biz.hk Jun 2014 by The American Chamber of Commerce in Hong Kong

20 14

HE G AL UID TH E Y L TO IV IN G

June 2014

"USE LESS, WASTE LESS" KS WONG

SECRETARY FOR THE ENVIRONMENT

June 2014 Vol 46 No 6

Contents

Richard R Vuylsteke

Editor-in-Chief Kenny Lau

Managing Editor Blessing Waung

Advertising Sales Manager

Publisher

COVER STORY

ENVIRONMENT

REAL ESTATE

CHINA BUSINESS

Hong Kong’s municipal solid waste – trash that results from people’s daily activities – has increased by nearly 80 percent over the past 30 years. Secretary for the Environment KS Wong talks about a number of proposed key actions as outlined in a comprehensive plan to achieve a 40-percent reduction in waste disposal through 2022

Barbara Finamore, Senior Attorney and Asia Director of the Natural Resources Defense Council, discusses how China is focusing on pollution reduction, climate change, clean energy and environmental protection

Brian Brenner, Regional Director and Head of Tenant Representation Markets at JLL, reflects on the dramatic peaks and troughs of the past decade in commercial rentals as well as the findings of a recent JLL report

Speaking in Hong Kong about the growth of southwestern China, Consul General Peter Haymond of the US Consulate in Chengdu describes how US companies can benefit from a “huge” regional market

Regina Leung

biz.hk is a monthly magazine of news and views for management executives and members of the American Chamber of Commerce in Hong Kong. Its contents are independent and do not necessarily reflect the views of officers, governors or members of the Chamber. Advertising office 1904 Bank of America Tower 12 Harcourt Rd, Central, Hong Kong Tel: (852) 2530 6900 Fax: (852) 3753 1206 Email: amcham@amcham.org.hk Website: www.amcham.org.hk Printed by Ease Max Ltd 2A Sum Lung Industrial Building 11 Sun Yip St, Chai Wan, Hong Kong (Green Production Overseas Group) Designed by Overa Creative Tel: (852) 3596 8466 Email: ray.chau@overa.com.hk Website: www.overacreative.com ©The American Chamber of Commerce in Hong Kong, 2014 Library of Congress: LC 98-645652 For comments, please send to biz.hk@amcham.org.hk Single copy price HK$50 Annual subscription HK$600/US$90

AMCHAM NEWS AND VIEWS 04 Tackle Hong Kong’s Municipal Solid Waste Problem Now The Environment Bureau has outlined a holistic approach to tackling a real and immediate problem; many of these initiatives – especially in large-scale infrastructures – will take years to achieve their desired effect. Complacency is a luxury Hong Kong cannot afford

07 New Business Contacts

18 A China-California Effort to Tackle Climate Change The US state of California and China’s National Development and Reform Commission have entered into a Memorandum of Understanding for a partnership on climate change

20 The Science behind Air Quality Standards Christopher Frey, Professor of Environmental Engineering at North Carolina State University and Chair of US EPA’s Clean Air Scientific Advisory Committee, talks about the National Ambient Air Quality Standards and how they protect public health

41 executives joined AmCham’s business network last month

REAL ESTATE

53 Mark Your Calendar

22 An “Uncharted Territory” of Hong Kong Brian Brenner, Regional Director and Head of Tenant Representation Markets at JLL, reflects on the dramatic peaks and troughs of the past decade in commercial rentals as well as the findings of a recent JLL report

COVER STORY 08 “Use Less, Waste Less” Hong Kong’s municipal solid waste has increased by nearly 80 percent over the past 30 years. Secretary for the Environment KS Wong talks about a number of proposed key actions as outlined in a comprehensive plan to achieve a 40-percent reduction in waste disposal through 2022

ENVIRONMENT

14 The Malaise of China’s Air Pollution Barbara Finamore, Senior Attorney and Asia Director of the Natural Resources Defense Council, discusses how China is focusing on pollution reduction, climate change, clean energy and environmental protection

CHINA BUSINESS 28 Doing Business in Southwest China Speaking in Hong Kong about the growth of southwestern China, Consul General Peter Haymond of the US Consulate in Chengdu describes how US companies can benefit from a “huge” regional market

31 United Airlines Launches Chengdu-San Francisco Service United has become the US-based carrier to serve Chengdu and the first international carrier to fly non-stop from the US to a city in Mainland China other than Beijing, Shanghai and Guangzhou

