Quarterly Newsletter January 2020

Define What’s Next 10-15 Feb

Spearheaded by InvestHK, the StartmeupHK Festival will be a packed week showcasing different facets of the startup ecosystem at the HKCEC and The Mills Fabrica.

This Issue 3 International Forward Calendar 4-5 Special Feature: Latest Survey Results 6 Special Feature: CEPA Agreement 7 Special Feature: Reform of the Patent System on Trade in Services 8-15 Case Studies 2

Hong Kong’s startup ecosystem has been making great strides. Since 2016, InvestHK launched the StartmeupHK Festival to Investment in startups reached US$720 million in 2019*. The city showcase not only the robust startup ecosystem, but also the has seven official unicorns across sectors as diverse as logistics, business opportunities for innovative founders, investors, AI, FinTech, hardware, travel technology and cryptocurrency academics and community builders from overseas in the city. trading.

* Oddup All Sector Snapshot, 4 Oct 2019

StartmeupHK Festival 2020 core events highlights:

11-12. 10.02 The Connected Cities 11.02 StartmeupHK Forum JUMPSTARTER 02 Conference by KPMG by InvestHK and Alibaba by Alibaba Entrepreneurs Entrepreneurship Fund Fund/HSBC

The Connected Cities Conference The invite-only signature event JUMPSTARTER is a two-day showcases innovations for the next highlights the latest innovation conference bringing startups, generation of city living. Examples initiatives by the Government, its corporates and investors together of a number of smart/connected top priority on the development of a to build, empower and boost the cities and technologies from around vibrant startup community in Hong startup community. The Global the world are being introduced. Kong, and the city’s capabilities as a Pitch Competition will bring startup Also, smart city technology leading startup hub. finalists from eight cities to attend. companies are also being featured.

11-12. Connected Retail 13.02 Lifestyle Tech Conference 14.02 Startup Impact Summit 02 Experiences by Bailey by Jumpstart Media (SIS20) by WHub Communications The event focuses on the future The Lifestyle Tech Conference is The summit comprises of job fairs, of retailing and how retailers are loaded with over 600 minutes of services marketplace, startup able to harness the power of data free to attend panels and keynotes and investor workshops, Main and lakes of information that they hold. by speakers from industry-leading Innovation Stage, Greater Bay Area Global suppliers and trendsetters brands. It also features an interactive Stage, and Investor Lounge, aiming share updates of latest technology lifestyle zone for attendees to to scale startups’ business to the next in the retail environment, together experience first-hand technology level. The Global Startup Competition with a Pitch Stage and business in our daily life. (GSC) will bring together some of the matching sessions. best startups to pitch at the Grande Finale.

For those planning to come to Hong Kong, 15.02 Ecosystem Summit For ticketing and details: our partner airline, hotels and co-work by The Mills Fabrica space offer special packages to suit your w startmeup.hk needs. The event focuses on ways to startmeuphk For details, please visit: foster and promote Hong Kong as a global innovation lab. A series of #startmeuphk panels and roundtables look into developing entrepreneurial talent Contact: through and incubation, transforming corporates through Jayne Chan innovation. Head of StartmeupHK (852) 3107 1014 Z m jchan@.gov.hk International Forward Calendar 3

JAN MAR

Hong Kong Business Update Seminar and Asia Pacific Maritime 2020 (APM) Networking Reception A premier exhibition and conference in Asia showcasing This event is to provide relevant information about getting overview of the vessel sectors – services and solutions, started and doing business in Hong Kong for businesses in technology, vessels equipment, machineries, supplies, and the UK. 18-20 many more. 6 Location: Standard Chartered Bank, 1 Basinghall Ave, London Location: Marina Bay Sands, Singapore EC2V 5DD Organiser: Reed Exhibitions Organiser: The Hong Kong Association apmaritime.com/en-gb.html eventbrite.com/e/the-hong-kong-business-update-tickets- 82235505611 Art Basel Hong Kong Asian Financial Forum Art Basel returns for its eighth edition in Hong Kong, with The Asian Financial Forum brings together some of the 244 leading international modern and contemporary art most influential leaders of the global financial and business galleries from 31 countries and territories, showcasing works community to discuss developments and trends in the 19-21 by outstanding artists from around the world. 13-14 dynamic markets of Asia. Location: Hong Kong Convention and Exhibition Centre Location: Hong Kong Convention and Exhibition Centre Organiser: MCH Group Asia Ltd. Organiser: Hong Kong Trade Development Council artbasel.com/hong-kong asianfinancialforum.com

