Shenzhen – various locations Kong to seize opportunities to expand and and bank account), introduction to scale in the region. regulators, networking and public relations With company visits, presentations and business networking, participants Innovation Lab Tours and marketing support, etc. can explore and learn from the There will be an opportunity to visit key FinTech Week most innovative tech companies in innovation labs, hubs, accelerators and Mainland China. Participants can also incubators across Hong Kong. Facility Key Themes network with Chinese banks, VCs tours will be arranged to meet key staff to and regulators, with the professional understand their roles and focus in building counterparts from Hong Kong. the Hong Kong FinTech Ecosystem. Artificial elligenc D Business Matching / Office Hours Int e i B s l Sign up for more updates about the Hong tr o T ib c e k Facilitated meet-ups and business matching, l u Kong FinTech Week: www.fintechweek.hk c c a h t s e h u ( n as well as office hours with key partners, k D d a t o i r n L l n i T L @HongKongFinTech o

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G u M H a Fast Evolving o n a n g h c g d c C a on e a o o K g T n FinTech Ecosystem l o - Fin i la Ba ng h b y - C Watch the video: or Ar in Since the inaugural Hong Kong FinTech at ea ion Week in November 2016, there have been a number of new initiatives that promote the FinTech ecosystem in Hong Kong and foster international collaboration on FinTech innovation. Highlights include: International Forward Calendar 3

07JUL 09 SEP Futures 2018: Cambridge Cleantech Annual China International Fair for Investment and Conference Trade (CIFIT) in Xiamen The conference will cover the global development on the Themed “Introducing FDI” and “Going Global”, the 20th UK’s leadership in smart technology from the government’s CIFIT will showcase the business opportunities as well perspective. Attendees can also hear about major new local as investment policy and environment promotion by 4 investments in Cleantech, corporates with new innovation 8-11 integrating exhibition, talks, B2B project match-making, search programmes and Cleantech innovators. protocol meeting, investment salon etc. Location: The Trinity Centre, Cambridge Science Park, UK Location: Xiamen International Conference and Exhibition Centre, Mainland China Organiser: Cambridge Cleantech Organiser: Ministry of Commerce, PRC (MOFCOM) cambridgecleantech.org.uk/events/cambridgecleantechfuture- 2018-cambridge-cleantech-annual-conference www.chinafair.org.cn/english/overview/gnts1.aspx Biospain RISE 2018 This is the largest Biotech event organised by a national People from the world’s biggest companies and most exciting bio‑industry association in Europe and one of the world’s startups will come to Hong Kong to share their experiences. largest with over 3,000 one-to-one meetings and more than They’ll be joined by major global media and investors for this 9-12 800 participating companies. 34 percent of the delegates three-day networking event. 25-27 come from outside of Spain. InvestHK is a corporate partner. Location: HK Convention and Exhibition Centre Location: Fibes Exhibition & Congress Centre, Seville, Spain Organiser: Web Summit Organiser: ASEBIO, the Spanish Boi-industry Association, riseconf.com the Government of Andalucia biospain2018.org Belt and Road Summit, Tokyo This seminar aims to introduce Hong Kong’s role and The Hong Kong Institute of Bankers Annual business opportunities for Japanese companies under the Banking Conference 2018 Belt and Road Initiative and Guangdong ‑Hong Kong‑Macao Themed “Banking for a Smart Society”, the event will look at Bay Area development. how banks should digitise processes and channels to create 11 Location: Jimbo-cho, Tokyo, Japan a well-integrated customer experience in a smart society, Organisers: InvestHK, Hong Kong Economic and Trade Office 27 and discuss how the industry should manage this digital in Tokyo transformation. investhk.gov.hk/en/events/belt-and-road-and-greater-bay- Location: N100 Series (New Wing), HK Convention and Exhibition Centre area-initiatives-hong-kong-s-important-role-and-business.html Organiser: The Hong Kong Institute of Bankers Smart Innovative Hong Kong and the bankingconference.hkib.org/hkib2018 Guangdong-Hong Kong-Macao Bay Area The seminar aims to introduce Hong Kong’s business OCT 12 advantages and how Korean enterprises could make use of 10 the city to enter the Guangdong-Hong Kong-Macao Bay Area. South Summit Location: Lotte Hotel Seoul, South Korea A leading Innovation Global Platform focusing on business Organiser: InvestHK, Korea Trade‑Investment Promotion Agency opportunities and disruptive trends that gathers the 3-5 entrepreneurial ecosystem. InvestHK is a corporate partner. Forbes Under 30 Summit Asia Location: La N@ve, Calle Cifuentes 5, Madrid, Spain The Summit will bring together some 300 young leaders, Organiser: Spain Startup entrepreneurs and game-changers from across Asia, taken southsummit.co/en from the Forbes’ “30 Under 30 Asia” lists, as well as CEOs, mentors, industry leaders, investors and disruptors. It will 16-18 Japanese Community Networking Reception feature three days of panels, tech demos, networking, as well This networking reception is to thank Japanese companies as a food and music festival. 9 for their contribution to Hong Kong. Location: InterContinental Hong Kong Location: Hong Kong Organisers: Forbes Organiser: InvestHK (by invitation only) forbesunder30summitasia.com Hong Kong Fintech Week 2018 22nd Innovative Entrepreneur Award Ceremony The world’s first cross-border FinTech event that aims to This flagship programme aims to commend the attract over 5,000 senior executives and features over 100 of achievements of creative entrepreneurs in Hong Kong and 29Oct the world’s top FinTech founders, investors, regulators and 21 promote entrepreneurial spirit. academics, who are shaping the future of financial services | by driving a technological revolution in the industry across Location: Hong Kong Asia and globally. Organiser: Junior Chamber International City (Hong Kong) 2Nov Location: Hong Kong and Shenzhen cjc.org.hk Organiser: InvestHK hongkong-fintech.hk/en/events/hkftw18.html