HUMAN CAPITAL 32 Top Trends in Employee Relocation Lisa Johnson, Global Practice Leader of Crown World Mobility’s Consultant Services, points out a number of trends and how they are having an impact on companies looking to expand internationally

CHARITABLE FOUNDATION 36 In Support of Local Charities The partnership between AmCham Charitable Foundation and American Women’s Association has made 2014 another fruitful year in recognizing local charities for their efforts in a spectrum of humanitarian endeavors

HEALTHY LIVING 42 What You Ought to Know about Diabetes Juliana Chan, Professor of Medicine & Therapeutics and Director, Clinical Research Management Office, International Diabetes Federation Centre of Education at CUHK/Prince of Wales Hospital, explains in detail how diabetes affects the human body

46 Maintaining a Healthy Digestive System Dr Angela See, who has worked previously in R&D at a biotechnology company in the US before joining Wyeth Nutrition Hong Kong as Medical Affairs Specialist, discusses how a balanced diet rich in fiber can be beneficial to the human body

3 2

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Board of Governors Chairman

Peter Levesque

Vice Chairman

Walter Dias

Treasurer

Tom Burns

Executive Committee Evan Auyang, Sara Yang Bosco Belinda Lui, Alan Turley, Richard Weisman Governors Donald Austin, Brian Brenner, Ewan Copeland Janet De Silva, Rob Glucksman, Robert Grieves John (Jack) E Lange, Ryan Mai Catherine Simmons, Eric Szweda, Colin Tam Elizabeth L Thomson, Jennifer Van Dale Jay Walder, Frank Wong, Eden Woon Ex-Officio Governor President

James Sun Richard R Vuylsteke

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biz.hk Editorial

he Hong Kong Blueprint for Sustainable Use of Resources 2013-2022 published last year by the Environment Bureau clearly demonstrated an urgent need to take a series of coordinated actions on waste prevention, reuse, recycling, recovery, treatment and landfills to resolve Hong Kong’s escalating waste problem. The Blueprint outlines a holistic approach to tackling a real and immediate problem using a number of plans for immediate and longer-term actions. These include encouraging behavioral changes to instil an environmentally sustainable culture in Hong Kong. There is a broad range of views in the community on these issues, particularly with regards to the so-called “3+1” proposal, which calls for extending the life of three landfills and constructing an integrated wasteto-energy incineration facility. Without extension, all three landfills will run out of capacity in one to five years’ time, putting Hong Kong at risk of severe environmental consequences. Immediate action is needed. Even with landfill extensions, a portion of the residual waste needs to be treated by incineration in Hong Kong because of the limited supply of suitable land for dumping. Incineration is a proven technique for waste

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TACKLE HONG KONG’S MUNICIPAL SOLID WASTE PROBLEM NOW reduction, and stringent environmental controls would be applied to mitigate potential environmental impact of the proposed incinerator near Shek Kwu Chau. Hong Kong has fallen behind other economies, such as Taiwan, in using incineration as the way to manage waste – some 9,000 tonnes generated every day in Hong Kong. The good news is that Hong Kong can draw upon the latest technology and operational experience developed over the years in some of the most advanced countries to address the challenging waste disposal issue facing the city, as well as use waste as an additional source of energy production. Nonetheless, various districts will be burdened by extending existing landfill sites and putting in place a new waste incinerator. The government has therefore worked to engage, understand, and address the concerns of local communities and other stakeholders and has introduced proposals

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that would enhance the overall management of landfills, including improvement in logistics to minimize the impact on nearby areas. It is clear that decisive actions are urgently needed because, as the Environment Bureau’s Blueprint states, that there are no better alternatives available to extending the landfill sites and planning for residual waste incineration in tandem with concurrent actions such as reducing waste and improving recycling. Many of these initiatives – especially in planning, designing, constructing, testing, and commissioning large-scale infrastructures – will take years to achieve their desired effects on reducing municipal waste. But complacency today on the issue of waste management will inevitably lead to a mounting problem. All too soon there will be serious impact on Hong Kong’s quality of life. Simply put, the interests of all Hong Kong’s people are at stake.

