AmCham biz.hk Sept 2016 by The American Chamber of Commerce in Hong Kong

September 2016

BREXIT:

CAN CHINA KEEP CALM AND CARRY ON? INDUSTRY FOCUS: AIRLINES, LOGISTICS & RELOCATION

SPECIAL SUPPLEMENT: MOVING TO HONG KONG

COVER SPONSOR

JOURNAL OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG

YOUR CHILD’S

PATHWAY TO

1UNIVERSITIES ST TIER

WITH AMERICAN & IB CURRICULUMS*

From 5 to 18 years old

CAMPUS OPENING SEPTEMBER 2017! www.amcham.org.hk September 2016 • VOLUME 48 NUMBER 9

Daily Chinese or Spanish, or Bilingual Chinese and English

Academic STEMinn Program from Age 5 ^ƚĂŵĨŽƌĚ ŵĞƌŝĐĂŶ͛Ɛ ƉƌŽďůĞŵͲďĂƐĞĚ ^d DŝŶŶ WƌŽŐƌĂŵ ĐŚĂůůĞŶŐĞƐ ƐƚƵĚĞŶƚƐ ŝŶ ^ĐŝĞŶĐĞ͕ dĞĐŚŶŽůŽŐǇ͕ ŶŐŝŶĞĞƌŝŶŐ͕ DĂƚŚ Θ /ŶŶŽǀĂƟŽŶ ƚŚƌŽƵŐŚ ĐƌŝƟĐĂů ƚŚŝŶŬŝŶŐ ĂŶĚ ƌĞĂůͲǁŽƌůĚ ĂƉƉůŝĐĂƟŽŶ͘ >ĂǇŝŶŐ ƐƚƌŽŶŐ ĨŽƵŶĚĂƟŽŶƐ ŝŶ ƚŚĞƐĞ ĚŝƐĐŝƉůŝŶĞƐ ƉƌĞƉĂƌĞƐ ŽƵƌ ůĞŵĞŶƚĂƌǇ ƐƚƵĚĞŶƚƐ ĨŽƌ ƐƵĐĐĞƐƐ ŝŶ ƚŚĞ ŚŝŐŚůǇ ĐŚĂůůĞŶŐŝŶŐ WŚǇƐŝĐƐ͕ ŝŽůŽŐǇ ĂŶĚ ŚĞŵŝƐƚƌǇ ĐŽƵƌƐĞƐ ŽīĞƌĞĚ ŝŶ ^ĞĐŽŶĚĂƌǇ ĂŶĚ ƌĞĂĚŝĞƐ ƚŚĞŵ ĨŽƌ ƚŚĞŝƌ ĨƵƚƵƌĞ ĐĂƌĞĞƌƐ ĂƐ ƐĐŝĞŶƟƐƚƐ͕ ĞŶŐŝŶĞĞƌƐ ĂŶĚ ďƵƐŝŶĞƐƐ ůĞĂĚĞƌƐ͘

ĞŝŶŐ ŵƵůƟůŝŶŐƵĂů ŝƐ Ă ŬĞǇ ĞůĞŵĞŶƚ ŽĨ ŐůŽďĂů ĐŝƟǌĞŶƐŚŝƉ͘ /ƚ ĨŽƐƚĞƌƐ ĐƵůƚƵƌĂů ĂƉƉƌĞĐŝĂƟŽŶ ĂŶĚ ĞŶŚĂŶĐĞƐ ĐŽŵŵƵŶŝĐĂƟŽŶ ƐŬŝůůƐ ƚŚƌŽƵŐŚ ůŝĨĞ ĂĐƌŽƐƐ ĞĚƵĐĂƟŽŶ͕ ǁŽƌŬ ĂŶĚ ƚƌĂǀĞů͘ dŚĂƚ ŝƐ ǁŚǇ Ăƚ ^ƚĂŵĨŽƌĚ ŵĞƌŝĐĂŶ͕ ƚǁŽ ŽĨ ƚŚĞ ǁŽƌůĚ͛Ɛ ŵŽƐƚ ǁŝĚĞůǇ ƐƉŽŬĞŶ ůĂŶŐƵĂŐĞƐ Ͳ ŚŝŶĞƐĞ ĂŶĚ ^ƉĂŶŝƐŚ Ͳ ĂƌĞ ƚĂƵŐŚƚ ĚĂŝůǇ ĨƌŽŵ ĂŐĞ ϱ͘ KƵƌ ďŝůŝŶŐƵĂů ƉƌŽŐƌĂŵ ŽīĞƌƐ ĞƋƵĂů ĞǆƉŽƐƵƌĞ ƚŽ ŚŝŶĞƐĞ ĂŶĚ ŶŐůŝƐŚ ĂĐƌŽƐƐ ƚŚĞ ĐƵƌƌŝĐƵůƵŵ͕ ĞŶƐƵƌŝŶŐ ƚŚĞ ŐƌĞĂƚĞƐƚ ƉƌŽĮĐŝĞŶĐǇ ŝŶ ďŽƚŚ ůĂŶŐƵĂŐĞƐ͘

Leveled Reading Program – 1 in Every Classroom DĂƐƚĞƌŝŶŐ ƌĞĂĚŝŶŐ ƐŬŝůůƐ ĨƌŽŵ Ă ǇŽƵŶŐ ĂŐĞ ŝƐ ŶŽƚ ŽŶůǇ ĐƌƵĐŝĂů ĨŽƌ ƌĞĂĐŚŝŶŐ ŬĞǇ ŵŝůĞƐƚŽŶĞƐ ŝŶ ůĂŶŐƵĂŐĞ ĂŶĚ ĐŽŵŵƵŶŝĐĂƟŽŶ͕ ďƵƚ ůŝŶŬĞĚ ƚŽ ŚŝŐŚĞƌ ŽǀĞƌĂůů ĂĐĂĚĞŵŝĐ ƉĞƌĨŽƌŵĂŶĐĞ͘ ůů ^ƚĂŵĨŽƌĚ ŵĞƌŝĐĂŶ ƐƚƵĚĞŶƚƐ ƵŶĚĞƌŐŽ ƌĞŐƵůĂƌ ŝŶͲĐůĂƐƐ ƌĞĂĚŝŶŐ ĂƐƐĞƐƐŵĞŶƚƐ ƚŚƌŽƵŐŚ ƚŚĞ &ŽƵŶƚĂƐ Θ WŝŶŶĞůů ĞŶĐŚŵĂƌŬ ƐƐĞƐƐŵĞŶƚ ^ǇƐƚĞŵ ; ^Ϳ͕ ĂůůŽǁŝŶŐ ƵƐ ƚŽ ĚĞůŝǀĞƌ ƉĞƌƐŽŶĂůŝǌĞĚ ƌĞĂĚŝŶŐ ƉƌŽŐƌĂŵƐ ďĂƐĞĚ ŽŶ ĞĂĐŚ ĐŚŝůĚ͛Ɛ ƌĞĂĚŝŶŐ ůĞǀĞů͘

Continuous Standardized MAP® Testing ǀĞƌǇ ƐƚƵĚĞŶƚ Ăƚ ^ƚĂŵĨŽƌĚ ŵĞƌŝĐĂŶ ƵŶĚĞƌŐŽĞƐ ƐƚĂŶĚĂƌĚŝǌĞĚ DĞĂƐƵƌĞƐ ŽĨ ĐĂĚĞŵŝĐ WƌŽŐƌĞƐƐΠ ;D WΠͿ ĂƐƐĞƐƐŵĞŶƚƐ ŝŶ ZĞĂĚŝŶŐ͕ DĂƚŚ ĂŶĚ ^ĐŝĞŶĐĞ ƚǁŝĐĞ Ă ǇĞĂƌ͕ ĂůůŽǁŝŶŐ ƵƐ ƚŽ ŵĞĂƐƵƌĞ ƚŚĞŝƌ ĂĐĂĚĞŵŝĐ ŐƌŽǁƚŚ ƚŚƌŽƵŐŚŽƵƚ ƚŚĞ ƐĐŚŽŽů ǇĞĂƌ ĂŶĚ ĨƌŽŵ ǇĞĂƌ ƚŽ ǇĞĂƌ͘ tĞ ĚĞůŝǀĞƌ ŝŶĚŝǀŝĚƵĂůŝǌĞĚ ůĞĂƌŶŝŶŐ ƉůĂŶƐ ďĂƐĞĚ ŽŶ ĞĂĐŚ ƐƚƵĚĞŶƚ͛Ɛ ŝŶƐƚƌƵĐƟŽŶĂů ůĞǀĞů͕ ĞŶƐƵƌŝŶŐ ĞǀĞƌǇ ĐŚŝůĚ ŝƐ ƐƚƌĞƚĐŚĞĚ ĂŶĚ ĐŚĂůůĞŶŐĞĚ ĂƉƉƌŽƉƌŝĂƚĞůǇ͘

www.sais.hk | +852 2500 8688 ^ƚĂŵĨŽƌĚ ŵĞƌŝĐĂŶ ^ĐŚŽŽů ,ŽŶŐ <ŽŶŐ ŝƐ ĐƵƌƌĞŶƚůǇ ƵŶƌĞŐŝƐƚĞƌĞĚ͘ WƌŽǀŝƐŝŽŶĂů ƌĞŐŝƐƚƌĂƟŽŶ ŽĨ Ă ƐĐŚŽŽů ǁŝƚŚ ƚŚĞ ĚƵĐĂƟŽŶ ĞƉĂƌƚŵĞŶƚ ƵƌĞĂƵ ŚĂƐ ďĞĞŶ ĂƉƉůŝĞĚ ĨŽƌ ďƵƚ ŝƐ ĐƵƌƌĞŶƚůǇ ƉĞŶĚŝŶŐ ĂƉƉƌŽǀĂů͘ dŚĞ ŽƉĞŶŝŶŐ ŽĨ ƚŚĞ ƐĐŚŽŽů ŝƐ ƐƵďũĞĐƚ ƚŽ ĂƉƉƌŽǀĂů ŽĨ ƚŚĞ ƉƌŽǀŝƐŝŽŶĂů ƐĐŚŽŽů ƌĞŐŝƐƚƌĂƟŽŶ ďǇ ƚŚĞ ĚƵĐĂƟŽŶ ƵƌĞĂƵ͘ Ύ^ƚĂŵĨŽƌĚ ŵĞƌŝĐĂŶ ^ĐŚŽŽů ,ŽŶŐ <ŽŶŐ ǁŝůů ĂƉƉůǇ ƚŽ ƚŚĞ /ŶƚĞƌŶĂƟŽŶĂů ĂĐĐĂůĂƵƌĞĂƚĞ ĨŽƌ ƉƌŽŐƌĂŵ ĐĂŶĚŝĚĂĐǇ ŝŶ ĞĐĞŵďĞƌ ϮϬϭϳ͘

STRUGGLING TO VALUE YOUR OTC, DERIVATIVE OR ILLIQUID ASSETS? Our award-winning evaluated pricing service has the answers you need.

The Thomson Reuters Pricing Service is a leading pricing service for OTC, derivative and illiquid assets. Every day, thousands of investors around the world use our independent evaluated prices to accurately value their portfolios and power their risk, compliance and investment workflows. Backed by a team of experts around the globe, our pricing service offers high-quality, transparent valuation and pricing data updated throughout the day. Price recipes, corresponding market color and associated relevant data sets are available at the touch of a button. ARE YOU USING THE BEST EVALUATED PRICING SERVICE? To find out why thousands of other buy-side firms rely on Thomson Reuters every day for their portfolio valuations, visit prdcommunity.com.

ÂŠ 2016 Thomson Reuters. 349715 07/16.

