AmCham biz.hk Nov 2015

JOURNAL OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG

November 2015

www.amcham.org.hk

THE DRIVE TO GROW

ROLAND KRUEGER

PRESIDENT INFINITI MOTOR COMPANY

SPECIAL SUPPLEMENT November 2015 • VOLUME 47 NUMBER 11

GUIDE TO GETAWAYS

COVER SPONSOR

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(852) 2161.1328 ō JBACE.COM Unit 2905-08 Pacific Plaza | 410 Des Voeux Road West | Hong Kong, China

November 2015

Contents

Vol 47 No 11

Publisher

Richard R Vuylsteke

Editor-in-Chief Blessing Waung

08

COVER STORY

Infiniti Motor Company has made Hong Kong its global headquarters as the brand looks to increase its global footprint in the premium vehicle market with its president, Roland Krueger, leading the way.

But while expanding internationally, the company is also investing in developing the city’s local entrepreneurial talents.

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.

Advertising office 1904 Bank of America Tower 12 Harcourt Rd, Central, Hong Kong Tel: (852) 2530 6900 Fax: (852) 3753 1206 Email: amcham@amcham.org.hk Website: www.amcham.org.hk Printed by Ease Max Ltd 2A Sum Lung Industrial Building 11 Sun Yip St, Chai Wan, Hong Kong (Green Production Overseas Group) Designed by Overa Creative Tel: (852) 3596 8466 Email: ray.chau@overa.com.hk Website: www.overacreative.com ©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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AMCHAM NEWS AND VIEWS 04 Editorial Several government departments, including the Environmental Protection Department and Transport and Housing Bureau, came together to contribute to the Hong Kong Climate Change Report 2015. It is an important step as the city looks to stay in the forefront of advocacy in the battle against climate and achieve a 50 percent reduction in CO2 emmisions by 2020.

06 New Business Contacts 28 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. This issue, we spoke to Fred Birnbaum, Senior Vice President, Sales - Asia of Super Dry International.

44 Mark Your Calendar

COVER STORY 08 The Drive To Grow Infiniti Motor Company has made Hong Kong its global headquarters as the brand looks to increase its global footprint in the premium vehicle market with its president, Roland Krueger, leading the way.

But while expanding internationally, the company is also investing in developing the city’s local entrepreneurial talents.

biz.hk 11 • 2015

12 CHINA BUSINESS The annual Beijing Doorknock featured an agenda packed with meetings to discuss topics ranging from RMB internalization to state-owned enterprise reform to state-owned enterprise reform to mutual recognition funds. Hong Kong remains, as always, a crucial liaison for international commerce in and out of the mainland.

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18 EDUCATION

CHARITABLE FOUNDATION

Over the last several years, the government has allocated vacant school premises and greenfield sites to address the alarming deficit of school spaces in Hong Kong. AmCham spoke to some of the schools who were awarded and denied a site in the latest round of allocations to learn more about the situation.

CHINA BUSINESS

12 Beijing Doorknock: Focusing On The Big Picture The annual Beijing Doorknock featured an agenda packed with meetings to discuss topics ranging from RMB internalization to state-owned enterprise reform to state-owned enterprise reform to mutual recognition funds. Hong Kong remains, as always, a crucial liaison for international commerce in and out of the mainland.

EDUCATION 18 One School At A Time Over the last several years, the government has allocated vacant school premises and greenfield sites to address the alarming deficit of school spaces in Hong Kong. AmCham spoke to some of the schools who were awarded and denied a site in the latest round of allocations to learn more about the situation.

22 Local or International Education?

Dr. Maggie Koong, chief principal of Victoria Educational Organization and school director of Victoria Shanghai Academy, shares advice for families facing this dilemma and further insight about the city’s varied educational landscape.

In support of local charities in Hong Kong that serve the disadvantaged, the elderly, as well as women and children, friends and supporters of AmCham Charitable Foundation gathered on a Friday evening to celebrate the Chamber’s years of continuous efforts in making a positive impact on society.

CHARITABLE FOUNDATION 30 A Charitable Evening of Aesthetic Delight In support of local charities in Hong Kong that serve the disadvantaged, the elderly, as well as women and children, friends and supporters of AmCham Charitable Foundation gathered on a Friday evening to celebrate the Chamber’s years of continuous efforts in making a positive impact on society.

34 In The Same Boat The charity Sailability uses the sport of sailing to give people with physical and intellectual disabilities a rare opportunity to compete with able-bodied athletes on the same level, boosting their self-confidence and self-esteem.

GETAWAYS 38 An Unforgettable Stay A hotel visit can be quite bland, so The Ascott Limited have worked hard to make a stay at their newest property, Hotel Pravo in Tsim Sha Tsui, more colorful and one to remember.

TRADE & INVESTMENT 26 Down or Up Uncertainties regarding China and its actual GDP growth figure, policy-making abilities and other concerns have clouded global investment outlook. A panel of experts recently sat down and discussed views on what’s happening in the country now, and how to move forward.

biz.hk 11 • 2015

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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, 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 Corporate Social Responsibility 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 Pat-Nie Woo Virginia Wilson Rick Truscott Cynthia Chow Laurie Goldberg Jim Taylor Steven X Chan Veronica Sze Mark Kemper Shanthi Flynn Chris Meyrick Rex Engelking

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

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biz.hk Editorial

CHANGE, IT IS A-COMIN’

T

he first week of this month, the HKSAR Government released its ‘Hong Kong Climate Change Report 2015,’ the culmination of interdepartmental cooperation to reduce the city’s carbon footprint and to create more sustainable environment. Held at the ZCB aka Zero Carbon Building in Kowloon Bay (which perhaps is largely unknown to the greater Hong Kong public), public agencies were yielded the floor to speak on their own part in regards to this timely topic.

The message the event imparted was clear: It’s high time that Hong Kong does something. As of now, the global community’s efforts to reduce carbon emissions have been insufficient, as evidenced by changing temperatures and adverse effects that are seen across the world. However, with diligent cooperation and drastic measures to do its part, Hong Kong can rightly be a part of the efforts to be truly impactful, and can serve as a regional leader in best practices for other governments in the region.

Hong Kong must continue to be at the forefront of advocacy for the battle against climate change, as the whole world embarks to rectify what it has already done to the environment. By enlisting different departments and

educating and involving students on next steps, thought leaders in the city seek to make this change. Altogether, Hong Kong has decreased its CO2 emissions by nearly 20 percent since 2005, it altogether hopes to achieve a 50 percent reduction by 2020.

Combining the forces of the Environmental Protection Department, alongside the Transport and Housing Bureau, the Commerce and Economic Development Bureau, the Food and Health Bureau, as well as the Security Bureau, the report was a joint effort to review Hong Kong’s ongoing efforts to combat the global warming issue at hand, from varying perspectives as puzzle pieces across sectors.

Both Wong Kam-sing, Secretary for the Environment, and Christine Loh, Under Secretary for the Environment, were present to welcome industry leaders from the Business Environment Council in what felt like a familial atmosphere.

Some measures already put into place include reducing the use of private vehicles. Yau Shing-mu, Under Secretary for Transport and Housing, pointed out that Hong Kong is a paragon of public transportation use, with more than 12 million passengers using the MTR, buses, ferries and other modes per day. However, he

biz.hk 11 • 2015

COVER SPONSOR AMERICAN SCHOOL HONG KONG

Photo credit: Esol Education’s Deira International School

solemnly observed that buildings could be much improved in their footprint, as building energy efficiency is of the utmost concern, with 90 percent of the city’s electricity consumed by buildings.

At the end of the month, Hong Kong will participate in the 2015 Paris Climate Conference (COP21), which will seek to bring countries together to create a “binding and universal agreement on climate, with the aim of keeping global warming below 2°C.�

Last year’s COP20 in Peru created the “Lima Call for Climate Action� and this year’s conference hopes to utilize the platform to create a comprehensive change. Secretary Wong will attend as part of the Chinese delegation in Paris, and hopefully will come back with concrete ideas from the rest of the collaborators on how to work together to achieve these aims.

After the conclusion of COP21, Under Secretary Loh stated that she hopes to convene once again to collaborate in navigating local politics in the universal fight against global warming and climate change. Without full cooperation between the HKSAR Government and businesses alike, as well as the interest from students of the next generation in Hong Kong, it will be impossible to make a difference.

INSPIRING TEACHERS ENGAGED LEARNERS New American School Opening in 2016 $PHULFDQ 6FKRRO +RQJ .RQJ $6+.