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biz.hk 6 â&#x20AC;˘ 2014

COVER STORY

“Use Less, Waste Less”

KS Wong

Hong Kong’s municipal solid waste – trash that results from people’s daily activities – has increased by nearly 80 percent over the past 30 years and has become a major challenge from an increasingly limited capacity of waste management. Secretary for the Environment KS Wong in an interview with biz.hk talks about a number of proposed key actions as outlined in a comprehensive plan to achieve a 40-percent reduction in waste disposal through 2022

By Kenny Lau Photos: Silver Image

biz.hk 6 • 2014

arlier this year when Secretary for the Environment KS Wong, along with several Legislative Council members, made a five-day, four-country trip to Europe to study the latest technology applications in treating municipal solid waste, it was a very valuable experience to help determine what measures Hong Kong could adopt for one of the most challenging issues facing the city where daily waste disposal rate is enormous while capacity to absorb is shrinking by the day. “In our trip to the UK, the Netherlands, Denmark and Sweden, we met not only with government officials but also industry professionals and other NGOs to gain a comprehensive understanding of their experience and practices in waste management,” Wong says in an interview on the issue of sustainable development. “I was very impressed with the level of consistency in their policy and the similar approach these countries share in dealing with municipal solid waste,” he says. “In short, their approach is very similar to what’s proposed in our blueprint for sustainable use of resources – which is a plan we issued last year for coordinated and simultaneous action on reduction, reuse, recycling, recovery, treatment and landfilling of municipal waste. “The difference is that Hong Kong is at a very different stage of development when compared to these European countries as they have been doing this for decades, and we are just kicking off our new blueprint.”

Hong Kong’s challenge Over the past 30 years, Hong Kong’s municipal solid waste – trash that results from people’s daily activities – has increased by nearly 80 percent while population growth in the city was at a mere 36 percent. Today, each resident on average throws away 30 percent more garbage than in the past, and in total some 9,000 tonnes of waste are disposed of every day – far

more than the average of Tokyo, Seoul or Taipei by as much as 80 percent on a per-capita basis. Meanwhile, there is a very limited supply of land locally suitable for waste-management infrastructure, especially for landfills – which currently serve as a major part of the local waste management chain. Moreover, Hong Kong’s three landfills – commenced in the mid-1990s and located at the margins of the eastern, northern and western parts of Hong Kong – will be full to their capacity by 2015, 2017 and 2019 respectively if no further extension is made. Interestingly, Hong Kong’s recycling rates of waste (at about 40 percent) are comparable to those of most developed countries (ranging from 40 to 60 percent). “While we are not a world leader in recycling, we as a city are not too bad, either; we do aspire to further reduce our waste generation and improve our recycling rate,” Wong says. “The key difference is how we deal with the other half that is not recycled.” “In advanced European countries, they do it through waste-to-energy schemes (incineration which also serves as an additional source of renewable energy) and rely very little on landfills,” he adds. “It is something Hong Kong lacks because of a decision some 20 years ago to use landfills as the only means to handle waste that is not recyclable. That’s not sustainable because – unlike many other cities – we simply don’t have an endless supply of land.” One of the goals outlined in the blueprint is to minimize Hong Kong’s dependence on landfills by roughly 30 percent through 2022 and to reduce it even further beyond a 10-year timeframe – but landfills will always have a role because of residual or construction waste, no matter how high the level of recycling or incineration, Wong notes. “In Europe, they actually have reserved landfills for decades to meet their needs in the future,” he says. “Their experience tells us that end-of-pipe waste treatment

infrastructures – including waste-toenergy facilities and landfills – are to different extents indispensable. More importantly, technology in emission control has advanced so much that these infrastructures are commonly accepted.”

A multi-pronged approach The vision of Environment Bureau’s Hong Kong: Blueprint for Sustainable Use of Resources 2013-

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2022 is to encourage people in Hong Kong to “use less and waste less of the Earth’s resources through instilling an environmentally-sustainable culture.” It is also a long-term waste management plan aiming to reduce the disposal rate of municipal solid waste by 40 percent on a per-capita basis through 2022. There are five major aspects for action: reduction at source, minimization of food waste, support for recycling, waste-to-energy schemes, and better use of landfills. “For Hong

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Kong, we need to work on all five of them simultaneously in order to deal with the issue in a more sustainable way,” says Wong. “And, we are making progress in each of these areas, although there is still a lot of work to do.” To reduce municipal waste at source, it is important to start by driving behavioral change. “That’s why we have put such an emphasis on the quantity-based municipal solid waste charging scheme (charging by the volume or weight of waste dumped)

with its pilot program recently launched at seven housing estates,” Wong says. “The pilot scheme allows us to accumulate practical experience for various charging options on waste generation based on the ‘Polluter-Pays Principle.’” “In addition, we have ‘Producer Responsibility Schemes,’ including the environmental levy scheme on plastic shopping bags. The overall purpose is to encourage people to waste less and to be more conscious not only before discarding anything as garbage but

also before buying anything that they may not really need,” he explains. “We are so used to our current lifestyle that it is sometimes difficult for an average citizen to truly understand the cost – financially or environmentally – of municipal waste.” “It is a new social contract to raise more awareness about waste generation and to introduce a greener lifestyle,” he adds. “These levies are not huge sums of money per household or individual but they carry an important message about responsibility for every resident in Hong Kong.”

