Without any doubt, Hong Kong is one of the world's most competitive financial, trading and shipping centre in the world. According to the Heritage Foundation's annual Index of Economic Freedom report, Hong Kong's economy is ranked as the world's freest for 17 consecutive years. Hong Kong’s strategic position as China’s global financial centre is based on Hong Kong’s competitive edge of being the only place in the world where the China advantage and global advantage converge in one single city. Famous for its skyscrapers and financial clout, Hong Kong will also become the cultural and artistic heartbeat of East Asia, to which end the Hong Kong Government has been annually investing some 240 million Euros into the cultural and arts development of this amazing city.
These facts inspired me to plan my visit to Hong Kong one day, reserve the domain www.thebestofhongkong.info to enable me to create a website that would become an important part of the global project The Best of the World, featuring numerous Hong Kong highlights and supporting the inter-cultural and business exchange within the exclusive network: www.thebestoftheworldinfo.com
It was my great honor to be invited by Ms Kei Wong (above with the President of the Austrian Hong Kong Society) to attend an exclusive, annual gala dinner with the AHKS on 13th of December 2011. This evening, beside the delicious festive dinner and Humer wine, we had a unique opportunity to hear inspiring speeches by the executive board members from the Austrian Hong Kong Society, including the founding member, Mr. Stephen Kai Wong, Director of Hong Kong Economic & Trade Office in Berlin, before his return to Hong Kong (on the left side on both photos below).
In his inspiring and well-prepared speach, Mr. Wong explained that Austria and Hong Kong have seen a fruitful history of mutual benefit and cooperation. In 2010, bilateral trade reached a total of about 840 million Euros, 13 % higher than the year before. Goods and Services such as clothing and jewellery from Hong Kong were the most popular merchandise to be imported by Austria, whilst 40% of our imports from Austria consisted of fine glassware. Last year, about 400 million Euros worth of Austrian goods were imported by Hong Kong and almost 10% of all trade between Austria and the Mainland was routed through Hong Kong. Austria is also one of the major sources of inward direct investment in Hong Kong.
Austria has enjoyed the clear advantages Hong Kong has to offer its partner countries, as an international gateway to the fast growing markets of China. Last year 6 more industries had been identified by the Chief Executive of Hong Kong on the priority list, namely medical services, innovation and technology, environmental industries, testing and certification, cultural and creative industries and education services. These along with traditional 4 leading sectors such as financial services, trading and logistics, professional services and tourism will serve as a solid base for attracting capital and developing talent from within and outside the country.
Hong Kong’s strong financial services, such as asset management and offshore RMB business and capital formation functions are adding value to the business embracing environment. Hong Kong enjoys the privilege of low and simple tax systems capping salary tax at 15%, corporate tax at 16.5%, no inheritance tax, no capital gains tax and no VAT. With this open economy, free market and free flow of information, innovation and talents, Hong Kong tied in first place with the United States in the 2011 IMD World Competitiveness Yearbook and has been once again ranked as the freest economy in the world by the Heritage Foundation, for 17 years in a row. Today, the World Economic Forum released its Financial Development Index and Hong Kong is ranked, for the first time ever, the first to take the top spot, overtaking the US and UK, acknowledging strengths in financial access, business environment and banking financial services, in particular strong performances in IPO activities and insurance.
"By virtue of Hong Kong’s economic strengths, the credit rating was upgraded to “AAA,” making Hong Kong one of the two Asian economies with such a rating.” Since the reunification in 1997, the “Hong Kong’s stock market capitalization increased almost sevenfold to about 2 trillion Euros. In the past two years, funds raised through IPO on the Stock Exchange of Hong Kong were the highest in the world.”
As the leading offshore RMB reserve outside of China, Hong Kong has helped ease much FDI into China, with the assurance of high quality, English-Cantonese-Mandarin speaking industries at its helm. RMB is increasingly in demand, demonstrated by the growth of total Mainland trade settled in RMB this year—9% as opposed to 0.7% just a year ago. 84% of all RMB- based trade in China in the first half of 2011 was carried out by banks in Hong Kong, steadily increasing from 73% over the whole of 2010. Consequently, over 10% of total deposits are in RMB, totaling 622 billion RMB (about 72.54 billion Euros) as of the end of September 2011. In the first 8 months of this year, Hong Kong handled more than 1 trillion RMB in trade settlements, with an average monthly settlement in the first half of 2011 amounting to 134 billion RMB.
Besides helping foreign businesses tap into opportunities in China, Hong Kong is geared to be the arbitration centre and trading hub for the emerging and burgeoning market of Intellectual Property Assets. Over the last two years, patents applications in the Mainland have surged, overtaking those processed in the United States, making China the leading patent-filing nation. With the clear identification of technology and clean energy sectors as being instrumental in the 12th National Five Year Plan for 2011 to 2015, technology patents and trademark applications will surge, and Chinese imports of technology patents have also skyrocketed.