349715_V1.indd 1

07/07/2016 10:30

2016 10:30

September 2016

Contents

Vol 48 No 9

Publisher

Richard R Vuylsteke

Editor-in-Chief Kenny Lau

Assistant Editor Jennifer Khoo

COVER STORY

While British citizens ponder their country’s fate following the momentous referendum in June, China is left wondering about the implications of Brexit on its international trade relations, its overseas investment strategy and economic direction. Alicia Garcia Herrero, Chief Economist of Natixis Hong Kong & Asia Pacific, sheds some light on three potential post-Brexit scenarios and their medium-to-long term impacts on China

Assistant Advertising Sales Manager Tom Chan

AMCHAM NEWS AND VIEWS 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, 2016 Library of Congress: LC 98-645652

04 Development of a Trade Single Window: A Big Step Forward The tedious process of compliance with documentation requirements is an issue that can be addressed through a Trade Single Window (SW) – a “facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements”

07 New Business Contacts 47 executives join AmCham’s business network this month

68 Mark Your Calendar

COVER STORY 08 Brexit: Can China Keep Calm and Carry On? Following UK’s momentous vote for Brexit, China is left wondering about the implications on its international trade relations, its overseas investment strategy and economic direction. Alicia Garcia Herrero, Chief Economist of Natixis Hong Kong & Asia Pacific, sheds some light on three potential post-Brexit scenarios and their mediumto-long term impacts on China

Single copy price HK$50 Annual subscription HK$600/US$90

biz.hk 9 • 2016

14 FINANCIAL SERVICES The launch of “Shenzhen Connect” will mark the completion of Hong Kong’s mutual market access plans for China’s secondary equity market. Charles Li, Chief Executive of HKEX, explains how it will give investors on both sides of the boundary more choices and enhanced access to each other’s markets

TRADE & INVESTMENT Boasting world class infrastructure, cost competitiveness and a multi-lingual talent pool, Malaysia – a multi-ethnic, multi-religious nation with one of Southeast Asia’s most vibrant and diversified economies and an active participant in regional and global trade initiatives – remains hopeful of achieving “developed” country status by 2020

FINANCIAL SERVICES

14 The Imminent Launch of Shenzhen-Hong Kong Stock Connect The launch of “Shenzhen Connect” will mark the completion of Hong Kong’s mutual market access plans for China’s secondary equity market. Charles Li, Chief Executive of HKEX, explains how it will give investors on both sides of the boundary more choices and enhanced access to each other’s markets

TRADE & INVESTMENT

18 Malaysia’s 2020 Vision

Boasting world class infrastructure, cost competitiveness and a multi-lingual talent pool, Malaysia – a multi-ethnic, multi-religious nation with one of Southeast Asia’s most vibrant and diversified economies and an active participant in regional and global trade initiatives – remains hopeful of achieving “developed” country status by 2020

EDUCATION

24 The Chicago Approach In 1943, The University of Chicago Booth established the world's first Executive MBA program. Using a unique educational approach combined with decades of experience, the School has grown to encompass three dedicated campuses on three continents - including one right here in Hong Kong

biz.hk 9 • 2016

18 EDUCATION

In 1943, The University of Chicago Booth established the world's first Executive MBA program. Using a unique educational approach combined with decades of experience, the School has grown to encompass three dedicated campuses on three continents - including one right here in Hong Kong

INDUSTRY FOCUS

31 On the Move: Airlines, Logistics Providers & Relocation Companies The latest corporate developments of airlines, transport carriers, containerized cargo ports, logistics services providers, and relocation solutions companies Allied Pickfords American Airlines Asia Jet Asian Tigers Mobility Brookfield Global Relocation Services Cathay Pacific Airways Crown Worldwide Group Delta Air Lines DHL FedEx Express Hong Kong Airlines Incheon Port Authority Modern Terminals Mitsui O.S.K. Lines Orient Overseas Container Line Polar Air Cargo Port of Long Beach Santa Fe Relocation Services United Airlines UPS Weichert Workforce Mobility Asia Pacific Worldwide Flight Services Yusen Logistics

biz.hk Editorial

Board of Governors Chairman Vice Chairman Treasurer

Walter Dias Steve Lackey Owen Belman

Executive Committee Evan Auyang, Sean Chiao, John (Jack) E Lange, Alan Turley, Jennifer Van Dale Governors Donald Austin, Elaine Cheung, Diana David, Sean Ferguson, Robert Grieves, Matthew Hosford, Clara Ingen-Housz, Michael Klibaner, Simon Ogus, Seth Peterson, Anna-Marie Slot, Catherine Simmons, Eric Szweda, Patrick Wu, Lennard Yong Ex-Officio Governor President

Peter Levesque Richard R Vuylsteke

Chamber Committees Apparel & Footwear Ball 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

Mark Green Diana David Devin Ehrig Lili Zheng Oliver Rust Pat-Nie Woo Virginia Wilson Rick Truscott Cynthia Chow Laurie Goldberg Jim C Taylor Steven Chan Veronica Sze Mark Kemper Peter Liu Benny Lee

Rebecca Harrison Hanif Kanji Gabriela Kennedy Intellectual Property Jenny Wong Chiann Bao Law Jessica Bartlett Margaret Driscoll Pharmaceutical Edward Farrelly Real Estate Robert Johnston 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 Jennifer Parks Women of Influence Jennifer Wilson Michael Harrington Young Professionals

ong Kong is well known globally as an international trading hub of goods, but it is also a port where the process of compliance with business-to-government (B2G) documentation requirements is somewhat tedious. That’s because traders and carriers are required by nine government agencies to submit 51 trade documents, such as cargo manifests, import and export declarations, and present relevant licenses and permits – all for the movement of goods “subject to specific controls or schemes.” They are in place to “meet regulatory requirements for a number of public policy reasons, such as statistics, levies and duties, anti-smuggling, public safety and health, and security purposes.” Despite a number of initiatives introduced over the years to ease the reporting requirements through electronic means – including the Government Electronic Trading Services (GETS) in 1997, Air Cargo Clearance System (ACCS) in 1998 and Road Cargo System (ROCARS) in 2010 – a majority of trade documents are still handled through “conventional paper means” over the counter or by mail. And, whether electronic filing of trade documents is available, traders and shippers have to deal with each and every government agency separately as may be required at different points of time. The process is simply too fragmented and inefficient; it creates an enormous burden, financially or otherwise, on not only the trading community but also government agencies such as the Customs and Excise Department (C&ED). It lags behind the international standards set by other advanced economies and reduces Hong Kong’s competitiveness as a trading hub. It has been a long-standing issue that the government, as Financial Secretary John Tsang mentioned in his 2016-17 Budget earlier in the year, is looking to address by establishing a full-fledged Trade Single Window (SW) – defined by the United Nations as a “facility that allows parties involved in trade and transport to lodge

biz.hk 9 • 2016

DEVELOPMENT OF A TRADE SINGLE WINDOW: A BIG STEP FORWARD standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If the information is electronic, then individual data elements should only be submitted once.” The plan calls for a single IT platform for the one-stop lodging of all 51 documents for all trade declaration and customs clearance purposes. It is also expected to include the technical capability to facilitate interfaces with business-to-business platforms operated by the private sector and connections with SWs of other economies. It is a monumental step in maintaining Hong Kong’s position as an international trade and logistics center. Without a doubt, a “full-fledged” SW will involve a substantial capital cost comparable to the development of Hong Kong’s Next Generation Smart Identity Card System which is estimated to have a cost of HK$1,449 million (of which HK$967 million is for the development of a new IT system). This has caused some concern within the trading community about rising user fees for which the government “will review the existing [structure]…and identify possible cost savings with a view to achieving full-cost recovery as far as possible in the new SW environment.” While industry stakeholders do not know the exact cost of a new SW scheme at this stage, they can be sure about the time and cost savings (HK$860 to HK$1,500 million per annum in administrative cost) in the long run as a result of far greater operational efficiency brought upon by an advanced, up-to-date online digital platform. As such, they will no longer need to approach

biz.hk 9 • 2016

different government agencies separately, can lodge B2G trade documents electronically and keep track of their applications and submissions through a single portal at any time. The government can also benefit through the sharing of crucial information between participating government agencies through a single, globally interconnected information system. It will make trade control easier and more efficient; it will help enforce compliance with legal and procedural requirements; it will facilitate customs cooperation and connectivity; and it will facilitate the development and implementation of government policy objectives in the future. In essence, a Trade Single Window system as specified in the current proposal will help the trade community achieve far greater efficiency and, hence, savings. It will be a great tool for the government for the purpose of exchange of trade information with a host of different countries and jurisdictions. Above all, it will help expedite the cargo clearance process and enhance international trade relations for the benefit of both the public and private sectors. The unifying power of the anticipated SW system in Hong Kong will revolutionize the current business-to-government, businessto-business, and government-to-government interfaces. And it will form the foundation for a much wider range of e-commerce initiatives among traders and providers of logistics services. Without SW, Hong Kong will be hard-pressed to retain the status of globally important logistics and trading hub in the 21st century.

20160825-Membership Ad biz.hk Sept 2016-4.pdf 1 25/08/2016 2:50:12 PM

CMY

New

Business Contacts The following people are new AmCham members: Acuma Hong Kong Limited Sixto Rosado Wealth Manager

Akin Gump Strauss Hauer & Feld Vena Cheng Senior Consultant Gregory Puff Asia Managing Partner Mark Fucci Registered Foreign Lawyer Anne-Marie Godfrey Partner Tatman Savio Partner

Cognita

Hamilton Lau Head of Strategy & Business Development, Asia Pacific Kate Jeffrey Commercial Director Robert Wolff Chief Financial Officer Angelina Tee Head of Legal and Compliance, Asia Pacific Angela Pedron Admissions Director Malcolm Kay Superintendent Emeritus Chris Jansen Global CEO

Elliott Advisors (HK) Ltd Allied Pickfords Hong Kong Joseph Lam Business Development Manager

Asia Securities Industry and Financial Markets Association Ltd Wayne Arnold Executive Director, Head of Policy and Regulatory Affairs

Bain & Company (Hong Kong) Richard Hatherall Partner

Ning Tung Research Analyst Nicholas Maran Director of Research Asia Daniel Chinoy Research Analyst

Forth Capital

Mark Plummer Regional Branch Manager

Goldman Sachs (Asia) LLC Paul Choi Executive Director, Human Capital Management

Legacy Trust Company Limited Douglas Wilson Managing Director Vivian Chan CFO David Nesbitt Director

Lion Brothers Far East Ltd Chi Sun Li General Manager John Connolly Director of Customer Relations

Lord Asia International Limited Ngai-Ming Yau Director Finance, APAC

Nielsen Hong Kong Ivy Cheung Vice President

Panamasia Financial Services Limited Mikael ParĂŠ Senior Vice President

Pfizer Corporation Hong Kong Ltd Jasper MacSlarrow International Public Affairs

PricewaterhouseCoopers Ltd BALtrans International Moving Ltd Terry Ip Sales Manager

Golin

Jane Morgan Managing Director, Hong Kong

Jen Flowers Associate Director

Regal Springs AG Carlisle Asia Pacific Limited Todd Eltschlager Director of Supply Chain - Asia Pacific Matt Luce Director of Finance - Asia Pacific Arthur Berman Project Manager APAC

Cato Overseas Limited Mark Hayden Regional Managing Director

Central Financial Education Limited Kyle Wong Director

Hong Kong Cancer Fund Sally Lo Founder & Chief Executive

Elaine Cheung Group CFO

Spring Professional (Hong Kong) Ltd Hong Kong Trade Development Council (HKTDC)

Ashley Alcock Manager Matthew Webb Manager

Hong Kong University of Science & Technology

UA Global Sourcing Limited

Raymond Yip Deputy Executive Director

Steven DeKrey Senior Advisor to the President, Adjunct Professor of Management Catherine Lo Assistant Director, MSc Programs, School of Business and Management

Stanley Burton Managing Director

W Hong Kong

Angelina Chan Senior Director of Sales/Operational Excellence

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

biz.hk 9 â&#x20AC;˘ 2016

COVER STORY

Brexit:

Can China Keep Calm and Carry On? While British citizens ponder their country's fate following the momentous UK EU referendum result, China is left wondering about the implications of Brexit on its international trade relations, its overseas investment strategy and economic direction. Alicia Garcia Herrero, Chief Economist of Natixis Hong Kong & Asia Pacific, sheds some light on three potential post-Brexit scenarios and their medium-to-long term impacts on China

By Jennifer Khoo

biz.hk 9 â&#x20AC;˘ 2016

“The people of the United Kingdom have spoken.” - President Obama following the Brexit vote

n June 23rd 2016, the United Kingdom voted to leave the European Union in an historic move that plunged the nation into unchartered territory, roiling financial markets and the dynamics of international relations globally. The value of the British pound plummeted to a level not seen since the 1985 financial crisis, as investors across the globe panic-sold shares in one collective move. Britain’s change of government leadership that hastily followed ignited much speculation about the future direction of the country, while also raising questions over the invoking of Article 50 of the Lisbon Treaty – a move which would begin the two-year countdown on Britain’s negotiation of exit terms – something no member state has ever done before. Meanwhile in Asia, ripples of panic had spread across the region’s financial markets. By the end of the announcement day, Japan’s Nikkei Index tumbled by 7.9 percent; Hong Kong’s Hang Seng Index fell by nearly 3 percent; and the Chinese yuan (renminbi) fell to its lowest level in more than five years. Aside from the initial frenzy which has since subsided, the immediate impact of Brexit on Asian financial markets has been relatively minor. What remains to be seen is the longer-term impact that Brexit will have on the region, in particular China – the UK’s largest trading partner in Asia and its fourth largest trading partner globally.