See more events at

Organised by InvestHK Visit investhk.gov.hk for details 4 Special Feature

Annual Survey on Overseas and Mainland Parent Companies running Regional and Local Operations in Hong Kong

The Census and Statistics Department A questionnaire has been sent to each Your views and opinions are important to (C&SD) and InvestHK are conducting of the relevant companies together the survey. We will make use of the survey the 2018Annual Survey of companies with a notification letter. To assist these results to further develop support services in Hong Kong with parent companies companies in providing the information for existing and prospective investors from located outside Hong Kong. The survey as required, an electronic template of the outside Hong Kong. aims to collect information useful to the questionnaire is available upon request to Read more: http://www.censtatd.gov.hk/ Government in formulating strategies for the C&SD. press_release/pressReleaseDetail.jsp? cultivating a favourable environment for Information being sought in the survey charsetID=1&pressRID=4187 conducting business in Hong Kong and includes general information relating further developing support services for to these companies and opinions of the existing and prospective investors from management of these companies about outside Hong Kong. conducting business in Hong Kong. Such information will help us have a better All collected information which may enable understanding of the needs of foreign identification of individual companies companies in Hong Kong and tailor our will be kept in strict confidence and not For more information, promotions, both locally and overseas, to please contact: be released to any unauthorised parties. market Hong Kong as a leading destination Such data will solely be used for compiling Kingston Sun for foreign direct investment. statistics which will not enable information Head of Market Intelligence The survey covers companies in various (852) 3107 1043 relating to individual companies to Z economic sectors with their parent be revealed. m [email protected] companies located outside Hong Kong. Market Focus 5

Economic Ties between Hong Kong and Japan Going from Strength to Strength

In January 2018, Hong Kong’s import from companies in Hong Kong which is ranked matching meetings. InvestHK will be Japan was US$2.4 billion which represented the highest among all territories. These hosting the session on “Expanding business a 17.8 percent year-on-year increase and the companies include regional headquarters, to China and ASEAN”. Come and join us! city is also the largest export destination for regional offices and local offices that For more information, please visit: Japanese foodstuff. And, Japan’s exports oversee their business activities in Hong http://www.hktdc.com/ncs/tgthk2018/en/ of food and live animals to Hong Kong Kong and other Asian economies, such as main/index.html amounted to US$97 million, accounting for Mainland China. over 24 percent of Japan’s exports under Japanese companies in Hong Kong span such category. across a wide range of sectors, such as In addition, Japan is Hong Kong’s fifth food and beverage, finance, art and media. largest source of imports. Major import Japanese restaurant group AP Company items included semi-conductors, electronic has opened their first restaurant in Hong valves & tubes (with a share of 21.4%), Kong only last year and this branch has telecom equipment and parts (8.0%), already achieved the highest sales and electrical machinery & apparatus (6.5%), average spend-per-customer among their For more information, electrical apparatus for electrical circuits 200 restaurants in Japan and outlets in please contact: (6.4%), and petroleum oils (other than the region. crude) (3.8%). Hong Kong Economic and Think Global, Think Hong Kong Trade Office (Tokyo) With a population of 7.3 million and Hong Kong Trade Development Council’s Carlos Yukio Sasaki 56 million annual visitors, plus Hong Kong’s annual flagship event “Think Global, Think Head, Investment Promotion strategic location, Japanese companies Hong Kong” will take place in Tokyo on (81) 3 3356 8961 can access to vast consumer markets in 1 November. The event will bring together Z [email protected] Mainland China and Asia. m various Hong Kong partners including Invest Hong Kong, Hong Kong Science Park, Invest Hong Kong Consultant Japan’s Involvement in the Cyperport, Hong Kong Monetary Authority (Osaka) Hong Kong Economy as well as business communities to discuss Takemasa Nakata Based on the survey conducted by the developments and trends in the dynamic Consultant (Osaka) Census and Statistics Department in global market. It will feature a main (81) 6 4705 7019 Z collaboration with Invest Hong Kong, as of symposium, a high-level dinner, various m [email protected] June 2017, there are a total of 1,378 Japanese sector-specific sessions, and business 6 Special Feature Hong Kong Launched New Listing Regime to Attract Innovative Firms

