This is an independent publication HONG KONG by Archimedia London MONDAY, SEPTEMBER 12, 2011 A City of Contrasts ADVERTISING SUPPLEMENT ADVERTISING SUPPLEMENT 2 HONG KONG HONG KONG 3 INSIDE THIS REPORT GROWTH PROSPECTS ARE BRIGHT ECONOMY Hong Kong’s growth is founded other emerging markets to list on solid economic fundamen- in Hong Kong. What advan- tals. What is your assessment tages does it offer? of the medium-term economic I believe this is good for stabil- outlook? ity. Any multinational will have If you try to analyse why Hong to find the way to raise capital 4 Kong has become so strong, what and put their anchor somewhere, Hong Kong is China’s biggest have been the ingredients of our and they have been putting their trading partner and helps fuel success, and then you look at the anchors in Wall Street and in the the mainland’s growth durability of these ingredients, then City of London. Multination- one would come to the conclusion als want their assets traded on a CURRENCY that Hong Kong will remain pretty 24-hour basis. With Hong Kong’s prosperous in the medium term, if position in East Asia, we continue 6 not in the long term. to trade while London and New INTERVIEW Our strength is derived first York are sleeping. DONALD TSANG from our geographic location, And the liquidity pool in Hong being at the centre of East Asia, Kong is huge; it is huge, safe and the focal point of all economic free. Money can move in and HONG KONG’S CHIEF activities in the coming decades, out at the press of a button, so it EXECUTIVE TALKS Used increasingly for trade and in particular we are a part of provides safety as well. We [also] TO PETER DRENNAN settlement, China’s yuan is on fast-growing China. The second have a low-tax regime, they will the road to full convertibility ingredient is the infrastructural based on common law, as distinct The plans, aspirations and objec- be taxed a lot less than if they’re HONG KONG strength of Hong Kong. This in- from the mainland. This is a very tives enshrined in that chapter in New York or London for that CREATIVE INDUSTRIES cludes a critical mass of profes- important point. are Hong Kong’s own. We believe matter. As far as the supervision China’s sustained sionals, particularly financial- that we are able to contribute to issue is concerned, the Hong economic boom services professionals. We have Is the ‘China factor’ Hong has been a boon national growth by being a global Kong standard is well known. 11 AND THE RISE OF ASIA most of the world’s largest banks Kong’s greatest competitive to Hong Kong. financial centre; a global centre We are not second to anybody in located in Hong Kong. We have a advantage? There are now some for trade, for finance, for shipping, terms of our regulatory regime, huge number of multinationals, This is perhaps the most impor- 800 mainland for aviation. And our strengths particularly if they want to trade As the centre of gravity in the global economy shifts to Asia, firms established Hong Kong-based multinational more than 6,000. These are not tant factor in the coming decade in the city. also lie in the new industries that with the mainland, and that is and China in particular, AAA-rated Hong Kong is right at the Jardine Matheson. “But we must transient, this happened over a as China continues to grow at we are nurturing or the communi- quite an important aspect. In The city is fast becoming a hub never surrender our position as long period. If you understand a more or less breakneck pace, ties we are nurturing, including the past, bilateral trade was for product design, fashion, heart of the region. By Alejandro Reyes an international centre with a the strengths of London – it is not nearly double-digit every year. our education services, health mostly denominated, or wholly filmmaking, music and television tremendous platform for doing in the eurozone but it is still the We are part of the nation and services, testing and certification, denominated, in US dollars. Now, business in Asia and the world.” focal point of euro transactions in our prosperity is seen by our Chi- and innovation and technology. because of the strength of the EXPLORE t a June reception ing on the China market. This tide ber, Standard & Poor’s accorded Benjamin Hung, executive di- Europe – then you would come to nese leaders as a significant part Those things are really part and renminbi, some of it is denomi- GETTY IMAGES for new or expanded of arrivals has made Hong Kong the SAR what might be the most rector and CEO of Standard Char- the conclusion that it is because of