Possible scenarios The medium-to-long term economic effects of Brexit on China’s economy will depend in part on the

negotiated outcome of Article 50 talks when they take place. The talks will establish the terms of Britain’s new relationship with the EU following its exit, which will help paint a clearer picture for China of how multilateral trade and business will be newly conducted. But in truth, it is more a question of what will happen to the EU (China’s biggest trading partner) post-Brexit rather than the UK, which will have a greater bearing on China’s economic future, according to Alicia Garcia Herrero, Chief Economist of Natixis Hong Kong & Asia. With a combined economy 4.2 times larger than that of the UK, the European single market is certainly a matter of greater concern for China. While it is impossible at this stage to form any conclusions about what will transpire given the current level and scale of uncertainty, Herrero proposes three potential scenarios arising from Brexit and explains how each could, in turn, affect China’s economic development in the coming years. The scenarios are as follows: 1) business as usual without much change; 2) a more united EU without Britain; and 3) a fragmented EU after Brexit.

Scenario 1: Few changes In the case of what global credit insurance company Euler Hermes calls a “soft leave scenario” in its Brexit: What does it mean for Europe? report, the UK will likely have negotiated some kind of free trade agreement (FTA) with the EU upon its exit, with terms not too dissimilar from its existing setup. In line with that scenario, Herrero in her analysis of the long-term considerations for China (entitled Assessing China’s post-Brexit globalization strategy for

Article 50 of the Lisbon treaty outlines how an EU member country might voluntarily leave the union.

What is

Article 50?

It specifies that a leaver should notify the European council of its intention, negotiate a deal upon its withdrawal and establish legal grounds for a future relationship with the EU. On the European side, the agreement needs a qualified majority of member states and consent of the European parliament. The only real quantifiable detail in the article is a provision that gives negotiators two years from the date that Article 50 is invoked to conclude new arrangements. Failure to do so results in the exiting state falling out of the EU with no new provisions in place, unless every one of the remaining EU states agrees to extend the negotiations. No country has ever invoked article 50 – yet. Definition provided by The Guardian

biz.hk 9 • 2016

European think tank Bruegel) points out that Chinese overseas direct investment in the UK is an area where Brexit will likely have great impact. The scale of Chinese FDI in the UK has been quite large in recent years. Between 2010 and 2015, the amount of Chinese investment in the country reached EUR15.16 billion (US$17 billion), making Britain the number one EU destination for Chinese overseas direct investment, according to the MERICS report by Hanemann and Huotari (2016) as shown in the map on page 11. In 2015 alone, Ping An Insurance and Tai Kang Life, two of China’s major insurance companies, successfully bid for real estate projects in London, with a total value exceeding US$5 billion. The popularity of British commercial real estate among Chinese investors is unsurprising. Chinese companies continually choose to base their European headquarters in London due to its attractive position as a gateway to the rest of Europe. However, once the UK loses access to the EU single market as is expected post-Brexit, it is also expected to lose some of its attractiveness as a Chinese investment hub in Europe. It follows that this will impact Britain’s commercial real estate sector, as trade and investment uncertainties between the UK and the EU increase. “Chinese companies that use Britain to gain access to the EU market will encounter fresh issues including tax, labor mobility and legal aspects,” He Weiwen, a researcher at Renmin University in Beijing, told Global

Times, China’s English-language newspaper. “These companies will consider setting up additional offices in the European continent,” he adds. Furthermore, if London were to lose a share of its EU-related financial operations to cities like Frankfurt and Paris post-Brexit, the city would also gradually lose its current advantage as a regional finance hub. China would turn to other countries on the continent which already hold a significant share of its EU investment such as Italy, France, and Germany.

China’s RMB strategy Brexit may also temporarily slow China’s RMB internationalization strategy. As the second largest global renminbi offshore market after Hong Kong, London currently has the largest renminbi pool in Europe and has hosted several yuan bond floats. This includes the May 2016 RMB3 billion (US$451 million) sovereign bond issued by the Chinese government on the London Stock Exchange – the first ever renminbi bond to be issued outside of China. Andrew Carmichael, capital markets partner at international law firm Linklaters, which advised China on its landmark bond issue, told Hong Kong’s South China Morning Post in June: “Being part of the EU and able to offer financial services to the rest of the EU means that Chinese banks based in London can operate all over the EU. This makes London an attractive center to develop offshore renminbi activities.”

China’s foreign trade with the EU countries China’s Export to the EU (2015) Poland 4%

China’s Imports from the EU (2015)

Belgium 4%

Netherlands 6%

Germany 42%

United Kingdom 15% Italy 8%

Belgium 4%

Italy 6%

Germany 20%

Netherlands 19%

Sweden 3%

Spain 6%

United Kingdom 16%

France 8%

France 11%

Spain 3%

Source: Bruegel and Eurostat

biz.hk 9 • 2016

However post-Brexit, “it could be more difficult for London-based banks to market and sell inside the EU, and there may be restrictions on EU investors’ ability to buy renminbi products issued in London,” Carmichael continued. If this proves to be true, China may be forced to relocate its renminbi services to other cities on the European continent. Where trade is concerned, China has always viewed its relationship with the UK as a gateway towards deepening existing trade relations with other EU member states. Following Britain’s exit from the single market however, China may once again turn towards a different member country in order to achieve its goals. How easy or difficult this may prove remains to be seen. On the other hand, China would be in a much better position to negotiate its own FTA with an independent UK post-Brexit, taking advantage of its rosy relationship with Britain, which has entered into what former UK Prime Minister David Cameron famously called a “golden era” during his visit to China in 2013.

tougher EU may require more compromise from China’s end than it is willing to make. Another challenge for China with a less-open EU market affects its RMB internationalization strategy. In light of London’s diminishing attractiveness as a financial hub, China’s search for a substitute RMB offshore center in continental Europe could prove more challenging in the event that a more united and protectionist EU: 1) makes it difficult for China to penetrate the market, and 2) strengthens the euro as an international currency, challenging the renminbi’s growing global influence. While a more united EU could in theory present a very undesirable scenario for China, in reality this will depend on whether the EU decides to take a more protectionist stance; the extent of which remains to be seen. But all in all, not the best outcome that China can hope for.

Chinese investment in the EU

Scenario 2: A more united EU In Brussels – de facto capital of the EU – Britain is seen as a liberal, free-trading advocate of the open market; its presence plays a weighty role in neutralizing the pressures applied by more protectionist forces in the EU bloc. Once Britain leaves, the current political power balance will likely undergo a shift, giving new momentum to protectionist policies which have been mostly discouraged thus far, leading to a more united but potentially less open Europe. Under these circumstances, China would have much more at stake, including the continuity of its strong trade relations with Germany on equal terms. In 2015, the total value of EU imports into China was just over US$200 billion, of which imports from the Deutschland made up the 42 percent majority. As the largest global beneficiary of Europe’s open, free-trade market policies, China’s import/export industry may suffer if new protectionist policies are implemented post-Brexit. Furthermore, the prospect of negotiations with a

biz.hk 9 • 2016

Source: A New Record Year for Chinese Outbound Investment in Europe – a Report by MERICS and Rhodium Group

Share as international payment currency (%) 50

0 11

12 USD

13 EUR

14 GBP

15 JPY

16 CNY Source: Natixis

According to estimations by Natixis, China’s GDP for 2017 is forecast to be lower by 0.2 percentage points following Brexit with a more united EU, compared to a situation in which Brexit does not take place at all.

Scenario 3: A fragmented EU A possible – although much less likely – scenario proposed by Herrero involves fragmentation of the EU following Brexit. Other member states who may have been harboring feelings of discontent or a wish to leave themselves may feel emboldened by Britain’s exit, spawning disunity within the economic community. In spite of this, the likelihood of other EU member states following Britain’s precedent in reality is slim, as the financial costs alone would be monumental, especially for those states that have adopted the euro as currency. An exit would require their assets and liabilities to be re-denominated back into their original currencies, for example – a costly procedure. However, a fragmented Europe would work in China’s economic favor, placing it in a stronger position to negotiate terms with individual EU member states. On the global political stage, China’s weight would certainly increase, particularly regarding issues related to trade and investment.

This scenario would also go a long way towards supporting RMB internationalization, as EU fragmentation would see the pound and the euro weaken as preferred settlement currencies, lending more global weight to the renminbi as a result. While the immediate impact of June’s Brexit vote on China’s financial market has been minimal, the medium- to-long term economic implications for the country will depend on Alicia Garcia Herrero two things: the negotiated outcome of Article 50 talks outlining the new nature of UK’s relationship with the EU, and more importantly, EU’s reaction to Brexit. In the meantime, China would do well to hedge its bets by continuing to nurture its existing political and economic relationships with all parties, while building ties with new ones – both within and outside the EU. Other than that, like the rest of world, all China can do is wait.

biz.hk 9 • 2016

CMY

20160816-WOI 2016_AmCham_biz-hk-210-285.pdf 1 16/08/2016 4:27:39 PM

Our 13th Annual Conference is designed to inspire women leaders in Hong <ŽŶŐ ƚŽ ĐƌĞĂƚĞ ƉŽƐŝƟǀĞ ĐŚĂŶŐĞ ĨŽƌ ƚŚĞŵƐĞůǀĞƐ͕ ƚŚĞŝƌ ŽƌŐĂŶŝǌĂƟŽŶƐ ĂŶĚ ŽƵƌ society.

WZ ^ Ed z

/Ŷ ŬĞĞƉŝŶŐ ǁŝƚŚ ƚŚĞ ƐƵĐĐĞƐƐĞƐ ŽĨ ƉƌĞǀŝŽƵƐ ĐŽŶĨĞƌĞŶĐĞƐ͕ ǁĞ ǁŝůů ĨĞĂƚƵƌĞ Ă ŶƵŵďĞƌ ŽĨ ƉĂŶĞůƐ ĨŽƌ ƉĂƌƟĐŝƉĂŶƚƐ ƚŽ ĂƩĞŶĚ ĂŶĚ ĚĞƌŝǀĞ ƉƌĂĐƟĐĂů ƚŽŽůƐ ĨŽƌ ĂĚǀĂŶĐŝŶŐ ƚŚĞŝƌ ŽǁŶ ĐĂƌĞĞƌƐ ĂŶĚ ŝŶĐƌĞĂƐŝŶŐ ƚŚĞŝƌ ŝŵƉĂĐƚ ŽŶ ŽƚŚĞƌƐ͘ dŚĞ ĐƵůŵŝŶĂƟŽŶ ŽĨ ƚŚĞ ĐŽŶĨĞƌĞŶĐĞ ǁŝůů ďĞ ƚŚĞ ƉƌĞƐĞŶƚĂƟŽŶ ŽĨ ƚŚĞ ϭϯƚŚ ŶŶƵĂů tŽŵĞŶ ŽĨ /ŶŇƵĞŶĐĞ ǁĂƌĚƐ ǁŚŝĐŚ ǁŝůů ƌĞĐŽŐŶŝǌĞ͗ ƐĞǀĞŶ ŚŝŐŚͲĂĐŚŝĞǀŝŶŐ ǁŽŵĞŶ͕ ŽŶĞ ŵĂŶ ǁŚŽ ŚĂƐ ĚĞŵŽŶƐƚƌĂƚĞĚ ƐƵƉƉŽƌƚ ĨŽƌ ƚŚĞ ĂĚǀĂŶĐĞŵĞŶƚ ŽĨ ǁŽŵĞŶ ĂŶĚ ŽŶĞ ŽƵƚƐƚĂŶĚŝŶŐ ĐŽŵƉĂŶǇ ĨŽƌ ǁŽŵĞŶ͘ C