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biz.hk 11 â&#x20AC;˘ 2015

school

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New

Business Contacts The following people are new AmCham members: American Club, The Mark Gallaudet Executive Chef / Director of Club Operations

American School Hong Kong Bassam Abushakra Regional Director

Baker & McKenzie Peter Andres Registered Foreign Lawyer

Chinese University of Hong Kong, The Tina Lee Director, Career Management Center

FTI Consulting (Hong Kong) Limited Amie Chang Director, Global Risk and Investigations

Generations Christian Education Bill Lui Chief Operating Officer

Philip Morris Asia Limited Teena Ingram Director Tax Asia

Ruder Finn Asia Ltd Anne Geronimi General Manager, HK & Vice President

Johnson & Associates Solutions, LLC William Johnson Founder

J.P. Morgan

Seacor Holdings Inc. Jeffrey Lowe Managing Director Max Buirski Corp. Vice President

Joy Xu Head of Commercial Banking Hong Kong & North Asia

SMS International Limited CLS Communication HK Ltd Henry Yan Account Manager

Cornerstone International Group Dominic Yim Managing Partner

Credit Suisse (Hong Kong) Ltd Manuel Rybach Managing Director, Head Public Policy APAC

Eversheds LLP Charles Butcher Partner Hannah Swift Registered Foreign Lawyer (England & Wales) Jennifer Van Dale Partner

Vasu Muthyala Principal

John Pollock Managing Director Cindy Qian Director, Business Development

Market Movers Holdings LLC

United Overseas Bank Limited

Kobre & Kim LLP

Harvey Stein Chief Executive Officer Joseph Van Houten President

Shirley Chan Head of Multinational Corporate

United Technologies Corporation Mayer Brown JSM Thomas Kollar Partner

Nielsen Hong Kong AJ Dabydin Director, Client Business Partner, FMCG, Hong Kong

Debby Tsang Director, Human Resources, HK/Macau/Taiwan - United Technologies - Building & Industrial

University of Chicago Booth School of Business in Hong Kong Nick Soriano Director - Recruitment and Admissions

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

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biz.hk 11 â&#x20AC;˘ 2015

New Member Spotlight

Fred Birnbaum Occupation: Senior Vice President, Sales – Asia, Super Dry International Industry: Manufacturing & Packaging Member since: September 2015

Why did you and Super Dry International join AmCham Hong Kong?

I’ve been a member of AmCham Hong Kong and Shanghai on-and-off over the past 15 years and found it to be a great channel for meeting professionals from many different industries.

Also, it provides opportunities for sharing of industry and company best practices, great exposure to US Government commerce officials, and overall networking opportunities with like-minded business executives.

Can you tell us a bit about Super Dry International?

Super Dry is a leading global supplier of non-toxic desiccants and moisture damage prevention solutions. Our desiccants are used during ocean transport for all the world’s major manufacturing industries, for example, the retail sector which includes textiles and footwear, as well as the commodities sector which includes raw commodities such as cocoa. We manufacture our product at four factories in the Asia region, specifically in China, Thailand, Indonesia, and India. In addition, Super Dry operates an R&D testing facility at the Shenzhen factory which has advanced laboratories that can simulate a container transportation environment and is used by many third-party testing companies.

How is business so far?

Business is booming; we’re growing quickly. We’re doubling our production and possibly opening another factory. Super Dry has grown to over 40 offices worldwide since establishing our headquarters in Singapore in 2000.

What advantages does Hong Kong provide as a hub for a global business like Super Dry? The ease of doing business into the mainland is a clear advantage. It is a strategic location for international sourcing and buying offices for many MNCs with decision-makers and senior executive management located in Hong Kong.

biz.hk 11 • 2015

Does Hong Kong’s extreme humidity provide any interesting opportunities for the business?

Not necessarily just Hong Kong; China, Southeast Asia and the India subcontinent have experienced record rainfall these past few years. This means increased exposure of an exporter’s cargo to moisture. Factory conditions, packing of cartons, container loading, container dwell time at relay ports and in container yards all contribute to the likelihood of costly cargo losses due to water damage. This provides opportunities to assist customers’ manufacturers in learning how to prevent moisture. We provide factory inspections on request to teach manufacturers best practices in preventing moisture damage and ultimately costly chargebacks.

What’s your favorite thing about Hong Kong?

Hong Kong is a convenient city to live and work in. It is a global city, with international banking, shopping outlets, restaurants, etc. One side of Hong Kong Island is a busy, fast-paced business hub, and just a 15 minute drive to the south side, or 20 minutes out to the New Territories, gets you to a relaxing, seaside tropical environment.

From a business perspective, it is easy to network. Hong Kong is small enough that when you’re walking down the street or on the MTR, chances are that you will bump into people that you know.

What are you currently reading?

I’m reading Power Down, a novel by Ben Coes. I like his writing, action thrillers [which are] fiction based in reality.

What’s the best advice you’ve ever received?

Be a good listener. My dad taught me something called “Ethics of our Fathers,” which are ancient proverbs on how to live your life. “The wise man is the one who learns from his fellow man” is another maxim that I have always remembered.

7

COVER STORY

The Drive

To Grow

Infiniti Motor Company has made Hong Kong its global headquarters as the brand looks to increase its global footprint in the premium vehicle market with its president, Roland Krueger, leading the way.

But while expanding internationally, the company is also investing in developing the city’s local entrepreneurial talents

By Leon Lee

8

H

ong Kong might be a densely-populated metropolitan, but despite its limited amount of space, there are plenty of vehicles on the roads. One look around and it’s easy to spot the latest models of sportscars or luxury sedans. This affinity for cars certainly adds to the appeal of the city for automotive companies to build their businesses here, like Infiniti.

“Hong Kong is a clear hub. We are here to develop the brand and our market position. We want to become one of the top tier car manufacturers of automotive brands in the premium sector,” says Roland Krueger, President of the Infiniti Motor Company.

The company opened its global headquarters in Hong Kong in 2012, making the move from Japan. Although it is the premium brand of Japanese automaker Nissan, Infiniti first began selling in the United States in 1989. Today, the United States remains an important market for them, but they have also been aggressively expanding around the world in the last several years.

“The move to Hong Kong to set up a global headquarter was a clear signal to the rest of the market and our competitors that we really want to establish ourselves firmly in the global marketspace,” explains Krueger, who came onboard as the president in January from BMW. “This is important to know because so far, the US is still the main market, but as a business strategy, we want to establish other markets, especially in China, as a second pillar. And to be in that position to establish it as a second pillar, you need full commitment to the market. What we demonstrate by moving to Hong Kong is we have a full commitment to this part of the world. We have a full commitment to establish and develop the brand in China and enlarge our footprint.”

biz.hk 11 • 2015

From Hong Kong, they coordinate the business and ensure components like car flow and ordering systems are operating smoothly as they work with roughly 500 retailers in markets all over the world.

A global player Besides establishing a dedicated global headquarters, Infiniti has also worked diligently on setting up and utilizing alliances and partnerships to expand their global network and expedite production.

Late last year, two models of the Q50 began production in Xiangyang, China, through a joint venture with Dongfeng Motor. They are Infinitiâ&#x20AC;&#x2122;s first localized models in the country dedicated to Chinese consumers.

The first Infiniti vehicles began selling in China in 2007.

In September this year, Daimler and the Renault-Nissan Alliance broke ground on a new joint manufacturing complex in Aguascalientes in central Mexico. The plant, called COMPAS (Cooperation Manufacturing Plant Aguascalientes), will build next-generation premium compact vehicles for both Mercedes-Benz and Infiniti. The plant has an initial annual production capacity of over 230,000 vehicles as production of Infiniti models is scheduled to begin in 2017.

From here, Infiniti plans to build a vehicle predominantly for the North American market.

Roland Krueger

Photos: Infiniti

biz.hk 11 â&#x20AC;˘ 2015

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In the same month, their brand new premium compact vehicle Q30 was revealed at the 2015 Frankfurt Motor Show. The car is set to go on sale later this year and will be produced at Nissan’s production plant in Sunderland in the United Kingdom. Infiniti invested over US$380 million in plant extensions to accommodate for the increased amount of production.

“Naturally you want to be where the market is so we’re utilizing our alliances and partnerships with other companies. We’re utilizing technologies, modules and production sites to have this car produced for us predominantly for the European market and then later we will export this into other markets,” Krueger says.

“The production really follows where the market is.

This enables us to be faster in terms of time to market and to have a higher level of efficiency in economies of scale. That’s what we do because we’re still a considerably small player in the market.”

Not only is the Q30 Infiniti’s first vehicle to be built in Europe, it also represents the brand’s entry into the premium compact segment. Krueger explains that Europe is still the world’s largest premium market and in order to be a creditable player in that market, you need to have a premium compact vehicle.

Their global strategy has proven to be successful and profitable. In the first three quarters of 2015, they have sold 16 percent more vehicles globally than they have in the same period in 2014. In October, they set the best sales record in the month globally as well as for individual regions like Canada, Mexico, Western Europe and China.

Although the automotive market has slowed down in China, Infiniti is putting up impressive numbers there.

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Compared to January to October 2014, they have sold 36 percent more vehicles during the same period this year.

In fact, sales in the first 10 months of 2015 in China and Taiwan have already exceeded the full-year sales numbers in 2014.

While the Chinese automotive market is already the largest in the world, the premium segment still trails those of the US and Europe. However, Krueger believes that it has the potential to grow to become one of the largest in the world, if not the largest, reinforcing the company’s desire to establish it as an important pillar in their global business.

Fostering entrepreneurship When asked about the reasons behind the aforementioned success, Krueger had a very simple response.

“Good people,” he straightforwardly answers, followed by a smile.

Originally from Germany, he has found Hong Kong not only an ideal environment to do business, but a diverse one as well. He proudly points out that in a small team of a little over 100 people in Hong Kong, there are 21 different nationalities.

“I have never seen such a diversity and we actually need to embrace that diversity as an opportunity, as a chance… It doesn’t come like this, we have to have good management structures in place to foster this,” the executive says.

He saw more of this diversity during the application process for the Infiniti Accelerator program, a start-up incubator initiative set up with Nest earlier this year.

Working with the theme of smart cities, they received over 145 applications from 38 countries for the eight available spots for start-ups developing technologies that can lead to cleaner and more efficient cities of the future. In the end, four companies from Hong Kong were chosen along with ones from Germany, United States, United Kingdom and Israel. Through the 12-week mentor-driven program, the eight teams will receive training in marketing, management, fund-raising and other essential skills in running their own business.

biz.hk 11 • 2015

Entrepreneurship is something the brand completely embraces, hence their involvement with the project.