the national growth, because parcel of Hong Kong’s plans, but nated in that currency. Remark- foreign companies, the third largest recipient of FDI in prized accolade any financial tered Bank, agrees. “Through the of the critical mass of financial we are able to do things which now they are being incorporated ably, of all the trade conducted in 14 the chief executive of 2010, behind the US and mainland centre can receive when for the crisis, Asia has been a strong leg [in experts who live in London. Here the nation itself cannot do, and into our national plan because it renminbi by China last year, more HongA Kong raised a toast to thank China. All the more remarkable first time the agency gave it a top the global economy], with Greater in Asia, they live in Hong Kong. the services we provide cannot is not only good for Hong Kong, than 90% was settled and cleared some 350 executives for having is that this surge is happening AAA sovereign credit rating, citing China the locomotive. This region Then there’s another part of be delivered by any other city in it is good for the nation if these in Hong Kong. confidence in the city. In 2010, against the backdrop of the worst its economic flexibility and strong is fundamentally very strong, with the infrastructure, this includes the country. For instance, as an strengths continue to grow stron- There are now about 800 Donald Tsang noted, foreign direct global economic crisis since the fiscal position. metrics that many countries covet. our networking throughout offshore centre for renminbi, ger over time. mainland firms established in investment (FDI) in the special ad- Great Depression. The nine months since the Here there is zero debt, a huge the world and our networking the provision of a common-law Hong Kong, many of them as re- It’s hard to match this city’s ministrative region (SAR) of China Noteworthy, too, is that just 14 upgrade have proven just how surplus, strong foreign currency in mainland China. We are the jurisdiction and the use of a You have invited more com- gional headquarters. On the Hong mix of ancient traditions and reached US$68.9 billion, 32% years ago Britain returned Hong resilient and robust Hong Kong’s reserves, high capital ratios and number one investor there. We are convertible currency, which is far panies from the mainland and Kong Stock Exchange there are 21st century lifestyle more than in 2009. In the first half Kong to China, raising among economy is. Its recovery from the banks that are not overleveraged.” the number one investor in each more important in a well-trusted several hundred. Mainland firms of this year, nearly 200 overseas the city’s people and the inter- global recession has been stellar. The growth of intra-Asian trade and every province in China. So, economy. Hong Kong provides all listed in Hong Kong have a total and mainland Chinese enterprises national community fears for its GDP growth in the first quarter and the rise of domestic consump- if people want to do business in of these things. OF ALL THE TRADE CONDUCTED capitalization of nearly 12 trillion set up or expanded their opera- future. Soon after the handover, of 2011 was a remarkable 7.5%, tion in China are going to drive China, the location from where to Hong Kong dollars, that’s about This supplement has been produced tions in Hong Kong. “We want Hong Kong’s economy went into although in the second quarter significant new growth in the Hong enjoy the greatest experience will China’s latest five-year plan de- IN RENMINBI BY CHINA LAST £1 trillion. Over the years they by Archimedia London Limited. It did not involve the reporting or you to stay and grow and prosper a tailspin as Asia suffered its own the pace of expansion moderated Kong economy, Mr Hung reckons. be Hong Kong. votes a chapter to Hong Kong, YEAR MORE THAN 90% WAS have raised about HK$3 trillion in editorial staff of The Times and no with us,” Mr Tsang told his guests. financial crisis. to 5.1%. The outlook for the short Yet Hong Kong and its leaders Another part of the infrastruc- what are the most significant Hong Kong, this is what we can do endorsement is implied. “Your success is our success.” Yet the future turned out and medium terms is good, despite are not simply sitting back and ture is our legal system which is aspects outlined in the plan? SETTLED AND CLEARED HERE. for them. Among those Mr Tsang wel- far better than even the most concerns about the direction of waiting for the rise of Asia and comed was Bob Guard, who just a optimistic of Hong Kong’s fortune the global economy.