d/d> ^WKE^KZ

'K> ^WKE^KZ^

&ƌŝĚĂǇ͕ EŽǀĞŵďĞƌ ϭϭ͕ ϮϬϭϲ ϴ͗ϬϬĂŵ ƚŽ Ϯ͗ϯϬƉŵ Four Seasons Hotel Hong Kong

CMY

PROGRAM * Opening and Luncheon Keynote Addresses

^/>s Z ^WKE^KZ^

* Three Concurrent Breakout Sessions (each session is run twice): WĂŶĞů ϭ Ͳ KƵƌƐĞůǀĞƐ͗ /ŶĐƌĞĂƐŝŶŐ ŽƵƌ ƐĞůĨͲĂǁĂƌĞŶĞƐƐ ĂŶĚ ůĞĂĚĞƌƐŚŝƉ ĞīĞĐƟǀĞŶĞƐƐ WĂŶĞů Ϯ Ͳ KƵƌ KƌŐĂŶŝǌĂƟŽŶƐ͗ >ĞĂĚŝŶŐ ƚŚƌŽƵŐŚ ĐŽŵƉůĞǆŝƚǇ WĂŶĞů ϯ Ͳ KƵƌ ^ŽĐŝĞƚǇ͗ /ŶŇƵĞŶĐŝŶŐ ǁŝĚĞƌ ƐŽĐŝĞƚĂů ĐŚĂŶŐĞ ƚŽ ĞŶĂďůĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ĨŽƌ women and others Ύ WƌĞƐĞŶƚĂƟŽŶ ŽĨ ƚŚĞ ϮϬϭϲ tŽŵĞŶ ŽĨ /ŶŇƵĞŶĐĞ ǁĂƌĚƐ͗ WƌŽĨĞƐƐŝŽŶĂů ŽĨ ƚŚĞ zĞĂƌ͕ zŽƵŶŐ ĐŚŝĞǀĞƌ ŽĨ ƚŚĞ zĞĂƌ͕ ŶƚƌĞƉƌĞŶĞƵƌ ŽĨ ƚŚĞ zĞĂƌ͕ EŽŶͲƉƌŽĮƚ >ĞĂĚĞƌ ŽĨ ƚŚĞ zĞĂƌ͕ DĂƐƚĞƌ ŽĨ dŚĞ ƌƚƐ͕ >ĞĂĚŝŶŐ tŽŵĂŶ ŽŶ ŽĂƌĚƐ͕ ŚĂŵƉŝŽŶ ĨŽƌ ƚŚĞ ĚǀĂŶĐĞŵĞŶƚ ŽĨ tŽŵĞŶ͕ ĞƐƚ ŽŵƉĂŶǇ ĨŽƌ tŽŵĞŶ ĂŶĚ >ŝĨĞƟŵĞ ĐŚŝĞǀĞŵĞŶƚ ;E tͿ.

^/>s Z ^WKE^KZ

ZKE ^WKE^KZ^

Speakers Opening Keynote ƌ͘ ZŽƐĂŶŶĂ tŽŶŐ͕ ͕ :W ǆĞĐƵƟǀĞ ŝƌĞĐƚŽƌ dŚĞ ,ŽŶŐ <ŽŶŐ &ĞĚĞƌĂƟŽŶ of Youth Groups

Angela Pedron ĚŵŝƐƐŝŽŶƐ ŝƌĞĐƚŽƌ Stamford American School Hong Kong >ŝŶĚƐĂǇ tƌŝŐŚƚ ,ĞĂĚ ŽĨ ŝƐƚƌŝďƵƟŽŶ͕ ƐŝĂ WĂĐŝĮĐ Ez DĞůůŽŶ /ŶǀĞƐƚŵĞŶƚ DĂŶĂŐĞŵĞŶƚ

Luncheon Keynote Teresa Ko ...Stay tuned! More to be announced Partner ,ŽŶŐ <ŽŶŐ KĸĐĞ ĂŶĚ ŚŝŶĂ ŚĂŝƌŵĂŶ &ƌĞƐŚĮĞůĚƐ ƌƵĐŬŚĂƵƐ ĞƌŝŶŐĞƌ ^ƉŽŶƐŽƌƐŚŝƉ͗ DĂƌǇ ^ŝŵƉƐŽŶ msimpson@amcham.org.hk (852) 2530-6922

K&&/ / > E t^ D /

K&&/ / > ^K / > D / W ZdE Z

ZĞŐŝƐƚƌĂƟŽŶ Θ ĞƚĂŝůƐ͗ ǁǁǁ͘ĂŵĐŚĂŵ͘ŽƌŐ͘ŚŬͬǁŽŝ η ŵ ŚĂŵ,<tK/

FINANCIAL SERVICES

he announcement in mid-August of the imminent launch of Shenzhen-Hong Kong Stock Connect – a stock-trading channel designed for foreign investors interested in “A” (domestic) shares of listed Chinese companies – is another landmark development in the establishment of mutual stock market access between Hong Kong as a major international financial center and China as a growing and important global securities market. The official launch of “Shenzhen Connect” is expected to take place in the next four months, and it will mark the completion of Hong Kong’s mutual market access plans for China’s secondary equity market. Along with Shanghai-Hong Kong Stock Connect unveiled in

The Imminent Launch of ShenzhenHong Kong Stock Connect Along with Shanghai-Hong Kong Stock Connect unveiled in November 2014, “Shenzhen Connect” marks the completion of Hong Kong’s mutual market access plans for China’s secondary equity market. Charles Li, Chief Executive of Hong Kong Exchanges and Clearing (HKEX), explains how it will give investors on both sides of the boundary more choices and enhanced access to each other’s markets

By Kenny Lau

November 2014, it affords Hong Kong unique access to China’s two stock exchanges in Shanghai and Shenzhen, further opens up China’s domestic stock markets to foreign capital, and connects Chinese investors to stocks traded in Hong Kong. “Shenzhen Connect is the culmination of a lot of hard work and effort between regulators and the exchanges in Shenzhen and Hong Kong,” says Charles Li, Chief Executive of Hong Kong Exchanges and Clearing (HKEX). “It is also a major milestone in our mutual market initiative, giving investors on both sides of the boundary more choices and enhanced access to each other’s markets while playing a valuable role as a trusted partner in China’s financial liberalization drive.” Mechanically, Shenzhen Connect is similar to the

biz.hk 9 • 2016

Shanghai Connect, and it will operate under a set of “Trading Links” for buyers and sellers in both Hong Kong and Mainland China. Trading in Shanghai (and soon in Shenzhen) is facilitated via HK-based brokers and a securities trading service company established by the Stock Exchange of Hong Kong (SEHK) in China; trading in Hong Kong is through appointed Mainland securities firms and a service company established by Shanghai Stock Exchange (and soon Shenzhen Stock Exchange) in Hong Kong.

Eligible shares Shares available for trading based in Hong Kong under Shenzhen Connect include constituent stocks of the Shenzhen Stock Exchange (SZSE) Component Index

and SZSE Small/Mid Cap Innovation Index (with a market capitalization of no less than RMB6 billion), in addition to all of the A shares of SZSE-listed companies which also have H shares listed on SEHK in Hong Kong. Conversely, all of the constituent stocks of the Hang Seng Composite LargeCap Index, Hang Seng Composite MidCap Index as well as any stock of the Hang Seng Composite SmallCap Index with a market capitalization of no less than HK$5 billion, plus all of SEHK-listed shares of companies which have issued both A shares and H shares, will be made available to Mainland investors. “Shenzhen Connect provides more access, more flexibility, more products, and more opportunities. It gives international and Hong Kong investors access to

biz.hk 9 • 2016

more A share stocks and more sectors, such as technology and healthcare companies listed on the Shenzhen Exchange and ChiNext,” Li says. “With 880 new stocks included as part of the link, most companies traded in Mainland China can now be accessed directly by foreign investors for the first time.” “Mainland investors now have more choice too, with 100 small cap stocks listed in Hong Kong now eligible for Shenzhen Connect,” he adds. “This, combined with Shenzhen Exchange’s marketing and investor education efforts, will likely bring new energy to Hong Kong over time.” Under Shenzhen Connect, Mainland institutional investors and individual investors holding an aggregate balance of no less than RMB500,000 in their securities and cash accounts will be eligible to invest in the stock market of Hong Kong; and any Hong Kong or international investor will be able to trade stocks of Chinese companies; trading of shares listed on the ChiNext Board of SZSE, however, will be limited to institutional professional investors only at the early stage. The reason for an initial restriction on investor participation in ChiNext stocks is largely “a prudent approach to Stock Connect all along to ensure that it succeeds as a stable, successful program,” Li explains. “The ChiNext board is a start-up board in Shenzhen with a number of small-cap companies that is high risk and high volatility. So we will initially provide access cautiously.” “In fact, even the Mainland has restrictions in place vis-à-vis ChiNext. For example, Mainland investors who want to participate on ChiNext must sign a risk disclosure statement,” he says. “In time, it’s possible the Hong Kong securities regulator could introduce something similar here. But for now, retail investors who are interested in ChiNext stocks can trade them via institutions in Hong Kong, which creates new business opportunities for market practitioners in the city.” “But like everything else in the mutual market access program that is designed to be manageable, sustainable and scalable, I expect this to evolve over time,” he adds. “Regulators will keep a close eye on how the scheme functions and individual investors [in Hong Kong] may be allowed to trade ChiNext shares eventually, subject to the resolution of related legal and regulatory issues.”

Investment quotas Unlike Shanghai-Hong Kong Stock Connect when it was first launched, there will be no “aggregate” quota under Shenzhen-Hong Kong Stock Connect. In fact, the aggregate quota under Shanghai-Hong Kong Stock Connect has also been abolished with immediate effect on the day Shenzhen Connect was announced.

“Removing the aggregate quota should give institutional investors more confidence that the A share market is open for investment on a large scale,” Li says. “That means international investors can feel more comfortable investing in China and Mainland investors have more freedom and flexibility to invest in Hong Kong without fears of bumping up against a quota.” There will, however, be a “daily” quota under Shenzhen Connect, and it will be the same as that of Shanghai Connect – RMB13 billion each in China’s stock markets and RMB10.5 billion each for demand from Shenzhen and Shanghai in the stock market of Hong Kong. The daily quote is subject to adjustment “in light of actual operational performance.” “The daily quota will remain in place for risk management considerations, but [with Shenzhen Connect] it has effectively doubled,” Li points out. “That’s because the RMB10.5 billion quota currently in place for Shanghai Connect has been replicated for Shenzhen. That means Mainland investors have a total RMB21 billion quota to invest in Hong Kong stocks.” “In fact, our experience with Shanghai Connect shows the RMB10.5 billion daily quota was only completely filled a couple of times in the nearly two years since it started,” he says. “Investors should therefore not be too concerned about the daily quota. It is just one extra safeguard in case there is an extreme flow of funds in either direction.” Meanwhile, China Securities Regulatory Commission (CSRC) and Hong Kong Securities & Futures Commission (SFC) have also agreed to the inclusion of exchange-traded funds (ETFs) as eligible securities under the mutual market access schemes. Although no launch date has been announced, it is expected “to further enrich the variety of traded products and provide more investment opportunities and convenience for domestic and overseas investors.” “The vast majority of A shares traded in the Mainland are now directly available via Stock Connect to Hong Kong and global investors,” Li says. “The inclusion of 200 ChiNext stocks also gives international investors access to more investment possibilities. The abolishment of the aggregate quota, expansion of access, and inclusion of ETFs sometime in the future prove Stock Connect is scalable and flexible.”

Market prospects When Shanghai Connect was launched nearly two years ago, many speculated that the price difference between A shares in China and H shares in Hong Kong would narrow – which hasn’t been the case. The likelihood of an overall price convergence at the initial stage of Shenzhen Connect is also unlikely. “That’s because the investor makeup and sentiment in both markets are fundamentally different,” Li explains.

