AmCham biz.hk Jul / Aug 2015

Jul/Aug 2015

BACK IN BUSINESS KALOK CHAN

DEAN CUHK BUSINESS SCHOOL

SPECIAL SUPPLEMENT: GUIDE TO RESIDENTIAL RENTALS

July/August 2015

Contents

Vol 47 No 7-8

Publisher

Richard R Vuylsteke

Editor-in-Chief Blessing Waung

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COVER STORY

The CUHK Business School is one of the best in Asia with its research and MBA and EMBA programs. To continue its excellence, the institution looks to a familiar face as Professor Kalok Chan returns to his alma mater as the new Dean of the business school.

Managing Editor Leon Lee

Advertising Sales Manager Regina Leung

biz.hk is a monthly magazine of news and views for management executives and members of the American Chamber of Commerce in Hong Kong.

Its contents are independent and do not necessarily reflect the views of officers, governors or members of the Chamber.

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AMCHAM NEWS AND VIEWS 04 Editorial When the Mainland Chinese stock market took its historic dive, critics were quick to point out the flaws and the government’s desperate attempts to fix it. However, just several months ago when the market was booming, that same government’s economic reforms were widely praised. The stock market crash did expose kinks in the system but it will benefit China and its burgeoning economy in years to come.

06 New Business Contacts 25 executives joined AmCham's business network last month

07 New Member Spotlight Each month, biz.hk will highlight a recently joined member to our Chamber in this new column. This issue, biz.hk spoke to Ann Ngan, Director of Hong Kong Academy of Leadership Ltd.

40 Mark Your Calendar

©The American Chamber of Commerce in Hong Kong, 2015 Library of Congress: LC 98-645652 For comments, please send to biz.hk@amcham.org.hk Single copy price HK$50 Annual subscription HK$600/US$90

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14 GOVERNMENT RELATIONS Every year, an AmCham delegation of Chamber leaders and staff travel to Washington DC to meet senior US officials and congressional leaders to discuss issues and matters pertaining to trade in Hong Kong and Asia. This year’s trip proved to be most timely.

CHINA BUSINESS

HOSPITALITY & TOURISM

The ambitious ‘One Belt, One Road’ initiative and newly-formed Asian Infrastructure Investment Bank are integral parts of China’s grand plan to open up its economy.

China expert Dr. Geng Xiao shares his insights on the plan so far and what the future holds.

COVER STORY 08 Back In Business The CUHK Business School is one of the best in Asia with its research and MBA and EMBA programs. To continue its excellence, the institution looks to a familiar face as Professor Kalok Chan returns to his alma mater as the new Dean of the business school.

GOVERNMENT RELATIONS

14 DC Doorknock 2015: Right Place, Right Time Every year, an AmCham delegation of Chamber leaders and staff travel to Washington DC to meet senior US officials and congressional leaders to discuss issues and matters pertaining to trade in Hong Kong and Asia. This year’s trip proved to be most timely.

CHINA BUSINESS 20 ‘One Belt, One Road’ and One China-led Bank The ambitious ‘One Belt, One Road’ initiative and newly-formed Asian Infrastructure Investment Bank are integral parts of China’s grand plan to open up its economy. China expert Dr. Geng Xiao shares his insights on the plan so far and what the future holds.

TRADE & INVESTMENT 24 Trading on Both Sides Securities and Futures Commission’s Christina Choi goes over the new Mainland-Hong Kong Mutual Recognition of Funds and how it will benefit both Hong Kong and Mainland China investors.

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Between 2000 and 2010, tourism numbers to the United States dropped significantly.

But through Brand USA’s continuous efforts to show the best of what America has to offer through various initiatives towards consumers and businesses, those numbers have been climbing once again.

28 Getting Into the Africa Game Many countries are taking advantage of the investment and business potential in the fast-growing economies in Africa.

While Chinese businesses has been very successful in entering the market, American ones have been slow to act due to factors such as strategical approach and government involvement.

30 Our Man in America The new US Deputy Assistant Secretary of Commerce for China, Patrick Santillo, explains Hong Kong’s importance to the US’s goals of opening new markets for American goods and exports and getting foreign direct investment into the States.

HOSPITALITY & TOURISM 32 An Appetite for America Between 2000 and 2010, tourism numbers to the United States dropped significantly. But through Brand USA’s continuous efforts to show the best of what America has to offer through various initiatives towards consumers and businesses, those numbers have been climbing once again.

CHARITABLE FOUNDATION 36 Better Education for a Better Hong Kong Each year the AmCham Charitable Foundation recognize the outstanding achievements of local students with awards and scholarships. The Lyn Edinger US Studies Scholarship and AmCham Charitable Foundation Scholar Award were recently awarded to six students who will surely be a part of Hong Kong’s bright future.

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Board of Governors Chairman

Peter Levesque

Vice Chairman

Walter Dias

Treasurer

Tom Burns

Executive Committee Evan Auyang, Sara Yang Bosco, Steve Lackey, Ryan Mai, Alan Turley, Richard Weisman Governors David Adelman, Donald Austin, Anne-Marie Balfe, Owen Belman, Diana David, Sean Ferguson, Robert Grieves, John (Jack) E Lange, Seth Peterson, Catherine Simmons, Eric Szweda, Colin Tam, Jennifer Van Dale, Frank Wong, Patrick Wu Ex-Officio Governor President

James Sun Richard R Vuylsteke

Chamber Committees AmCham Ball Apparel & Footwear China Business Communications & Marketing Education Energy Entrepreneurs/SME Environment Financial Services Food & Beverage Hospitality & Tourism Human Resources Information & Communications Technology Insurance & Healthcare

Ryan Mai Mark Green Michael Klibaner Lili Zheng Charlie Pownall Oliver Rust Virginia Wilson Rick Truscott Laurie Goldberg Jim Taylor Steven X Chan Veronica Sze Mark Kemper Shanthi Flynn Chris Meyrick Rex Engelking

Hanif Kanji Rebecca Harrison Intellectual Property Jenny Wong Gabriela Kennedy Law Clara Ingen-Housz Pharmaceutical Joyce Wong Real Estate Robert Johnston Edward Farrelly Senior Financial Forum Philip Cheng Senior HR Forum Bianca Wong Taxation Ivan Strunin Trade & Investment Barrett Bingley Transportation & Logistics Gavin Dow Women of Influence Anna-Marie C Slot Jennifer Parks Young Professionals Michael Harrington

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biz.hk Editorial

T

he Mainland Chinese stock market has never been in the spotlight before as it has been this year.

Altogether, the story has been splashed across headlines and social media with every rendition of gloom and doom, as trillions of dollars have been lost in capitalization. Many have pointed out the amount lost is more than the combined value of some countries’ whole stock market values.

The media has jumped upon this opportunity to point out the plethora of Achilles’ heels in China’s financial infrastructure, calling for faster financial reform measures that have been hoped for, supported by very subtle insinuations from the central government itself.

Many institutional investors, panicking at the roiling market, have ironically begun to withdraw holdings in Mainland Chinese stocks through the Shanghai-Hong Kong Stock Connect. Other investors, though, have aggressively bought the stocks sold off, with the long-term belief that the country’s overall economic growth will counterbalance the operatic nature of the stock market.

Indeed, the Chinese government was criticized for its seemingly desperate attempts to steer the stock market back into stability, undermining their reputation and revealing their own fear of the market. One prevalent critique was that the stock market’s rapid fall from grace was to be expected, as shares were overvalued and inflated, yet there was too much glee at the bull run that the markets were witnessing. It is apparent that though the market has ballooned in size, there are reinforcing measures that they must undertake in the years to come.

However, when the market is succeeding, the media lauded the rising prices and attributed

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RIDING CHINA’S WILD ROLLER COASTER them to the burgeoning economic reforms under Xi Jinping’s leadership. Now however, they are flagging the central government’s actions as hindrances to the country’s financial reform.

Trading has been suspended before in Hong Kong following market crashes, and in other countries across the globe, governments and banks have kept stock markets afloat by rapidly buying shares and slashing interest rates. To criticize China for similar actions (although they could and should have done more to assuage investors’ fears), is more than a bit of schaudenfreude.

The stock market crash does not signify the end of China’s economy. Far from it. Indeed, June and July have seen tremendous ups and downs, but overall it shows gains from where it was just half a year ago. The market reached a high of 5,166, and no one knows how low it may dip. But no one knows either what heights it will soar to again.

Is the stock market drama one of the greatest challenges that Xi’s administration has seen thus far? Definitely. The long-term financial

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implications from this roller coaster will have a ripple effect for years to come, not in the least in the psyche of investors, but the government’s measures showing that they are paying close attention to the market.

Additionally, the stock market is a minor player in the grand scheme of China’s opening of its economy. If anything, growth has finally slowed down and stabilized, and other sectors of the market are still continuing to grow.

A full-fledged review of stock market reforms is needed, in order to reestablish the faith of institutional and amateur investors alike, but overall, it is important to recall the strides that the Chinese government has already made in order to keep up with its economy.

Anyone claiming an end-all-be-all over the situation will inevitably be proven wrong, although there are sure to be plenty of speedbumps in the proverbial road ahead. Mainland China has made giant strides in regards to financial reform in the past few years, and the current government has made a commitment to continue to do so.

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New

Business Contacts The following people are new AmCham members: Baker & McKenzie Bertha Ho Associate

BounceLimit

Doris Tam Program Director

CIGNA Worldwide Life Insurance Company Limited

Yuman Chan Head of Strategy & Business Development

Citi

Laura Winwood Assistant Vice President

Colgate-Palmolive

Vinod Nambiar President, Colgate-Palmolive Asia Division

EY

Kirsty McFarlane Director of Operations

International Christian Schools Limited

Rouse Legal

Theresa Mak Senior Associate Adelaide Yu Partner

Jefferies Hong Kong Ltd

Sia Partners

Bill Sohn Managing Director, Head of Asia Product Management

Linklaters

Anna Mitchell Managing Associate

Lockton Companies (Hong Kong) Limited

Andre Leroy Sales Director, CTC Greater China

Executive Centre, The

PricewaterhouseCoopers

Erica Hitomi Pike Assistant Manager - Business Development

MaryAnn Vale VP, Human Resources

Jerry Buckner Head of Schools

Sandy Au Head of General Insurance Carly Kwan Senior Vice President - Corporate Risks, Greater China Alex Yip Chief Executive Officer, Greater China

CTC Asia Ltd

PVH Far East Limited

Phillip Straley Partner

Victoria Ng Manager

Summers & Summers (Asia Pacific) Limited

Shirley Chen Vice President, Finance & Legal Collin Lam Vice President, Business Operations

Van Shung Chong Holdings Limited Patrick Lau Managing Director of Hong Kong Steel & International Trading Grace Luk Group Chief Financial Officer Frank Munoz CEO

Walt Disney Co (Asia Pacific) Ltd Alice Edinger Disney Institute

View our other members at: www.amcham.org.hk/memberlist

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New Member Spotlight

Ann Ngan Occupation: Director of Hong Kong Academy of Leadership Ltd Industry: Education Member since: April 2015

Why did you join AmCham Hong Kong?