Business Seminar “Doing Business in HK” Seminar for Creative Industries, Consumer A business seminar to provide updates and information Products and Tourism and Hospitality Sectors about getting start and doing business in Hong Kong. The This seminar will provide updates relevant to respective event is organised on the occasion of the Chinese New Year 16 sector clients in Hong Kong. reception in Athens. 24 Location: Hong Kong Location: Hellenic Federation of Enterprises, 5, Xenophontos Str., GR - 105 57 Athens Organiser: InvestHK (by invitation only) Organisers: Hellenic Federation of Enterprises (SEV), HKETO Brussels, and InvestHK en.sev.org.gr FEB

MWC Barcelona Creative Industries Networking Reception This networking reception is to strengthen collaboration with One of the world’s largest exhibitions for the mobile industry, creative industries business community in Hong Kong. the event incorporates a thought-leadership conference 25 featuring prominent executives representing global mobile Location: Hong Kong operators, device manufacturers, technology providers, Organiser: InvestHK (by invitation only) 24-27 vendors, and content owners. InvestHK will be present at the Hong Kong booth and will organise a networking event. Location: Fira Gran Via and Fira Montjuïc Organiser: GSMA APR www.mwcbarcelona.com Hong Kong ICT Awards 2020 The Awards aims at recognising and promoting outstanding Tourism and Hospitality Networking Reception information and communications technology inventions and applications, thereby encouraging innovation and excellence This networking reception is to strengthen collaboration with among talent and enterprises in their constant pursuit of tourism and hospitality business community in Hong Kong. 3 26 creative and better solutions to meet business and social needs. Location: Hong Kong Location: Hong Kong Organiser: InvestHK (by invitation only) Steered by: Office of the Government Chief Information Officer www.hkictawards.hk Asia Trade Summit 2020 The Economist’s second annual Asia Trade Summit will bring Royal Institution of Chartered Surveyors (RICS) together heads of companies, regional trade negotiators, policymakers, academics and economists for a day of Hong Kong Annual Conference 2020 27 learning and rigorous debate. Around 500 RICS professionals, government officials, industry Location: JW Marriott Hotel Hong Kong stakeholders, as well as leaders of the built environment come 17 together to share ideas and insights on transformative trends. Organiser: The Economist Group Location: W Hong Kong events.economist.com/events-conferences/asia/asia-trade- summit Organiser: RICS rics.org

See more events at

Organised by InvestHK Visit investhk.gov.hk for details 4 Special Feature Latest Government Surveys Show Hong Kong Continues to Attract Multinationals and Startups

According to the results of the “2019 Annual Survey of Companies city has continued to attract and retain leading overseas and in Hong Kong with Parent Companies Located outside Hong Mainland companies, as well as entrepreneurs from around the Kong” conducted by Invest Hong Kong (InvestHK) and the Census globe to use Hong Kong as the base to set up and expand their and Statistics Department were announced in October 2019, the businesses.

Total number of companies with Total number of regional parent companies outside HK headquarters in HK

9,040 1,541 9.9% vs 2017 1,530 9.1% vs 2017 8,225 8,754 1,413

2017 2018 2019 2017 2018 2019

Major sources of the Favourable factors parent companies

Simple tax system and low tax rate 63% Free flow of 71% information HK

Free port status 59% Geographical 61% location Mainland Japan US UK Singapore China 5

Startup Survey At the same time, Hong Kong’s startup scene has skyrocketed in startup hubs in the 2019 Global Startup Ecosystem Report. recent years. Hong Kong was listed as the third most innovative Investment in startups has reached US$720 million in 2019, location in South East Asia, East Asia and Oceania in the Global according to Oddup, and there are seven official unicorns in Innovation Index 2019, and is a new entrant in the world’s top 25 Hong Kong.

Number of startups Number of staff employed 3,184 12,478 42.8% vs 2017 97.4% vs 2017 2,625 2,229 9,548 6,320

2017 2018 2019 2017 2018 2019

Origins of founders Top business sectors

FinTech (14.3%) 34% eCommerce / supply chain management / logistics US (15.4%) 59% technology (10.7%) Mainland Hong Kong China (14%) Information, computer and UK (12.5%) technology (10.1%) France (7%) Design (9.5%) 7% Professional or consultancy Hong Kong returnees services (9%)