Charles Li, HKEX Chief Executive, speaking at AmCham’s China Conference in 2012

“The Mainland market is mostly made up of retail investors who can be fickle, while Hong Kong is dominated by institutional and value investors,” he notes. “The result is a pricing gap that will probably be sustained in the short term, while long term the pricing will likely converge as stocks become fungible and investors have more options.” “However, I do think Shenzhen Connect is another step towards the internationalization of the Mainland’s A share market, and it’s only a matter of time before A shares are included in major global indices,” he adds. “Our job is to provide more access and more choices for investors to diversify their investments to the greatest extent possible.” “The stocks listed in Shenzhen represent much of China’s new economy and the country’s future, so I anticipate interest from foreign investors in terms of diversifying their portfolios and having exposure to high-growth sectors.” Regardless of initial market reaction to the launch, Shenzhen Connect is a long-term market facility that “can’t be judged in one day,” Li emphasizes. “Short term market fluctuations are based on the sentiment of the day, but increasing access to the Mainland market is something that will be sustained and enhanced over the long term. Mutual market access will have a far reaching impact on both markets.” “We said at the very beginning of Shanghai Connect that the program could be expanded over time, and the decision to include ETFs is a great example,” he further notes. “There are a number of ways we can provide greater cross-boundary access for both Mainland and international investors, and we will continue looking at ways to broaden Stock Connect, include new asset classes, and build more bridges so investors will have more opportunities and more choices.”

biz.hk 9 • 2016

TRADE & INVESTMENT

MALAYSIA’S 2020 Vision Comprised of two main landmasses separated by the South China Sea – Peninsular Malaysia to the West and Malaysian Borneo to the East – the Federation of Malaysia is a multi-ethnic, multi-religious nation with one of Southeast Asia’s most vibrant and diversified economies. Boasting world class infrastructure, cost competitiveness and a multi-lingual talent pool, Malaysia – a member of ASEAN and an active participant in regional and global trade initiatives - remains hopeful of achieving “developed” country status by 2020

By Jennifer Khoo All photos courtesy of Pixabay

biz.hk 9 • 2016

Colonial architecture in the historic town of Melaka; remnants of Dutch rule

rom the futuristic high-rises of Kuala Lumpur, UNESCO world heritage colonial architecture and tea plantations of the peninsula, to the traditional longhouse villages and lush rainforests of Sarawak and Sabah – Malaysia is a country of diverse landscapes and communities. Often referred to as “Asia’s cultural melting pot,” Malaysia’s two main regions – Peninsular Malaysia and Malaysian Borneo – together constitute 13 states that are home to an estimated population of 30.7 million people. The majority ethnic Malay Muslim population live alongside Buddhists, Christians and Hindus of Chinese, Indian and Indigenous descent, resulting in the rich tapestry of cultures, traditions and cuisines that Malaysia is known for.

Export-driven economy Since the 1970s, the nation’s economy has evolved from one heavily reliant on the production of natural resource materials such as rubber, tin and palm oil,

into an emerging multi-sector economy with a strong focus on export-oriented manufacturing. Currently, about 40 percent of jobs in the country are linked to export activities. Malaysia’s economy is largely driven by the export of electronics and raw materials such as palm oil, rubber, and oil & gas, leaving it vulnerable to fluctuations in global commodity prices. In recognition of this risk, the government has been actively working towards reducing the nation’s economic dependence on exports by boosting investment and encouraging development in various “strategic high-growth” service sectors, in addition to continuously improving Malaysia’s existing developed industries such as Islamic finance and Oil & Gas. In light of Malaysia’s aspiration to reach high-income, “developed” status by 2020, this appears to be the right move, especially considering the impact of the services sector on the country’s GDP. The services sector has become a critical pillar of Malaysia’s economy: growing by roughly 6.2 percent from 2010 to 2015 and contributing 54 percent to Malaysia’s GDP in 2015, with a further four percent increase expected by 2020.

The modern cityscape of Kuala Lumpur lit up at night

biz.hk 9 • 2016

Population by religion 0.39% 1.26% 6.27%

0.72% 0.96%

0.37% 0.91% 7.84%

0.49% 1.30% 2.62% 1.59%

0.57% 0.80%

0.13% 9.28%

22.53%

19.84%

East Malaysia

Peninsular Malaysia

Malaysia

3.10%

9.24% 61.32%

63.88%

33.26%

51.32%

Source: Population and Housing census of Malaysia 2010

According to the KL calling: Investor’s guide published by EY in February this year, the government has identified three “strategic high-growth” service sectors for development in particular: Aerospace, Halal products & services, and Construction & Engineering.

Aerospace Malaysia’s aerospace sector is an area which has taken off alongside aviation growth in the Asia-Pacific region – a region forecast by Boeing to make up the world’s largest aviation market within the next 20 years. In fact, according to the Malaysian Aerospace Industry Blueprint 2030, the industry has the potential to reach a revenue stream of MYR55 billion (US$13.8 billion), i.e. more than four times the current amount, by 2030. Encompassing three major areas in the global aerospace supply chain – Original Equipment Manufacturing (OEM), Avionics and Systems Integration, and Maintenance, Repair and Overhaul/Operations (MRO) – Malaysia’s aerospace sector is currently estimated at around MYR12 billion (US$3 billion) and employs over 19,500 people. Landmark projects in the capital city of Kuala Lumpur such as the development of Asia Aerospace City (AAC) and KLIA Aeropolis reflect the country’s aspiration to become a regional aerospace hub by 2030. The Malaysian Investment Development Authority (MIDA) has even introduced incentives for aerospace companies undertaking MRO activities in the country,

including import duty and sales tax exemption on raw materials, components, machinery and equipment, and spares and consumables. In addition, Malaysia’s active participation in strategic trade and economic partnership agreements including the ASEAN Economic Community (AEC) and the Trans Pacific Partnership Agreement (TPPA) has helped to open the country to direct investments, particularly in the aerospace sector.

Halal products It is of utmost importance for Muslims to consume only food and drink considered “halal,” or permissible, as dictated by the Koran. Where meat is concerned, the Arabic word “halal” refers to animals which have been slaughtered in accordance with strict Islamic standards; excluding pork, which is strictly forbidden. Other non-halal foods include alcohol, and animals which have been fed the by-products of other animals. According to EY, the global market value of Halal products (food and non-food) is estimated to be worth around MYR9.2 trillion (US$2.3 trillion) annually. The global halal food sector alone was worth almost MYR2.5 trillion (US$617.7 billion) as of 2015, and is one of the fastest growing segments in the global food industry. With over 60 percent of its population comprised of ethnic Malay Muslims, Malaysia has grown its halal products sector into the region’s most advanced, with end-to-end services encompassing raw material sourcing,

biz.hk 9 • 2016

Highland tea plantations on the peninsula

production, packaging and distribution. The country is home to the world’s first halal certification body – the Islamic Development Department (JAKIM) – which ensures that products pass stringent audit procedures and meet strict religious standards before earning the globallyrecognized and sought-after “Malaysia Halal” logo. Already a major player in the global halal supply chain, Malaysia is currently the world’s largest exporter of halal ingredients, exporting over MYR42 billion (US$11 billion) worth of halal consumables in 2015 to key destinations including China, USA, Indonesia and Japan, and has aspirations of becoming a global halal hub by 2020. Reflective of its commitment to this goal, Malaysia’s government has invested significant resources into the development of Halal Parks across the country, i.e. industry clusters which house halal manufacturing and services businesses in a common location; attracting businesses to operate there using tax-related incentives. Despite notable steps by the government to support the development of the halal industry, participation and investment from the private sector are equally required if Malaysia is to achieve its goal of becoming a global halal hub by 2020. Companies with business interests in halal markets can benefit from establishing a presence in Malaysia by leveraging the country’s strategic location in APAC, its first-rate infrastructure, and globally recognized halal certification, to boost the quality, reputation, and distribution of its halal goods and services.

biz.hk 9 • 2016

Borneo’s indigenous Proboscis monkeys

Nestle Malaysia, for example, was among the first global F&B companies to be certified Halal in Malaysia when the certification process was introduced in 1994. Today, with three halal factories in Kuala Lumpur, Nestle Malaysia sets the halal standard for the Nestle Group, offering policy guidelines, best-practices and expertise on halal products to other Nestle markets worldwide.

Construction & Engineering As the fastest growing segment in the country’s economy in 2015, Malaysia’s construction and engineering sector has experienced an average annual growth of 13.5 percent over the last three years, and is forecasted to expand at a rate of 10.3 percent per annum in 2016, according to estimates by Malaysia’s Construction Industry Development Board (CIDB). Growing demand for construction and engineering services in Malaysia is largely driven by the numerous ongoing transport and infrastructure improvement projects in Kuala Lumpur. According to the 2016 Global Infrastructure Investment Index published by Arcadis, Malaysia is ranked number five out of the 41 countries reviewed for infrastructure investment attractiveness, four places below neighboring Singapore which is

Global Infrastructure Investment Index 2016

a full pipeline of rail and road projects on the agenda. The biggest of these is the Klang Valley Mass Rapid Transit (MRT) Line project valued at MYR32 billion (US$ 7.9 billion) – part of Malaysia’s largest infrastructure project to date and will extend coverage of the peninsula’s public transportation system once completed. In addition to increasing investor appeal and improving living standards for Malaysians, an increase in infrastructure projects will have the additional effect of creating jobs in the construction and engineering sector for local citizens, while also attracting skilled foreign talent to its shores.

Singapore 1 Qatar 2 UAE 3 Canada 4 Malaysia 5 Norway 6 Sweden 7 USA 8 UK 9 Netherlands 10 Australia 11 Japan 12

Challenges: politics and race

Germany 13 Austria 14 Saudi Arabia 15 Chile 16 China 17 Belgium 18 France 19 South Korea 20 Indonesia 21 South Africa 22 India 23 Spain 24 Thailand 25 Turkey 26 Columbia 27 Philippines 28 Poland 29 Mexico 30 Portugal 31 Romania 32 Brazil 33 Italy 34 Russia Federation 35 Nigeria 36

Data sources include: World Bank, World Economic Forum Global Competitiveness Index, Heritage Foundation, DHL, Economist Intelligence Unit, Business Monitor Index and Political Terror Scale.

Pakistan 37 Egypt 38 Greece 39 Argentina 40 Venezuela 41 0

Economic Total Infrastructure Total

Business Total Financial Total

100

Risk Total

Source: Arcadis

ranked the most attractive to investors, due to its stable political situation, pro-business environment and strong growth potential. This finding ties in favorably with the government’s five-year 11th Malaysia Plan, unveiled in 2015, which highlights the importance of infrastructure development in reaching its 2020 goals. The cumulative value of infrastructure projects awarded this year is expected to surpass the record of MYR46 billion (US$11.3 billion) reached in 2012, with

Though the diverse mix of Malaysian citizens live largely harmoniously alongside each other in the secular Islamic state, there is an underlying racial and religious divide between the majority ethnic Malay Muslims and the rest of the population. In response to the deadly race riots of 1969 – ignited by culminating ill feeling towards the Malaysian Chinese and their economic success – a “New Economic Policy” (NEP) was introduced by the government in 1971, aimed at increasing the number of opportunities for native Malays by giving them preference in local university admissions, civil service employment, and corporate shareholder policies, among other benefits. Though announced as temporary in 1971, many of the policies outlined in the NEP remain in effect to this day, resulting in a steady outflow of highly educated and skilled Malaysian minorities from the country. More recently, Malaysia’s political climate has experienced some turbulence as a result of alleged corruption and other scandals involving key state officials. This has provoked the nation to call for a change of leadership, resulting in feelings of uncertainty about the country’s political direction and hindering foreign direct investment. Truthfully speaking, Malaysia’s problems are not unique. Racial issues and business scandals are present in many countries, and the issue of political inscrutability is globally contended with. In spite of its challenges, the nation continues to grow economically, and remains more determined than ever to reach its 2020 goals. This is evident in the country’s ever-improving infrastructure, its active participation in trade relations, and government-funded initiatives in various strategic industry sectors. At this stage, it is difficult to foresee what effect Malaysia’s uncertain political climate will have on its long term prospects. But if its economic track record is any indication to go by, Malaysians have nothing to worry about.

biz.hk 9 • 2016

EDUCATION

The Chicago Approach In 1943, the University of Chicago Booth School of Business established the first Executive MBA program in the world. With decades of experience in managing the program, combined with a unique educational approach that has made it one of the leading business schools in the world, Chicago Booth has grown to encompass three dedicated campuses on three continents – including one right here in Hong Kong. Richard Johnson, Head of EMBA Program for Europe and Asia, and William Kooser, Associate Dean for Global Outreach, discuss in a recent conversation the program’s renowned “Chicago Approach” and share a glimpse of what the future holds for the school amid an expansion into the Asia Pacific region