We believe that AmCham is a great channel for us to let more people know of our presence. As a member, we find that we are lucky to have all kinds of support, advice and great resources. It is also great to meet other AmCham members from various organizations who are also passionate about educating our next generation.

Can you tell us a bit about the Hong Kong Academy of Leadership?

Hong Kong Academy of Leadership was established as the exclusive representation of FranklinCovey

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Education here in Hong Kong. We offer ‘7 Habits’ trainings and solutions to principals, teachers, families, children and young adults. Our mission is to inspire educators, through the ‘7 Habits’ principles, in order to unleash our children’s potential.

We also believe the ‘7 Habits’ are the principles that every individual can rely on through the different hurdles they might face at different stages of life. If we internalize these habits and apply them to issues, we will find ourselves becoming positive and confident.

How is business?

We just actively started our business at the beginning of this year.

We are still actively promoting the 7 Habits to schools, teachers and parents. We received very positive feedbacks from parents and got very good responses to our afterschool programs and family fun days.

We are still working hard on the educators. We understand they do believe in the 7 Habits principles but they have all kinds of concerns in running programs in school e.g. funding, cultural or internal school issues.

What is the Leader in Me? Built from The 7 Habits, The Leader in Me is FranklinCovey’s whole school transformation process.

It teaches 21st century leadership and life skills to students and creates a culture of student empowerment based on the idea that every child can be a leader.

Instead of seeing some kids as smart and some less so, The Leader in Me paradigm sees that every child is capable, every child is a leader. The 7 Habits creates a common language among teachers, students and parents. When everyone begin using the same language, you get a compound-interest effect.

Name three ideal traits that make a great leader?

I look at this very simply. A great leader should always possess a positive

mindset, hold high integrity and be able to influence other people positively.

What do you like best about working with young people?

I spent most of my life working with adults. Working with children and young adults is a totally different experience. Their openness, creativeness and innocence shown in their behavior and during our conversation inspire me in a different way. Working with children of different age groups, cultures and family backgrounds gives me a very good idea of what the children need. Having visited schools in different countries and meeting those children, I can clearly see what children in Hong Kong need - confidence and proactivity.

What are some of your goals?

Children in Hong Kong are facing a lot of pressure and becoming less happy as they grow up. I hope to develop our children with self-confidence, willingness to take up responsibilities and proactivity so that they know they are in-charge of themselves. I would like to strengthen and develop them with interpersonal skills and a win-win mindset.

I also hope that after parents see these positive changes in their kids they could release some pressure from them, creating more harmonized families and resulting in less social problems.

What are you currently reading?

I am currently re-reading The 7 Habits of Highly Effective People by Dr. Stephen R. Covey. It’s really interesting to read the book again because it inspires me from a different perspective especially since I am at a different stage of my life.

What’s your favorite thing about Hong Kong?

I like the food. There are so many types of cuisines that we can try.

Recently, a lot of restaurants have been shifting their focus to food art which makes eating even more enjoyable.

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COVER STORY

Back In Business Although he’s the new Dean of the CUHK Business School, Professor Kalok Chan is quite familiar with the surroundings as he completed his undergraduate studies there in the 1980s. In his second stretch at the respected institution, he will look to prepare the school and its students to compete in the global arena

By Leon Lee

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Professor Kalok Chan

Photos: Silver Image

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n the early 1980s, Professor Kalok Chan was a bright-eyed undergraduate studying economics at the Chinese University of Hong Kong (CUHK), looking forward to making his mark in the world. Fast forward 28 years later and he has returned to the mountainous campus in Shatin as the Wei Lun Professor of Finance and the new Dean of CUHK Business School.

“It’s been great coming back to my alma mater. There’s quite a lot of differences but some of the heritage and culture are still the same,” says Chan. “More importantly, I see that CUHK and the Business School really have a lot of interesting developments and quite a lot of potential.”

“It is a platform where I can really do something good for the university and the community using some of the experience that I have acquired before and bringing it back to the business school.”

After completing his undergraduate studies at CUHK, he went abroad to the United States to obtain his PhD in Finance at Ohio State University. He stayed in the States after to do research and teach at Arizona State University.

He finally returned to Hong Kong in 2003 to work in the business school at the Hong Kong University of Science and Technology (HKUST) as the Head of their Finance Department and eventually the Acting Dean of their Business School. In November of last year, Chan returned to the place where it all began.

Today, the CUHK Business School has over 4,600 full-time and part-time students along with almost 30,000 alumni which is the largest business alumni network in Hong Kong. Some notable alumni of the school are Kelvin Wu, principle partner at AID Partners, a private equity investor with investments in HMV and Legendary Pictures, Susanna Chiu, the first and only female president of the Hong Kong Institute of Certified Public Accountants (HKICPA) and Patrick Lee, CEO, North Asia & China at Inchcape Hong Kong.

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Established in 1963, it was the first business school in Hong Kong and the region to offer Bachelor of Business Administration (BBA), Master of Business Administration (MBA) and Executive MBA programs.

A Second Chance Actually this isn’t the first time that CUHK has offered Chan a job. They approached him just as he finished his PhD. However, he chose to stay in the United States then to do research, as he believed it had a better environment for it than Hong Kong. “[In the past], I don’t think that there were too many research opportunities or even a focus on research. But of course now it is very different,” says Chan.

“I mean whether you talk about CUHK or other institutions in Hong Kong, there is so much research momentum and so many research projects going on. I think that now if you talk about the business schools in Hong Kong, they have done a lot of good [work] and are comparable to some of the schools in the US or Europe.”

The professor’s research has been published in many top-ranked finance journals. But since he’s started his new role in November, he has had less time to work on his own projects. However as the new Dean, he plans to continue to push and uphold the business school’s reputation as a world-class research institution. The school currently has 10 research centers, which include the Asian Institute of Supply Chains & Logistics, Aviation Policy and Research Center and Center for International Business Studies.

Chan points out that many of his colleagues are already doing various research projects on China’s economy, financial market, governance, etc.

These are all important issues to explore as their economy is booming.

He expressed an interest in researching the Shanghai-Hong Kong Stock Connect once he’s more settled in as the Dean.

Lesson Learned Chan certainly sees the mutual benefits of the increasing connectivity between Hong Kong and China through the stock connect and the mutual recognition of funds. For Hong Kong, it will grow its financial market, particularly the stock market and asset management industry while for China, it will provide them with increased access to international capital and clients as well as working to international standards. Moves like these will give the Mainland market a good foundation to build on as the recent stock market crash showed that there is still much that needs to be developed.

“I think [the stock market crash] reveals that obviously the size of the market had really grown, but in terms of the infrastructure, it is really behind.

The kind of the ad hoc policies and remedies are not really touching the real issues which sometimes make the matter worse. This is certainly quite a lesson to learn,” Chan explains.

This lesson is one that the dean likened to one that Hong Kong learned in the late eighties when the city went through a global market crash. Remembered as Black Monday, stock markets in Hong Kong, Europe and the United States took sharp declines on October 19, 1987. The Dow Jones Industrial Average suffered its largest one-day percentage decline. The Hong Kong Stock Exchange sank to 3,362.39 points, dropping 45.5 percent, and trading was subsequently suspended for four days.

“You can find at that time [Hong Kong] also made a huge mistake. So I think that maybe the mistake is no smaller than the kind of mistakes that the Mainland regulators have made,” Chan says. “You just have to learn.

Sometimes it’s easy, sometimes you have to learn it the hard way. Now they just got the hard way.”

Worldly Students The increasing connectivity applies to the business school as well as they prepare students for the increasing

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globalization of business. Besides providing them with the foundation of knowledge, the business school is working hard to instill each student with the necessary communication skills and, more importantly, a global mindset.

Through exchange programs and internships, students get to experience how things are done in different parts of the world. In fact, some exchange programs are quite immersed in the curriculum such as the International Business and Chinese Enterprise. In partnership with the Darla Moore School of Business at the University of South Carolina, students in the program will travel to China and US on various study trips. Those who have completed their four year undergraduate degree will then get the opportunity to complete a one-year Master of International Business in South Carolina.

CUHK has also recently opened a new campus in Shenzhen in April of last year, which the Dean sees as another avenue of opportunities for its students. “If Hong Kong can really take advantage of the development of the Southern part of China like Shenzhen and Guangzhou, it would be good [for the development of local talent]. There are really a lot of the big companies and

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lot of the new startups and technology companies there,” he says.

During his time at HKUST, Chan was the founding director of the well-received HKUST-NYU Stern Joint Master in Global Finance program. He is working on developing something similar for CUHK as he sees the tremendous value it can provide to students and their education.

Given the size of the economy in Asia, Chan believes it deserves more business schools as there are too few right now. The ones that are here already have shown to be very successful.

According to the Financial Times, six out of the top 30 full-time MBA programs in 2015 are in Asia. Three of them are from Hong Kong with CUHK ranked 30th, where it was unranked the year before.

As far as teachers are concerned, Hong Kong doesn’t seem to have any problems.

“I think in the last 15 to 20 years, Hong Kong has been attracting a lot of top scholars. And quite a lot of them are really just like me. We are educated in the West, received degrees in some of the best schools and even worked abroad. And with the rise of Asia and China, I think more scholars will continuously be interested in coming here.”

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Competing Against the World Hong Kong is turning out more university graduates than ever before and Chan sees lots of potential in them.

With more and more foreign talents coming to Hong Kong, the local students have to step up to compete with them both at home and abroad. “[In the past], local talents will have more opportunities which means there was also more time for them to learn and to grow. But now, in this 21st century, companies and businesses are really looking for some kind of a quick return. So they really expect that their staff to be able to basically up and run on the first day,” the professor says.