Food waste In 2011 alone, Hong Kong threw away about 3,600 tonnes of food waste every day – of which roughly two-thirds came from households and one-third from food-related commercial and industrial sources. The amount of disposal is equivalent to the weight of approximately 250 double-decker buses every 24 hours or nearly 100,000 double-decker buses every year. On a per-capita basis, it is nearly two times more than in Taipei or Seoul. “It is one of our focuses because

Hong Kong is wasting a lot of food – and much of the waste is unnecessary and can be avoided if we adopt a different attitude in our eating and foodbuying habits,” Wong says. “Each of us can play an important role in making a change, and in the past year or so we have seen some encouraging signs of behavioral change in the community in reducing food waste as a result of our ‘Foodwise Hong Kong’ promotional campaign featuring the iconic ‘Big Waster.’” Putrescibles – which can be various types of organic waste but are mostly of food waste – make up more than 40 percent of all municipal solid waste in Hong Kong’s landfills. “Just imagine what a big difference we as a community can make if everyone is more conscious about food waste and is willing to act in a more sustainable manner,” Wong says. “A good example is Taipei where they have achieved about 40 percent recycling in food waste in around a decade’s time,” he says. “A 40 percent organic waste recycling – which is probably the most we could achieve – is a very significant amount, although dealing with food waste is far more

challenging in Hong Kong than in Taipei, partly because there isn’t a large industry like farming that could make substantial use of our food waste.” “Hence, as illustrated in our Food Waste and Yard Waste Plan for Hong Kong 2014-2022, we need to have good recycling programs and to come up with a network of organic waste treatment facilities (OWTFs) using technology like anaerobic digestion to turn organic and food waste into a source of renewable energy,” he adds.

“End-of-pipe” infrastructure One of the major challenges in Hong Kong is a lack of “end-of-pipe” capacity to deal with waste generated locally. “No matter how much reduction and recycling we do, there is always a port of waste that must be treated either by incineration or landfill,” Wong points out. “It is an urgent matter because we currently have no incineration facility for treating municipal solid waste and our landfills are quickly running out of capacity.”

Composition of MSW in Hong Kong, 2011 (Note: The average daily MSW disposal quantity was 9,000 tonnes in 2011.)

Plastics Paper

19%

22%

Putrescibles

44%

Wood/Rattan

Glass

Metal

Textiles

Household hazardous wastes 1% 3% Others

Source: Environment Bureau

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Waste disposal rates in Hong Kong, Taipei City and South Korea (per capita) kg/day 1.5

Taipei City (MSW)

1.2

0.9

0.6

0.3

Hong Kong

Volume-based waste fee system was implemented in 2000

South Korea

Volume-based waste fee system was implemented in 1995

1995

1996

1997

(Household and small business waste)

1998

1999

2000

2001

2002

2003

2004

(Household garbage)

2005

2006

2007

2008

2009

2010

2011

Source: Environment Bureau

“It is also why we have proposed the so-called ‘3+1’ plan – which involves extension of the three landfills and construction of a waste-to-energy integrated facility,” he says. “These infrastructures – and several other waste treatment facilities currently under consideration – are essential steps in filling the gaps.” “We also have to act quickly because it takes a long time to plan, design, build and test an infrastructure,” he adds. “For instance, despite having been discussed for almost two decades, it will take at least 7-8 years for an incinerator to become fully operational once we get funding approval to go ahead. “In other words, 2022 is the earliest time we’ll have a waste-to-energy facility if everything goes smoothly.” The integrated waste management facility near Shek Kwu Chau – which will adopt modern waste-to-energy incineration technology – will have a capacity to handle about 3,000 tonnes of municipal waste per day and will meet roughly a third of Hong Kong’s current daily disposal. “The proposed incinerator in Hong Kong will adopt the most stringent standards in the world. We

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are following the European standards as a benchmark for emission control and will deploy additional measures to bring the potential environmental impact to a bare minimum,” Wong says. Nonetheless, public concerns remain because incinerators are perceived to be “something not so nice” and a threat to public health. Yet, because of breakthroughs in technology, they are now made an integral part of a city. Some incinerators are built close to residential areas and even designed as a community facility where people can ski, hike, rock climb or enjoy a cup of coffee in a café at the peak overlooking the city, Wong points out. “It is a proven technology that people are pretty comfortable with in European cities,” he says. “In fact, they are building a new incinerator right next to the town center in Copenhagen and within a 2-km radius from their royal palace where the Queen of Denmark lives.” “We are very confident that the proposed waste-to-energy facility will meet all the stringent environmental requirements and will serve to help handle a reasonable portion of our residual municipal waste,” he adds.