By Jennifer Khoo

biz.hk 9 • 2016

biz.hk 9 â&#x20AC;¢ 2016

biz.hk: What are your roles at the University of Chicago Booth of Business? Johnson: My role is to ensure that the delivery of our world-class Executive MBA Program on the Hong Kong campus is of the highest quality possible and that it matches all of the other Booth MBA Programs. This includes oversight of all aspects of the program, including recruitment and admissions, student services, and faculty services as well as campus buildings and facilities. I also create and nurture partnerships with other departments of our business school which provide added programming and support to students during their time in the program and beyond. It covers career services, leadership development, and alumni relations, etc. Kooser: My role is designed to broaden our connections with our alumni, corporate partners, and the media in order to increase our visibility and strengthen ties to our school. I travel throughout the region to meet with key organizations and alumni to inform them of new developments at the school, encourage them to get involved in alumni activities and work with companies who may be interested in our educational programs or looking for ways to attract and recruit our graduates. I support many of Chicago Booth’s departments and initiatives, including admissions, career services, alumni affairs and executive education. Ultimately, the goal is to increase our presence in the region and become an integral part of the Hong Kong business community. biz.hk: What is your EMBA program all about? Johnson: Our program is based on a General Management MBA curriculum. Students will learn all aspects of how businesses work, how markets function, how capital is best allocated (both human and financial) and how people make decisions. In each course, students

will learn both the theoretical approaches, including foundations and frameworks, that they will then apply to cases and problems. Students learn to apply fundamental disciplines such as Economics, Psychology, Sociology, Statistics, and Accounting – the language of business – to business problems. The curriculum is then rounded out by a series of leadership courses and further personal leadership learning opportunities. Students leave the program with a fundamentally different approach to thinking about business and with a set of tools and frameworks to make them more effective leaders in their businesses and organizations. As Dean of Chicago Booth Business School “Our goal is to teach you Sunil Kumar says, “Our something that trangoal is to teach you something that transcends scends your immediate your immediate contexts contexts so that you so that you learn from your classmates and learn from your classprofessors (the best there is to learn in the world).” mates and professors We actively recruit a (the best there is to learn community of students with varied experiences, in the world).” backgrounds, perspectives, and goals. That’s because we believe it is important to foster a collaborative learning environment/experience. Our EMBA students work in almost every industry/job function and come from around the world, providing an unending source of contacts, collaborators, consultants and friends. With students representing more than 50 different countries across three campuses, every class is an experience in cultural immersion.

biz.hk 9 • 2016

biz.hk: How would you describe your faculty? Johnson: Where faculty is concerned, all our classes are taught by professors from Chicago Booth. Fiercely independent thinkers, our faculty members constantly test new ideas and theories. They appreciate and seek out divergent perspectives because they recognize that open and rigorous inquiry makes knowledge richer. Apart from our seven Chicago Booth faculty members who have won the Nobel Prize award, other faculty members who are teaching in our program currently are also renowned in their fields. They have real-life business experience in terms of consulting with firms and serving on corporate boards. Their research and opinions are frequently sought after by major corporations and cited in prominent media worldwide. They engage students in a learning environment where the principal modes of teaching are discourse and discussion. They’ll ask students and their peers to take an active role in uncovering the ideas and facts that lead to new solutions. They will challenge the students to take their thinking to the next level and beyond. biz.hk: What gives Chicago Booth’s EMBA program a competitive edge over other EMBA programs in the region? Johnson: We are the only top American business school in Asia to teach in a format that we call “Pure Chicago.” Students in our program in Hong Kong are taught by the same faculty as our students in Chicago, and they are required to fulfil the same degree requirements as our full-time and part-time students in Chicago. The quality and rigor are just as high as in all Chicago Booth degree programs. Members of our faculty create ground-breaking knowledge and ideas that define and shape the way the world does business. They have real-world business experience through corporate, consulting and board

biz.hk 9 • 2016

activities, and they bring all of this knowledge into the classroom. The “Chicago Approach” to teaching and learning is based on the notion that transformational ideas start with a rigorous inquiry. Students learn to evaluate business problems and opportunities through fundamental academic William Kooser disciplines such as economics, psychology, and sociology; they learn to examine problems from all angles, demand facts, question assumptions, test and refine ideas, and support them with data so that their ideas can stand up to the scrutiny of arguments. This rigorous approach is taught in an extremely collaborative and supportive environment. We say at Chicago that ideas compete but people collaborate. Students and faculty help each other to work hard and get the most out of the program – with individual successes considered part of an overall collective success. biz.hk: What can students expect to gain from your program? Johnson: Students will gain a wealth of knowledge, experience, and analytical problem-solving skills. They are challenged to question conventional wisdom, to push conversations further and to uncover unexpected opportunities through rigorous inquiry and examination of business problems. This approach generates new insights and allows our graduates to make better decisions, think ahead of the problem and set new standards for leadership.

With 50,000 alumni in 122 countries and over 90 alumni organizations, the program provides an ideal setting for expanding your network – for personal and professional growth and development. Our alumni and students have a strong sense of belonging because they know they come from the same school, receive the same education Richard Johnson and the same degree – no matter which campus or program they graduated from. We constantly hear encouraging stories about our alumni helping one another and collaborating together. It is the breadth and depth of the network that makes it so powerful. In addition, students receive lifelong learning opportunities as they may register as alumni for open seats in EMBA program electives offered each year in Chicago during summer. These courses are tuition-free, and students just pay a fee to cover expenses. Through additional courses, our alumni can brush up their skills and continue to learn in areas of their interest. biz.hk: Why was your program relocated from Singapore to Hong Kong in 2013? Kooser: Although we were extremely successful for over 15 years in Singapore, we felt that we could diversify the class and expand our influence by moving to Hong Kong. Our hope was to increase the number of students from North Asia and to begin to build closer connections to organizations throughout China, Korea, and Japan. So far, with three intakes now in Hong Kong, we have indeed been able to achieve this goal. We have increased the number of students from Hong Kong and Mainland China while maintaining a solid number of students from Southeast Asia. We still maintain a presence in Singapore and offer a selection of non-degree executive education courses there, and we continue to provide support to our alumni and marketing efforts. biz.hk: What is the level of demand for EMBA programs in the region? Do you find your students in Asia any different from their counterparts in Chicago? Johnson: Hong Kong and Singapore are both very popular and leading cities in Asia. Every year, we see applicants with outstanding professional experience and academic qualifications. Our student population has always been very diverse. Since our move to Hong Kong, we have significantly increased the number of local Hong Kong students in our program, but have also maintained very strong demand from students in other East Asian countries as well as South East Asia and India.

All of our students come into the program eager to learn and to engage with each other, with the faculty and the school. For this reason, they are motivated and participate in the life of the school both in and out of the classroom. All students have their own individual strengths and weaknesses, but this is the beauty and the benefit of this program – it allows people to build on strengths and improve on any gaps that might exist in their knowledge and experience. biz.hk: What can you tell us about the construction of the School’s new campus in Hong Kong? Johnson: We have just begun construction on our brand new permanent campus building – designed by Hong Kong-born architect Bing Thom – on Victoria Road at Mt. Davis in the western part of Hong Kong Island. The campus will be a combination of new build construction as well as adaptive re-use of several historic buildings that currently exist on the site. We are extremely proud to have been awarded the site in a land grant competition with the HKSAR government. The site is a beautiful and historical one, and we are very keen to revitalize the site for our program so that the Hong Kong public can have access to the site and understand its historical significance after decades of being left derelict and barricaded off from the public. The new, state-of-the-art campus will have several classrooms as well as function space and study rooms. The primary function will be for the Executive MBA Program, but we’ll also offer non-degree Executive Education Programs, Programs on Social Enterprise and Innovation, as well as a full program of conferences, seminars, and activities offered by the University of Chicago academic community. biz.hk: What other plans do you have for the EMBA program going forward? Kooser: The new building is really the primary major project at this time. Of course, we are always making improvements to our services and regularly update our curriculum. For example, each year our selection of elective courses is adjusted based on current issues in the business world and the interests of our students. As such, our faculty continually update their courses to reflect that latest thinking and application of key business concepts, and our careers and alumni offices continue to enhance and expand the services, events, and activities that they offer to support both our students and our alumni. One thing I do expect to see as we settle into our new home in Hong Kong is an expansion of our non-degree executive education programs. We already offer a handful of these courses in both Hong Kong and Singapore, and I expect that we will increase the number of these programs over time.

biz.hk 9 • 2016

2016-08-22 AmCham Open Day wbleed.pdf

CMY

8/22/16

9:43 AM

INDUSTRY FOCUS

American Airlines

On the Move: Airlines, Logistics Providers & Relocation Companies By Jennifer Khoo

Allied Pickfords SIRVA, parent company of global relocation company Allied Pickfords, announced last month the addition of its new service center in San Ramon, California. The location will offer enhanced service delivery options to global clients, especially those with interests in the western United States as well as Asia. The new service center expands SIRVA’s ability to “SIRVA opens deliver services to clients and their employees and is a a new office in continuation of the commitSan Ramon, ment to effectively provide personalized support, California.” mitigate mobility challenges for clients and ensure a better mobility experience for employees. With a portfolio of brands including Allied Pickfords, Allied, northAmerican and SMARTBOX, SIRVA operates in more than 40 countries with approximately 6,000 employees and an extensive network of agents and service providers in over 160 countries. With over 600 locations in more than 40 countries, Allied Pickfords has grown to become one of the largest and most respected providers of moving services, handling over 50,000 domestic and international moves every year.

biz.hk 9 • 2016

American Airlines is continuing to elevate the customer experience by adding complimentary premium movies, TV shows, music and games in the main cabin on domestic flights through seatback entertainment systems or Wi-Fi streaming. Beginning in August this year, travelers have unrestricted access to the largest content library among carriers in the US via their own device or seatback entertainment systems. Customers traveling on flights operated by American Airlines will be able to enjoy premium shows like HBO’s “Game of Thrones” and “Silicon Valley” as well as “American Airlines new movie releases such as “Captain America: introduces Civil War,” “The Boss” complimentary inflight and “The Lobster.” Available inflight enterentertainment.” tainment will vary by aircraft and Wi-Fi type. Nearly 300 of American’s aircraft have seatback entertainment, with more being added every month. With a fleet of aircraft that is the youngest of the US carriers, American Airlines and its subsidiary American Eagle fly an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries.

Asia Jet Hong Kong Airlines Corporate Jet Limited (Hong Kong Jet) has completed its acquisition of Asia Jet Partners, following an announcement during the Asian Business Aviation Conference & Exhibition (ABACE) 2016 that they had signed a letter of intent for Hong Kong Jet to purchase Asia Jet and its subsidiary Asia Jet Partners (Shanghai), as well as its joint venture Asia Jet Partners (Malaysia). The merger will enable both companies “Hongkong Jet to enhance their service offerings to their joins forces with respective clients and Asia Jet.” will bolster Hong Kong Jet’s aircraft management and maintenance capabilities, as well as its charter footprint in Hong Kong. Founded in 2008, Hong Kong-based Asia Jet has expanded its fleet to nearly a dozen aircraft and has obtained Argus Platinum, Wyvern Wingman and IS-BAO III recognitions. A year younger, Hong Kong Jet manages 25 aircraft and employs 150. The acquisition follows a year when Hong Kong Jet’s managed fleet grew by more than 80 percent and an increase of maintenance hours by 110 percent.

Asian Tigers Mobility Asian Tigers Mobility China was awarded the 2015 APAC Transportation Service Partner of the Year award during the fourth annual TheMIGroup Worldwide Partner Network Awards earlier this year. The Awards recognize the achievements and outstanding service delivery excellence of TheMIGroup’s network providers over the past year. TheMIGroup World“Asian Tigers China wide Partner Network Awards are based on a set of named Transportaevaluation criteria designed tion Service Partner to quantify their partners’ quality and service perforof the Year.” mance and have become a benchmark for excellence in the global relocation industry. Winners are found to have exceled in all areas evaluated and consistently demonstrated high-quality service and a desire to exceed expectation. This year’s awards were presented in April at the European Relocation Association (EuRA) Conference in Malta. As a leading provider of international relocation solutions with offices in 14 countries, more than 1,400 dedicated professionals, and a global network comprised of other leading moving and relocation companies, Asian Tigers Mobility relocates more than 16,000 families each year.