He’s found that local students are probably even more skilled than before

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and is confident that they are able to rise to the challenge.

“That is the nature of Hong Kong, it is a very competitive city,” Chan explains.

If there is one thing that can help students keep up with their competitors, he believes it is the student’s attitude.

“One thing that is difficult to change is the attitude. So I think it is really the kind of attitude that determines whether the students will be able to succeed,” Chan says. “It’s about

whether they are really persistent and resilient, if they are willing to do what it takes to persevere. This can determine whether they’ll be able to succeed in business school and their career.”

Looking back at his first time around at CUHK, his fondest memories was sitting down and chatting with classmates on the lawn outside the library of United College on campus.

Now he’ll have plenty of chances to make some new memories while helping future generations of students create lasting memories of their own.

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Invest USA Directory 2015

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GOVERNMENT RELATIONS

DC DOORKNOCK 2015:

RIGHT PLACE, RIGHT TIME

Every year, an AmCham Hong Kong delegation of Chamber leaders and staff travel to Washington DC for the “Doorknock” trip, where they meet with senior US administration officials, congressional leaders and staffers, as well as venerable China and Asia experts, to discuss timely and pertinent issues. This year’s Doorknock came at a critical juncture, Blessing Waung reports

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mCham Hong Kong President Richard Vuylsteke has been on nearly a hundred doorknock delegations altogether, but for this year’s annual trip to Washington DC, he said the timing could not have been more perfect.

“Every year, we come to Washington to dialogue on the issues of most importance,” Vuylsteke said. “But this year, we so happened to come at exactly the right moment to leverage our relationships and maintain the importance of commerce in Hong Kong.”

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From June 11-17, The American Chamber of Commerce in Hong Kong held its annual Doorknock to the nation’s capital. Led by Chairman Peter Levesque, Vice Chairman Walter Dias, and Vuylsteke, accompanied by 16 members and AmCham staff, the delegation attended a landmark total of 50 formal and informal meetings, in what Vuylsteke said was “bringing a Hong Kong schedule to Washington.”

On the delegation’s agenda was a plethora of topics to be discussed with heavy hitting policy makers and Asia experts alike, from the push for Trade

Promotion Authority (TPA) and advocating on behalf of the TransPacific Partnership.

Ahead of the trip, senior AmCham executives convened to prepare and reinforce talking points, which were backed by a busy year of conferences, roundtables and closed-door discussions. With leadership from a diverse range of businesses represented on the trip, AmCham HK was able to represent US corporations and their interests abroad, and was thus able to speak with authority and concrete examples of ongoing trade in the region.

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National Security Council: Director for China & Korea Nancy Leou (fourth from right)

Photo: Thinkstock

Trade Promotion Authority When the first delegates landed in DC, things seemed grim for the TPA. However, just days after the Doorknock concluded, Congress passed the “fast track” bill, as well as the related Trade Preferences Extension Act (TPEA) which includes the Trade Adjustment Assistance (TAA). President Obama signed both TPA and TPEA into law on June 29.

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Delegates visit the Senate offices

Many business organizations, as well as President Obama's administration, see the legislation as crucial for trade negotiations, so that the process of placing “made in USA” goods into the international markets is expedited.

After months of debate in Congress, with opposition from the President’s own party, the trade agenda from the administration often seemed close to falling apart. However, with the TPA passed, the administration can now move onto focusing on the Trans-Pacific Partnership, which

if passed, would be the largest trade deal passed globally since the 1990s, when the World Trade Organization was formed.

In advocating on behalf of TPP, AmCham delegates emphasized that US leadership is crucial in order to establish the global trade framework, putting forth the highest standard of rules and regulations. As one senior level executive noted, TPP was “hostage” to TPA, which President Obama had previously believed would pass no matter what. It now awaits to be seen what the future of TPP will be.

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PRIMARY MEETINGS 2015 WASHINGTON DOORKNOCK Every year, AmCham Hong Kong participates in numerous in-depth discussions with key policy makers in Washington DC on critical issues important back at home, working on a "Hong Kong schedule" across The Hill.

This year's delegation met with a record-breaking amount of groups.

US GOVERNMENT White House • National Security Council • United States Trade Representative Department of State • African Affairs • East Asian and Pacific Affairs Department of Commerce • International Trade Administration Department of Agriculture • Under Secretary • Foreign Agricultural Service China Desk Department of Defense • Asian and Pacific Security Affairs Federal Maritime Commission Congress • Senate • House of Representatives

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From left: William Vuylsteke, Diana David, Steven Chan, Richard Vuylsteke, Jonathan Hatch, Peter Levesque, Walter Dias, Lelia Lim-Loges, Ken Wong, Alan Turley, Mark Green

Hong Kong’s role The inquiries about Hong Kong that were most prevalent amongst the interlocutors were the following: • Congressional interest about Hong Kong’s election reform, as at the time of the Doorknock, the city was awaiting the vote on the election reform bill • Interest in the success of the launch of the Hong Kong-Shanghai stock connect that launched last November, in terms of regulatory and legal issues • The “One Belt, One Road” agenda, and how the development strategy shapes Hong Kong’s role as a gateway into Mainland China In September, President Xi Jinping will make his first state visit, which will bring into play a variety of economic, political and social issues into the forefront of the conversation.

According to Nancy Leou, the Director for China and Korea for the National Security Council, “Practical and visible cooperation between the US and China can make a difference in the global challenge. Alone we can’t, but complementary efforts can make a difference.”

Throughout the discussions with various interlocutors brought up the following topics:

• Expectations for the then upcoming Strategic & Economic Dialogue (S&ED) • The first state visit of President Xi in the US, in September 2015 • G20 Summit to be hosted by China in Fall 2016 • Prospects for progress on the US-China Bilateral Investment Treaty (BIT) • Regional security developments, including the South China Sea • Cybersecurity • Assessments of the newly established Asian Infrastructure Investment Bank (AIIB).

Nicholas Lardy, the Anthony M. Solomon Senior Fellow at the Peterson Institute for International Economics and author of Markets Over Mao: The Rise of Private Business in China, said, “The September summit will be pageantry, not catalytic.”

It is also expected that the US-China Bilateral Investment Treaty (BIT) will be discussed, which is seen as significant for US access and business development in China. From President Obama and his administration’s end, it is expected that a reasonable negative list that would demonstrate China’s continuing commitment to economic reform.

Interlocutors pointed out that Congress would consider BIT in the overall context of global trade and not

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THE 2015 DOORKNOCK DELEGATION Peter Levesque Chief Commercial Officer Modern Terminals Limited AmCham HK Chairman

Richard Vuylsteke with Joseph R. Donovan Jr. (left) Managing Director of the Washington office of The American Institute in Taiwan

in isolation. On business climate, the delegation shared the challenges concerning intellectual property and trade secrets, and growing concern with expanding regulatory requirement, including in the US. A repeated topic that came up in meetings ranging from the National Security Council to congressional staffers was that of cybersecurity and maritime issues. As one senior level official emphasized, “We want to focus on negotiating peacetime norms of cyberactivity.”

Ken Wong, CEO of QWeUs in Hong Kong, said that though cybersecurity is indeed an issue, he looks forward to future conversations with the same congressional staffers on what Hong Kong can do for the US. “Hopefully we can start more discussions on constructive matters like technology collaboration as opposed to the recent cyberattack.”

Spotlight on Africa Reflecting a growing interest in Africa's importance in the global economy, select members of the delegation held meetings and in-depth discussions with the Global Apparel, Footwear and Textile Initiative (GAFTI) for a working group meeting focused on supply chain.

Delegation members whose roles pertain to regional and global sourcing spoke with State Department officials in the Africa Bureau as well as the U.S. Chamber of Commerce’s Africa Department regarding the importance of the extension of AGOA.

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Walter Dias Managing Director, Greater China & Korea United Airlines AmCham HK Vice Chairman Alan Turley Vice President – International Affairs, APAC FedEx Express AmCham HK Executive Committee Member Diana David Corporate Development Director Financial Times AmCham HK Governor Steven Chan Vice President, Head of Regulatory, Industry and Government Affairs, Asia Pacific State Street Asia Limited AmCham HK Financial Services Committee Chair Mark Green Executive Vice President, Global Supply Chain PVH Far East Limited AmCham HK Apparel & Footwear Committee Chair Jonathan Hatch Managing Director Madison Pacific AmCham HK Member Lynsey Cesca Jones Director, Responsible Sourcing VF Corporation AmCham HK Member

Lelia Lim-Loges Managing Partner & Managing Director, Asia Pacific Kincannon & Reed AmCham HK Member Amy Wendholt Managing Director APCO Worldwide AmCham HK Member Ken Wong CEO QWeUs Ltd AmCham HK Member Richard Vuylsteke President AmCham HK Michael Tsang Director, Membership & Communications AmCham HK Ming-Lai Cheung Director, Government Relations & Public Affairs AmCham HK Blessing Waung Editor-in-Chief AmCham HK Queenie Tsui Assistant Manager, Government Relations & Public Affairs AmCham HK William Vuylsteke Second Lieutenant, US Army AmCham HK Intern

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Think Asia, Think Hong Kong

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efore arriving on the ground in Washington DC, on June 10, AmCham HK Chairman Peter Levesque, Vice Chairman Walter Dias and President Richard Vuylsteke flew to Chicago to participate in Think Asia, Think Hong Kong, a symposium hosted by HKSAR Chief Executive Leung Chun-Ying.

The event was intended to showcase why Hong Kong presents clear advantages for American companies doing business in Asia. More than 150 high-level business leaders from Hong Kong and Mainland China flew overseas to attend the week’s events, which kicked off in Toronto, Canada.

Altogether, more than 3,300 people attended the collective promotion events organized by the Hong Kong Trade and Development Council.

AmCham delegates represented in Chicago participated in a VIP networking session with senior level officials in the HKSAR Government including Leung, HKTDC Chairman Vincent Lo, as well as Stefan Selig, the Under Secretary of Commerce for International Trade at the US Department of Commerce.

During his opening comments, Under Secretary Selig referred to Hong Kong as essential for strong bilateral ties, and said, “Hong Kong’s role as a trade and investment partner to the US and as a gateway to China reinforces its ability to deepen that very partnership.”