Source: 2019 Startup Survey

FinTech Study financial city, as well as emerging new opportunities arising from the Guangdong-Hong Kong-Macao Greater Bay Area development and the The fourth annual Hong Kong FinTech Week (4-8 November) Belt and Road Initiative, will continue to attract world-class investment attracted more than 12,000 attendees from over 60 economies, into the city. more than 250 world-class speakers and over 150 exhibitors and start-ups. The global nature of the event was evident throughout, with participation of ten unicorns from around the world, plus 18 trade delegations. 2019 fDi Strategy Awards As a recognition of the department’s continuous effort in According to InvestHK’s recent Hong Kong FinTech Study, investment promotion, InvestHK received the following the number of fintech companies in Hong Kong today has awards in the fDi Strategy Awards 2019: exceeded 600, with 76 percent of them focusing on the B2B market. These companies embrace many different • Best IPA Web Strategy – Winner Social Media Strategy technologies, including big data, AI, blockchain, InsurTech • Specialism Award – Education, Skills & Training (insurance technology), RegTech (regulation technology), • Specialism Award – Encouraging Innovation CreditTech (credit technology), and WealthTech (wealth • Specialism Award – Start-up & SME Support management technology). • Specialism Award – Supporting Science & Research Looking ahead, despite global economic uncertainties, Hong See the full list at https://www.fdiintelligence.com/Locations/ Kong’s strong fundamentals such as its strategic position in the Europe/Lithuania/fDi-Strategy-Awards-2019-the-winners region and international status as a sophisticated business and 6 Special Feature Amendment to the CEPA Agreement on Trade in Services will assist Hong Kong enterprises to expand business more conveniently in the Mainland

To be implemented on 1 June 2020, the new phase of liberalisation practise in the Mainland, and allows more of Hong Kong’s quality measures will make it easier for Hong Kong service suppliers to set services to be provided to the Mainland market, including the up enterprises and develop business in the Mainland. In addition, Guangdong-Hong Kong-Macao Greater Bay Area (GBA). it allows more Hong Kong professionals to obtain qualifications to Highlights:

Legal Services Convention and Exhibition

• Remove the minimum capital input of the Hong Kong side • Hong Kong enterprises can organise exhibitions across in the partnership associations set up by Hong Kong and the border, without the need to set up companies in the the Mainland firms Mainland

• Allow Hong Kong legal practitioners to be employed as legal consultants by not more than three Mainland law firms simultaneously

• Allow Hong Kong legal practitioners to obtain practise qualifications in the nine Pearl River Delta municipalities Tourism of the GBA by passing a special examination • Optimise the “144-hour visa-exemption transit” policy for foreign group tours entering the Pearl River Delta Area and Shantou from Hong Kong

Financial Services

• Support the Mainland insurers to issue catastrophe Television bonds in Hong Kong

• Further relax the restrictions on business scope, • Remove the restriction on the number of Hong Kong- remove assets requirements and restrictions on equity produced television dramas and animation television shareholdings programmes

• Enhance the variety of products under the Mainland- • Relax the restriction on the number and time of Hong Kong Stock Connect broadcast

Testing and Certification

• Remove the geographic restriction of the testing of products under the China Compulsory Certifications (CCC) System that may be conducted by HK testing organisation in collaboration with Mainland organisations so that products processed or manufactured in any place could be covered For details, please visit: Special Feature 7 Hong Kong to Launch City’s Own Patent System

To promote local innovation and attract enterprises to set up R&D • A person who threatens another person with infringement operations in Hong Kong, the new Original Grand Patent (OPG) proceedings relating to an examined short-term paten must, system was launched on 19 December 2019 with the aim to speed upon request by any party aggrieved by the threat , provide up, add convenience and reduce cost to patent filings. adequate information for identifying the patent in question, or else the aggrieved party may be entitled to relief on the basis of Under the OGP system introduced by the Intellectual Property groundless threat of infringement proceedings Department, inventors can submit direct filings and have their designs evaluated locally by a team of local expert examiners. In The use of certain misleading or confusing titles/descriptions addition to owning the city’s own patent evaluation mechanism, it relating to patent practice in Hong Kong will also be prohibited. will also nurture the patent ecosystem for professionals to advise These new initiatives demonstrate Hong Kong’s commitment inventors on protecting and commercialise their innovations. to enhancing the intellectual property (IP) projection and will facilitate the development of the city as an innovation and IP New Patent System trading hub in the long term.

The new system enables applications for the following types of patents in Hong Kong:

Standard patents with a maximum protection term of 20 years via: For details, please visit: Watch the video: • The new and direct local original grand patent (OGP) route, or

• The existing ‘re-registration” route based on an earlier corresponding patent application filed with the patent office in , or the United Kingdom, or the European Patent Office

Short-term patents with a maximum protection term of eight years via the existing direct local route

Refinements to Short-Term Patent System

• A short-term patent application may contain up to two independent claims

• A short-term patent owner of a third party having reasonable grounds or legitimate business interests may request the Registrar of Patents to conduct substantive examination of the patent. Such request is a prerequisite to commencing an enforcement action 8 Case Study

InsurTech Sure to Surge in the Greater Bay Area Blue, the first digital life insurer in Hong Kong, offers simple and flexible insurance solutions.