Brookfield Global Relocation Services Brookfield Global Relocation Services has been awarded a five-year contract for the administration and financial management of relocation services to be provided to the Canadian Federal Public Service and for management as a third-party service provider to members of the Royal Canadian Mounted Police (RCMP). Brookfield has been providing relocation services to the Canadian Government since 1994. The recent contract was awarded by The Treasury Board Secretariat (TBS) and the RCMP, and was built on more than 20 years of dedicated service to the Government of Canada. The contract includes volumes of more than “Brookfield awarded a 2,500 annual relocations and responsibility for five-year government managing thousands of contract in Canada.” third-party suppliers. Brookfield will provide advisory services, including information about relocation benefits and planning, deliver financial claims processing support, and deliver on-going maintenance of a directory of third-party service providers (including lawyers/notaries, home inspectors, appraisers and rental search agencies). All services will be delivered in both of Canada’s official languages, English and French.

Cathay Pacific Airways Starting in mid-September, Cathay Pacific Airways and its subsidiary Dragonair will introduce an enhanced baggage policy in which ticketed passengers can benefit from increased check-in allowances and lower excess baggage charges. All passengers, regardless of their class of travel, will enjoy an additional 10kg allowance for check-in baggage. Marco Polo Club Silver, Gold and Diamond members will benefit from an extra 10kg, 15kg and 20kg, respectively. “Cathay Pacific and In line with global industry standards, excess baggage Dragonair charges will also be reduced introduce enhanced by up to 40 percent. Passengers in Business baggage policy.” Class, Premium Economy Class and Economy Class will be entitled to two items of check-in baggage within designated weight limit. First Class passengers will be entitled to check in three baggage items free of charge. In addition to the enhanced check-in baggage policy, Dragonair will increase its carry-on baggage allowance from 5kg to 7kg for passengers travelling in Economy and Premium Economy, while Business Class and First Class passengers will enjoy new allowances of 10kg and 15kg, respectively.

Crown Worldwide Group Crown World Mobility (CWM) — a division of Crown Worldwide Group and a global provider of workforce mobility solutions and talent management strategies – has appointed Jennifer Harvey as the company’s Regional Managing Director of North America. Harvey previously served as Global Director of Corporate Social Responsibility for Crown’s group of companies and spent time as Global Director of Group Marketing as “Crown World well as Regional Corporate Services Manager in the US. Mobility appoints In her new role overseenew regional ing all business units in North America, Harvey managing director.” focuses on driving collaboration and cross-training among internal teams to share the vast knowledge for which Crown Worldwide Group has become known. She has also focused extensively on continuing to improve the brand as a truly customer-centric organization. Harvey has spoken on behalf of the company on numerous occasions in various media outlets including CNN International and Mobility magazine. She holds a degree from Columbia University in Economics and East Asian Studies.

biz.hk 9 • 2016

Delta Air Lines Delta Air Lines will launch a daily nonstop route between Los Angeles International Airport and Beijing Capital International Airport starting from December 16th, 2016. As the largest market for service to Asia, Los Angeles drives 21 percent of all US-Asia demand. The start of Delta’s Beijing service marks its fifth daily nonstop flight to the Asia-Pacific region, in addition to Tokyo-Narita, Tokyo-Haneda, Shanghai and Sydney. Delta is currently the only carrier to offer a direct “Delta to launch service to both Beijing and Shanghai from Los daily service between Angeles. Los Angeles and Delta’s Los Angeles-Beijing flight will Beijing.” offer customers convenient connections to more than 39 cities in China, including Chengdu, Shenyang, Qingdao, Xian and Hangzhou on SkyTeam partners China Eastern and China Southern, while the Los Angeles-bound Beijing flight will offer key connections to Denver, Las Vegas, Portland, San Diego and Phoenix as well as 35 other markets throughout the US, Canada and Latin America.

DHL DHL Global Forwarding, a leading international provider of air, sea and road freight services, signed a Memorandum of Understanding (MOU) in May with the Chengdu Gateway Logistics Office, which is the government agency responsible for developing Chengdu into a major trade hub under China’s “Belt and Road” initiative. The MOU calls for a collaboration between DHL and Chengdu – where Asia’s largest railroad container transportation hub is located – to further improve the security, customs efficiency, and freight capacity of the city’s logistics infrastructure. The city has undergone rapid development of high-speed rail links such as the “DHL partners Chengdu-Europe Express Rail between the city and with Chengdu Lodz, Poland in 2013 and under ‘Belt and the Chengdu-Central Asia Express Rail in 2014. Road’ Initiative.” Positioned strategically along several “Belt and Road” routes including the Bangladesh-China-India-Myanmar (BCIM) economic corridor and the Yangtze River Economic Belt, Chengdu is the largest trade center in western China and ranks first among cities in western China in terms of foreign investment in commerce and trade.

biz.hk 9 • 2016

FedEx Express FedEx Express (FedEx), the world’s largest express transportation company, has opened a new facility at Perth Airport in western Australia, measuring approximately 3,000 square meters in size and more than twice the size of the previous facility. The new facility – which will include an automated cargo sorting system to meet the fast-growing demand for express cargo – has the capacity to sort up to 3,000 packages per hour, allowing inbound and outbound “FedEx opens new shipments to be processed faster. The new processfacility at Perth ing, combined with improved functions to load Airport.” and unload shipping containers and state-ofthe-art parcel processing systems, will significantly boost efficiencies. The growth of e-commerce has seen a rise in the purchase of international goods among Australian businesses and consumers, including in the Perth area. Australian retail e-commerce sales are tipped to reach A$14 billion by 2018, a 46 percent increase from 2015. At this point, e-commerce retail sales are estimated to account for 5.6 percent of all Australian retail sales.

Hong Kong Airlines Hong Kong Airlines has taken delivery of five new Airbus aircraft so far this year, increasing its fleet size to 32. The 32nd aircraft is now in operation and is mainly deployed on routes to Okinawa, Osaka, Tokyo, Bangkok and Denpasar. The air carrier also operates one of the youngest fleets in the world with a current average age of around 3.9 years. The company currently covers 35 “Hong Kong Airlines flight destinations across the Asia Pacific grows flight network region, with plans to and expands aircraft introduce 10 new destinations within fleet.” 2016. After launching the Gold Coast and Cairns routes earlier this year, it has further introduced six additional destinations across four countries: Tokyo, Osaka and Okayama in Japan, Phnom Penh in Cambodia, Kuching in Malaysia, and Saipan of the United States. Towards the end of the year, it will launch two more new routes, including a direct service to Yonago, Japan commencing on September 14th, and a service to Auckland, New Zealand, will be inaugurated on November 10th.

Incheon Port Authority The Incheon Port in South Korea has been running its nonstop service 24 hours a day, 7 days a week since July 1st this year. According to the Incheon Port Authority, a total of 37 companies including 4 loading companies, 13 transport companies, 15 warehouse owners and 5 service companies began 24/7 service at Incheon Port on 1 July. Users of Incheon Port can now enjoy 24-hour service such as vessels docking, departure from the port, and dealing with freight at the main Terminal of Container without any interruption. Incheon Port Authority will continue to recruit companies interested in “Incheon Port taking part of the new arrangement. launches 24-hour The 24/7 service will nonstop allow customers, including shippers, ship owners operations.” and transport companies, uninterrupted access to Incheon port without regard to time. Import and export companies can access services either at night or in the early morning and transport cargo to any desired location.

Modern Terminals With effect from July 1st, all container terminals under Modern Terminals Group, including those in Hong Kong as well as DaChan Bay and Taicang in Mainland China, are now fully equipped to provide container weighing services to customers who need assistance. Modern Terminals has been working closely with shippers, carriers, and truckers to ensure that a process is in place, in accordance with the new Safety of Life at Sea (SOLAS) Verified Gross Mass (VGM) “Modern Terminals requirements – which went live in July. implements process Modern Terminals under SOLAS Limited (MTL) opened Hong Kong’s requirements.” first purpose-built container terminal facility in 1972. Today, it owns and operates container terminals at Kwai Tsing Container Port in Hong Kong. MTL also operates and holds a majority of shares in DaChan Bay Terminals in the Pearl River Delta (PRD) and cooperates with Ningbo Port Co Ltd in its investment in Taicang International Gateway in the Yangtze River Delta (YRD). In the PRD, MTL holds equity stakes in both Shekou Container Terminals and Chiwan Container Terminal.

Mitsui O.S.K. Lines Mitsui O.S.K. Lines (MOL) has been appointed to transport vehicles manufactured at Toyota’s plant in Argentina to ports on the west coast of Central and South America. Vehicles produced at Zarate plant are exported to the majority of Latin American countries and are part of an economically important project backed by the Argentine government. With the acquisition of “MOL wins car this new contract, MOL has restructured the existing US carrier contract East Coast - West Coast with Toyota South America route to connect Europe with East Argentina.” Coast South America, via the Strait of Magellan, West Coast South America, and West Coast Central America. The revised service allows MOL to respond swiftly to changes in demand for transport of completed vehicles in this region, with direct service from East Coast South America to West Coast South America and West Coast Central America. MOL’s new services will play a key role in meeting robust demand for transport of completed vehicles in the region based on more than 50 years of car carrier operation.

Orient Overseas Container Line Orient Overseas Container Line (OOCL) has taken a further step forward in its Greenhouse Gas (GHG) reporting by extending the scope to container terminals, namely Long Beach Container Terminal in the US and Kaohsiung Container Terminal (KAOCT) in Taiwan. The initiative this year not only ensures that OOCL’s data disclosure in 2015 is transparent, accurate, complete, consistent and relevant for the carbon dioxide, sulfur “OOCL takes oxides and GHG Scope 1 further step in emission data of OOCL vessels and GHG Scope 2 GHG reporting for records associated to the electricity consumption of the promotion of OOCL’s head office in sustainability.” Hong Kong, but also verifies that GHG Scope 1 and Scope 2 data from terminals are meeting standards. Each year, OOCL ensures that such standards are consistent and upheld by certifying its environmental data through independent business assurance service providers. Accredited by Lloyd’s Register (LR), this is the third consecutive year that OOCL has achieved dual reporting standards through the use of Clean Cargo Working Group (CCWG) and ISO 14064-1:2006 verification tools.

biz.hk 9 • 2016

Polar Air Cargo Atlas Air Worldwide Holdings, the parent company of Polar Air Cargo, will start providing air cargo services to support Amazon’s package deliveries to its customers. Operations under the agreements are expected to begin in the second half of 2016 and ramp up to full service through 2018. The long-term commercial agreements will include the operation of 20 B767-300 converted freighters for Amazon on a CMI (crew, maintenance and insurance) basis by Atlas Air Worldwide’s airline subsidiary, Atlas Air Inc, as well as dry leasing by its Titan Aviation leasing unit. The dry leases will have a term “Atlas Air Worldwide of 10 years, while the CMI operations will be partners with Amazon for seven years (with to provide air extension provisions for a total term of 10 transport service.” years). As part of the deal, Atlas Air Worldwide granted Amazon warrants to acquire up to 20 percent (after the issuance) of its common shares at a price of US$37.50 per share over a period of five years.

Port of Long Beach The 2015 annual inventory of port-related air emissions, conducted by an independent consultant, found aggressive actions by Port of Long Beach to curtail pollution have decreased diesel particulate matter by 84 percent since 2005, a slight decrease from the 85 percent reduction reported in 2014. Sulfur oxides were 97 percent lower, the same level reported in 2014. Smog-forming nitrogen oxides and green“Port of Long house gases were down 48 percent and Beach releases 14 percent, respecresults of 2015 tively, compared to the 50 percent and 21 Pollution Study.” percent numbers, respectively, in the prior year. Port officials attributed the rise in emissions to the unusual number of vessels at anchor due to terminal congestion through the first quarter of 2015. Efforts to improve air quality since 2005 have included the Clean Trucks Program, low-sulfur fuel regulations for ships, increased use of shore power for cargo ships and the Port’s Green Flag Vessel Speed Reduction Program.

biz.hk 9 • 2016

Santa Fe Relocation Services Santa Fe Group, a global leader in mobility and relocation services, has announced the appointment of David Byers as CEO for the fast-growing Americas region. Byers will be responsible for the USA, Canada and Latin America, and for driving the continued growth of the company’s business and service offerings in the region. Prior to joining Santa Fe, Byers held the position of CEO at CARSTAR, the world’s largest auto “Santa Fe Group body repair network with 500 franchise names David Byers stores and US$800 as CEO of million in sales. He is highly experienced in Americas.” the relocation industry, having spent three years as Chief Commercial Officer at global moving and relocation services provider SIRVA between 2008 and 2011 and expanded the company’s market share. Santa Fe’s operations in the Americas currently include 30 employees in its US offices (Texas and Connecticut) and a service set-up in Brazil (Rio de Janeiro). Revenue from the emerging business in the region is growing fast.