“We believe in entrepreneurship and we want to foster entrepreneurship. It’s also a little bit of a signal to our own team over here that if you watch those who have a good idea, develop a business case, develop their own company, you can do this actually and we offer a platform to do this,” Krueger explains.

Another benefit of the program is the possibility that Infiniti might come across an idea they like and want to incorporate it into their own business. But rather than just acquiring the company for its ideas, they would prefer to work with them.

“What we will not do is invest into those companies because we believe that independence, in terms of entrepreneurship, is key to success. We would rather have them develop a certain idea for us as an independent company, but we can foster that idea, make it happen and we can embrace whatever they have developed and integrate it into our business.”

Besides the training, the company has opened Infiniti Lab, a co-working space located inside their flagship showroom in Wan Chai, to give the participating teams as well as a rotating roster of start-ups a location to work and showcase their projects. The venue will also be used to host a speaker series where entrepreneurs and business leaders are invited to share their knowledge and experience to the entrepreneur community in Hong Kong.

With this, the brand is firmly invested in developing and ensuring the future of their new home.

What’s next As Infiniti continues its steady growth in the global premium market, Krueger has noticed several developing trends in the segment. He is seeing a downsize in terms of sizes of vehicles. Another is developing cars with lower to zero emissions, which Infiniti already offers in its lineup with hybrid versions of the Q50, Q60 and QX60.

They also have a luxury five-seat concept vehicle with zero emission aptly named the LE Concept which can be charged wirelessly.

He names connectivity as one of the big topics when it comes to the future of the automotive industry.

“The car becomes part of your daily life, it becomes a device like a mobile device. The question is actually what is the direction of doing that,” Krueger says.

biz.hk 11 • 2015

With talks about the Google Self-Driving Car and companies from other fields like IT or digital entering and disrupting the industry, he recognizes that they will surely make an impact. But how much of an impact remains to be seen.

Customer service is an asset While Infiniti’s vehicle lineup might not be as robust as its larger competitors, Krueger sees this as an opportunity.

“As a rather smaller player, of course we don’t have the width and the breadth of the model portfolio in each and every market, so what we’re doing is we focus,” he explains.

“We make sure that we focus on certain things and those things we want to do absolutely right. And that’s part of our strategy moving forward. It’s doing something right for some of our customers because we focus exactly on those things.”

Focusing on customers is something that the brand has done from the very beginning. When Infiniti was launched in 1989, its customer-centric business model with close attention to customer service was new and unique to the industry, giving them an advantage. Eventually other car companies followed suit.

The senior executive believes it is still an asset to the company today, one that they will continue to develop to ensure they have a competitive advantage. This means having well-trained people committed to the same goal throughout the organization, from management, to operational offices and all the way to local dealerships.

“If the customers embrace [something] and they are watching it, we definitely have to be there,” Krueger says.

11

CHINA BUSINESS

The annual Beijing Doorknock featured an agenda packed with meetings to discuss topics ranging from the 13th Five Year Plan to the Belt and Road Initiative to RMB internalization to state-owned enterprise reform.

Hong Kong remains, as always, a crucial liaison for international commerce in and out of the mainland

By Blessing Waung

12

biz.hk 11 â&#x20AC;˘ 2015

Photo: Thinkstock

biz.hk 11 â&#x20AC;˘ 2015

13

T

his year’s AmCham Hong Kong visit to Beijing came at a critical time, following a tumultuous summer in the Chinese stock market, just after President Xi Jinping’s state visit to the United States and the November APEC Summit . With numerous topics at hand, AmCham brought a diverse delegation to the Chinese capital ready to face the topics at hand.

Led by AmCham Vice Chairman Walter Dias, Past Chairman James Sun, and President Richard Vuylsteke, the delegation included key business leaders from various sectors, including logistics, financial services, information technology and more.

“The Beijing Doorknock is an excellent opportunity to get a cross-section of perspectives from a wide range of Beijing policymakers and private industry leaders,” said Anthony Root, senior advisor to Moelis & Company.

“One of my key takeaways from the meetings is that the Beijing leadership is willing, to a degree that it wasn’t previously, to identify and address its economic challenges. This awareness is critical to their ability to implement reforms and shift the economy away from excess capital spending and move it towards value added services and increased domestic consumption.”

Financial agenda Meeting with the People’s Bank of China is one of the annual highlights of the Beijing Doorknock, and this year was no exception. The discussion dove immediately into the PBOC’s planned economy nature and consensus mechanism, in which delegates inquired regarding the future liberalization and transparency of monetary policy.

According to Xing Xujing, the Secretary General of Monetary Policy Committee of the PBOC, the future plans include two parts. The first is for the Shanghai Free Trade Zone to allow individuals to invest overseas via qualified domestic individual investor (QDII2) schemes, with raised investment ceilings for both individuals and institutions.

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AmCham delegates with Tommy Yuen, Deputy Director, Beijing Office of HKSAR (front center)

Ms. Xing Yujing, Secretary General of Monetary Policy Committee & Director General of Monetary Policy Department II, People’s Bank of China

Additionally, with some of the progress from the pilot programs, there will be further two-way liberalization of financial markets and increased transparency in response to market demand. Foreign exchange is also a priority for China, and Xing pointed out the challenge that central banks of emerging markets face worldwide, which is that there must be a balance between economic growth, employment, as well as reform. The PBOC will continue to work with various ministries which each need their relevant support policies, particularly in regards to SOE Reform, real estate and local government debts.

SOE reform Meeting with the state-owned Assets Supervision and Administration Commission (SASAC), AmCham delegates queried the latest update on state-owned enterprise (SOE) reform, to which point SASAC outlined the market-oriented goals ahead, for mixed ownership and internationalization of SOEs. “We need to optimize the layouts of SOEs, and make operations more aligned with the national strategies and

biz.hk 11 • 2015

James Sun

Managing Director, Charles Schwab HK

Walter Dias

Managing Director, Greater China & Korea, United Airlines

Richard Vuylsteke

President, AmCham HK

Zhu Guangyao, Vice Minister of Ministry of Finance, (left) and AmCham Vice Chairman Walter Dias

Alan Turley

Vice President-International Affairs, APAC, FedEx Express

Steve Lackey

Chairman, Asia Pacific, BNY Mellon

John Lange

Partner, Paul, Weiss, Rifkind, Wharton & Garrison

Seth Peterson

Partner, Heidrick & Struggles Hong Kong Ltd

Steven Chan

Vice President & Head of Regulatory, Industry and Government Affairs, Asia Pacific, State Street Bank & Trust Co.

Veronica Sze

Associate Director, Public Affairs & Policy, Wyeth (Hong Kong) Holding Company Limited

Sean Chiao

President - Asia Pacific, AECOM

Colin Chan

Delegates in a meeting at the Ministry of Commerce

Vice President and General Manager, Asia Datapipe Managed IT Services

Nicholas Ronalds

Managing Director, Equities, ASIFMA

Marc Rothemund

more conducive to our people’s welfare,” said Yin Yisheng, Deputy Director General of the Bureau of Enterprises Reform for SASAC. “Our aim is to let operators and the market have a more real understanding of the status of our SOEs, therefore they can make the right plans and targets.”

In collaboration with AmCham, SASAC suggested the following: establishing a communication platform to host seminars; establishing a cooperation platform; and establishing a financing platform. In the future, they hope to make SOEs stronger and bring “new

biz.hk 11 • 2015

dynamism” to encourage a better investment environment in China.

Hong Kong’s role One of the frequent topics of the Beijing Doorknock was the “One Belt, One Road” initiative, which has since been updated to be named the “Belt and Road Initiative.” When meeting with Kang Wen, the Deputy Director General for Taiwan, Hong Kong, and Macau Affairs for the Ministry of Commerce, it was emphasized that there were main connectivity points to be emphasized:

Executive Director, Relations, J.P. Morgan

Global

Government

Anthony Root

Senior Advisor, Moelis & Company

James Chang

China Financial Service Consulting Leader, PwC

Patrick Powers

Director, Government Automation (China)

Affairs,

Rockwell

James Lidbury

Global Co-Chair of Mergers & Acquisitions, Ropes & Gray LLP

Wilfred Wong

Corporate Development Walgreens Boots Alliance

Director,

China,

15

1) governments; 2) regional infrastructure; 3) trade and investment flows; 4) financial cooperation and integration; and 5) people-to-people.

In terms of the role that Hong Kong can play, she noted the mature professional services market available, especially pertaining to legal, accounting, risk management, financial and consulting services.

By 2020, the Asian Infrastructure Investment Bank predicts the need for US$8 trillion in capital, so Hong Kong’s financial platform will play a crucial role.

Currently, the Ministry of Commerce is working on projects together with the Hong Kong Trade and Development Council to promote professional services.

Wang Yiming, the Vice President of the Development Research Center of the State Council, summarized the 13th Five-Year Plan and what it detailed for Hong Kong. In it, he said, there are plans to support Hong Kong’s competitive edge, as well as to help the city develop new industries and to continue to cooperate with the Mainland.

Its role, he said, included providing global perspective and to continue serving as an international financial center and offshore RMB center.

Frank Ning Gaoning, Chairman of COFCO (standing)

New AmCham traditions In what has become an AmCham HK tradition, delegates participated in a luncheon with a benchmark Chinese company, China National Cereals, Oils and Foodstuffs Corporation, known as COFCO, one of China’s state-owned food processing companies and the country’s largest food processing manufacturers.