Hong Kong boasts its world-class infrastructure, rule of law, and diverse talent pool. It is also an international financial hub with sophisticated financial connectivity and a gateway to the Greater China market. Charles Hung CEO & Executive Director Blue

Digital insurer Blue was launched in 2018 of insurance buying. Charles Hung, CEO and Hung believes that active collaboration as a joint venture between British insurer Executive Director, said, “with our robust amongst all stakeholders in the insurance Aviva, Asia, investment expert Hillhouse collaboration with Tencent, we can also industry, as well as the broader financial Capital, and the global tech giant Tencent. utilise its cloud technology and its massive sector, will further facilitate the development With a vision to shape the future of insurance customer database to develop products of InsurTech in Hong Kong and the region. together with its customers, Blue strives catered to our customers’ needs.” For companies who are looking to gain a to revolutionise the insurance industry foothold in Hong Kong, Hung recommend and addresses widespread consumer Sustainable growth of Hong them to connect with local organisations frustration by providing easy, flexible and Kong’s InsurTech industry such as InvestHK where they can gain valuable insurance protection through its valuable feedback and substantial online platform. According to Hung, it is beneficial for Blue to set up in Hong Kong thanks to support from planning to expansion. Blue offers transparent insurance products the city’s competitive advantages. “Hong “InvestHK offers worldwide network and and pricing system, which empowers Kong boasts its world-class infrastructure, serves as a great platform to connect customers to take charge of their own different businesses. We look forward to rule of law, and diverse talent pool. It is protection and make informed purchasing collaborating with InvestHK to promote the also an international financial hub with decisions. Currently the company offers FinTech development in Hong Kong,” Hung sophisticated financial connectivity and three commission-free policies covering life concluded. a gateway to the Greater China market,” term, critical illness, and personal accident. he said. The life term plan allows customers to change the protection amount, protection “The Guangdong-Hong Kong-Macao period and payment period of their plans Greater Bay Area and the proposed Blue as their life stage evolves, contrary to the ‘Insurance Connect’ initiative are exciting often-restrictive terms in the insurance developments, which have the potential to  Set up in September 2018, market. provide major impetus to the sustainable Blue is the first digital life growth of Hong Kong’s insurance industry, First in the industry to launch a straight- insurer in Hong Kong as well as our businesses. The Greater Bay through life insurance journey, Blue also Area also offers a major potential growth  Currently employs around leverages Tencent’s technology for their engine to drive Hong Kong’s insurance 100 people, mostly for IT and insurance platform including facial industry, as well as the broader financial marketing recognition, electronic Know-Your-Customer sector,” he added. procedures, real-time anti-money w blue.com.hk laundering (AML) name screening, online With increasingly adoption of technology underwriting and data analytics. The fully- such as AI, blockchain, cloud and data, digital model also eliminates complicated Hong Kong is gradually embracing the procedures and time-consuming processes development and adoption of InsurTech. Case Study 9 Rejuvenating Tea Culture for a New Generation of Customers Mainland tea-drink brand Heytea accelerates expansion in Hong Kong and Asia.