United Airlines United Airlines has launched a nonstop flight from San Francisco to Hangzhou, China, marking the airline’s fifth destination city in Mainland China and its 14th destination in the Asia Pacific region from United’s premier gateway located on the US west coast. The new service is the newest addition to United’s growing portfolio of Mainland China destinations, including three interior cities that no other airline serves from the United States. Hangzhou – a center for technology, economic development, education and cultural heritage – is also the fifth new international route United has launched from San “United Airlines Francisco since May (Auckland, New Zealaunches non-stop land; Singapore; Tel Aviv, Israel; and Xi'an, flight between San China). Francisco and This new route will provide US travelers Hangzhou.” with access to one of China’s most dynamic cities, while giving Chinese travelers direct access to United’s major hub in San Francisco with options for onward connections to an extensive network of service throughout the US, Canada and Latin America.

UPS UPS has announced the latest expansion of its popular UPS Worldwide Express Freight Service to nine new countries: Bahrain, Bangladesh, Kuwait, Malta, Morocco, Pakistan, Qatar, Sri Lanka, and Tunisia. Together with the eight additional countries added within the past year, the service is now offered in 66 origin and 64 destination countries and territories. In addition, UPS Worldwide Express Freight service has been expanded to over 2,110 zip codes in Mexico. The service provides supply chain benefits including reduced transit times, improved visibility, reduced inventory “UPS Worldwide safety stock, enhanced customer service levels, and Express Freight shorter order fulfilment service expands cycles/times. This specialized guaranglobally.” teed service is designed for urgent, time-sensitive, and high-value international heavyweight shipments over 150 pounds (70 kg), making it ideal for customers’ product launches, inventory shortages, and equipment failure replacement parts. Since its launch in 2013, the number of businesses using UPS Worldwide Express Freight service has increased more than 250 percent.

Weichert Workforce Mobility Weichert Workforce Mobility was named Relocation Management Company of the Year at the 2016 EMMA Awards ceremony in Philadelphia, Pennsylvania. Presented by the Forum for Expatriate Management, EMMA Awards are the industry’s premier awards recognizing excellence in workforce mobility. With the accolade, Weichert has set a new precedent and become the first and only company to be named RMC of the Year at the Americas EMMAs for three “Weichert wins consecutive years as it also won the honor in Relocation Management 2014 and 2015. Company of the Year for Weichert was selected by a judging third time.” panel of HR and mobility professionals from a wide range of multinational corporations from a shortlist of 11 finalists, based on such criteria as service quality, value for price paid, industry innovation and proven results for clients. Other factors – including Weichert’s commitment to building Trusted Partnerships and delivering Legendary Service and its Scorecard approach to performance tracking – helped further distinguish the company from the other nominees in this category.

Worldwide Flight Services Worldwide Flight Services (WFS) has topped off a year of substantial growth by winning the “International Cargo Ground Handler of the Year” award presented at the Air Cargo India industry conference in Mumbai. The award – which is based on votes cast by readers of the international trade magazine STAT Times to recognize excellence in the air cargo industry – was presented at a gala dinner in the city. The honor also came at a time of unprecedented growth for WFS. The company “Worldwide Flight handles over four Services voted million tons of air cargo per annum for some 300 International Cargo airline customers and is Ground Handler of the present at over 145 major airports in more Year.” than 22 countries on five continents. In October 2015, WFS extended its global presence by acquiring a 51 percent majority shareholding in Fraport Cargo Services at Frankfurt Airport; and in January 2016, it also announced its intention to purchase Consolidated Aviation Services, one of the leading cargo handlers in North America.

Yusen Logistics Yusen Logistics (China) Co Ltd has opened new sales offices in Changzhou and Changshu in China’s southern Jiangsu Province. The new offices, which opened for business on September 7th, are part of the company’s overall strategy to strengthen sales in the region. Changzhou and Changshu, located in the center of the Yangtze River delta, are both cities undergoing significant industrial development. Growing logistics “Yusen Logistics demand is expected in the area since hi-tech and expands in China automotive companies, with new sales including a large number of Japanese companies, offices.” have been recently set up operations there. Until recently, sales activities in the region were conducted at the company’s Suzhou and Wuxi branch offices. The additional offices are positioned to provide a more scrupulous logistics service through more regionally-based sales. Yusen Logistics will increase its sales through offering a variety of services including ocean and air freight forwarding and contract logistics, as well as expanding the workforce to meet growing demand.

biz.hk 9 • 2016

AmCham_38years_w210mm_x_h285mm_HR.pdf 1 8/18/2016 11:12:24 AM

Private Events AmCham Feb 2016.pdf 1 3/3/2016 11:13:15 AM

Uber mobility: How technology is changing the global mobility landscape 3. Recruiting More mobility for less, and the chance to have new career experiences within a global organization, are both great outcomes for low-cost, low-touch moves. These can be major influencers to millennials and recruiters. In a typical millennial’s career, two years is a long time to stay in one position, yet companies are flatter than ever before. Looking for a new opportunity in the same company, but in another part of the world, is increasingly becoming the norm. Self-initiated moves are a trend we see growing. For business leaders, knowing that talent is increasingly mobile, and at a lower cost than the traditional assignment, is a very attractive prospect. Low-cost mobility options are great for recruiting and retaining talent.

“Uber mobility” reflects the reality of technology shifts on our industry and a focus on the next big thing. Companies want to offer more mobility to their younger employees, but at a lower cost than the traditional international assignments that still exist for strategic temporary roles. Assignees and HR also want more information at their fingertips. This article highlights what mobility teams need to be aware of at this stage of the uber mobility evolution, and offers a few top tips.

1. Do It Yourself (DIY) The assignee’s ability to plan their own move is part of the uber mobility experience. This is great for companies that want low-cost move options. It can also be great for the employee to have flexibility and choices. At this early stage, one downside is that current technology is not interactive and doesn’t offer “opt out” points when the employee might need an expert to figure something out. These first generation apps were not designed for families so much as for the early-career unaccompanied younger assignee. The “live chat with an expert” option is coming but it’s not here yet.

2. Duty of care/Risk and compliance

4. Data analytics Most mobility teams understand the power of data. Technology is allowing companies to capture more information about their employees: mobility spend, assignee demographics, exceptions, locations, immigration and tax compliance, etc. This allows for smarter mobility programs and a better ability to link with Diversity & Inclusion strategies, talent planning and business partners. Mobility programs with good data can run more efficiently.

5. What’s next? Rapid change and early iterations of technology solutions inspire us to consider where mobility solutions will be in, not ten years, but two or four years. Virtual Reality (VR) and 3D technology will change familiarization trips, home finding, school tours and many other destination services solutions. We may also see some services emerge in between the no-touch/ low-touch solution and the traditional high-touch approach. Improved versions of Skype, video technology and even mobility avatars (that can interact with the assignee to answer questions and address individual needs) are certainly near future solutions we should look out for.

Whether it is Uber, GrabCab or Airbnb, they all influence how we expect to get information and make choices. So, what happens when the employee chooses their flights, housing, drivers or moving company? How far do the company’s “duty of care” responsibilities extend in terms of the safety and well-being of employees and their families moving around the world? Mobility teams should take a pro-active approach to emergency preparedness – instead of waiting for an emergency to occur. Steps that can be taken include reviewing and updating security policies and regularly communicating emergency guidelines to assignees.

The article was contributed by Lisa Johnson Global Practice Leader, Consulting Services, Crown World Mobility Visit www.crownworldmobility.com

How the world works better AmCham biz hk CWM advertorial.indd 1

25/8/2016 6:32:22 PM

MARK YOUR CALENDAR Sep Opportunities in Cambodia on a Potential New Path

Sorasak Pan, Ph.D., Minister of Commerce, Royal Government of Cambodia Excellency Sok Chenda, Secretary-General, Council for the Development of Cambodia (CDC) Sorasak Pan, Ph.D., and Excellency Sok Chenda, will discuss the latest US-Cambodia trade matters, Cambodia’s investment environment for overseas investors, and upcoming changes in Cambodia’s investment law. The Office of the U.S. Trade Representative (USTR) announced on 30 June 2016 a major expansion of trade preferences that stands to bring significant benefits to Cambodia. Under the new changes to the U.S. Generalized System of Preferences (GSP), Cambodia and other Least Developed Beneficiary Developing Countries producing travel goods such as luggage, backpacks, handbags, and wallets will be able to export those products to the United States duty free. The GSP expansion will not only give Cambodia preferable access to the $10 billion U.S. import market in travel goods. It will also encourage further development of Cambodia’s textile industry into profitable new areas of production – i.e. focusing on a “niche” area with the country’s unique national strengths and characteristics. Sorasak Pan is the current Minister of Commerce in the Royal Government of Cambodia. He was the leader of the 1st high level bilateral Cambodia-US Working Group which is an annual meeting to discuss trade and investment between the two countries. In addition, he has always played an integral role in the strategic trade policy of Cambodia and was the taskforce leader for ratification of Cambodia’s Trade Facilitation agreement for the WTO’s Bali package.

Sep FinTech Series: The Rise of Blockchain - Revolution or Hype?

Hu Liang, Senior Managing Director, Emerging Technologies Center, State Street

Blockchain is believed to have the potential to completely revolutionize the financial industry. It is a digital technology used for organizing and distributing near real-time financial transactions or data records of account ledgers to multiple participants, and would potentially provide immediate settlement of transactions, material cost benefits across front and back office activities, increased verification, improved data encryption and real-time reporting, among others. However, much of the research and development activities are happening outside of Asia while few Asia-based companies have dedicated teams in the region examining blockchain technology. Join the session to understand stages of blockchain development and concerns over issues such as security and regulations. The session will also examine key challenges for adopting blockchain in Asia and the prospect of blockchain making the leap from concept to reality for mainstream financial services companies. Hu Liang is a senior managing director and head of the Emerging Technologies Center at State Street. The Emerging Technologies Center focuses on the identifying, exploring and prototyping of emerging and disruptive technologies that could have broad impacts on State Street and the financial service industry as a whole. Previously, Hu spent 2011 through 2015 in Hong Kong, overseeing parts of State Street’s Global Markets and Global Exchange businesses in Asia Pacific. He led State Street Global Exchange in Asia Pacific since its formation in 2013. Hu holds a BS degree in Electrical Engineering from Rutgers University in New Jersey and received his MBA from the Haas School of Business, University of California, Berkeley.

Sep The Rise of Flexible Office Space

Jonathan Wright, Associate Director, Colliers International Take up of office space by Flexible Workspace operators in 2016 is set to be 20% greater than the take-up of office space by PRC companies in 2015. The demand is being driven not only by the surge in start-up activity, but by an increasing number of MNCs looking to utilise flexible solutions. We investigate how this is impacting the office market in Hong Kong and the reasons behind the growth. Jonathan Wright has over 13 years of real estate experience across UK, Middle East and Asia in a range of transaction based roles. Having joined Colliers International in 2015, Jonathan assists both MNCs and start-ups, across various sectors, in real estate strategy and transactions around the APAC region. Notably Jonathan has developed considerable knowledge in the flexible workspace arena having developed strategy for a number of operators and overseen execution of transactions, helping operators to expand their portfolios in existing markets and enter emerging and frontier markets.

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

Tel: (852) 2530 6900

Venue: The American Chamber of Commerce in Hong Kong 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 08:00am - 09:30am Fee(s): Member: HK$250 Non-member: HK$400

Venue: The American Chamber of Commerce in Hong Kong 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 08:00am - 09:30am

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Mon

Tue

Wed

Thu

Fri

Fee(s): Member: HK$180 Non-member: HK$300

Venue: The American Chamber of Commerce in Hong Kong 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 08:00am - 09:30am Fee(s): Member: HK$180 Non-member: HK$300

Fax: (852) 2810 1289

2016 Sep

CMY

Email: byau@amcham.org.hk

210x285_mid level_v4_Ver_Amcham_Aug19_op.pdf

CMY

17/8/2016

10:57 AM

JOURNAL OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG

www.amcham.org.hk

September 2016 â&#x20AC;¢ VOLUME 48 NUMBER 9