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Chief Executive Leung echoed Selig’s sentiments, citing the US$49 billion in trade between the two countries that was routed through Hong Kong in 2014. He repeatedly emphasized Hong Kong’s role as a “super connector,” saying that its role would only increase in importance in the coming years as the trade relationship continues to develop.

AmCham Past Chairman James Thompson, also a featured panelist alongside other entrepreneurs in Hong Kong, spoke on his experience founding Crown Worldwide Holdings Limited.

“Hong Kong has been good to me,” says Thompson, as he told the story of how he grew the company into a billion-dollar global enterprise. He was joined by panelists Marjorie Yang, Chairman of Esquel Group, and Gebhard Rainer, President and COO of Coach Inc. Levesque was the moderator on the panel regarding “Selling to China and throughout Asia” on the city’s competitive advantages over others in the region. The panel included case studies from Chicago-based Garrett Brands, which has found great success selling its flavored popcorn in Hong Kong, as well as a long-term success story from Sears Holding Corporation in their gifts department.

To conclude the trip, Dias and Vuylsteke joined the Mayor of Chicago Rahm Emanuel at a dinner held at the Field Museum of Natural History.

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Global Entry Program & Asia Pacific Economic Cooperation (APEC) Business Traveler's Card (ABTC)

Online Sign-up and Applications Open Now Local Interviews: October 21-22, 2015 ****************************************************************************************** WHO All U.S. Citizens of all ages

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WHERE The American Chamber of Commerce in Hong Kong 1904 Bank of America Tower, 19th Floor 12 Harcourt Road, Central, Hong Kong

WHY To avoid long lines after arriving in the U.S. with expedited, smooth entry; To be eligible for the U.S. APEC Business Travel Card

APPLY NOW on or before Sept 30, 2015 www.globalentry.gov Supported by

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CHINA BUSINESS

As the ‘One Belt, One Road’ initiative takes shape, veteran China watcher and scholar Dr. Geng Xiao weighs in on the complex dynamics driving the initiative and the future direction of the Asian superpower

By Nan-Hie In

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ince Chinese President Xi Jinping announced his mega-geopolitical dream in 2013 to revive the Silk Road routes through the ‘One Belt, One Road’ plan, many wondered how the nation will turn this vision into reality as the enormity of the project will require a series of colossal undertakings.

Xi retraces the ancient trade routes into a far more expansive sea and land network known as the New Silk Road Economic Belt and the 21st Century Maritime Silk Road, which will connect China to Central Asia, Europe, Africa and beyond. Collectively termed ‘One Belt, One Road’ (OBOR), it aims to fulfill multiple objectives including closer ties, trade and transport links with more than 60 countries.

One by one those major undertakings are being overcome. The latest breakthrough: the successful creation of the Asian Infrastructure Investment Bank (AIIB), the 57-nations-backed financial muscle led by China which will fund infrastructure projects for the OBOR. Greater importance now shines on this initiative.

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Dr. Geng Xiao, a professor of Practice in Finance and Public Policy at the University of Hong Kong among other titles, gauged detailed observations about these developments as a prism into the nation’s strategies.

“At the beginning of China’s reform [over the last three decades], China was a highly centralized system and that system has several thousand years of history,” he said during a speech at AmCham recently. “What we’re observing is that system trying to move towards a market [orientated] system which is, in a way, a democratic system.” The academic offers his perspective on the complicated currents underpinning OBOR and its implications.

The Experimental Process The strategies behind China’s policies are usually rooted in deep history. More specifically, in the last three decades of market-led reforms, one key process helped transform this formerly poor agricultural nation into an economic miracle.

“From Deng Xiao Ping to Xi Jinping a lot of things have changed but one single thing that has not changed is the approach of trial and error,” Dr. Xiao says.

However, the error part of this process has had serious repercussions to the country. “China is full of those old mistakes - pollution, corruption, local debt problems and stock market problems - and if you look at these issues they are all a result of the trial-before-policy [approach],” the professor points out.

The fallout of this process also exacerbates existing mechanisms that have not yet been fully developed, as seen from the recent crash of the Shanghai and Shenzhen stock exchanges. The government’s response shows that it did not foresee the bubble that led to the crash and the emergency rescue measures, says Dr. Xiao.

From the police crackdown on securities companies to the trading halts of countless small cap shares listed on these indices, he cites Beijing’s heavy-handed response in recent weeks as examples of moves that have eroded investors’ faith in the market. But these measures are rooted in Beijing’s

biz.hk 7-8 • 2015

and One China-led Bank

ideology. “The Chinese government has 5,000 years of central control and bureaucracy experience so instantly they went in the markets with a stop and control [impulse] and that control aspect was overwhelming,” he says.

On the other end of the spectrum, this experimental approach led to enduring success for China. Dr. Xiao claims that despite centuries of central governmental control, Beijing embarked on a liberalization experiment of market-led reforms in the last 30 years, an opening up period that led to the nation’s rise as the world’s number two economy.

“We benefited largely because the US set the stage and rules for the market and [for China to] open the market,” he says. The scholar perceives OBOR as China’s efforts in doing the same for other regions located along its periphery.

Approach to Advance China The OBOR is also part of President Xi’s approach to advance the country through what Dr. Xiao posits as the

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leader’s three-pronged strategy, three aspects China is learning that have all been developed by the West.

First, there is the competition, an extremely important factor on an individual, corporate, city and national level. “Competition has intensified in many areas in China and it is a form of decentralization at a local level through companies, the shareholders system and other key institutions,” Dr. Xiao says.

Second, accountability is a hallmark feature driving Xi’s policies including the nationwide anti-corruption campaign.

“The accountability that we understand is largely about democracy but China has not yet achieved this level yet so instead it is reflected in the free flow of people, money, companies and other aspects such as information, which is not entirely free but this is happening,” he says.

And third, there is the provision of public goods. It goes hand in hand with infrastructure, which China has been developing throughout the nation to facilitate trade and development. The scholar views infrastructure as the secret behind China’s economic miracle story.

The OBRO falls under this dimension.

Dr. Geng Xiao

The initiative is trying to achieve growth by strengthening integration with the associated countries through infrastructure.

“Building connectivity is going to change the geography and that is going to help the allocation of resources in a way which will benefit most [to participating countries],” says Dr. Xiao. “If China’s growth can be learnt by India, Africa and all the other developing countries around China, then that will create a global long-term growth engine; this will provide real support, peace and prosperity of China.”

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Economic and Geopolitical Elements Like many China watchers, Dr. Xiao perceives the arrival of the AIIB as a shift in international economic governance, to China’s advancement. “The AIIB is to show that China wants to contribute many things including global governance,” he explains. “When the US and Japan try to criticize Beijing for [lacking institutions with good standards], that is wrong because China wants to create a good standard that fits with reality.”

He emphasizes the core differences between AIIB and institutions such as the IMF or the World Bank on their strategies to maintain the global economy and alleviate poverty. “The AIIB is not an aid organization but a commercial organization... it is trying to become a catalyst [for growth and development],”he says.

China has contributed US$50 billion to the new bank and more capital to associated financial vehicles including US$40 billion to the Silk Road Fund. The AIIB will authorize and fund infrastructure projects which

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will help the market make decisions that would spur development in the associated areas.

According to Dr. Xiao, this approach was based on the nation’s experience of developing rural villages into factory centers to industrialized cities, a process spurred by successful projects funded by China Development Bank and other major banks.

“In a market economy it is not local officials but individuals and companies that decide where to live and where to base [their company and talent] so that is why we are seeing a do-economy in China,”Dr. Xiao explains.

But this marketization process has contributed to tremendous constraints and pressures on the administration.

He points out while the market in China continues to expand over the last two decades, the government also continues to centralize with no regulations, regulators and controls.

However, he believes that both local and foreign competition pressures to China can have an effect and eventually the Communist Party is going to have to evolve.

Overall, the OBOR is part of the nation’s greater strategy towards a market-led economy and continue the nation’s opening up period.

Asked whether the AIIB can conduct business with accountability and transparency, aspects the administration has not exhibited well in the past, Dr. Xiao reverts back to the nation’s trial and error approach. “The OBOR is wishful thinking but it is an initiative where Xi Jinping said ‘I have a dream so let’s try’,” he says.

Although the professor thinks it will be a long road ahead for these practices to be adopted in China’s system, he is optimistic in light by the country’s success over the last three decades.

“China’s progress exceeded my expectations and credit goes to the United States and the international community because China has grown from the platform laid by the West; Chinese leaders understand this very well.”

Nan-Hie In is a freelance journalist based in Hong Kong covering current affairs, lifestyle and entertainment in Asia. A regular contributor to local and international media outlets, she has written for the South China Morning Post, CNN (Business Traveller), the China Daily, HongKong.Coconuts.co, Prestige and more.

biz.hk 7-8 • 2015

Opening Keynote Christopher Johnson Luncheon Keynote Gordon Orr

Senior Adviser and Freeman Chair in China Studies The Center for Strategic and International Studies (CSIS) Chairman, McKinsey Asia

Panel I (Plenary): New Strategies for the New Normal Group Chairman, Fung Group Victor Fung Vice Chairman, General Electric John Rice Chairman, KPMG China Honson To Tara Joseph (Moderator) Chief Correspondent, Reuters TV, Asia Panel II (Concurrent): Expanding Roles for Foreign Service Industries in China Alastair Hughes Stephen Lackey Karen Reddington Thomas Gorman (Moderator) Chairman and Editor-in-Chief, FORTUNE CHINA Panel III (Concurrent): Business Strategies for the “One Belt, One Road” Initiative Sean Chiao Liu Mingkang BCT Distinguished Research Fellow, Institute of Global Economics and Finance, The Chinese University of Hong Kong Tom O’Reilly Robyn Meredith (Moderator) Executive Director, Private Wealth Management, Investment Management Division, Goldman Sachs (Asia) L.L.C. Panel IV (Concurrent): Innovative Business Models in the Fast-changing Chinese Markets Steve Monaghan John Dawson (Moderator)

Regional Director, Head of Edge (Group Innovation), AIA Director, Artemis Associates; Former Anchor, Bloomberg TV

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TRADE & INVESTMENT

Trading on Both Sides On July 1, the Mainland-Hong Kong Mutual Recognition of Funds (MRF) officially kicked off. What does this mean for the two markets? At a recent AmCham luncheon, Securities and Futures Commission’s Christina Choi explains the exciting developments and discusses the future of the scheme

Beneficial to Both Sides

By Tsering Namgyal

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he much-awaited mutual fund recognition scheme between Hong Kong and China went into effect on July 1, finally allowing Hong Kong and China registered mutual funds to cross-sell across two jurisdictions.