Chairman of COFCO Frank Ning Gaoning outlined both the company’s domestic and global strategy, especially with regards to keeping track of the supply chain for fast-moving consumer goods such as milk. COFCO is implementing SASAC’s mixed ownership model, and investing in real estate, hotels, as well as shopping malls.

“Particularly for me, it is nice to know more about [COFCO], one of the biggest food players in China and get

16

Delegates and officials at Development Research Center of the State Council

some important some insights about the overall food and beverage industry in China. I believe these learnings are worth sharing with our F&B industry members when there is a suitable occasion in the near future,” said Veronica Sze, Associate Director, Public Affairs & Policy, Wyeth Holding Company Limited Hong Kong.

Continuing another tradition, AmCham delegates participated in its second networking mixer and dinner with key leaders of AmCham China, including President Mark Duval, at the Capital M Restaurant overlooking

Tiananmen Square. This evening, which coincidentally celebrated two AmCham China members’ birthdays, was the perfect opportunity to share insights about business in Hong Kong and Beijing, and to facilitate meaningful conversation and relationships for cross-border business connections.

AmCham continues to serve as a platform for MNCs and SMEs to liaise with the Mainland, and there will be numerous delegations planned in 2016, including the annual delegation to Beijing as well as sector-specific delegations to other key Chinese cities.

biz.hk 11 • 2015

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EDUCATION

Dr. Jadis Blurton

The Harbour School

One School At A Time Over the last several years, the government has allocated vacant school premises and greenfield sites to address the alarming deficit of school spaces in Hong Kong. Leon Lee spoke to some of the schools who were awarded and denied a site in the latest round of allocations to learn more about the situation

L

ike in every industry in Hong Kong, the lack of space is an issue in the education sector, especially for international schools.

In 2013, the Education Bureau warned of a shortage of 4,200 school places by 2016. As of the 2014/2015 school year, there is a total of 50 international

18

schools in the city offering 40,957 places.

In an effort to provide more school spaces, the government has identified and allocated vacant school premises and greenfield sites for the construction of new schools through an extensive application process. Since 2008, 16 of those have been allocated. The most

recent allocations were announced at the end of May of this year for five sites.

Forty applications were received and in the end, The Harbour School and ESOL Education were each awarded a vacant school premise while French International School, Shrewsbury School and Malvern College were each awarded one of the three available greenfield sites. According to the government, the allotted schools will provide an additional 4,270 school spaces, 3,490 primary and 780 secondary school spaces.

Growing pains Every school has their own reasons to apply for the allocations. Some were starting their first schools in the city, others were trying to add to their existing campuses in the city. For both The Harbour School and International Montessori School, it was about finding security.

The Harbour School (THS) currently operates two campuses, one in Kennedy Town and a newer venue in Ap Lei Chau. Both of them are located in commercial buildings so the school would need to re-up their lease every year or so, or otherwise be thrown out once their lease is up. This is exactly what the International Montessori School (IMS) is facing.

IMS currently has four campuses on Hong Kong Island - Mid-levels, Ap Lei Chau, Tin Hau and a new place in Stanley, which was awarded in a previous round of allocation. But their lease

biz.hk 11 â&#x20AC;˘ 2015

Karin Ann

for the Tin Hau school is up in July of next year and the landlords has made it clear that they need to move out.

“We have a lease on our Tin Hau campus, which is ending in July 2016, so we really needed to find a replacement campus. Participating in the school allocation exercise is really the only channel that you can go through to find a school facility of that kind of size for what we needed to relocate our Tin Hau community. If we had been awarded something, we would have moved from Tin Hau to the new location,” Karin Ann, co-founder and principal of IMS, explains.

However, they were not awarded either the greenfield site in Tseung Kwan O or the vacant school premise in Ap Lei Chau that they applied for.

The Ap Lei Chau school went to THS. For THS, the new school means an opportunity to continue to build on the success they have accomplished so far.

Started in 2007, the school currently has 165 students in their mainstream school and 18 in The Children’s Institute, their center for autistic students. Their students and teachers have won numerous awards and recognitions. In 2014, they won second place in Pearson’s “21st Century School Of The Year” Competition.

“The school in Kennedy Town is not very big, a few classrooms. It’s a very nice space that we’ve done good stuff with it. But there is no playground, auditorium, none of the facilities that you think of normally being in a school. So we were really

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space deficient. We were doing all kinds of great things but without any space and security to do it in,” Dr. Jadis Blurton, THS’s Head of School, explains.

The vacant Ap Lei Chau school currently has six floors spread over two wings. THS have plans to add another floor, a swimming pool and an auditorium/library/performance space to the existing structure. When it opens in September 2016, it would be able to accommodate 500 students from kindergarten to eighth grade.

When they found out they got the space, they were obviously ecstatic.

“We had put our heart and soul into the bid. Failure is not an option. But we kept telling ourselves we shouldn’t count on it, we should be making alternative plans and we did,” says Blurton.

IMS also put in their best effort in their bid but had the opposite results.

They were disappointed and heartbroken but had their own alternative plans.

“When we got the Stanley campus, we really were seeing a lot of demand and rapid growth. Basically what we did is we started to manage that admissions because of the uncertainty around Tin Hau. We’re relocating a portion of our Tin Hau campus to the Stanley campus and then the other portion we’re actually in the process of trying to find something else more in the local area that we can have our kindergarten students continue to attend around the north side of Hong Kong Island,” says Ann. Currently there are around 300 students in the Tin Hau campus. If they were awarded the school site, they were planning to add 300 to 400 more students in the addition to the ones moved from Tin Hau. Despite the disappointment, Ann is optimistic about the future of the school.

“For us, the future is bright. We’ve grown very quickly. We will be filling the campuses very soon. There continues to be a strong demand. Now we have a very strong network and reputation, it’s a time to maybe stabilize a

little bit and we look forward to that.

We have some great people in place to help us run our whole school in different locations. Perhaps it’s a time to consolidate and it’s come at a good time.”

Adding value The huge demand for an international education certainly makes Hong Kong an attractive city for schools to set up new campuses.

“Hong Kong is an important market for us. It is very close to China where we have a strong presence with 17 schools from kindergarten to high school. Hong Kong also has an international community that values high quality education and a very talented international work force. This is an important consideration for starting an international school as it attracts discerning international families as well as offers many exciting opportunities for international educators to work here,” says Ng Gim Choo, Group Managing Director of EtonHouse International Education Group.

Ng Gim Choo

19

The group currently operates two pre-schools in Hong Kong, one in Pak Shek Kok and another in Tai Tam. Parents often mention to them about starting a primary school in Hong Kong.

With their extensive experience in operating over 100 international schools and pre-schools in 12 countries, they were confident that they would be able to offer something of value to the international school community in the city. They had planned to start a K-12 school offering an International Baccalaureate program. But unfortunately, EtonHouse did not receive an allocation this time. Ng expressed disappointment at the results, but respected the decision and hope to have opportunities to apply again in the future.

UK’s Malvern College also believe that they have much to contribute to the educational community when they applied for the greenfield site in Tai Po. “The overall thinking is that we believe the British boarding school is something that offers a very holistic education to students internationally.

When we had a discussion with the Board of Malvern, they were very excited to extend that kind of education offering to the communities in Asia,” says Jacqueline So, Chief Executive of Malvern College Hong Kong.

“We believe Hong Kong is a community that can really benefit from the kind of things we can offer, including educational, the International Baccalaureate and the different kinds of sports, art and music.”

When it was announced that they would receive a site, they were obviously happy. The school purposely chose the Tai Po site because of its proximity to the

Hong Kong Science Park. The school is traditionally focused on the sciences so they plan to have future collaborations with the park and the companies who reside in it. In fact, they are planning to have a large periodic table on one side of the building. The building would also have science labs, art rooms, a full gymnasium, swimming pool and a sky pitch on the roof. The design of the building has been confirmed and they’ll looking to do the ground breaking in March or April of 2016 with the building to be completed before the summer of 2018.

So says that there has been a lot of interest in the school so far in international school fairs. The admission process will start in September 2016 for 2018. When the school first opens, they will offer around 380 primary places.

Eventually the school will grow to 960 places for both primary and early years of secondary schools.

The process Regardless of the results, each interviewee found the school allocation process to be satisfactory. They all agreed that it was a comprehensive and thoughtful process and that the government has made the effort and taken the steps to address the issue.

To further help the situation, both EtonHouse’s Ng and IMS’s Ann brought up the identification of unused school premises.

“Hong Kong still has a number of vacant schools as a result of schools being closed down because the demographics changed. But they’re not always accessible to schools and it’s not always clear what’s available, where they are and who controls them,” says Ann. “As a layman, I would say if there could be some process to harness that and make those unused spaces available.”

And while the more school spaces available the better, THS’s Blurton believes those places also need to be put to good use.

“With these allocations, I think there are going to be a lot more spaces available. But one of the things that I think is really important is that we should have a variety of schools, different types of schools because that just creates a rich environment,” the Head of School says.

“It should be a buyer’s market.

Right now it’s a seller’s market. There’s no incentive to work with the parents and the child because you have a waiting list of a million people. We want it to be much more flexible and competitive.”

Rendering of Malvern College Hong Kong

Jacqueline So

20

biz.hk 11 • 2015

biz.hk 11 • 2015

21

EDUCATION

Local or International Education?