Noticing the quality and limited choice of tea-based beverage in the local market, bubble tea lover Nie Yunchen opened a drink stall in a small alley, called JiangBianLi, in Jiangmen selling cheese cap green tea in 2012. In just seven years, Heytea has grown from a 20-square-metre drink stall into a regional tea-drink market leader with over 300 branches in 30 cities worldwide. Heytea is famous for creating new combinations of tea with innovative ingredients and flavours targeting millennials and Gen-Z customers. With its best-selling cheese fruit tea, long queue is commonly seen at Heytea shops. “Currently over 60 percent of our customers are aged between 18-30 years old and most of which are female,” said Henry Chen, Brand Director, “this demography not only look for new and As a cosmopolitan city, Hong Kong is an creative products, they also care about important stepping stone for Heytea to go global. the aesthetic value of the product and The city is also renowned as a food mecca with excellent service.” an open and mature market, which makes an ”Through our continuous invention of new flavours, bespoke shop design, ideal market for promoting a F&B brand. customer experience and services, we hope to rejuvenate tea culture for the new generation and take it to the next Henry Chen level,” he added. Brand Director Gateway to International Heytea Market 2018 marked Heytea’s opening of its Currently Heytea employs over 100 first overseas shop in Singapore. In the full-time frontline and office staff with Heytea same year, Heytea also launched its first functions including finance, HR, business Hong Kong shop in Shatin, followed by development, branding, research and  Currently Heytea operates seven more shops across the city within development. Its Hong Kong team also over 300 shops in Mainland a year. According to Chen, Hong Kong is looks after brand marketing in Singapore. a fantastic strategic location for Heytea. China, eight in Hong Kong, “As a cosmopolitan city, Hong Kong is In the next few years, Heytea will focus and three in Singapore an important stepping stone for Heytea on accelerating its expansion through to go global,” said Chen, “the city is also Hong Kong office. More outlets are in the  Its new shop in Kwun Tong renowned as a food mecca with an open pipeline, including its ninth store in Kwun exclusively features a self- Tong. and mature market, which makes an ideal pickup service locker, which market for promoting a F&B brand.” “At the beginning of our planning stage, gives customer an option to InvestHK has provided tailor made “Many Mainland companies use Hong remotely order via its app Kong as a gateway to the international services in helping us get started, including market,” Chen added, “Hong Kong’s liaison with property developers for and skip the long queue economic environment is also favourable finding premises and license application. heytea.com for these companies to scale up their Their work is crucial for our continuous w operations.” expansion,” Chen concluded. 10 Case Study Money on the Go

CurrencyFair keeps costs down and services streamlined for those seeking a cheaper alternative means to transfer funds overseas

Founded in Ireland almost a decade ago A Supportive and Pro-business minutes makes cross-border business easy with a mandate to provide fair financial Government and enables us to build relationships with services for everyone, CurrencyFair has our Mainland Chinese partners,” he added. grown into one of the leading providers In early 2019, CurrencyFair established Byrne believes that Hong Kong’s of international money transfer services its Hong Kong office as the company’s strategic location makes it perfect for for consumers and businesses. It offers an Asian hub, and expects to double its sales any multinational company entering the online platform for fast, convenient and and operations team in the city by 2020. Mainland market. “While Hong Kong is transparent transfers with secured service. “The Asian market has long been part of our Asian hub, it is clearly a gateway for According to CurrencyFair, their cost for our growth strategy,” revealed Byrne. “The companies who want to enter Mainland international money transfers may be up Hong Kong government has been very China—a huge market that received in to five times less expensive than through supportive of the FinTech sector with excess of US$61 billion in remittance conventional banks. a funding support and new initiatives, payments in 2016. It would be a natural together with exceptional infrastructure “CurrencyFair prides itself on customer progression for us to enter this market as we and very strong pro-business policies.” experience,” explained Paul Byrne, Chief expand our Asian operations.” Executive Officer. “Our customers trust “In addition, the fact that most people After spending much of 2019 in Hong Kong, us with their funds, so we know how are bilingual, speaking both English and Byrne appreciates the introductions to important it is for them to be able to Chinese, makes it an ideal location for key partners and advisors that InvestHK reach us if they have a query. Our team is companies coming to Asia or setting up an provided. He found the city very vibrant. available seven days a week to answer any international operation. The robust legal “There is an amazing array of cultures here questions, and we are consistently updating and financial framework that Hong Kong all seamlessly integrated and working side our Q&As to ensure that our customers has in place makes it highly appealing for by side,” he concluded. have all the answers they need at their both established and start-up businesses. fingertips.” Being able to access Mainland China in 30

While Hong Kong is our Asian CurrencyFair hub, it is clearly a gateway for  Established in 2010, Ireland headquartered CurrencyFair companies who want to enter provides international money transfer services to Mainland China—a huge market that consumers and businesses

received in excess of US$61 billion  Its expansion includes setting up Hong Kong as its Asian in remittance payments in 2016. headquarters in 2019, leading to the creation of 20 new jobs Paul Byrne in the city to date Chief Executive Officer w currencyfair.com CurrencyFair Case Study 11 Capturing Opportunities in the Greater Bay Area With boosted real estate business in Zhuhai, Huafa opens showroom in Hong Kong to further penetrate the market.

The infrastructure boom in the region, such as the Hong Kong-Zhuhai-Macao Bridge, will certainly stimulate the market in the Greater Bay Area.