The Stock Exchange of Hong Kong Limited Kong has a deeply liquid market, sound disclosure requirements. For pre-revenue (the Exchange), a wholly-owned subsidiary legal system and our rules and regulatory Biotech issuers, measures would be put of Hong Kong Exchanges and Clearing structure are transparent and accountable. in place around fundamental changes of Limited (HKEX), has announced new rules The city operates according to well- principal business and a more streamlined to broaden Hong Kong’s listing regime understood international standards. de-listing process to address potential effective 30 April 2018. “shell” concerns. For WVR issuers, Great Potential for Biotech safeguards include limits on WVR power As part of the reforms, the Exchange Industry and rules to protect non-WVR holders’ right is adding three new chapters in the to vote, in addition to enhanced corporate Main Board Listing Rules and made Currently, there are tremendous resources governance requirements. consequential changes to the current Rules and investment in new pharmaceuticals, to: (a) permit listings of biotech issuers treatments and related services that that do not meet any of the Main Board are targeting healthy aging and will For innovation-related business financial eligibility tests; (b) permit listings revolutionise our lives in the future. Biotech opportunities in Hong Kong, companies require massive capital into of companies with weighted voting right please contact: (WVR) structures; and (c) establish a new research, development and clinical testing. concessionary secondary listing route for With the new listing regime, Hong Kong’s Simon Tsang Greater China and international companies deeply liquid global financial centre can Head of Innovation & that wish to secondary list in Hong Kong. assist in pushing this industry forward and Technology provide the funding they need. (852) 3107 1013 Eyeing the volatile growth of the new Z economy, particularly innovative At the same time, the Exchange has m [email protected] companies in Mainland China, stock proposed appropriate investor safeguards, markets from around the world have been recognising the potential risks associated Wendy Chow adopting new policies to attract these with pre-revenue firms and those with Head of Information & lucrative firms to their markets. With the WVR structures. These include detailed Communications Technology (852) 3107 1012 new regime, firms that choose Hong Kong criteria for determining the suitability of Z as their listing destination can ride on the applicants, a higher market capitalisation m [email protected] city’s many competitive advantages. Hong requirement, as well as enhanced Case Study 7

A Unicorn in Hong Kong’s Co-Work Space

Hong Kong‑Shenzhen Innovation and Technology Park. With the concrete support from the government, I trust that many high‑tech companies will plan to set up their offices in Hong Kong. So office space demand will increase inevitably.”

Although there are more and more co-work space players in the market, Dr Mao believes that they are not competing with each other but making the pie bigger. “It is definitely a positive sign to see so many shared workspace operators in Hong Kong. This testifies to the tremendous potential in this vibrant market,” Dr Mao enthused.

With an estimated valuation of USD$1.7 billion, In the long run, Dr Mao is considering Beijing-based unicorn startup Ucommune is an IPO for the firm with Hong Kong after the city has amended its listing creating a global network of shared working spaces rules to welcome more “New Economy” together with a one-stop services online platform. businesses. “Hong Kong is an embracing city with multilingual talent. With its rule of law and efficiency, it is a place that Founded in 2015 by Dr Daqing Mao, addition, the Hong Kong government people can easily run their business,” Ucommune has established co-working is investing greatly in innovation and Dr Mao complimented. spaces in over 160 locations across technology, such as the Innovation and 36 cities worldwide, including Beijing, Technology Venture Fund Scheme and Dr Mao also provided tips for newcomers Shanghai, Singapore, New York and who would like to setup their business recently Hong Kong. in Hong Kong, “InvestHK has been providing market information since At Ucommune, the focus is to grow we decided to launch our service in the business-servicing capacity that the market. I believe it is essential to allows enterprises to physically create understand the market and conduct a community and complements It is definitely thorough research, including industry with an online platform that forms trends and government policies before an ecosystem to benefit business. a positive sign any commitment is made.” According to Dr Daqing Mao, Founder and Chairman, the Ucommune to see so many mobile app not only allows member to book co-work spaces but to provide shared workspace financial advisory, human resources, IP Ucommune protection, legal, accounting, social and operators in sales and marketing support. Members  Founded by Dr Daqing Mao can also ride on this platform to promote Hong Kong. This in 2015, Ucommune has their products and services to others an estimated valuation of in the community. At the moment, testifies to the USD$1.7 billion Ucommune has over 100,000 members. tremendous  Operates in over Enormous Potential in potential in this 160 locations across 36 cities Hong Kong worldwide with more than “Hong Kong is an ideal place to establish vibrant market, 100,000 members, covering co-work space as people are highly a total area of 400,000 sqm. mobilised. Company size can vary Dr Daqing Mao w www.urwork.cn within a short period of time, thus Founder and Chairman flexibility is essential in operating office space,” Dr Mao added. “In Ucommune 8 Case Study

Gearing up for Smart City Siemens sets up its Smart City Digital Hub in Hong Kong to accelerate smart city development through collaborations and talent training.

The hub in Hong Kong is first-of-its-kind established by Siemens in Asia as a move to expand regional innovations outside its R&D headquarters in Germany. “We see the hub as a startup entity within the company,” Cheng added, “with our various strategic projects, we believe it will impact a lot of cities on different levels, as well as internally within the company.” Committed to nurturing future talent in the field, Siemens is also sponsoring MindSphere system to Vocational Training Council (VTC). Training courses will be given by experts in Siemens in VTC to sharpen students’ knowhow on data analysis and its application. Special executive training courses targeting industry leaders are also available to help business decision makers learn about the megatrends and prepare for upcoming German electrification and automation challenges in the digital era. company Siemens opened a Smart City The hub also receives internship by Digital Hub (the hub) in collaboration with working closely with universities and the Hong Kong Science and Technology institutions. Cheng remarked, “we want Parks Corporation (HKSTP), aiming to I am confident in to echo and support the Hong Kong accelerate the development of smart city government’s Smart City Blueprint applications and solutions specifically for the next pipeline with ‘Smart People’ approach. Through Hong Kong. the internship and other educational Powered by Siemens’ cloud-based IoT of workforce programmes, we hope to train the operating system MindSphere, the hub next generation of data scientists. I is designed as an open lab that enables in Hong Kong, am confident in the next pipeline of research and development in the topics workforce in Hong Kong, especially in of data analytics, IoT, connectivity, especially software development and AI technology.” smart building, smart energy and smart mobility. In the initial phase, the areas in in software focus include City Performance Tool Air, Connected City Solutions, Cyber Security, development and Data Analytics Suitcase, and MindSphere Siemens Ltd. Open IoT Platform. AI technology.  Siemens’ Smart City Digital “As we step into the digital era, Siemens Hub was officially opened in sets up this hub as a strategic project, Keith Cheng December 2017 through which we hope to generate more collaborative projects with our strategic Head of Hong Kong  Currently has 19 employees partners, in particular on innovations in Digitization Hub, including business smart city solutions,” said Keith Cheng, MindSphere Application development, software Head of Hong Kong Digitization Hub, developers, data scientists MindSphere Application Center – City, Center – City Siemens Ltd. Siemens Ltd. and industry experts The team will help partners find out  Other Digital Hub locations their pain points and compose new unloading bay monitoring system. include Mainland China, ideas or smarten the ways to address The project used artificial intelligence Singapore, Perth in Australia, urban challenges based on data (AI) and video analytic technologies to as well as Pune, Noida and analytics and algorithm prediction. detect parking traffic in the industrial The hub’s recent project is to complete district, and provide real-time vacancy Gurgaon in India a proof of concept trial of loading and information. w www.siemens.com.hk Case Study 9