Dr. Maggie Koong, chief principal of Victoria Educational Organization and school director of Victoria Shanghai Academy, shares advice for families facing this dilemma and further insight about the city’s varied educational landscape

By Nan-Hie In

Photos: VSA

22

C

hoosing a primary school in Hong Kong is stressful for everyone involved.

Parents contemplating an international school for their child face fierce competition and soaring costs in a sector that is grappling with a deficiency of school placements.

The Education Bureau forecasts a shortfall of 4,200 primary international school places by the 2016/2017 year. This reality is not only a headache for families, but also for members of the business community who are trying to lure overseas talent to the city.

Whereas parents considering the local school route have to navigate through the city’s convoluted dual allocation system, which includes a lottery-style process that gives families little leeway in securing their preferred choice.

Complicating the decision-making process are the various application time

biz.hk 11 • 2015

Dr Maggie Koong

frames, admission policies and more.

Dr. Maggie Koong, chief principal of Victoria Educational Organization (VEO) and school director of Victoria Shanghai Academy (VSA) shares her guide to Hong Kong schools as well as advice for families stuck in the debate on international versus local education.

“Every school suits different children,” says Koong during a recent workshop on the topic at AmCham. A more important question is which school will suit your child’s interests and personality and if the young learner would thrive in the chosen educational environment. “It is about the child’s personality, character and the parents’ beliefs [about education],” she adds.

School options The educational providers in the city can be defined into four dominant groups.

Government schools are fully funded by public bodies and are free for pupils. Aided schools, run by charitable or religious bodies, receive full funding

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by the city too. Both government and aided schools offer the local curriculum set by the city’s Education and Manpower Bureau (EMB).

There are also Direct Subsidy Scheme (DSS) schools, a hybrid between a private and public school in that they receive partial funding from the government (a fixed amount per student), yet they can also embark on fund-raising efforts to further develop their premises and so forth. The scheme emerged in the 1990s as part of Secretary of Education and Manpower Fanny Law’s campaign to liberate some of the schools constrained by the public education system and to encourage educational diversity in Hong Kong. “[Law] thought we should have chartered schools like in the US that give schools subsidies based on the number of students at the organization.

Otherwise, [schools] would not be motivated to make good progress at their schools or be more ambitious to offer different types of schools,” explains Koong.

DSS schools have more flexibility in shaping its management, admissions policies and tuitions fees but within parameters set by the government.

“Fees cannot exceed HK$5,000 per month as DSS schools usually receive around HK$5,000 a month or HK$46,000 per year for primary unit per child of government subsidies,” the education expert reveals.

For decades, schools under the English School Foundation (ESF) were under this scheme so English-speaking students who cannot access the local system can enroll at these institutions affordably. But the subvention to the ESF is being phased out, which explains the regular fee hikes at ESF schools in recent years. Koong says most ESF schools now offer International Baccalaureate, International GCSE or GCE curriculum.

Hong Kong also has private schools, which have much autonomy in setting their own curricula, admission policies and more. These institutions do not receive government subvention. Under this category are also Private Independent Schools (PIS). According to Koong, “The government provides nice land for these schools, for free. They offer innovative curriculum, but these schools also have to accept 70 percent of its students from local children.” Victoria Shanghai Academy is one of over 40 Private Independent Schools in Hong Kong.

A key difference between local and international schools is fees with the

23

Number of various schools in Hong Kong, from Dr. Koong Local Schools

Government schools Aided schools DDS schools Private schools

34 Over 450 21 42

International Schools International schools PIS Schools

Over 50 8

latter being more costly. Staff costs are to blame, says Koong. “Teachers are very expensive as we are now in a very competitive world of teachers especially for international educators.” At her schools, for example, around 80 percent of expenditure goes to staff costs.

At international schools, there is also the possibility of debentures, capital levies among other schemes that parents can subscribe to give their child an advantage in school admissions, adds the chief principal.

The admissions process The popularity of international schools means most spots are oversubscribed. So parents must plan and start well in advance. Applications start in September each year. Acceptance criteria varies depending on the school.

Some schools offer high-cost debentures (some in the millions) and other monetary schemes to give the applicant priority in the admissions process.

English proficiency is a requirement at these institutions, which is assessed through interviews. The interviews also check whether the child has reached age-appropriate milestones cognitively, linguistically, physically, socially and emotionally, reveals Koong. “A lot of times, interviews with young children of four or five years of age are asked to read a story, for example, and the teacher will look at the child’s attentiveness and ability to listen to instructions,” she says.

24

These meetings can entail playing, reading or drawing.

There is also a preference for applicants whose siblings already go to the school.

For local schools, there is a two-stage admissions system: the Discretionary Places Admissions (DPA) and the Central Allocation (CA), which Koong dubs the “lucky draw stage.” Half of students enrolled at local schools were from the DPA and the rest have been selected through the CA. “The DPA usually takes place at the last year of kindergarten when children are five years old,” she says. Applications start in September and the results are released in November. The school preference does not have to be in the family’s catchment area.

There are two categories under the DPA process. If the applicant has a sibling attending the school or a parent working at the school, the child will get into the government or aided school. At local schools, the quota is to allocate 30 percent of pupils through this category.

The rest of the applicants will be selected based on a point system. Local schools enroll 20 percent of pupils this way. Points are awarded to first-born children, as well as to applicants whose parents or siblings are an alumni of the school, for example.

“Once you accept a school in the DPA stage, one cannot participate in the CA stage,” Koong says. According to the industry expert, parents dissatisfied with the result from the DPA can participate in the CA in January.

In the CA stage, parents select three school preferences. Placements can be based on the family’s residency, as 40 percent of the students enrolled at this stage are within the catchment area.

“This is a totally computerized random allocation,” she says, adding that the results come out in June.

As a result of Law’s reforms, admission interviews are banned at government or aided schools as the government didn’t want to put so much pressure on students. However, like international schools, DSS schools and private schools conduct interviews with applicants. For DSS schools, they

usually take place before summer and the schools make their decision in December.

At private schools, interviews take place around August to November; the release of the results vary depending on the schools.

Learning environment The local and international education systems adopt different learning styles.

Most international schools follow a generalist approach: students are taught many subjects and for specialized classes such as music and physical education, educators expert in these fields teach these classes.

Whereas at locals schools, frequent exams reign. “It is a very difficult way of testing kids to help them revise and memorize content,” Koong says. Based on exam results, students are ranked in their classroom. She says some parents appreciate this approach as it lets them compare their child’s performance to others.

At international schools, there is a less volume of exams as pupils are also assessed through projects, collaborated works, essays and more, depending on the educational program. The veteran educator says this approach is rooted in the school’s holistic view of child learning.

Asked if local schools are a viable option for international families considering the language requirement and demographic of pupils at these places, Koong says it depends on the type of organization, although most local schools are populated by Chinese pupils.

“If there is no Chinese support at home, then you have to think about how to support this language to your kids.”

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 11 • 2015

AM M Bu

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TRADE & INVESTMENT

DOWN Or UP

Uncertainties regarding China and its actual GDP growth figure, policy-making abilities and other concerns have clouded global investment outlook.

A panel of experts recently sat down and discussed views on whatâ&#x20AC;&#x2122;s happening in the country now, and how to move forward

By Tsering Namgyal

26

biz.hk 11 â&#x20AC;˘ 2015

T

he lack of clarity over the actual state of the China’s economy is casting a shadow over the already disappointing global economic outlook, economists say.

Under such a scenario, the decision by the US Federal Reserve Board not to raise interest rates was justified, opines Simon Cox, investment strategist for Asia Pacific at BNY Mellon.

“On a broad range of indicators, the US job market is weaker than it was in June 2004, when the Fed began its last tightening cycle. Inflation is weaker than it was in 2004, and monetary policy, if properly measured, is actually tighter than it was in June 2004,” Cox says at a recent AmCham talk, pointing out that the so-called “neutral” or “natural” interest rate was lower today than it was then.

And China continues to remain a source of uncertainty as the country’s GDP figures attract increasing skepticism. Even though the government claims that the GDP growth figure is seven percent, he says the actual figure could be between five to six percent.

“None of us can have a very good grasp about what is happening in China. The range of things that could be true is extraordinarily large.”

To drive home his point, Cox uses as a reference the alternative guide to China’s economic growth – the Li Keqiang Index, created by The Economist magazine in 2010.

The index is named after China’s current premier, Li Keqiang, who during his tenure as the party secretary of Liaoning province, used railway freight, electricity consumption and bank lending as a measure of the province’s economic growth.

“If you judge by the Li Keqiang Index, the growth is more like 5.4 percent rather than the official rate of seven percent,” he says. “This shows that either the relationship between China’s 10 trillion dollar economy and railway freight, electricity consumption and bank loans has changed fundamentally.”

biz.hk 11 • 2015

(From left) Qian Wang, Jessica Cutera, Simon Cox, Ernest Ng

Potential hard landing Qian Wang, managing director for Asian macro research for Vanguard Investments, also underscores concerns about a hard landing in China, which some worry could trigger a worldwide recession.

However, Wang believes that perhaps the biggest concern is “the risk of policy missteps” by the Chinese authorities as shown during the stock market rout and the RMB depreciation over the summer.

Like Cox, she’s skeptical of the purported seven percent growth of the economy. “There is no doubt that China’s economy is slowing. We are expecting the second half GDP growth rate to come down to about six percent and for the full year, we will be lucky if

we are able to achieve something close to 6.5 percent,” she says.

Yet, according to the executive, the slowdown in China is old news as she points out the fact that China’s GDP growth rate has nearly halved from about 14 percent before the global financial crisis.

