Canadian Business Perceptions of Hong Kong and Mainland China
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1 Canadian Business Perceptions of Hong Kong and Mainland China Paul Irwin Director, Asia Pacific Business Network Asia Pacific Foundation of Canada Hong Kong Canada Business Forum Ottawa, May 30, 2005
2 HKTDC APFC Joint Research Project Survey of Canadian Business Perceptions of Hong Kong and Mainland China Hong Kong as a Trading and Investment Platform for Canadian Companies
3 Survey Results Profile of Respondents Perceptions on Hong Kong as a Trading and Investment Platform to the Chinese Mainland Perceptions on CEPA Economic and Company Outlook
4 Company Headquarters Alberta 3% Hong Kong, SAR 34% Quebec 5% Ontario Other 27% 15% British Columbia 16%
5 Number of Employees 14% 7% 35% 33% 11% Under to to to 200 Over 200
6 Products and Services Financial & Insurance Industries Professional Services Consumer Products Educational Services Management Consulting Information & Communication Technologies Real Estate Healthcare & Life Sciences Industries Construction & Building Products Agriculture, Food and Beverages 19% 16% 12% 12% 12% 8% 8% 6% 6% 5%
7 Mode of Operation Hong Kong-based company Operate a regional headquarters in Hong Kong Operate a subsidiary in Hong Kong Operate a representative office in Hong Kong Represented by a sales agent in Hong Kong Canada-based representative of Hong Kong company Operate a manufacturing facility in Hong Kong Other (please specify)* 38% 22% 12% 8% 6% 2% 2% 13%
8 Business Base for Hong Kong and Mainland China Out of Offices in Hong Kong and Mainland China Based in Hong Kong Based in Third Country (including Canada) Based with combinations of the above, who have businesses only with Hong Kong Based in Mainland China Based other than Hong Kong and Canada Based in Hong Kong, who have business only with Mainland China 40% 26% 26% 12% 5% 2% 2%
9 Hong Kong as a Trading and Investment Platform to the Chinese Mainland An excellent base to do business with Mainland China and East Asia 3% 5% 33% 57% 2% A good place to raise investment capital 6% 6% 34% 30% 24% Strongly Disagree Disagree Agree Strongly Agree Don't Know
10 Hong Kong as a Trading and Investment Platform to the Chinese Mainland A good place to find partners for doing business in Mainland China 6% 8% 45% 31% 10% A good information source about business opportunities in Mainland China 4% 5% 51% 36% 4% Strongly Disagree Disagree Agree Strongly Agree Don't Know
11 Hong Kong as a Trading and Investment Platform to the Chinese Mainland It is easy for Canadian companies to do business directly with Mainland China 8% 39% 28% 12% 13% Strongly Disagree Disagree Agree Strongly Agree Don't Know
12 Top Five Factors Maintaining Hong Kong s Status as a Sourcing Centre 1. Good legal protection 2. Good telecommunications and transportation facilities 3. Professionalism in conducting international trade 4. Low tax rates 5. Free port
13 Top Five Obstacles To Doing Business In Hong Kong 1. High cost of property / rentals 2. High cost of living in general 3. Transportation costs 4. Distance from Canada 5. Government taxes, fees and other charges
14 Closer Economic Partnership Agreement (CEPA) Roughly half of the respondents are not well informed about the provisions of CEPA and what it means for their company 48% of respondents strongly disagree / disagree that my company has benefited directly from CEPA 23% of respondents find that CEPA has resulted in enhanced access to the Mainland China market for their companies.
15 Hong Kong Economic Outlook, GDP Growth 3% 2% 7% 20% 59% 9% Commercial Property Values 2% 5% 12% 46% 27% 8% Fall Sharply Fall Slightly About the Same Rise Slightly Rise Sharply Don't Know
16 Business Outlook in Sales in Hong Kong 2% 8% 28% 37% 12% 13% Sales in Mainland China 1% 4% 19% 32% 21% 23% Fall Sharply Fall Slightly About the Same Rise Slightly Rise Sharply Don't Know
17 Investment Outlook (Next 24 Months) Canadian Investments in Hong Kong 6% 40% 39% 15% Canadian Investments in Mainland China 0% 25% 55% 20% Decrease Remain the Same Expand Don't Know
18 Canadian Trade with Mainland China through Hong Kong Share of Canadian trade with Mainland China that goes through Hong Kong (Next 1-3 Years) 11% 26% 43% 20% Share of Canadian trade with Mainland China that goes through Hong Kong (Next 4-10 Years) 18% 18% 40% 24% Decrease Remain the Same Expand Don't Know
19 Usefulness of Business Promotion Services 1. Networking Events (87.6%) 2. Trade Shows and Exhibitions (87.6%) 3. Identifying Potential Business Partners (78.3%) 4. Up-to-date Market Information on Specific Sectors (77.5%) 5. Seminars on Specific Business Issues (76%) 6. Trade Missions (65.9%)
20 In Summary Hong Kong s value-added: Regional Base Sourcing Centre Place to find Partners, Investors Good environment for doing business Low awareness of CEPA benefits Bullish on prospects in Hong Kong and Mainland China
21 Thank You Cathay Pacific Prize Draw for Survey Respondents
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