Grasping Growth Opportunities in the Age of Smart Cities and the Internet-of-Everything The launch of China Mobile’s 5G Innovation Centre Hong Kong Open Lab lays the foundations for the city’s smart city roadmap and the rollout of commercial 5G services in 2020.

In March 2018, China Mobile International talent. The city has cutting-edge IT and Ltd. opened its 5G Innovation Centre Hong telecommunications infrastructure Kong Open Lab in Kwai Chung. Launching and is well-connected to the rest of the China Mobile the 8th open lab, China Mobile aims to world, making it the ideal base for many International Limited leverage Hong Kong’s unique geographical multinational companies.” advantages to showcase the company’s  China Mobile has twelve According to Zeng, Invest Hong Kong is an latest innovations in 5G technology to its excellent platform for sharing industry- 5G Innovation Centre Open international partners. The lab will also help related information. “InvestHK has provided Labs, which are located in China Mobile to research IoT applications us with professional advice and helped and 5G technology and promote these new Beijing, Tianjin, Shanghai, us to expand our network and access technologies to potential customers. important resources. It is committed to Jiangsu, Zhejiang, Shandong, The rapid development of 5G technology developing solutions that will boost Hong Guangdong, Chongqing, with Hong Kong’s transformation into a Kong’s economy and realise the goals of Sichuan, Hong Kong, Silicon smart city creates a unique opportunity the city’s development strategies. We hope Valley and Sweden. Eight for the company. According to Emma Zeng, that InvestHK can help us to explore more General Manager of Enterprise Business, growth opportunities in Hong Kong that of these have already been China Mobile International, China Mobile drive our continued success.” launched, including the will utilise its extensive experience of recently opened facility in Internet-of-Things (IoT) in Mainland China Hong Kong. and play an important role in Hong Kong’s development as a smart city.  China Mobile was granted Earlier this year, China Mobile was awarded a 5G testing license in the Trial Permit for 5G test, marking a crucial The city has 2018 by Hong Kong’s milestone in the company’s development of Communications Authority. providing 5G mobile services. cutting-edge IT and The company plans to In September 2017, China Mobile launched conduct lab tests of 5G Hong Kong’s first Narrowband IoT (NB-IoT) telecommunications network that coincides with the city’s Smart commercial network City development plan. NB-IoT is a low cost, infrastructure and equipment inthe second low power, high capacity and wide area quarter of 2018. technology designed for IoT applications. is well-connected to  China Mobile International Since the establishment in 2010 in Hong Kong, China Mobile International the rest of the world, is the wholly-owned has provided a wide range of subsidiary of China Mobile, telecommunications solutions, including making it mainly responsible for the cross-border connections, data centres and cloud services, to support many Chinese the ideal base for operation of international and foreign companies with Hong Kong- business of China Mobile. based operations. Zeng believes that Hong many multinational CMI provides a full range of Kong is an ideal base for China Mobile’s comprehensive international international services. “Hong Kong is not far companies. from many major cities in Mainland China,” telecommunications services Zeng said, “for foreign companies, the which includes IDD, roaming, city is a gateway to the Mainland Chinese Emma Zeng mobile, data, enterprise market, and it is also an excellent base for General Manager of solutions and value added Chinese companies looking to expand into other markets.” Enterprise Business business across the globe. She continued, “Hong Kong is home to China Mobile w cmi.chinamobile.com some of the world’s leading professional International Limited 10 Case Study

A Taste of Finnish Fun Shortly after its first overseas debut in Hong Kong, Finland’s SuperPark is already planning to replicate the proven‑success model to other Asian cities and beyond.