Zhang Jun General Manager, Centre for Marketing Management Huafa Holdings

Founded in 1980, Huafa Holdings (formerly prospective buyers in Mainland China enormous market opportunities that Huafa Group) is one of the biggest state- and Hong Kong in recent years. Seeing a cannot be missed. owned enterprises in Zhuhai. With growing interest in the Greater Bay Area Zhang concluded that while Hong Kong is businesses covering over 60 cities in properties, especially in Zhuhai, Huafa well-known as an international financial Mainland China, the company has become Holdings opened a showroom in Hong hub, Zhuhai has achieved rapid economic one of the “China’s Top 500 companies” Kong in April 2019 to promote its portfolios. growth since its establishment in the since 2016. The company encompasses a The showroom is also a platform for 80s. The two cities should continue to wide range of core businesses including visitors to learn more about Zhuhai’s future leverage their comparative advantages, urban operations, real estate development, development under the Greater Bay Area strengthen regional integration and capture finance and industrial investment, plan and its real estate potential. unprecedented opportunities arising from commerce service and technology and “Hong Kong buyers account for around the Greater Bay Area. modern management service. eight percent of our property sales To ride on the vast development of the in Zhuhai, and for some projects, the Guangdong-Hong Kong-Macao Greater proportion even reaches ten percent, which Bay Area (the Greater Bay Area), the real shows an exciting market opportunity,” Huafa Holdings estate arm of the conglomerate has launched Zhang said, “the infrastructure boom in  Based in Zhuhai, Huafa has multiple mixed-use development projects the region, such as the Hong Kong-Zhuhai- across the multiple city cluster, including Macao Bridge, will certainly stimulate the business presence across Zhuhai Centre which is located in the Zhuhai’s market in the Greater Bay Area.” Mainland China as well as in CBD, adjacent to Zhuhai International Hong Kong, Macao, Tel Aviv, “Take our most prestigious project, Huafa Conference and Exhibition Centre. San Francisco and others Hills, as an example. It is one of our attempts “The Greater Bay Area Outline Development to attract more high-end buyers from Hong  Working closely with Zhuhai Plan emphasises the importance of the Kong. We have involved global interior and Municipal Government integration of the core cities with enhanced architecture firms in the project, aiming to implement national resource and increased capital mobility, to diversify and enhance our portfolio of urban strategies through which have created a big opportunity luxury property development,” Zhang said. for us,” said Zhang Jun, General Manager, modern services and city He added that with a combined population Centre for Marketing Management. transformation projects of about 70 million, which makes up five With the government’s effort to make the percent of the total population in Mainland w www.cnhuafag.com city more livable, Zhuhai has lured many China, the Greater Bay Area also holds 12 Case Study An International Showcase of over 10,000 Creative Brands Taiwanese creative brand eCommerce platform Pinkoi opened office and first brick-and-mortar store in Hong Kong, hoping to use its base in the city to expand into other Asian and global markets.

Founded in in 2011, Pinkoi is one of Asia’s leading platforms for creative products. Committed to building an Hong Kong is a gateway ecosystem for creative Asian brands, to many Asian markets Pinkoi partners with over 14,000 different brands to offer products, digital – it has a diverse creations and workshop experience consumer base and to nearly three million members. It has enables us to keep pace grown rapidly since its establishment and has expanded into a wide range of with the latest global markets including Japan, Thailand, Hong developments. Kong, Macau, Mainland China, the US and Canada. Peter Yen

In 2018, Pinkoi revamped its brand and Co-founder and CEO took its business to the next level by Pinkoi launching a range of creative workshops called “Pinkoi Experience”. It has also opened its first brick-and-mortar store in Hong Kong, which will help the company expand into the offline retail “Thanks to Invest Hong Kong, Pinkoi has sector. Located at The Mills in Tsuen A Gateway to the Asian Market been able to access a range of essential Wan, the Pinkoi Shop features a new Following the brand revamp, Pinkoi plans resources and information from the theme every month and hosts a range of to expand its presence in other Asian government and the industry, as well as exhibitions and workshops. According markets with the setting up of its first valuable marketing opportunities. It has to Peter Yen, Co-founder and CEO, “Hong office outside Taiwan in Hong Kong. As been an important partner during our Kong is one of Pinkoi’s most important Yen remarked, Hong Kong’s consumers expansion in the city”, Yen concluded. growth markets – in addition to its have an international mindset as well as internationally-minded consumers, the an eye for the latest trends, which helps city is also home to some outstanding Pinkoi expand into other Asian markets. design brands which are very popular in “Hong Kong is a gateway to many Asian Pinkoi other Asian markets”. markets – it has a diverse consumer base and enables us to keep pace with the  Founded in August 2011 According to Yen, Hong Kong’s online latest global developments,” he said. retail sector has huge potential, and  Three major arms Pinkoi’s online sales in the city have Pinkoi currently employs a team of ten include the online design continued to grow. “We saw a big local staff at its Hong Kong office, who marketplace pinkoi.com, increase in our online orders between source local design brands, develop ‘Pinkoi Experience’ creative August and October, with 60 percent marketing and business strategy. Yen workshops, and the Pinkoi finds that the Hong Kong workforce is growth when compared to the previous Cultural and Creative three months. Moving forward, Pinkoi highly skilled, internationally-minded and Investment Fund plans to diversify its online offerings proficient in multiple languages, which and hopes to engage in Online-to-Offline are all crucial for companies that operate w pinkoi.com (O2O) collaboration with our brick-and- across different markets. mortar stores.” Case Study 13 Day Care for Peace of Mind The Central Surgery provides international calibre expertise for patients opting for day surgery procedures.