Austria in particular is a partner country with which mutual investment in the environmental sector is keenly anticipated. As outlined in the Policy Address of 2011-2012, Hong Kong will earmark about 17 million Euros for franchised buses to purchase trial electric buses whilst imposing requirements for new franchises in bus companies to switch to zero emission vehicles or the most environmentally friendly option when replacing old buses. Energy saving LED lights will replace conventional traffic signals across Hong Kong and about 48 million Euros is designated for injection into the Environment and Conservation Fund as called for. By 2020, Carbon intensity will also be severely reduced by 50-60% as compared to levels of 2005, and remote sensing equipment and advanced roadside emissions tests will help protect the air immediately.
Besides helping foreign businesses tap into opportunities in China, Hong Kong is geared to be the arbitration centre and trading hub for the emerging and burgeoning market of Intellectual Property Assets. Over the last two years, patents applications in the Mainland have surged, overtaking those processed in the United States, making China the leading patent-filing nation. With the clear identification of technology and clean energy sectors as being instrumental in the 12th National Five Year Plan for 2011 to 2015, technology patents and trademark applications will surge, and Chinese imports of technology patents have also skyrocketed.
Austria in particular is a partner country with which mutual investment in the environmental sector is keenly anticipated. As outlined in the Policy Address of 2011-2012, Hong Kong will earmark about 17 million Euros for franchised buses to purchase trial electric buses whilst imposing requirements for new franchises in bus companies to switch to zero emission vehicles or the most environmentally friendly option when replacing old buses. Energy saving LED lights will replace conventional traffic signals across Hong Kong and about 48 million Euros is designated for injection into the Environment and Conservation Fund as called for. By 2020, Carbon intensity will also be severely reduced by 50-60% as compared to levels of 2005, and remote sensing equipment and advanced roadside emissions tests will help protect the air immediately.
The Hong Kong Secretary for the Environment, Mr Edward Yau was particularly pleased to visit Vienna and inspect two state-of-the-art waste treatment facilities in May 2011: Spittelau Thermal Waste Treatment Plant and Pfaffenau Waste Incineration Plant, to learn from the Austrian experience.
Being a cultural treasure in Europe, Austria would be excited to know that Hong Kong is planning arguably the most ambitious arts development project in the world, a 40 hectare, 15 venue strong cultural and spiritual oasis of concert halls, theatres, music halls of various sizes, a modern art museum, M+, a main performance venue interwoven by at least three hectares of outdoor piazzas for people to enjoy. The West Kowloon Cultural District, to be developed on prime harbourfront estate, already receives about a 2 billion Euro endowment from the government. The WKCD is eagerly supported by the results of the Public Engagement Exercise and among the 10 major infrastructure projects proposed by the CE during his 2007 Policy Address, which also includes the 350km per hour Hong Kong- Guangzhou Express Rail Link enabling one to arrive in the Mainland within 50 minutes.
People of Hong Kong can truly be proud of their achievements. I truly hope that many countries will follow this inspiring example of excellency and strive for economic and financial development, investing in education, arts and culture, business opportunities and human values. If all countries in the world unite in this effort to make progress, foster the culture of friendship, peace and cooperation, there won´t be any time for wars and distruction.
By Maria Petrak, Founder, The Best of Vienna and The Best of the World network
Ambassador for Peace, awarded by the Universal Peace Federation, Austria
Being a cultural treasure in Europe, Austria would be excited to know that Hong Kong is planning arguably the most ambitious arts development project in the world, a 40 hectare, 15 venue strong cultural and spiritual oasis of concert halls, theatres, music halls of various sizes, a modern art museum, M+, a main performance venue interwoven by at least three hectares of outdoor piazzas for people to enjoy. The West Kowloon Cultural District, to be developed on prime harbourfront estate, already receives about a 2 billion Euro endowment from the government. The WKCD is eagerly supported by the results of the Public Engagement Exercise and among the 10 major infrastructure projects proposed by the CE during his 2007 Policy Address, which also includes the 350km per hour Hong Kong- Guangzhou Express Rail Link enabling one to arrive in the Mainland within 50 minutes.
People of Hong Kong can truly be proud of their achievements. I truly hope that many countries will follow this inspiring example of excellency and strive for economic and financial development, investing in education, arts and culture, business opportunities and human values. If all countries in the world unite in this effort to make progress, foster the culture of friendship, peace and cooperation, there won´t be any time for wars and distruction.
By Maria Petrak, Founder, The Best of Vienna and The Best of the World network
Ambassador for Peace, awarded by the Universal Peace Federation, Austria