The new regime would help Hong Kong move from what was predominantly a capital raising center for China into an asset management center for the mainland and the Asia Pacific region, according to Christina Choi, senior director of investment products at Hong Kong’s Securities and Futures Commission (SFC).

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In the works since 2009, the MRF scheme would do to the asset management industry what the ShanghaiHong Kong Stock Connect has done to stock markets of the two regions, paving way for the further integration of the two markets, Choi explained at a recent AmCham talk.

Through this measure, nearly 2,000 Hong Kong public funds (with a total asset size of a staggering US$16 trillion as of 2013, nearly double than in 2009) can now be directly sold on the mainland, providing Mainland Chinese investors with an opportunity to allocate their assets into a wide range of sophisticated investment products.

“If they buy Hong Kong funds, they can be investing globally. This could give them a direct access to professionallyrun fund products,” Choi says.

biz.hk 7-8 • 2015

Christina Choi

In the same vein, the new scheme will help boost the competitiveness of both Hong Kong and mainland fund management firms. For a start, the Hong Kong fund managers will get an opportunity to expand their marketing and sales network to other parts of the mainland, while the mainland firms will be exposed to international best practices.

Choi says that for Hong Kong as a whole, this will help promote the city as a preferred fund domicile and investment management center for funds, as seen from the sharp increase in the number of foreign funds that have been seeking to be registered in Hong Kong.

“The industry is seeing this as a high-growth area and more and more businesses are being set up in Hong Kong,” she says, adding that among all sub sectors in the financial industry, asset management has been seeing the sharpest growth.

Indeed, the MRF would provide a shot-in-the arm for Hong Kong’s fund management ecosystem that is already highly geared towards distribution (as nearly 70 percent of its 30,000 people employed in the asset management industry are currently employed in sales and marketing roles). The government

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is also moving to beef up its infrastructure and regulatory regime through, among other things, tax incentives and also by developing an open-ended fund company structure.

“Home rules apply” With regards to the implementation, the basic maxim is that “home rules apply,” in recognition of the fact that the two sides have fairly different operational systems.

“If it is Hong Kong funds, Hong Kong rules will apply, and if it is mainland funds, they will be managed according to mainland rules,” she says.

This applies to everything from disclosure and marketing materials to professional conduct requirements.

Different fund infrastructures in China and Hong Kong call for an enhanced regulatory cooperation between the two sides since “a lot of technical issues need to be resolved.”

To use one example, mainland system requires registration down to the end-users, while in Hong Kong they use nominee accounts.

In terms of disclosure, besides basic approved documents, additional documents might be needed to meet the local jurisdictions’ investor expectation and market practice, not to speak of the different linguistic

requirements. Mainland uses simplified Chinese, whereas Hong Kong rules require both English and traditional Chinese documentation.

Generally speaking, the sales and distribution will be governed by the local jurisdiction’s licensing and sales requirements while mainland funds distributed in Hong Kong must be done so by Hong Kong SFC-licensed firms and will thereby be subject to local regulations.

“We have emphasized with CSRC (China Securities Regulatory Commission) … that we have to maintain fair and equal treatment to investors in both jurisdictions,” she says.

Meeting the Requirements With investor protection on the top of the agenda, it means some funds, such as synthetic and highly leveraged ones, may not be eligible to be marketed in Hong Kong under the new rule.

In terms of the amount of funds that can be sold, the authorities have set a RMB 300 billion macro quota, split evenly between the two sides.

According to Choi, the key rationale behind the macro quota is to avail some flexibility to the industry since allocating quotas only at the individual firm level might distort

25

the system. Some firms might not be able to use their quota while reallocating those to others might involve complications.

As for registration, funds should be a public fund, must have a track record of at least one year and a minimum fund size of RMB 200 billion. While the funds must be domiciled in the home jurisdiction, the product must not invest more than 20 percent in the host’s jurisdiction.

“What it means is that Hong Kong funds must not invest more than 20 percent in A-shares or mainland fixed income securities, or mainland firms should not invest more than 20 percent in the Hong Kong market,” Choi explains.

The logic behind this requirement, she points out, is that since mainland authorities hope to introduce non-mainland products into their jurisdiction, giving them back, say, A-shares products, would be defeating the purpose of the new scheme.

The other requirement, which is aimed at reciprocity and balance, is that Hong Kong funds should not have more than 50 percent of its assets sold to mainland investors, and vice versa.

Besides, funds would require local representative, or a “master agent,” to represent the management of the funds.

On the whole, the funds must meet the common requirements, and some of the funds may not be commonly accepted under respective laws. She says that the mainland authorities have been making changes in their own laws over the past few years while the discussion on the MRF scheme was in progress. For instance, their investment trust law now has a more explicit leverage limit.

“I think they are also working on the money market funds which they need to do some reform there,” she says.

As for the quota, no daily limit has been set, aside from the RMB 300 billion gross limit. China’s State Administration of Foreign Exchange (SAFE) will regularly publish the stage of the quota while Hong Kong’s SFC would closely monitor the quota, so that

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they would seek ways to expand it once it reaches 70 percent or so.

Asia’s Asset Management Center Choi notes that, on the whole, the new fund management mechanism would help further solidify Hong Kong’s role as a fund management center while also serving as a model for further integration of asset management systems in the region.

“The time has now come for Hong Kong to think about a different role,” she says. Given the rising wealth in China and its high savings rate, she can see Chinese investors are now looking for more international products as they diversify their investments.

The new scheme, which comes at a time when Hong Kong is already becoming an asset management hub, gives mainland investors access to Hong Kong’s nearly 2,000 mutual funds, up 27 percent year-on-year as of the end of March 2015. Testifying to its role as a regional hub, nearly 70 percent of all the funds in Hong Kong are owned by international investors, according to SFC data.

This underscores the importance of openness of Hong Kong and the trust of the international community, professionalism, regulatory and legal system in managing the assets and money, Choi says.

“The US has a very strong mutual fund industry and Europe has a very successful fund industry usage platform,” she says. “There is nothing in Asia. Asia is very fragmented, but we think that with mainland and Hong Kong to start from, we have a base to work on a longer-term integration in the region.”

Tsering Namgyal has been a writer specializing in business and finance for roughly two decades. A graduate of the University of Iowa and University of Minnesota, his articles have appeared in Asia Asset Management Review, Fund Strategy, IPE Real Estate, The South China Morning Post, amongst others.

MRF Eligibility Requirements Key operators Fund managers • Registered, operate and licensed in the home jurisdiction • Have not been the subject of any major regulatory actions in the past three years Custodians • Qualified to act as custodians for publicly offered funds pursuant to home jurisdiction laws and regulations Local representatives • Appoint a qualified firm in the host jurisdiction to be the fund’s local representative and process agent

Funds • Established and managed at home jurisdiction • Registered / authorized for offering to the public in the home jurisdiction • Established for more than one year • Minimum fund size of RMB 200 million • Not primarily invest in the host jurisdiction • The value of shares/units sold to host jurisdiction investors should not be more than 50 percent of the value of the fund’s total assets • Eligible fund types: Regular/ simple products, e.g. equity funds, bond funds, mixed funds, unlisted index funds and physical index-tracking ETFs Source: SFC

biz.hk 7-8 • 2015

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TRADE & INVESTMENT

Getting Into the Africa Game Africa is home to seven of the top 10 fastest growing countries in the world, so it’s no surprise that countries have taken a strong interest in the region, with China leading the charge.

With more than 40 years experience working in the continent, Dr. Sharon T. Freeman shares her insights on how the US fell behind and what they can learn from the Chinese

By Violet Law

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n late July, President Barack Obama made a historical trip to Kenya and Ethiopia where he spoke highly of Africa’s future, saying that it was on the move. At a recent AmCham talk held slightly ahead of the President’s trip, Dr. Sharon T. Freeman, who has been steeped in promoting trade in Africa for decades, expressed a likewise notion.

She believes a lot more can – and should – be done strategically to expand opportunities for American businesses on the continent.

“The US tries to plan its engagement around certain kinds of issues, and China has another approach ... The Chinese approach is a strategic one: ‘We know what we want to do with the continent of Africa and with the specific countries of Africa, and here is how we’re going to move all of the pieces together’,” says Dr. Freeman, President of the All American Small Business Exporters Association and an advisor of the US Trade Representative’s Trade Advisory Committee on Africa (TACA).

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“What we have in the US, by contrast, are aspirational goals. What we have is a desire for African countries to be better, to do better, to be better people, but we can’t legislate that. We therefore haven’t succeeded.”

An old Africa-and-China hand, Dr. Freeman spoke from her four decades of experience as an economic development and trade expert in more than 100 countries for leading international organizations and private firms. She has worked in Africa since the early 1970s, eventually covering 49 of the 54 countries in the continent.

As for China, she was among the first US government officials to work there beginning in 1979, the year that marked the Reform and Opening Up era. Dr. Freeman is also a veteran of doing business in Hong Kong having lived here for 12 years, serving as the representative and regional director of the forerunner to the US Trade and Development Agency at the US Consulate for four years in the 1980s.

Now heading a US-based association

that promotes global trade and investment linkages for small businesses, she has developed a unique perspective on doing business in the continent.

Falling Behind In Dr. Freeman’s view, it’s high time the US plays catch-up with China in vying for business in Africa. The threeday US-Africa Leaders Summit held in Washington D.C. in 2014 represented a lost opportunity as the dignitaries were all in one place, but no strategy was put forth and no deals were made.

By contrast, she pointed out that at the Forum on China-Africa Cooperation (FOCAC) in Beijing in 2006, the Chinese government met all the presidents of the African countries and made bilateral agreements.”

“For the Chinese, the focus is business, and the business is happening,” said Dr. Freeman.

She recalls very early on in her career in Africa, she would see Chinese people and businesses in many of the countries even before anybody else thought of doing business in the continent. This highlights another area of contrast between America’s and China’s trade relations with Africa - its private sector participation.

“Our small businesses are not as entrepreneurial in comparison to Chinese companies. We have a lot of protection and incentives [for] small firms which has made us risk-averse,” says Dr. Freeman.