Going to the hospital can be a daunting RSD is a joint venture between Ramsay Kingsbury feels that the level of training exercise. For many surgical procedures, Health Care, established in Sydney in 1964, that Hong Kong doctors receive provide hospitals are often the only choice for and Sime Darby, established in Malacca in RSD reassurance that they are operating at peace of mind. With the Department of 1910. RSD operates in 400 hospitals and an international standard. “Our philosophy Health’s Code of Practice for Day Procedure clinics internationally, with The Central is to build a local team by identifying those Centres under the recently gazetted Private Surgery its first investment in Hong Kong. with solid backgrounds, and who we can Healthcare Facilities Ordinance (Cap. “Patients seek international brands, yet offer the opportunity to send overseas for 633) coinciding with the opening of The Hong Kong hospitals are mostly local further training,“ he stated proudly. “Our Central Surgery eight months ago, there is ones,” Kingsbury noted. “We spent four most important asset is our people and 100 now a real choice when opting for simple years searching for a building in Central percent of our staff is from the local Hong surgeries. with the technology capable of housing Kong community.” an international medical facility. Our As a ground-breaking new business, According to Dr David Kingsbury, Medical 7,000 square foot facility has modern air Kingsbury considers InvestHK an Director with The Central Surgery, conditioning, adequate water, drainage and indispensible resource. “We have been in “approximately 70 percent of all surgeries floor loading, underground ambulance pick contact with InvestHK for four years,” he can be done as day surgery,” he explained. up in case of emergencies, and complete recalled. “We needed to connect to different “They are a big part of health care overseas privacy for our patients. It is our flagship elements such as insurers. InvestHK helped but not in Hong Kong. I got together with that we hope can turn into a regional bring all that together for us.” fellow doctors and approached Ramsay hub. Hong Kong has always been a city Sime Darby (RSD) to help build The Central connected to the world and with 20 percent Surgery. Together, we have the experience of our patients come from the Greater Bay of RSD and the support of local doctors.” Area, we intend to develop that market.”

Hong Kong has always been a city The Central Surgery connected to the world and with  Open in 2019, the Central 20 percent of our patients come facility offers day surgery in from the Greater Bay Area, we a purpose-built centre with two contemporary operating intend to develop that market. theatres and a team of 60 doctors Dr David Kingsbury w ramsaysimedarby.com Medical Director The Central Surgery 14 Case Study AI Platform Powered by News and Data Striving to provide trustworthy corporate news and data for businesses in Asia, scoutAsia sets up regional headquarters in Hong Kong to better serve this fast growing market.

Hong Kong is an ideal location for us since it is close to several of our biggest markets in North Asia, not too far from ASEAN and provides us with the flexibility, robust regulation and low tax regime that a startup needs. Daniel Bogler Managing Director scoutAsia