“What is new is really the shaken investor confidence about the ability of the Chinese authority to maintain the subtle balance between the pace of the growth and the quality of the growth,” she argues.

The concerns about a potential hard landing in China are primarily fueled by two factors: the slowdown in the financial services sector and the slump in the real estate sector.

Wang forecasts that the weakening stock market would probably shave off as much as 0.7 percent from the GDP in the second half of the year, considering

27

What it means

Jessica Cutrera

Qian Wang

the fact that the financial services sector contributed quite significantly to the first half growth figures.

In terms of the real estate sector, the fixed investment growth in housing has slowed down from nearly 40 percent from 2007 to about three percent now. This means that over the past decade or so, nearly 75 percent of the slowdown in GDP has been a direct consequence of the lower real estate investment.

“Based on our research, real estate has a very long supply chain, and it has an impact on a lot of other industries,” Wang says.

On the whole, she points out that every 10 percent slowdown in the housing sector investment would lead to about two to two and a half percent reduction in the headline GDP growth.

28

Further complicating the economic picture in China is the fact that Chinese authorities are juggling multiple policy priorities.

In order to maintain social stability, the government must maintain a certain level of GDP growth in the near term. Yet the government must also continue with the work of rebalancing the economy to ensure long-term sustainability of China’s economy. In addition, the government also must lower the risks to the financial system.

“It is therefore not easy for the Chinese governments to try to achieve all these goals simultaneously. It takes a lot of skills for Chinese authorities to maneuver all uncertainties and risks and, in the end, achieve a soft-landing,” Wang says.

The recent policy uncertainties have made investors question the Chinese government’s ability to deliver on its promises of a soft-landing.

Worse still is those decisions have hurt the government’s credibility, at least in terms of pursuing its reformist agenda, according to BNY Mellon’s Cox. “The policy missteps have damaged the reputation for reforming constituency within China, and conservatives might use these mistakes as an example.”

While these uncertainties have given investors a taste of the extent to which policies could go wrong, they have also given an opportunity for Chinese authorities to learn from their mistakes.

“We think there will be continued slowdown but hopefully it will be a smooth transition engineered by policymakers. It’s good that Chinese policymakers are learning their lessons,” Wang says.

Yet she seems slightly pessimistic about the government’s ability to forestall a private sector slowdown.

“Slowdown in China is not just cyclical but there are structural and secular forces that are making China’s slowdown story a very protracted one,” she says. “Since we have accumulated so much overcapacity in the past, we

have to absorb and adjust all that excess going forward.”

Ernest Ng, chief investment officer of Hong Kong hedge fund Sumeru Capital, believes that perhaps in light of such a scenario, investors should strive for capital preservation. “This transition and reforms will be challenging, and I think we are in for a period of volatility,” he says.

Furthermore, due to the lack of homogeneity in terms of factors driving growth across the region, it is best to access these markets through a diversified strategy.

“Given the variation between individual countries, we recommend investors evaluate them separately and make single country allocations based on the most attractive opportunities,” says Jessica Cutrera, founder and managing director of wealth management firm EXS Capital.

This is especially true when evaluating the Asian investment climate.

“This does vary with timing but it isn’t trying to time the market for the sake of market timing, but rather to focus on your entry point on sensible valuations and look to exit those markets when and if they become overvalued while paying attention to volatility,” she explains.

In a similar vein perhaps, what matters in the end is not the GDP growth but relative valuation and, by extension, investor expectation, according to Vanguard’s Wang.

And this is why she believes what investors should be asking is whether the markets have been more pessimistic than necessary, despite the weakening of the Chinese GDP, which she expects to slow down to five percent or even lower by 2020.

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, South China Morning Post, amongst others.

biz.hk 11 • 2015

CHARITABLE FOUNDATION

I In support of local charities in Hong Kong that serve the disadvantaged, the elderly, as well as women and children, friends and supporters of AmCham Charitable Foundation gathered on a Friday evening to celebrate the Chamber’s years of continuous efforts in making a positive impact on society

By Queenie Tsui

30

f aesthetics is a philosophy of beauty and artistic taste, AmCham’s Charitable Foundation Dinner is absolutely a representation of that: coalescing gastronomy, architecture, and beautiful minds in one setting in this season of Thanksgiving.

Friends and supporters of the foundation gathered at Crown Wine Cellars on a Friday evening to celebrate the Chamber’s years of continuous efforts in making positive impacts on society through their work and support of local charities that help the disadvantaged, elderly, women and children.

Just before the dinner started, distinguished guests were greeted with a glass of Stellenbosch’s premium

biz.hk 11 • 2015

‘’When I am down and, of, my soul, so weary; When troubles come and my heart burdened be; Then I am still and wait here in the silence, Until you come and sit awhile with me.’

‘There is no life – no life without its hunger; Each restless heart beats so imperfectly; But when you come and I am filled with wonder, Sometimes, I think I glimpse eternity.’

Photos: Karma Cheng

bubbly as they stepped into the glass-housed conservatory to mingle under the stars while admiring the beauty of the architecture.

This is one of the world’s most prestigious cellars and is the first underground club in Hong Kong.

Known as ‘Little Hong Kong’, it was originally the Central Ordinance Munitions Depot and was the last place to surrender to Japan in World War II. The ex-military structure, declared in 2007 as a UNESCO Asia Pacific Heritage Site, was then taken over by Crown in pursuit of a visionary project to transform the historic location into a state-of-the-art wine storage and tasting facility.

As guests walked through the candle-lit tunnel to be seated in the

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elegantly furnished underground bunker adorned with a hand-painted map of the Bordeaux region, President Richard Vuylsteke and Jon Zinke, Charitable Foundation Trustee and past AmCham Chairman, opened the evening. Everyone was treated to a music performance by budding musicians Jerry Sun and Andrew Cheung who beautifully sang You Raise Me Up that felt perfect for the occasion.

Zinke expressed his heartfelt gratitude to James E. Thompson, Charitable Foundation Trustee and Chairman of the Crown Worldwide Group, who for the fourth year hosted the dinner by sponsoring the extravagant venue, four-course dinner with wine pairings, as well as selected wines for the auction.

He also thanked AmCham Trustees James Sun, Robert Chipman, Thomas Gorman, Gage McAfee, and Governor Ryan Mai for their generosity in supporting the Foundation.

(AmCham would also like to thank Zinke for his sponsorship.)

Before dinner began, Zinke announced the winner of this year’s Ira Dan Kaye Community Service Award – Mike and Kay Rawbone, founders of Sailability Hong Kong. It is a locally-established international initiative that provides water-based experience and sailing instruction to the physically- and/or intellectually-challenged (see Page 34 for full story).

Along with an engraved silver plate, the winners received a check of HK$30,000. “We’re a voluntary

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organization, we do not get government funding. [This] award makes a huge difference. It’s the first award of this nature we’ve ever had and we would like to say thank you very much,” says Mike Rawbone.

Additionally, it was announced that the Ira Dan Kaye Community Service Honorary Award will be given to Thompson as a recognition of his dedication and contribution to the community over the years.

“The Ira Dan Kaye Award, named after an AmCham Past Chairman who did so much for the community, is given out every year to recognize committed volunteers who serve the community generously,” said Zinke.

The evening reached a pinnacle as

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AmCham President Richard Vuylsteke gave out prizes for the lucky draw, followed by the long-awaited wine auction conducted by Gregory De’Eb. Seventeen lots of fine wine from Burgundy, Napa Valley, Bordeaux, Stellenbosch, Pauillac, Friuli-Venezia Giulia, Saint-Emilion, South Australia, and Scotland were sold to wine-loving connoisseurs after rounds of competitive bidding.

With all the generosity from sponsors and guests, the Charitable Foundation Dinner added over HK$200,000 to this year’s fundraising campaigns for various philanthropic engagements throughout the year, including Prize Book Awards, Lyn Edinger US Scholarship, Scholar Awards for local

university students, as well as financial assistance to lesser known charities in Hong Kong serving the underprivileged every year.

Special thanks go to United Airlines for sponsoring two Business Class tickets to an Asian destination of the winner’s choice; The Peninsula Shanghai for offering a two-night stay with daily breakfast for two and round-trip airport transfer by bespoke limousine; The Peninsula Boutique for giving a Peninsula Hamper and table prizes for all guests, Four Seasons Hong Kong for a dinner at Caprice with a bottle of wine at guests’ choice; as well as Ritz Carlton for sponsoring a Dom Perignon Sunday Brunch at Ozone.

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CHARITABLE FOUNDATION

In The Same Boat The charity Sailability uses the sport of sailing to give people with physical and intellectual disabilities a rare opportunity to compete with able-bodied athletes on the same level, boosting their self-confidence and self-esteem

By Channy Lee

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fter a two-hour long sail, boats instantly recognizable with neon colored sails glide back to the Hebe Haven Yacht Club.

Waiting for them at the floating dock in anticipation for what he calls “boat-catching” is Mike Rawbone, co-founder and Chairman of Sailability Hong Kong and recipient of the 2015 Ira Dan Kaye Community Service Award from the AmCham Charitable Foundation, along with his wife, Kay. Sailability is an international organization with numerous branches operating independently around the world that facilitates sailing for the

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Photos: Sailability

physically and intellectually disabled.

When introducing Sailability, Rawbone always starts with, “You need to be able to answer this question to understand how Sailability works. If you put me in a boat and somebody with no legs in another one, what’s the difference? I can tell you there is very little difference.”