One of the risks that they are concerned about is corruption, an issue that President Obama appealed the Kenyan government to stamp out during his time in the country. While some practices are considered corrupt

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in the US, it might not be that way in another country. “But if you’re a small guy, you can’t play that game. You don’t have the resources to get that redefined in another way,” she explains.

But while the increasing amount of foreign investments has helped African countries, there is a growing concern about the future as the Africans themselves are also struggling to compete with the Chinese.

“One of the problems Africans had and still have: they don’t have the capital to compete. If you go into the market in Ghana, you’ll see all the kente cloth is from where? China. It’s not the handmade kente cloth. They buy the buildings, they buy the goods and supplies and sell it all. And because the Chinese individual is so entrepreneurial, they will do anything,” she says.

“At some point, the African private sector has to be able to emerge so they don’t feel like they’re being taken over.

Right now the crisis point hasn’t hit, but at the same time, institutions are still not highly developed in Africa so they cannot get financing to be a player and a partner. They are working in some of the enterprises but ownership is another matter.”

What’s Being Done For the United States, their plans for Africa are still leaning towards being aspirational.

Besides having a committee on Africa in the US Chamber of Commerce in Washington D.C., there’s another from the Department of Commerce called Doing Business in Africa which provides information to companies on what business opportunities are there and topics like housing and infrastructure.

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The committee is encouraging all 19 federal agencies to encourage their constituencies to be more involved in the continent.

In April, it released a report that provided eight recommendations on how to strengthen commercial engagement between the US and Africa. They included: supporting capacity building activities for African financial regulators and participants through training and knowledge sharing, providing technological improvements to perishable goods storage and packaging facilities, establishing a dedicated US-Africa Infrastructure Center for better coordination and improving the perception of doing business in Africa with success stories.

The recent renewal of the African Growth and Opportunity Act (AGOA) is another encouraging sign of the US’s interest in Africa. First signed into law in May 2000, the act is meant to create tangible incentives for African countries to implement economic and commercial reform policies and help forge stronger commercial ties between Africa and America.

The act is also aimed to integrate Africa into the global economy so that US firms may find new opportunities in privatizations of African state-owned enterprises or in partnership with African companies in infrastructure projects.

However, Dr. Freeman points out that unlike Chinese businesses, American ones can’t hope for too much direct help from the federal government, largely due to how the role of the government is perceived.

“In American terms, the role of the government is to help ensure there are no barriers to trade but not to really facilitate trade or provide significant

Dr. Sharon T. Freeman

resources to make it happen. And that is the strategic difference. The Chinese do believe that that is the government’s place,” she explains.

“On the margins we can provide some incentives. But those incentives themselves are only provided to the extent that they are seen as removing barriers.”

The United States certainly has a lot of ground to make up. According to the report from Doing Business in Africa, the US share of Africa’s trade went from 13 percent in 2001 to seven percent in 2013. In the same time period, China’s share grew from a mere three percent to 14 percent, well overtaking the US. The Chinese show no signs of slowing down as they have announced plans to reach US$400 billion in bilateral trade by 2020.

Violet Law is a Hong Kong-based American journalist and former consultant at Deloitte & Touche in Chicago. She regularly contributes to the Los Angeles Times and the South China Morning Post magazine and has published two books by Hong Kong University Press.

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TRADE & INVESTMENT

Our Man in America Recently announced as the Deputy Assistant Secretary of Commerce for China, Patrick Santillo is the right man for the job, having spent 30 years working in the US Department of Commerce, five of which were in Asia. He tells biz.hk why Hong Kong is crucial to his task, and what lies ahead

By Blessing Waung

E

arlier this year, Patrick Santillo visited Hong Kong for the SelectUSA Roadshow across China, as well as to meet with key members of the Hong Kong Trade and Development Council. In his current role, Santillo presides over a team of more than 160 professionals in the US and overseas dedicated to opening foreign markets to American products, protecting US commercial interests abroad, promoting US exports and encouraging foreign direct investment into the United States.

He advises the leadership of the Department of Commerce on tradepolicy issues regarding the bilateral

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commercial relationship between the United States and China and he helps shape the Department’s trade promotion agenda. Previously, he served as the Regional Senior Commercial Officer-ASEAN at the US Embassy in Singapore and as the Regional Director for East Asia and the Pacific for the US Department of Commerce, supporting Commercial Service operations in 13 countries in the region, including China. biz.hk: What can you say about Hong Kong’s competitiveness?

Santillo: Hong Kong has an intellectual depth that maybe no one else anywhere has. And I say that very carefully, because

I have a lot of friends in Singapore. I know that Singapore has an intellectual depth too, but when it really comes to the ability to understand the region, I think Hong Kong plays a unique role. I don’t think that the others have yet that intellectual depth of understanding all the sides involved.

These are really complicated.

Human relations, country relations and regional relations are complicated. Hong Kong has a very rich and vibrant tradition of being able to manage that stress. There is stress there. How do you manage that stress?

I think you have a breadth and depth of experience at managing that no one else can hold.

You’ve got an American perspective.

You’ve got a body of knowledge here that is unrivaled. Really, I have to go far and wide to find that critical mass of intellect. Others can now out manufacture you. Others could have a larger stock market. Others could process more financial transactions than you do ultimately just because of size, but I think it’s going to be a long time to get the intellectual depth that you have. biz.hk: The US has historically been an underperformer in terms of exporting in the past, focusing mostly on border countries. But lately there is a shift in its focus. Could you speak about what you see going forward?

Santillo: I’ve been in Commerce for quite a long time. I think there is a concerted effort to get US companies more engaged with exporting. I think their level of knowledge has gone up, but I think even things like the Internet have changed how we counsel our companies. A number of our offices are becoming more progressive in promoting the opportunities through social media in ways that even three years ago we were not doing.

People are really making the push to get more companies involved in exporting. I do think that more companies are coming into the markets. More companies recognize Asia and the importance of Asia. They trust Hong Kong to kind of play that role and help them navigate some of these tougher areas.

biz.hk 7-8 • 2015

biz.hk: Pertaining to intellectual property and what goes on in this region, could you speak to your experience and agenda in that arena?

Santillo: What we have heard from the US companies is more with regards to China than it is with regards to Hong Kong, but again, how can Hong Kong help us, right? Hong Kong obviously has managed IPR well. Obviously, [Hong Kong] has managed regulatory transparency very well. Things that our US companies talk about is they are interested in China. They want to do business in China but they keep coming up with these same handfuls of issues that make it more and more difficult to do business in China. So how can we learn from what Hong Kong has done in helping us to understand what we can do in China and share those experiences at that expertise? Again, just understanding from the US companies, what’s working here, it could work better there and how could that model be applied.

That’s not to say that we are going to have Hong Kong telling China what it needs to do. If we can talk about how it’s done here that may help us strengthen [our case]. Because obviously Hong Kong has done it well, has been successful, and has grown companies and they’ve gone global. So whatever the model is, it has clearly worked. If countries, cities or provinces aspire to that, then what are the takeaway lessons they really need to learn, and how could we use lessons learned in Hong Kong to help shape that growth agenda. biz.hk: Regarding the dialogues you are participating in the latter half of the year, what results have you seen from what you’ve already been doing and what are you going back to do?

Santillo: As we look at the remainder of 2015, we have a very busy engagement agenda with China. I would include Hong Kong in that engagement. With China, we have a very robust engagement with the strategic economic dialogue that will take place in Washington. That is really that higher level, really trying to get some of the macroeconomic underpinnings

biz.hk 7-8 • 2015

Patrick Santillo (center)

that can help us all be more competitive and grow the system.

In September, we will have President Xi [Jinping] coming to the United States for a state visit. That will be really a good opportunity for us again to exchange honest views and to celebrate what we are doing well together. We are doing a lot of things well together. We want to make sure that which we are doing well together is getting equal play with that which we have [submissions] about.

It’s logical they were going to have issues... we are going to be friends and competitors. It’s logical. But we want to make sure that that is the balanced equation. And then we end the year with JCCT that will take place in China and that allows us to really get into some of the more practical aspects of the relationship and really dive into some of the more detailed market access issues where we might be sector specific. biz.hk: What is the importance of SelectUSA? Santillo: Global competition for foreign direct investment is severe and tough. So we can make no mistake about that. The reputational risk was

that the US didn’t care. We weren’t open for business and we closed off our borders. The reality is we remained open, taking more foreign direct investment than anybody else.

That’s the reality. But that was not the perception. So we had a very severe case of reputational risk.

I think SelectUSA has gone in a long way in eliminating that reputational risk. If you get the President of the United States, if you get four Secretaries in the Cabinet, if you get Twitter, Facebook and every social media network buzzing, if you saw all the articles that came out of that summit, they are virtually all positive.

We are changing the narrative of United States being open for business.

We are aggressively getting the word out about that.

AmCham as individual members has service providers who have it as part of their mandate to promote investment. What we are trying to do is bring foreign companies back into the United States. So to the extent that you have members whose business model is to be a service provider in that regard, we really want to work very closely with them. It’s good all the way around.

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HOSPITALITY & TOURISM

An Appetite for America President Barack Obama set a lofty goal of 100 million visitors to the United States by 2021, and it’s up to the team at Brand USA to make it happen. Through initiatives aimed at both consumers and businesses such as websites, film and food, they’re hoping to attract visitors from all around the world, especially Asia

By Liana Cafolla

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biz.hk 7-8 • 2015

S

elling the idea of United States as a travel destination to the world must rank as one of the most daunting marketing missions. Take the vastness of America, its huge diversity, the broadness of its appeal and package it all into something that will resonate around the world.

That is the task that President Barack Obama set for the US travel industry, along with a target of enticing 100 million travelers to the States by 2021. Can it be done? From the results so far, it seems the answer is yes.

More than two million extra visitors came to the United States during the past two years, spending US$6.5 billion dollars and supporting an average of 50,000 incremental jobs in each of the two years.

Brand USA The figures came from Brand USA, a public-private enterprise that started operations in May 2011. It was set up through the 2010 Tourism

Promotion Act and tasked with coordinating international marketing efforts aimed at increasing tourist numbers to the US and enhancing America’s appeal as a top travel destination.