SuperPark, the all-in-one indoor activity Kumarasinhe finds it very easy to set up park, arrived in Hong Kong in late 2017. First a business in Hong Kong. “The process of opened in Vuokatti in 2012, the company registering business, accessing consultants currently runs 11 indoor parks in Finland, and service providers, as well as staff hiring while the launch of SuperPark Hong Kong have been very smooth for us,” he added, last year marks its first overseas expansion There are not “I’m delighted that we opened the first wave which will include Sweden, France SuperPark in Asia here in Hong Kong.” and Mainland China. many cities in This summer, the company will launch Asia that are both SuperProgram and SuperCamp, two educational and developmental geographically as programmes specially tailored for Hong Kong market, as well as the world renounced football game RoboKeeper in well‑positioned the heart of FIFA World Cup. “We are always looking to improve, and will keep on rolling as Hong Kong and out new formats and new ways to engage and interact with our guests in the next have that kind couple of months,” Kumarasinhe said, With multiple activity areas and party “we will continue to add new concepts to rooms, SuperPark Hong Kong spans of access to such Hong Kong.” 45,000 square feet where visitors can participate in more than 20 activities for high quality of one entrance fee. SuperPark’s goal is to SuperPark share the sheer joy of movement and talent, so Hong welcome people of all ages and fitness  First opened in Vuokatti, levels, as Mark Kumarasinhe, Asia CEO Kong was an easy SuperPark has presence in of SuperPark, said, “Our DNA is about family participation. Not only children are choice for us. Finland, Sweden, Hong Kong welcomed, we also strongly recommend and Mainland China moms and dads to participate.” Mark Kumarasinhe  SuperPark Hong Kong Within three months of operation Asia CEO opened in December 2017 SuperPark Hong Kong has attracted over 100,000 visits, a number that has greatly SuperPark  Its Hong Kong office currently exceeded the team’s expectation. very important for us to have access to employs 150 front-line and With overwhelming response in Hong Kong, quality staff in all areas, including front office staff SuperPark’s next venture is to replicate line staff, and also professional staff that this successful model to Asia and they are can build the platform on a regional basis, w Superpark.com.hk reviewing four locations at the moment. such as engineers, project managers, and Kumarasinhe expects that there will be experienced marketing staff.” half a dozen of SuperParks operating across Watch the video: “There are not many cities in Asia that are Asia over the next two years. both geographically as well-positioned as “Our Hong Kong office is responsible for Hong Kong and have that kind of access to the rollout across Asia and the Middle such high quality of talent, so Hong Kong East,” Kumarasinhe remarked, “so it’s was an easy choice for us.” Case Study 11

Hong Kong has a well-established financial, legal and taxation system, a favourable environment as a global aircraft leasing centre. Zhao Guicai CEO Flying High in Aircraft ICBC Finance Leasing includes providing information on aircraft leasing policies and tax Leasing Business regime, explaining the advantages and procedures of setting up a subsidiary in With the new concessionary tax regime for aircraft Hong Kong. leasing in Hong Kong, ICBC Leasing took the leap As at the end of December 2017, ICBC Leasing had recorded aviation assets and sealed a landmark transaction. of more than RMB 100 billion, owned and managed more than 609 large aircraft, and has been collaborating with 70 domestic and international airline partners from 33 countries, including Air China, China Southern Airlines, British Airline, American Airlines, Korean Airlines, Emirates, to name a few. In the future, Zhao added, ICBC Leasing will continue to leverage Hong Kong’s advantages in finance, legal and taxation system to build a comprehensive service platform, integrating the company’s Mainland and overseas aviation leasing business with a constantly-improving operation management, so as to further develop its financing channels and strengthen its competitiveness in the In March 2018, ICBC Financial Leasing up a subsidiary in the city, the company global market. Co. Ltd (“ICBC Leasing”), one of the largest is heading towards its goal to become a leasing companies in Mainland in terms top-tier world-class aircraft lessor, and of fleet value, opened its wholly-owned gradually build up its global business subsidiary ICBC Aviation Leasing Co. Ltd. framework via its strong presence in ICBC Finance Leasing (“ICBC Aviation Leasing”) in Hong Kong, Asia Pacific. providing aircraft leasing solutions such “In terms of its financial and banking  Established in November 2007 as tax lease, export lease, pre-delivery system, Hong Kong ranks the top in  It is the first bank-affiliated payment (PDP) financing, aircraft direct the World Economic Forum’s Financial purchase and sub-lease. Development Index, and it has an financial leasing company “In July 2017, the HKSAR government abundant supply of capital with high approved by the Chinese introduced a dedicated tax regime for earnings power,” he continued, “the city Banking Regulatory qualifying aircraft lessors and qualifying also has well-developed stock and bond Commission and is wholly markets. Not only is Hong Kong a global aircraft leasing managers operating in owned by Industrial and Hong Kong, cutting lessors’ corporate tax asset management centre, it is also the rate in half to 8.25 percent. Seeing such world’s largest Renminbi hub.” Commercial Bank of China opportunity, ICBC Leasing acted fast to He added, “it is also evident that Hong  The largest financial leasing close a rental agreement with Korean Kong has a very competitive tax system, company in the Mainland Air as lessee for a new Boeing B787-9, as well as financing cost advantage which was successfully delivered in favourable for lessors.”  Plans to hire more staff December 2017. The deal has marked the Hong Kong’s first aircraft leasing deal Before ICBC Aviation Leasing was set up in Hong Kong to support under the new tax regime. We realised in Hong Kong, InvestHK – in consultation its growth in Asia Pacific, that Hong Kong has a well-established with the HKSAR government’s Transport including business and Housing Bureau, Financial financial, legal and taxation system, development, asset a favourable environment as a global Services and the Treasury Bureau, as well as Inland Revenue Department – aircraft leasing centre,” said Zhao Guicai, management, aircraft has been assisting ICBC Leasing to CEO of ICBC Finance Leasing. technical asset management conduct feasibility study of setting up a and legal professional By actively supporting the launch of subsidiary here. Other preparation work Hong Kong’s new tax regime and setting jointly assisted by these departments w icbcleasing.com 12 Case Study

According to Dr Emmerich, Hong Kong is a fertile place for Zühlke to expand in Empower Innovation for Asia. He remarked, “there is an excellent education of science and technology Business Success in Hong Kong where one can find some of the world’s top-ranking universities, Swiss engineering consultancy Zühlke set up in making an abundant supply of talent in the field.” Hong Kong to help regional clients to embark on “Hong Kong’s legal system is very similar the digital transformation journey. to that in England where I come from, and with English being a dominant language spoken in the city, complement with easy access to Mainland China, it is very convenient for us to set up in every aspect,” he said.