Jointly established by Nikkei and Financial Asia, Digital and Data customer service and finance. Times in 2018, scoutAsia is a digital news In 2019, the company has set up its regional “There is a large, international talent pool and data service which helps businesses headquarters in Hong Kong. According to available in Hong Kong, whether we are to research companies and monitor trends, Bogler, scoutAsia’s aim is to expand in three looking for sales, marketing or financial themes and topics with data aggregated of the world’s fastest growing areas, which professionals,” Bogler remarked, “people are from trusted sources, industry specific are Asia, digital and data. willing to take risk, join a new company and reports and news publications. work hard on a new venture.” “Hong Kong is an ideal location for us since With a strong background in news and it is close to several of our biggest markets “InvestHK has been very helpful in media, scoutAsia’s data is validated by in North Asia, not too far from ASEAN and connecting us with other organisations and machine-learning technology and a human provides us with the flexibility, robust potential clients and in helping us with our marketing and branding, by spreading the curation team. Their extensive corporate regulation and low tax regime that a startup needs,” he said. word about our company,” he concluded. database covers hundreds of thousands of company profiles, news articles, research “Our plan is to build up our client base, reports and macroeconomic information starting in and radiating out from three across over 20 countries in Asia, enabling key cities which are Hong Kong, Singapore scoutAsia businesses to stay up-to-date and capture and Tokyo. We are already winning and  A joint venture of Nikkei and market opportunities. Users can also servicing clients in other Asian countries, such as Taiwan and Malaysia, and we will Financial Times started in 2018 customise AI alerts on scoutAsia’s platform gradually expand into Europe, the Middle after the takeover of Financial to track companies and trends, so that they East and the US.” Times by Nikkei in 2015 will not miss a signal. Bogler added that despite their global  Its news and data comes from “We believe scoutAsia is suitable for a expansion plan, it is still critical for selective global news sources wide range of customers spanning scoutAsia to prioritise the Asian market and databases, including the financial institutions, corporations and with their primarily Asia-focused service. Nikkei Asian Review, FT.com, professional service firms,” said Daniel The company currently has seven Bureau Van Dijk, FactSet and Bogler, Managing Director, adding that employees based in Hong Kong working some typical usage of their database major English-language Asian with teams in Tokyo, Singapore and other news sources includes research, portfolio management, cities, while the main functions of the Hong corporate strategy, corporate finance as Kong office are strategy and leadership, w scout.asia well as business development. business development, sales and marketing, Case Study 15

Biotech Startup Opens R&D Laboratory in Hong Kong

Hong Kong provides the infrastructure, business and financial platform for innovative companies.

“we picked HKSTP as our second research centre because it is a complete innovation With opportunities brought by and technology base camp for R&D, testing, the development of the fundraising and commercialisation.” “Also, we believe that HKSTP could provide Guangdong-Hong Kong-Macao Bay Area, us with a full range of infrastructure, facilities and support services throughout Hong Kong will act as a business and our drug discovery and development financial platform for innovative journey.” Biotheus’ plan is to have its third-round companies, like us, looking to access fundraising in the next six months for bringing its leading assets through early the international market. clinical trials, aiming to develop a strong pipeline and have several products from Dr Andy Tsun early to late stage clinical development Co-founder and Vice President within two to three years. Biotheus “We are also actively looking for global strategic partners to bring our assets to patients around the world, and to a wider Founded in April 2018, Biotheus is a offers an abundant supply of local and market,” Dr Tsun concluded. biomedical research company focusing international biomedical expertise, which on the discovery and development of next led the company to set up their research generation antibody-based therapeutics. base in the city. “With proficiency in English With their headquarters located in Zhuhai and Chinese, our Hong Kong team is a and research laboratories in Hong Kong and bridge in facilitating research projects with Suzhou, the company has R&D capabilities different labs in Australia, Singapore, North Biotheus including antibody discovery, process America and Mainland China,” Dr Tsun said.  Headquartered in Zhuhai development and analytical assessment “The sound legal and intellectual property with R&D labs in Suzhou and platforms with a pilot plant that would infrastructure in Hong Kong are also the Hong Kong and advisors in facilitate IND (Investigational New Drug)- main reasons and advantages of why we Singapore, Australia, and enabling activities. chose Hong Kong as a major research establishment.” North America Biotheus set up a R&D laboratory in  The R&D laboratory in Hong Hong Kong to focus on the innate arm of Ample Opportunities from the immunity and its contribution to cancer Kong is to focus on the treatment. Headed by Suki Lee Man Yan, Development of the GBA innate arm of immunity and previously principal investigator and “With opportunities brought by the its contribution to cancer group leader at the University of Hong development of the Guangdong-Hong treatment Kong, the team in Hong Kong will carry Kong-Macao Bay Area (GBA), Hong Kong out most of the biological target selection will act as a business and financial platform  By March 2019, a total of and screening of potential drug candidates for innovative companies, like us, looking to US$35 million was raised targeting innate immunity, working closely access the international market,” he added. to fund its expanding with the antibody discovery team in Biotheus set up its research centre in the therapeutics pipeline Zhuhai. Hong Kong Science and Technology Park biotheus.com According to Dr Andy Tsun, Co-founder (HKSTP) for its vibrant biotech ecosystem w & Vice President of Biotheus, Hong Kong and support for startups. Dr Tsun remarked, 24/F, Fairmont House 8 Cotton Tree Drive Central, Hong Kong Get Our App Now (852) 3107 1000 Find Us on Social Media InvestHK News & Events [email protected]

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