In partnership with a network of nearly 500 private-sector partners worldwide, the idea is to bring in billions of tourist dollars and create tens of thousands of new American jobs in the process. The organization – which is funded by private sector contributions that are matched by fees paid by international visitors who benefit from the visa waiver program and pay a US$14 fee to enter the US – promote all 50 states, the District of Columbia and the five US territories.

“Last year, we had a record 75 million visitors,” said Jay Gray, Vice President, Global Market Development at Brand USA, who was in Hong Kong in June to promote Brand USA’s programs and initiatives in the Asia Pacific region.

By comparison, France, the world’s leading travel destination, received about 83 million visitors last year.

Jay Gray

Photos: Brand USA

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A Long Road Ahead The 2014 record-breaking visitor numbers included more than 9.6 million visitors from Asia, including Hong Kong, an increase of 6.1 percent compared to 2013. While it is an impressive growth, there is still a long way to go. Brand USA says that it has a lot of ground to make up to return to the visitor numbers that the US enjoyed 10 years ago.

“Between 2000 and 2010, the US share of international arrivals dropped 36 percent, from a market share of 17 percent to 12.5 percent,” Gray revealed.

Citing US Travel Association Research figures, he explained that the economic costs of that decline are estimated to be a loss of 78 million visitors, US$606 billion in spending and support for 467,000 jobs annually.

One reason for the decline is that while other global leading tourism destinations spend huge amounts of money promoting themselves abroad, the United States has not had a coordinated national tourism marketing program before it launched Brand USA. The organization aims to achieve its goal through a range of marketing activities targeting both consumers and the travel trade.

At the international consumer level, the campaign includes television, print advertising, public relations and social media outreach. At the business-tobusiness level, the organization will build awareness through trade shows, sales missions, tour operations and travel agent outreach, and educational campaigns, including information about US entry policies and procedures in an effort to identify and correct what it says are misconceptions about those policies.

So how will Brand USA go about bridging the 25 million visitor gap it needs to reach President Obama’s target and become the world’s favorite tourist destination? With the tagline “Discover this land, like never before,” the key message of the campaign is discovering, or rediscovering, the attractions of America through a

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combination of initiatives designed to encourage travel agents and consumers to see, taste, learn about and experience the US.

Gut Instinct In Asia Pacific, one of Brand USA’s main strategies is to create an appetite for America by zooming in on an area most Asians hold dear: food.

“60 to 65 percent of visitors to the US say food is a main part of their decision to visit,” says Gray. “[It’s] about engaging the senses – scents coming out of the kitchen: authentic, sensory, memorable.”

The team has put together a multi faceted approach to promote the delights of the American kitchen. In Hong Kong, Brand USA is partnering with i-Cable TV to broadcast a series of television shows hosted by Hong Kong celebrities, featuring leading American chefs who will showcase favorite foods and signature flavors from their hometowns.

The programs tie in with a newly launched online element on the DiscoverAmerica.com website, which targets individual consumers. The “Flavors of the USA’’ food hub features culinary-inspired travel itineraries and details of food, wine and beer events nationwide, plus a book of recipes by well-known American chefs.

A Complete Experience A major theme of the project is a focus on the appeal of America’s wide open spaces and the great outdoors.

Next year will see the release of a giantscreen film, America Wild: A Natural Parks Adventure, coinciding with the centenary of the National Parks Service.

The film will be screened in about 40 countries worldwide, in early 2016.

The movie builds on the United States of Great Outdoors website launched by Brand USA in 2014, which showcases the country’s outdoor destinations. Visitors to the site can learn how the film was made.

Besides directly engaging consumers, Brand USA is also running tradefocused initiatives like the USA Discovery Program. The flexible online learning course was launched this year to train travel industry professionals around the world in learning more about the US and its special holiday experiences. The program is currently active in six countries including Brazil, Ireland and Australia, with one for China to be launched in 2016.

Participants learn at their own pace and in their own time. They become part of an online community where they can share information and ask their peers questions. Those who successfully

biz.hk 7-8 • 2015

complete the course can take interactive quizzes to earn the title of USA specialists and receive award badges that recognize them as experts.

Another trade-focused program are mega fam trips – large scale, multidestination travel trips aimed at international travel agents – where travel trade professionals will be invited to take part in trips to the US and experience America for themselves.

An Economic Boost Brand USA says its work hugely benefits the country by boosting the economy and supporting or creating jobs.

International travel is the single largest services export, accounting for 25 percent of all services exports in 2012 and ranking ahead of agricultural goods and motor vehicles, according to the organization.

“Boosting international tourism is one of the best levers we have to create new, outsource-proof US jobs and spur economic activity,” said Gray. “According to studies by the US Travel Association, the average overseas visitor to the United States spends more than US$4,000 per trip … Every 33 new overseas visitors to the United States directly or indirectly supports one new job in the US.” “Every sector of the economy benefits from more heads in beds, more passengers on planes and trains, more visitors to destinations, more diners at restaurants and more customers at local businesses across the country.”

Liana Cafolla is an Irish-Italian journalist based in Hong Kong for the last 15 years.

She writes about business, human resources and business trends for publications including the CFA Institute and the South China Morning Post. She has conducted business research for the Economist Intelligence Unit, HSBC, and JP Morgan.

biz.hk 7-8 • 2015

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CHARITABLE FOUNDATION

Front row, from left: AmCham Chairman (2005) Jon Zinke, SFC Senior Director of Investment Products Christina Choi, and AmCham Chairman (1996) Mark Michelson.

Back row, from left: Financial Services Committee Chair Steven Chan, Celeste Chan, Ryan Chung, Christopher Cheung, Jason Yeung and Financial Services Committee Vice-Chair Christina Elleker.

Better Education for a Better Hong Kong Each year the AmCham Charitable Foundation recognize the outstanding achievements of local students with awards and scholarships. The Lyn Edinger US Studies Scholarship and AmCham Charitable Foundation Scholar Award were recently awarded to six students who will surely be a part of Hong Kong’s bright future

By Leo Lai

W

ith its proximity to China and Southeast Asia, favorable tax laws and a plethora of talents, Hong Kong is an ideal place to do business. But to ensure this continues, it is important to nurture the next generation of leaders. Therefore, every year the AmCham Charitable Foundation awards the Lyn Edinger US Studies Scholarship and the Scholar Award to several outstanding

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students with a global vision and potential to further Hong Kong’s excellence.

This year, the award ceremony was held in July in conjunction with a luncheon talk by Christina Choi, Senior Director, Investment Products at the Securities and Futures Commission. As Choi gave an update on the Mutual Recognition of Funds between the Mainland and Hong Kong, the winners eagerly looked on and soaked up the information (for full story, see page 24).

Founded in 1985, the AmCham Charitable Foundation aim to promote the philanthropy spirit in Hong Kong.

With the help of the chamber’s extensive business networks and the charitable spirit of its donors, the foundation has been able to support various charitable projects in Hong Kong, with an emphasis on quality education development.

“Raising up talents is very important to Hong Kong’s competitiveness and future,” says James Sun, chairman of

biz.hk 7-8 • 2015

the AmCham Charitable Foundation.

“The Foundation is serious about this cause and very pleased to present the awards to the outstanding MBA students from the three Hong Kong universities, as well as the local high school graduates who will pursue meaningful studies in the US.”

Becoming a Global Citizen Established in 2002, the Lyn Edinger US Studies Scholarship is a HK$16,000 scholarship presented to outstanding local secondary school graduates with an excellent academic record, good leadership skills and a willingness to serve their community.

Winners also have to be successfully admitted to a US university for a full-time undergraduate program.

Celeste Chan, one of the three winners of this year’s scholarship, will be enrolling in an innovative and demanding dual BA program jointly offered by the Columbia University in New York and Sciences Po in Paris, France.

When asked about her personal aspirations and how they are linked to the program, she expressed her aspiration is to work in international relations. Her goal would be working for the United Nations.

“The specialty of this program is that it is picking the essence of European and American education, as well as the different backgrounds, history and cultures,” says the student from the German Swiss International School (GSIS).

As a believer of ‘walking the walk’, there is really no better option for Chan than completing two years of undergraduate studies in each country.

“This program will prepare me for my aspirations, in terms of language skills as well as international exposure from American and European background.”

From her high school experiences of going abroad to work with kids, she stresses that the trips have given her a unique insight into those countries and the underprivileged children there.

biz.hk 7-8 • 2015

“In a way, human connections can be transposed to a macro perspective, such as the relations between countries, which works in a similar dynamics as working with these children. I think international [experience] counts a lot for me and they have made me the person [I am] today,” Chan says.

May Huang, an incoming freshman of the University of Chicago, dreams of becoming a writer. She is attracted by the writing intensive courses and the creative writing opportunities offered at the university.

But besides writing, the student from the Chinese International School has big aspirations for her time in Chicago.

“I hope to improve the way English is taught at local schools in Hong Kong. I can learn a lot from the University of Chicago’s far-reaching work with local school systems. I want to emerge from college as a welllearned, curious and inspired global citizen; the school’s multidisciplinary core curriculum, travel abroad options and vibrant community would help me do just that,” she says.

When asked for any advice for her fellow teenagers looking to achieve big things in life, she answers, “Instead of limiting the scope of your endeavors to what your school offers, definitely pursue your interests beyond your immediate community! Whether you write for a journal based in the US or play with musicians from Italy, you’ll be surprised at how much you learn.”

The third recipient of this year’s Lyn Edinger US Studies Scholarship is also from the Chinese International School. Kate Wang Yun-Yi is a soon-to-be freshman at Princeton University, enrolled in a liberal arts program. She thinks it offers her plenty of flexibility as well as the freedom to pursue different types of career after graduation.

Regarding the benefits of studying overseas, Wong share a similar view as Chan and Huang, believing in the need to step out of one’s comfort zone. She believes it is an essential way to learn and to become a more rounded person.

2014/15 AmCham Charitable Foundation Scholar Awards Christopher Cheung Hong Kong University of Science and Technology Ryan Chung University of Hong Kong Jason Yeung Chinese University of Hong Kong

2014/15 AmCham Charitable Foundation Scholar Awards Celeste Chan German Swiss International School May Huang Chinese International School Kate Wang Yun-Yi Chinese International School - May Huang and Kate Wang were not in Hong Kong and their awards were accepted by their representatives.