Establishing Zühlke’s office in Hong Kong with a team of six, Dr Moritz Gomm, Executive Director, said that the diversified talent pool is the key to the company’s success. “We have hired a team of software engineer, UX expert, software architects as well as project managers; it’s a well-mixed team of local and expats sharing an agile mindset,” Gomm said, adding that the headcount in Hong Kong is expected to increase by four times in 18 months’ time. “I am very optimistic for such growth rate as the business is going very well since we came here.”

Founded in Zurich in 1968, Zühlke is an in Hong Kong in 2017, its second location Dr Gomm noted that setting up a innovative solution service provider, in Asia after Singapore, in order to better business in Hong Kong had been focusing on helping companies to support their long term clients in the smooth and easy for him. “InvestHK has transform their vision from a smart idea region. “Many of our clients already have provided guidance on the aspects that into a market success. One of the biggest a presence in Hong Kong, and that’s we should consider and connected us to consultancies of its kind in Europe, why we came here to support them,” the right partners. They also invited us to Zühlke’s clientele covers a wide range said Jonas Trindler, Asia Managing many networking events, their help has of industries across the world, from Director, “we strive to provide service made an easy start for us,” he concluded. machinery and plant engineering, to with European quality and standard, medical technology as well as finance and help our clients to keep up with the and banking services. By providing innovation pace.” high-end engineering to support clients’ Zühlke Engineering Ltd. Dr Wolfgang Emmerich, CEO and digital transformation, Zühlke has always Chairman, said, “the strategy of following  been a trusted partner of its clients to Currently has over global clients to Hong Kong has worked innovate business and catch up with this 1,000 employees across really well for us. As our model is technology-driven world. 14 locations worldwide with fundamentally relationship-driven, 10,000 successful innovation Currently with over 14 offices across having such network is crucial for us to 8 countries, Zühlke opened a new office start in a new location like Hong Kong.” projects  Expanded into the Asian market in 2017 by opening There is an excellent education in offices in Hong Kong and science and technology in Hong Singapore Kong where one can find some of w www.zuehlke.com the world’s top-ranking universities, Dr Wolfgang Emmerich creating an abundant supply of CEO and Chairman talent in the field. Zühlke Engineering Ltd. Case Study 13

Redefining Traditional Timepieces with Technology

US-based WatchBox targets technologically savvy consumers through offering an online trading platform and augmented reality preview feature for pre‑owned branded watches.

Hong Kong has always been the Asia hub for buyers, while developing a sophisticated consumers to virtually try-on watches from quality timepieces, with in-store retail sales website and accompanying mobile app, WatchBox. All items will digitally appear on of jewellery, watches, clocks and valuable further strengthens WatchBox’s loyalty and the user’s wrist to scale in their approximate gifts achieving HK$75 billion in 2017. A wide interaction with their wide consumer base. size and shape dimensions, allowing range of international brands are featured consumers to virtually see how their new in the watch and jewelry stores in key retail watch will look on their wrists in real life. locations. Over the years, consumers have Consumers can then take photos of these become well-educated on the trends and watches virtually on their wrists through financial value of timepieces. the app to share with friends or post on social media. Eyeing the high growth opportunities in the city, US pre-owned watch specialist “The internet penetration rate in Hong WatchBox believed a physical presence Kong is about 75 percent while the mobile in Hong Kong would be an important penetration rate is over 240 percent. strategic milestone. The company has Under such an advanced and wide-spread partnered with Hong Kong and Singapore tech market, our dynamic omni-channel watch industry veterans Tay Liam Wee, strategy merging an e-commerce platform Samuel Lee and Justin Reis and invested and white glove concierge service at our in a lounge and gallery cum showroom in “When myself and the WatchBox Collector’s Lounge in core Central enables Central, to be within easy walking distance co‑founders were planning the expansion us to provide a premium yet efficient way of their key consumer base. This strategy of WatchBox into Asia, Hong Kong was the for customers to navigate the pre-owned of emphasising direct interaction with natural fit for the first office and collector’s watch market through a trusted partner”, lounge outside of the US. As the world’s Reis enthused. largest Swiss watch export market for the past 15 years, it is clear that Hong Kong is During the setup of the Hong Kong the leader in new watch sales. However the office, InvestHK team introduced pre-owned market is still a hugely untapped service providers, information on and high potential market and this is where seminars and networking events, As the world’s we saw an opportunity. By being primary in together with information on Hong Kong every transaction and providing a 15 month government funding schemes and other largest Swiss watch warranty with our watches, we are able market information. to offer a truly unique way for Hong Kong export market for watch enthusiasts to buy, sell and trade their branded watches,” says Tay Liam Wee, The WatchBox the past 15 years, Chairman of WatchBox.  A US based global Comprising over 140 knowledgeable watch it is clear that experts internationally, WatchBox team eCommerce platform for assists seasoned collectors and first time buying, selling and trading Hong Kong is the buyers to explore the pre-owned watch of branded pre-owned leader in new market. The company provides inspection, timepieces authentication and warranty of each item in their inventory.  Opened a showroom in watch sales. Central to provide expert To engage Hong Kong’s technologically advice to buyers and sellers Tay Liam Wee savvy consumers who look for Chairman personalised experiences, WatchBox’s w thewatchbox.hk newly launched mobile app provides a WatchBox new augmented reality feature enabling 14 Case Study

Using Hong Kong as Springboard to Capture Belt and Road Opportunities

Steadily growing in Asia, China Wealth aims to become a global key player in the construction and infrastructure sector with upcoming cross-region opportunities.