After every sailing session, the chairman along with other volunteers grab onto the returning bows before they hit the dock while Kay coaches the sailors on a safety boat before heading onto the dock to help with the boat-catching. The yachts are then lined up at the dock and volunteers help the sailors out of the boat, who excitedly chatter about how well they sailed today or how much wind there was out on the ocean.

On the same field When the Hong Kong chapter of Sailability was established in 2009, the organization started with six sailors and

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two boats. Today, the total number of disabled sailors they have trained is 650, sharing between them 24 boats adapted for a variety of special needs.

The sailors come from various backgrounds, consisting of local residents and expatriates from seven-year-olds to those in their seventies. Their disabilities range from Down syndrome, autism, blind, deaf, non-verbal to paralysis. Many of those trained return to sail regularly.

Rawbone explains the wide appeal of sailing to the disabled lies in that it is one of the rare sports where people with disabilities can compete against the able-bodied.

“We took our racing team to Finland in August and there were 102 boats that took part. In the top 10 winners, six were disabled. That’s the point about sailing. You can compete on a leveled playing field. Their self-esteem, confidence, everything about them is so much better because they’ve never been allowed before. You see these people in wheelchairs with a big smile on their face because they are beating able-bodied people.”

Outside of Sailability The Rawbones moved to Hong Kong in 2003 for work. Despite their tireless dedication to Sailability, the organization is not their only responsibility. Mike is the owner of a human resources consultancy firm, while Kay works with the disabled community in Hong Kong as the Operations Director at the Nesbitt Centre.

Juggling their two demanding jobs and Sailability have become an exhausting struggle for both of them, especially with their responsibilities at Sailability swelling rapidly. “Kay and I work about seven days a week,” Rawbone jokingly adds. However, they continue to do it as they see the need and importance of their work.

Kay was exposed to people with special needs at a very early age, leading up to her passion in working for the disabled community. Her commitment is reaffirmed by her work at the Nesbitt Centre.

“Through my wife, I started to have interest. And with the interest, you start to see that many places do not cater to their needs. We don’t have a lift here [at the Hebe Haven Yacht Club] – although we will very shortly – but they don’t make allowances for people with disabilities very easily,” Rawbone explains.

So in 2009, when Mark Houghton, then commodore of the yacht club, suggested to Rawbone that the club should get more involved in community work, the chairman volunteered to take the initiative. Houghton supported the process of setting Sailability forth with the Hebe Haven Yacht Club as its home ground without a moment of hesitation.

Challenges faced Despite its ambitious beginning, Sailability faced early problems revolving around consolidating its daily operations like securing equipment and getting sailors in the program insured because people questioned the plausibility of the initiative. And after six years in operation, it is still no smooth sailing for the organization.

The challenges posed have shifted to pressure on the limited resources they have.

Their sailing sessions are increasingly overloaded and it has far exceeded the extent to which the Rawbones and the yacht club can account for.

“I am really excited about how it has grown because I knew it would, there are lots of people with disabilities,” Rawbone says. “But we have got to have a day off in a week to inspect the boats and do repairs. We have three schools waiting to send their students to sail and we don’t know to cope [with the amount of people].”

Compounding the struggle is that Sailability is a not-for-profit, charitable organization that receives no government funding. They keep their administration costs to approximately seven percent of their revenue. There are no employees other than professionally qualified sailing instructors. The organization is run completely reliant

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on donations from local residents, corporate entities, schools and other non-governmental organizations to fund their activities.

It helps that family members of sailors at Sailability have offered to volunteer for the organization, being principal witnesses to how sailing can empower those with special needs. But even with the continued support, supply outstrips the demand. They always need more volunteers, boats, safety equipment and space. “We are hoping to spread to other sailing clubs now. We are really cramped here, I’ve been repairing boats at the carpark,” Rawbone says.

But in the midst of strenuous work, the Rawbones keep their morale high.

“You see these people, what they put up with and they just get on with it.

Never complain. That’s where Kay and I get our satisfaction.”

The chairman’s personal philosophy is to never say no which is thoroughly exemplified by the organization and its sailors. They have come a long way and the sense of achievement precedes the ordeal. “[Because] we don’t have the expertise yet to communicate with the deaf, we teach their teachers to sail. As such, we can’t do everything now but

we can always find a way to do it,” Rawbone says.

Getting recognized One of the most widely recognized achievements of Sailability Hong Kong is the bronze medal that one of their sailors, Foo Yuen Wai, brought back from the Sailing Division of 2014 Asian Para Games as a representative of Hong Kong. They are now preparing for qualification to the 2016 Paralympics in Rio de Janeiro, while looking forward to launching new boats like The Spirit of Hong Kong to their current fleet of 24.

Like the Operation Santa Claus I and Operation Santa Claus II, Sailability’s boats are named by their sponsors and adapted to suit different needs. Tweedle Dee and Tweedle Dum are for beginners while larger 7.9-foot boats like the Courageous, Mischief, Xi Wang (Mandarin for hope) and Spirit of Hong Kong are for those more experienced.

These names each have their stories and reflect the spirit of their sailors, Rawbone points out.

Sailors and parents on Sailability Joshua Winslow, a sailor “I have been sailing for six years now since Sailability started. I enjoy sailing because it makes you focus. When you are on the boat, you have to focus to see where you are going and know what you are doing. And I see my friends here. We sail together and have lunch together. We talk and laugh while having lunch. I come every Saturday to sail.”

Simon Mountain, a sailor “My favorite thing about sailing is being on water with my friends.”

Daniel Faizullabhoy, a sailor “More people should sail because it’s a good water sport. It relaxes people.”

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Kay and Mike Rawbone

“People with disabilities are very resilient, very determined. When you see some of the sailors, when you see what they can do – climbing in and out of the boats, you’ll think it’s amazing.

They just get on with it. I am full of admiration, I really am. They never complain and I’ve learned from it.

What right have we got to complain when they are not complaining?”

Penny Mountain, a volunteer at Sailability and Simon’s Mom “The first time we came to Sailability, he needed help from the beginning. He couldn’t get out of the car alone, walk across alone because he would trip over all these things. He needed help all the way around, with everything. Now I can stop the car, he gets out of the car, do all the things he needs to do. He can sit down on his own and move into the boat. He has gone from totally dependent to almost independent. At this point, I can probably drop him off at the [Hebe Haven Yacht] club, leave, come back to pick him up when his sailing session ends and he would be just fine.”

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2015

An Unforgettable Stay

By Leon Lee

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hile hotels can provide a comfortable and glamorous stay, it can also feel a bit bland as the rooms tend to resemble one another. The layout or furniture might be different, but they often lack personality and just follow the same cookie-cutter formula. Hotel Pravo aims to break from this mold to give their guests a truly memorable experience.

Something for everyone Located in the heart of Tsim Sha Tsui, the hotel offers 92 specially-designed accommodations. Like any other hotel, guests can select from a range of room types to stay in such as standard rooms, superior rooms and suites. However at Hotel Pravo, guests can further decide on the theme of their rooms from themes such as Dark, Light, Feminine, Masculine and Luxury.

The hotel is owned by the Bonds Group and its chairman Anson Chan had a unique vision for it.

“Rather than doing a typical three-, four- or five-star hotel with the typical hotel facilities and design, he really wanted to customize his hotel’s individual rooms to cater to the different preferences of different guests from different countries,” Hang Song Chew, City Manager, Hong Kong and Macau, explains.

As their names suggest, Dark-themed rooms come with black wallpapers and other shadowy furniture, giving the space a sleek,

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rock-and-roll feel.

Light-themed rooms are the opposite with plenty of white and earth-toned furnishings for those who prefer softer colors. Feminine-themed rooms are specifically-designed with female travelers in mind but doesn’t necessarily mean it’s only for women. Standard rooms (ranging from 143-183 sq ft) and Superior rooms (181-216 sq ft) come in Light, Dark, Masculine and Feminine themes. The Luxury-themed rooms are available in the Deluxe suites (210-270 sq ft), which also comes in Light, Dark and Masculine, as well as the Premier suites (264-294 sq ft) and Presidential Suite (469 sq ft).

Chew points out that the different themes mean different wallpapers, bed sizes and even different toilets and sinks as they are customized to compliment the theme of the room. On one floor, you might find five different kinds of rooms. This poses a challenge from a housekeeping perspective, but the guests have certainly taken to the idea.

“We have a number of returning guests who try a different theme every time they come back, just to see which one fits them better. It’s quite an interesting take on the hotel stay experience,” Chew says.

Brand name service Besides Citadines Ashley, Somerset Victoria Park, The Mercer, Hotel Pravo is the fourth property managed by The Ascott Limited in Hong Kong. But unlike those three, it’s the first boutique hotel managed by the company.

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“Traditionally we have been strong in service apartment operation so this is a very interesting product not just for guests, but for The Ascott Limited as well,” Chew says. “We have many corporate travelers who come to Hong Kong to do their business every now and then. So other than our traditional service residences, we have another interesting product that we can offer to our guests.”

The clientele is one of the biggest difference between managing a hotel to a service residence. Long-staying guests make up about 80 percent of the residents in a service apartment with travelers comprising of the rest. But at a hotel, it’s usually 70 percent travelers and 30 percent long-staying corporate guests.

“For those who are here on business for more than a week or so, they’ll usually prefer to stay in a service residence with a small room and small kitchen where they can do their own cooking. But for those corporate travelers who are here for a shorter period of time, they don’t mind putting up in a hotel which is more personalized. So unlike going to a four-, five-star hotel where everything is more or less pretty much the same, if they come to Hotel Pravo, they can expect something different,” Chew says.