Eyes on the Prize The AmCham Charitable Foundation Scholar Award was established in 1977 by AmCham to recognize full-time MBA students of their excellent academic results. The University of Hong Kong (HKU), Chinese University of Hong Kong (CUHK) and Hong Kong University of Science and Technology (HKUST) each nominate a first-year MBA student who achieved outstanding results in their first year to be awarded HK$10,000 and a Certificate of Merit.

Christopher Cheung of HKUST received his undergraduate degree in Canada. He chose to continue his studies in a MBA program in Hong Kong because he wanted to extend his

37

Front row, from left: AmCham President Richard Vuylsteke, AmCham Chairman (1995) Tom Gorman, and AmCham Chairman (2005) Jon Zinke, with the AmCham Charitable Foundation 2015 Prize Book Award winners.

business knowledge outside of North America. He thought that with Hong Kong being the financial hub of the region, it would give him a balanced access to opportunities in China and the Asia Pacific region.

Ryan Chung also has his eyes on the future prospects of Asia Pacific which is why he chose to complete his MBA degree at HKU after doing his undergraduate studies in Canada. “I have found myself most attracted to the Asia Pacific because it is very vibrant, very multicultural and diverse.

That’s why I decided to come back to Hong Kong,” he says.

Jason Yeung of CUHK certainly agrees with the other two winners. He is attracted by Hong Kong’s unique

38

position as well. “Hong Kong, being an international financial center for China, will have a very promising future. With the intention to develop my career in Asia Pacific, it would benefit me to stay in Hong Kong.”

All three winners are clearly optimistic about the business opportunities in Hong Kong. “I see Hong Kong continuing to be very strong in the financial sector, such as with the upcoming mutual fund recognition between China and Hong Kong, and also rounding out the edges as an offshore RMB center,” Chang says.

Yeung adds, “I believe the future of Hong Kong will be bright as long as it maintains a sound and efficient legal system and continue to attract

overseas talents.”

However, Cheung is aware of possible challenges as well. “To remain competitive, I think Hong Kong needs to transform and develop a new set of competitive advantages.”

Besides the two scholarships, earlier in July, the AmCham Charitable Foundation also recognized the achievements of 20 high school students with the Prize Book Award.

The winners all displayed excellence in academics, community service and leadership. They were awarded a $1,000 worth of book coupons, a certificate of achievement and a series of books, The Americans, an awardwinning, historic trilogy by Daniel J Boorstin.

biz.hk 7-8 • 2015

zŽƵƌ ƐƵƉƉŽƌƚ ŝƐ ŽƵƌ ƐƵĐĐĞƐƐ͊

The American Chamber of Commerce Charitable Foundation is the philanthropic arm of AmCham Hong Kong to contribute to the community leveraging from its influence within the international business community in Hong Kong.

'ŝǀŝŶŐ ďĂĐŬ ƚŽ ƚŚĞ ĐŽŵŵƵŶŝƚLJ is a vital value of AmCham. This is made possible through donations from AmCham members and non-members, and two annual fundraising events – AmCham Ball and the Charitable Foundation Dinner.

Our Aim:

Our Annual Program: x Lyn Edinger U.S. Scholarships – For secondary school graduates in Hong Kong to pursue studies at a U.S. university x Scholar Awards ʹ For MBA students enrolled in Hong Kong universities acknowledging their academic achievements and leadership and community services x Prize Book Awards – For secondary school students recognizing their academic and extracurricular achievements x Ira Dan Kaye Community Service Award – For committed volunteers honoring their generous community service and giving a donation to the charity of the person’s choice x AWA Awards – A partnership with the American Women’s Association (AWA) to provide financial assistance to smaller and lesser known charities in Hong Kong

To raise funds for educational, training and other charitable projects which have a long-reaching and beneficial effect on the recipients.

“By recognizing the important work done with our students and families, the Ira Dan Kaye Community Service Award has brought the issue of special education needs (SEN) for our community into the spotlight and public conscience. The receipt of this award has fueled our passion to serve students and others with SEN.” Dr. Jeremy Greenberg, Director of The Children’s Institute, Recipient of the 2013 Ira Dan Kaye Community Service Award

dŚĂŶŬ LJŽƵ͊ tĞ ĚŽ ŝƚ ǁŝƚŚ ƚŚĞ ŚĞůƉ ŽĨ ĨƌŝĞŶĚƐ ůŝŬĞ LJŽƵ͊

Pledge Card ƶ HK$1,000

ƶ HK$2,000

YOUR DETAILS Name: __________________________________________________ Title: __________________________________________________ E-mail: __________________________________________________

ƶ HK$5,000

ƶ Other amount: HK$ ___________

Contact no.: _______________________________________________ Company: _______________________________________________

PAYMENT METHOD By crossed check payable to "The American Chamber of Commerce Charitable Foundation", or ƶ By credit card (Please choose appropriate) ƶ ƶ Master Card ƶ VISA ƶ American Express Credit card number: _____________________________________ Expiry date (mm/yy): ___________________________________ Cardholder’s name (in full): ______________________________________________________________________________________ Signature: ____________________________________________________________________________________________________ Please send a receipt to the following email / postal address*: ƶ ______________________________________________________________________________________________________________ Please return the completed card to: Ms. Ming-Lai Cheung, Charitable Foundation Secretariat, The American Chamber of Commerce in Hong Kong, 1904 Bank of America Tower, 12 Harcourt Road, Hong Kong (E-mail: mcheung@amcham.org.hk/ Tel: +852 2530 6927) *The American Chamber of Commerce Charitable Foundation is an approved charity and tax exemptions for donations may be made under section 88 of the Hong Kong Inland Revenue Ordinance.

MARK YOUR CALENDAR Aug When Women Thrive all else thrives —

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businesses, families, communities and nations Julio A. Portalatin, President and Chief Executive Officer, Mercer Despite overwhelming evidence that diversity is a key driver of competitive advantage, gender diversity in the workplace remains a challenge. The World’s GDP has the potential to increase by 30 percent with more women in the workforce.

Women, who continue to be underrepresented at most levels in the workforce, are not progressing in their careers despite the past two decades of organizational efforts to achieve gender diversity and equality, according to the ground breaking global research from Mercer, When Women Thrive, Businesses Thrive. Mr. Julio A. Portalatin will share some of the research findings and valuable insights into the organizational practices that actually lead to greater gender diversity and those that may be holding women back.

Julio A. Portalatin is President and Chief Executive Officer of Mercer, a global consulting leader in talent, health, retirement, and investments that helps clients around the world advance the health, wealth, and performance of their vital asset- their people.

Aug The Rise of 3D Printing

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Victor Tse, Senior Managing Associate, Bird & Bird Hosted by the Intellectual Property Committee This lunch event will provide attendees with some practical considerations from an IP perspective and include: •Overview of 3D printing technologies and their current/potential business applications; •Relevance of 3D printing to small businesses; •How to protect and exploit your ideas more effectively in a competitive IP landscape; •Managing IP risk associated with 3D printing.

Victor Tse is a managing associate in Bird & Bird’s Intellectual Property Group, based in Hong Kong. He has acted for many high profile technology companies, venture capital firms and financial institutions. He advises clients on a broad range of legal issues involving technology, from obtaining protection for new products and services, commercializing technology through licensing, resolving disputes, and where necessary, enforcing rights through litigation. He is a registered Australian patent attorney, with considerable experience in drafting, interpreting and prosecuting patent applications around the world.

Aug The Outlook for Energy:

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A view to 2040 "Asia – A Closer Look"

Rob Gardner Manager, Economics & Energy Division, Corporate Strategic Planning Department, Exxon Mobil Corporation Forecasting long-term energy trends begins with a simple fact: people need energy.

Over the next few decades, population and income growth — and an unprecedented expansion of the global middle class — are expected to create new demands for energy.

And as people’s needs and modern technologies continue to evolve, so too will the energy landscape.

Mr. Rob Gardner will provide an overview of global energy trends and highlight the evolving energy picture across Asia and in China as consumers increasingly use energy in their daily lives. Topics will include economic and energy trends, developments in demand and supply and the role of technology in the future energy picture.

Rob Gardner graduated from Louisiana State University in 1978 with a Bachelor of Science Degree in Chemical Engineering and began working for Mobil Oil in Louisiana in a series of technical and supervisory engineering positions in gas plants along the United States Gulf Coast.

For information, see website: www.amcham.org.hk

Tel: (852) 2530 6900

Fax: (852) 2810 1289

Venue: The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 12:00 – 01:45am (Sandwiches and beverages included) Fee(s): Member: HK$280 Non-member: HK$400

Venue: The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 12:00 – 01:45am (Sandwiches and beverages included) Fee(s): Member: HK$280 Non-member: HK$400

Venue: Grand Hyatt Hong Kong Pool House, 11/F 1 Harbour Road, Wan Chai, Hong Kong Time: 12:00pm - 02:00pm Fee(s): Member: HK$630 Non-member: HK$750 Corporate table: HK$8,300

Email: byau@amcham.org.hk

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Nominate a

Woman

of Influence

The American Chamber of Commerce in Hong Kong is inviting nominations for their Women of Influence Awards. Honoring six professional women for personal achievement, a male who is a champion of women and one corporation for enlightened management.

We are excited to announce two new awards for 2015, “Young Achiever of the Year” – will be awarded to a woman with less than 10 years of work professional work experience who has demonstrated strong leadership potential and contributed above and beyond her peer group in her professional field. “Master of The Arts” - will be awarded to a woman who is a leading personality in the Arts in Hong Kong. The awards will be presented at the Women of Influence Conference and Awards 2015 on November 6, 2015 at the Four Seasons Hotel Hong Kong.

This is your chance to nominate outstanding candidates for the following awards:

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Professional of the Year Young Achiever of the Year (NEW) Entrepreneur of the Year Master in Charity Master of The Arts (NEW) Leading Woman on Boards Champion for the Advancement of Women Best Company for Women It only takes 10 minutes online: www.amcham.org.hk/woi Submission Deadline: Friday, September 18, 2015 Sponsorship: Ms Mary Simpson msimpson@amcham.org.hk (852) 2530 6922

PRESENTED BY

GOLD SPONSOR

BRONZE SPONSORS

OFFICIAL NEWS MEDIA

Connect 多 Collaborate 多 Catalyse

APAC Innovation Summit 2015 Series

22-23 September 2015

Charles K. Kao Auditorium, Science Park www.apacinnosummit.net

A perfect platform for you to be inspired and to network with industry partners for collaboration opportunities!