Set up in 1999, China Wealth Machine He added that the company is keen to use Holdings Limited (“China Wealth”) focuses the opportunity as a springboard to further on heavy machinery leasing and financing, boost global market penetration through and is an exclusive agent in South East Hong Kong. In the long run, Chen said, Asia and Middle East of products by As an international China Wealth’s goal is to elevate the brand SANY Group, one of the world’s top as a key player in the global construction 50 construction machinery manufacturers. cosmopolitan, and infrastructure sector. With its headquarters in Hong Kong, “InvestHK has been very helpful along our China Wealth currently owns 12 overseas Hong Kong also development in Hong Kong. They always subsidiaries around the world serving provide handy market information and various markets including South East Asia, enjoys a very advice; as well as excellent networking South Asia, Middle East, as well as South well‑developed opportunities that support our business and North Africa. growth.” Chen concluded. According to Jacky Chen, Chairman of the legal infrastructure Board, Hong Kong is one of the company’s key platforms for its overseas leasing and a strategic business. “When we came to Hong Kong, China Wealth Machine we have decided to set up our base here location, that’s Holdings Limited and further expand to the global market,”  Chen said. why we set up Currently employs 70 staff in the Hong Kong “Hong Kong is in the centre of Asia, it is a our headquarters headquarters with a majority window for us to understand the global of local hire, taking up business world. As an international here. cosmopolitan, Hong Kong also enjoys a roles such as middle and very well-developed legal infrastructure senior management and and a strategic location, that’s why we set Jacky Chen technical specialist up our headquarters here,” he added. Chairman of the Board  China Wealth set up its office With around 70 staff in the Hong Kong China Wealth Machine in Hong Kong in 1999 as office, China Wealth currently holds close Holdings Limited China Wealth Group Co., Ltd. to 50 major clients and long-term partners. and was renamed as China Many of its clients are blue-chip property Wealth Machinery Holdings developers, as well as multinational which has given us ample and precious construction companies. In the next few Ltd. in 2014 opportunities,” Chen said, “a lot of our years, the company plans to grab as much products on lease are provided to the w www.chinawealth.hk market share in South East Asia as possible, construction and infrastructure projects and also in countries along the Belt and along the Belt and Road regions, which gave Road region. us an opportunity to supply to state‑owned “The Belt and Road Initiative is a significant enterprises and reach a win‑win situation strategy by the Mainland government, together.” Case Study 15

Gateway to Mainland China AI-Based Technology While Mainland China presents enormous opportunities to foreign investors, AnyMind Group is aware Company Seizes of its uniqueness and complication, and the Hong Kong team can help Potential Growth in the group to better understand how business operates in this huge market. “For example, Mainland China’s social Hong Kong and Beyond media market is vastly different from the West. Our team in Hong Kong is able Aiming to empower businesses and professionals to devise strategies that fit respective with a suite of AI-based SaaS solutions, AnyMind markets as the team is familiar with both East and West cultures and practices. Group’s goal is to help companies make better In addition, our Hong Kong team works decisions and increase efficiency. closely with our Shanghai team to bring regional insights to Chinese enterprises looking to expand into other Asian markets,” Otohiko Kozutsumi, COO and Co‑founder, added.

Besides local sales and marketing activities, the Hong Kong office also handles some of the regional functions units in East Asia, including finance, communications and human resources. The team in Hong Kong is still expanding and the group has plans to open four new offices in the Philippines, UAE, India and Russia.

Invest Hong Kong has been offering support to AnyMind Group, helping them to understand the latest market In just two years, AnyMind Group has process and workflow. AnyMind Group development, government initiatives evolved from a two-man startup in serves a diverse portfolio of clients and expand their network in the city. Singapore to an organisation with 11 in Hong Kong, including F&B, finance, offices and one product development consumer brands and others. center across 10 markets in the Asia “Hong Kong is one of the most popular Pacific region. The Group has three cities in Asia for international business business divisions in Hong Kong – AdAsia and one of the world’s top IPO markets AnyMind Group Holdings, CastingAsia and TalentMind. with a compelling listing and fundraising The first two divisions provide influencer  Headquartered in Singapore venue in Asia,” Kosuke Sogo, CEO and marketing, programmatic and digital with 11 offices and one Co‑founder explained why they decided advertising solutions for advertisers to setup an office in Hong Kong. product centre in the and publishers. Through the usage of APAC region Artificial Intelligent (AI) technology, the “Our Hong Kong office well complements varied solutions enable companies to AnyMind Group’s presence in Taipei,  AdAsia Holdings, CastingAsia optimise, track and analyse advertising Shanghai and Tokyo. Many of our clients and TalentMind are the three performance, site monetisation and have regional headquarters in Hong Kong, business divisions in Hong influencer marketing activities. Besides therefore having a team on the ground marketing solutions, TalentMind helps us better support them. Since our Kong providing AI‑driven leverages on artificial intelligence to Hong Kong office opened in May last year, matching engine and enable recruiters and human resource we have been performing very well and end‑to‑end SaaS solutions professionals to streamline recruitment hitting our revenue targets,” he added. w anymindgroup.com