With just a little over 90 guestrooms, the team is able to devote more time and attention to customize their service to the needs of the guests.

They can mingle and provide them with recommendations on places to visit, eat, shop, anything to make their stay in Hong Kong a great one.

The quality service doesn’t come at a cost. Chew explains that while a stay at Hotel Pravo cost less than at a fourand five-star hotel, guests can still expect to get the same level of service and amenities like a gym, branded toiletries, a complimentary mini-bar, WiFi access and even a complimentary smartphone to help guests get around the city.

This is quite an advantage in a prime location like Tsim Sha Tsui with its plethora of shopping, dining and entertainment options. There are a wide range of accommodations from the high-end hotels like Langham and Marco Polo, to other boutique hotels, to apartment-style options in places like Chungking Mansion. But while there might be cheaper options, it’s hard to know who their management is or the quality of their accommodations and service.

With its desirable location, proven management and distinct rooms, Hotel Pravo stands out from the pack as the boutique hotel for a unique stay for both corporate and leisure travelers alike.

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AmCham HKâ&#x20AC;&#x2122;s Go-To Guidebook for everything to know about the City that Truly Never Sleeps Now Available for Purchase at www.amcham.org.hk/publications

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Getaways 2015 Special Features With stunning views of the East Sea and the magnificent Truong Son mountain range in the background, the tranquil and intimate Banyan Tree Lăng Cô, Central Vietnam is the perfect destination for a romantic getaway with that special someone.

Enjoy a Night On Us when you book a minimum of three nights at this awe-inspiring sanctuary and look forward to a time of pampering and relaxation.

From now until 19 September 2016, book the Stay 3 Pay 2* offer and enjoy the 3rd night on us from USD340 ++/ per night. Offer is valid for bookings of minimum three nights, and for stays from now until 23 September 2016 including breakfast for two.

Reservations Cu Du Village, Loc Vinh Commune, Phu Loc District, Thua Thien Hue Province, Vietnam Tel: (84) 54 3695 888 Fax: (84) 54 3695 999 Email: langco@banyantree.com

www.banyantree.com/en/ap-vietnam-lang-co

The Mercer Hong Kong Your Home in the City

Special Features / Amenities

Conveniently located with walking proximity to the CBD in Central and the Hong Kong-Macau Ferry Terminal, Airport Express Hong Kong Station and Sheung Wan MTR, The Mercer offers 55 elegantly designed apartments and comes equipped with a gymnasium, an outdoor swimming pool, a resident’s lounge and a 3 Michelin-star Japanese restaurant Sushi Shikon right at our doorstep. Each apartment is decked with contemporary furnishings and a handy smartphone with Wi-Fi connectivity, providing the perfect living space to relax while staying connected in the comfort of your home away from home.

Because life is about living.

• Complimentary mini-bar with daily refreshment • Daily housekeeping • Free local calls • Free Wi-Fi • Free use of Handy Phone, offering unlimited IDD calls to 15 countries and unlimited 3G mobile internet access (Australia, Canada, China, France, Germany, Italy, Japan, Malaysia, Netherlands, Russia, Singapore, South Korea, Taiwan, UK & USA)

Reservations No. 29 Jervois Street Sheung Wan Hong Kong Tel: (852) 2922 9988 Fax: (852) 2922 9989 Email: enquiry.hongkong@the-ascott.com Key Personnel: Ms. Gigi Chow, Reservation Officer

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The Royal PaciďŹ c Hotel & Towers Ideally positioned in Tsimshatsui, The Royal Pacific Hotel & Towers sits uniquely on the bank of the stunning Victoria Harbour and is the only hotel in Hong Kong with direct access to the China-Macau Ferry. Located on Canton Road in the heart of Tsimshatsui, MTR, Airport Express and Star Ferry are just moments away. It takes about 35 minutes to go to the Hong Kong International Airport.

The Hotel offers 673 rooms and suites, commanding lush Kowloon Park, bustling city or spectacular harbour view. The Hotel also offers 4 award-winning restaurants, a business centre and lounge, a 24-hour fitness centre, 8 function spaces and complimentary wifi service to suit the needs of business and leisure travelers.

Reservations The Royal Pacific Hotel & Towers, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong Tel: (852) 2736 1188 Fax: (852) 2738 2332 Email: info@royalpacific.com.hk RoyalPacificHotel

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MARK YOUR CALENDAR Nov Party Plenums, Five Year Plans and the New Normal for

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Foreign Business in China

James McGregor, Greater China Chairman, APCO Worldwide, China After landmark Third and Fourth Plenums, China held its Fifth Plenary Session in late October. The Fifth Plenum provides insights into China’s overarching strategy for the next five years, which will be detailed in the 13th Five Year Plan to be ratified next March. How does all this mix and match to achieve the government's goals of maintaining sufficient economic growth while refurbishing an economic model and governing system that are searching for stability and sustainability? What are the implications and opportunities for foreign business in China as the New Normal takes shape and Chinese business struts onto the world stage?

Join APCO’s Greater China Chairman James McGregor as he discusses how to frame thinking around China’s milestone plenary sessions, President Xi Jinping’s motivations and vision for China, and the implications to multinational companies operating in China.

Nov The Trans-Pacific Partnership Agreement -

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What does it mean to American companies’ businesses and disputes in the Asia Pacific?

Chiann Bao, Secretary-General, Hong Kong International Arbitration Centre Romesh Weeramantry, Foreign Legal Consultant, Clifford Chance On October 4, 2015, 12 Pacific Rim countries representing 40 percent of the world’s economy signed an ambitious and comprehensive agreement to enhance trade and investment in the Asia Pacific region.

Described by the US Government as “a landmark 21st–century agreement”, the TPP covers a wide range of trade-related matters and includes a clause providing for investor-state dispute settlement (ISDS). ISDS clauses are a regular feature of investment treaties and a useful tool for foreign investors of a TPP country to bring claims against the host government before an international arbitral tribunal. In this regard, Hong Kong and HKIAC have emerged as attractive fora for investor-state disputes. According to a recent global arbitration survey, Hong Kong and HKIAC are recognised as the world’s third most preferred seat and arbitral institution respectively.

This seminar brings together investment treaty and arbitration experts from HKIAC and Clifford Chance to share their insights on the implications of the TPP agreement for US companies.

Nov China's Connected Consumers -

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When 10,000 Chinese shop... Insights from a 2015 survey

Anson Bailey, Principal, Business Development, KPMG China At this briefing, KPMG will share highlights from their recently launched new e-commerce survey of online spending in China, titled China’s Connected Consumers, in partnership with Mei.com (A China-based online flash retailer of luxury brands) and Weibo.

The new report analyses responses from 10,150 Chinese online consumers on their online spending patterns. It is a sequel to a 2014 survey on online luxury spending in China and highlights the rise of online transactions, as well as the increasingly important roles of social media and mobile devices.

The top driver for purchasing online remains pricing and better deals. However, the survey found that close to one-third of respondents had made luxury online purchases at the full, non-discounted price. This is a development as other factors are starting to have more of an impact on people’s purchases, including product origin and its uniqueness.

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

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

Email: byau@amcham.org.hk

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20151028-Human Resource Flyer Final3.pdf 1 10/28/2015 3:48:26 PM

2015 AMCHAM HUMAN RESOURCES CONFERENCE THE INNOVATION IMPERATIVE: IGNITING ADVANTAGE THROUGH PROPLE AND CULTURE Friday, December 4, 2015 8:00am - 3:00pm Four Seasons Hotel Hong Kong

In today’s fast changing disruptive environment, it is critical for organizations to think transformational, and out of the box, to stay ahead of competition. With easy access to information, advancement in technology, and digitization, the biggest differentiator for leading companies is their focus on talent, and differentiated people strategies.

The 2015 Human Resources Conference is an event specifically designed for senior HR professionals, academics and business leaders.

Throughout the conference, participants will have an opportunity to hear best in class practices from Senior HR and Business Leaders from leading companies that have an exceptional track record of being transformational and innovative.

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CEO, Hong Kong Science and Technology Parks Corporation (Opening Keynote)

Sean Ferguson

Associate Dean of Master’s Programs, Director of MBA Programs, HKUST Business School (Luncheon Address)

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Platimun Sponsors

Dr. Alison Eyring

CEO, Organisation Solutions (Closing Keynote)

Kate Bravery

Global Solutions Leader, Talent Business, Mercer

Paul Choi

Co-Head Goldman Sachs University Asia, Executive Director Human Capital Management, Goldman Sachs Asia

Matt Collier

Regional Ambassador, LUMA Lead Instructor

Simon Galpin

Director-General, Invest HK

Annie Qiao

Asia Pacific Learning & Development Leader, EY

Tony O’Driscoll

Regional Managing Director, Duke Corporate Education

Bronze Sponsors

PROGRAM *Opening Keynote *Panel Session *Three Concurrent Breakout Sessions (each session is run twice at 10:45am – 11:45am & 12pm-1pm) 1) Culture and Mindset 2) Talent & People 3) Method *Luncheon Address: How is higher education evolving to fuel entrepreneurship and innovation?

Media Partner

*Closing Keynote: How great HR leaders empower growth and innovation More speakers and topics to be announced

For registration and more details about the conference, please visit

http://www.amcham.org.hk/events/signature-events/human-resources-conference

JOURNAL OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG

www.amcham.org.hk

November 2015 • VOLUME 47 NUMBER 11