Our team in Hong Kong is able to devise strategies that fit respective markets as the Otohiko Kozutsumi team is familiar with both East and West COO and Co-founder cultures and practices. AnyMind Group 16 New Investors

InvestHK recently facilitated the following companies to establish or expand their business presence in Hong Kong. We welcome them to our city and wish them a prosperous future. Company name Sector Company name Sector Argentina New Zealand Scalabl HK Ltd. Entrepreneurship, Intrapreneurship, Liverton Ltd. IT Services Innovation Consultancy Peru Australia Trade Commission of Peru in Hong Kong Governmental Trade, Tourism and LiFiC Ltd. Wireless Communications Investment Promotion Technology Russia Austria Emertech Ltd. Anti-counterfeit Solution Springboard Group Ltd. Marketing Consulting Singapore Belgium Anymind Group Advertising Technology amfori Hong Kong Ltd. Trade Association JA Assure HK (Co) Ltd. Jewellers, Money and Personal The Artist Craft Brewer Food & Beverages Valuables Insurance Solutions Brazil Keyteo Consulting Pte.Ltd. IT Consulting/ Staff Augmentation Earth and Barrow Imported Food Micepad Ltd. Event Technology Canada The Oddle Company Pte Ltd. Online Ordering Solution JAHMU Tonic Beverages ZACD Group Ltd. Intergrated Assest Manager Finland South Korea SuperPark Hong Kong Indoor Activity Park Korean Cultural Center in Hong Kong Government Organisation France Seoul Auction Hong Kong Ltd. Art Gallery Agence 1969 HK Ltd. Advertising & Digital Spain Communications Estudi Josep Cortina Design Consultancy ATLAS Live Tracking Sports Tech Goods from Spain Ltd. Goods Trading AXA Venture Partners Venture Capital Fund Switzerland French International School Education Balluun Ltd. B2B Social eCommerce Hong Kong A LA CARTE Inbound Travel Agent Hauser & Wirth Hong Kong Art Gallery Luxe Surveyor Ltd. for Luxe Observer AI – Luxury Industry Zühlke Technology Group Engineering Consultancy M Creative Culture Ltd. Creative Consulting and Taiwan Management AmazingTalker Ltd. Online Language Learning Platform Pinel et Pinel Luxury Leather Trunks and Accessories Blossomingjuice Ltd. Soft Drinks Chain Store TGI Monday! Consulting and Training eCloudvalley Technology (HK) Ltd. Cloud Consultancy Vestiaire Collective HK Ltd. Fashion Digital Platform iDGate Security (Hong Kong) Ltd. IT Security Germany Thailand Siemens Design and Manufacturer of Brothers Muaythai Muaythai Fitness Studio Technology Equipments The Netherlands Sycra Technologies Ltd. Internet of Things (IoT) & Smart Whiskies & More Food & Beverages Lighting United Arab Emirates Wholistic Coachsulting Ltd. Coaching, Training and Education; Management Consulting LuLu Financial Group Financial Services and Payments Solution Enterprise India United Kingdom Reboot.AI Ltd. Artificial Intelligence AvenueThreeSixty Ltd. International Real Estate Ireland Bovill Asia (HK) Ltd. Financial Services Regulatory Waypoint Leasing Services Hong Kong Helicopter Leasing Consultancy Pte Ltd. MASS BRANDED Menswear Apparel, eCommerce Italy McNamara Art Projects Ltd. Art Advisory CLOUDPN Ltd. Cloud Solution and Computing Merton edX Ltd. Entrepreneurship Academy Services Phoenix Fine Wines & Vineyards Ltd. Fine Wine Trading & Consultants for Eu.promotions Asia Ltd. Consumer Products Châteaux and Vineyard Purchases Piquadro Leather Accessories Pixel Pacific Ltd. eCommerce Software Consultancy Japan and Engineering Pocket Change Global Ltd. Foreign Exhange and Digital Token Q5 Management Consultancy Luxembourg Shrewsbury International School Education ETIX Everywhere Hong-Kong Ltd. Data Centre Yes Plum Ltd. Curated Lunch Ordering Platform Mainland China United States Atom Capital (Hong Kong) Ltd. Asset Management Carnival Corporation Hong Kong Ltd. Cruise Vacations China Mobile International Ltd. Telecommunications Cboe Financial Services China Wealth Machine Holdings Ltd. Multinational Construction and Operation Smile International Charitable Non-Governmental Organisation Heavy Machinery Manufacturing Foundation Ltd. Fluent International Science and Science and Technology Services Peachstate Hobby Distribution Ltd. Hobby and Trade Technology Service Ltd. sQoolink Ltd. EdTech ICBC Aviation Leasing Co. Ltd. Aircraft Leasing The Cakery Bakery SainStore (HK) Ltd. eCommerce Technology unspun, inc Apparel Manufacturing and Retail Ucommune Co-working Spaces Watchbox Pre-owned Luxury Watches Trading Virscend Education Company Ltd. Education Services Wisepower (Hong Kong) Supply Chain Logistics Company Ltd.

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