A call for action The European experience in waste management has reaffirmed many of the policy directions and key actions outlined in the Blueprint – which “touches upon the entire resource chain” with an emphasis on a number of immediate challenges that only a comprehensive system of multiple, concurrent efforts can meet, Wong reiterates. “After our trip to Europe, we came away more convinced that our blueprint is in line with world standards and that it is feasible and very much needed in Hong Kong,” he says. “Our plan is also very strategic in that it covers a wide spectrum of aspects – from reduction, charging, recycling, handling and treatment to disposal of municipal solid waste.” “Our aspiration is to reduce our dependence on landfills over time for obvious reasons, and we’ll need to invest in both driving behavioral change and building new infrastructure to achieve that goal,” he stresses. “And, Hong Kong simply can’t afford to keep falling behind on the issue. It is our obligation to do everything possible in every step of the way towards a sustainable future.”

ENVIRONMENT

The Malaise of China’s Air Pollution Air pollution in Beijing has reached such an alarming level that expatriate executives are increasingly leaving their families behind in their home country – something of a new phenomenon just from a few years ago. Barbara Finamore, Senior Attorney and Asia Director of the Natural Resources Defense Council (NRDC), discusses how China is focusing on pollution reduction, climate change, clean energy and environmental protection

By Daniel Kwan

ype in “smog in Beijing” for an Internet search today, and you will find responses like “airpocalypse,” “crisis” and “toxic air.” Today, if you ask senior business executives in Beijing what their top concerns are, many will mention something about air pollution. According to surveys by business chambers and HR agencies, expatriate executives are increasingly leaving their families behind in their home country instead of relocating them to Beijing – something of a new phenomenon just from a few years ago. Air pollution in Beijing has reached such an alarming level that many multinationals are taking the problem very seriously. Included in their induction kits for new hires now are facemasks and emergency guidelines regarding work schedule on days of poor air quality. Beijing, some people say, is approaching the status of inhabitability at a horrible pace.

If the depiction of a gloom-and-doom scenario described in newspaper headlines is credible, it is easy to conclude that Beijing – or much of China today by the same token – is losing out on the environmental front. Dense smog and terrible traffic – in addition to a cut-throat business environment – aren’t exactly what most Western executives expect to encounter when they sign up to help their companies expand into a market of over a billion consumers. Given the hefty hidden costs of doing business in China today – health and otherwise – it seems logical that executives dust off their Plan B and begin to reevaluate their China strategy. It is fortunate that we can seek advice from leading experts like Barbara Finamore, Senior Attorney and Asia Director at the Natural Resources Defense Council, and learn all about the issues of air pollution and environmental protection in China.

Photo: Thinkstock

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tion plans and the lists of ‘point people’ who are going to be on each one of the five issue areas of the joint committee,” Finamore points out. “They also agreed on what their immediate next steps are going to be. So, they are now putting the plans into action.”

A learning curve

Barbara Finamore

Finamore is not only an expert on environmental law and energy policy but has over two decades of experience on China. If she indicates an environmental problem in China, you’d better take her warning seriously. And, if she expresses hope in China’s future, then we may all sigh a relief knowing that the tide can still be turned around.

A strategic collaboration If the 2009 UN Climate Change Conference in Copenhagen is taken as harbinger of next year’s sequel to be held in Paris, it’s difficult to be optimistic that much will be achieved. The US and China – two largest countries of greenhouse gas emissions in the world – blamed each other for the breakdown of the negotiations in Copenhagen. Five years ago, it reached a point that few expressed any hope of ever reaching a climate change treaty in 2015 when representatives are scheduled to meet again. However, it is important to remember that the US and China have been cooperating on environmental and energy issues for over 30 years, Finamore says. And, there are numerous ongoing initiatives and projects between the

two sides that are rarely mentioned in the press. The US-China Clean Energy Research Center, for instance, was launched in 2009 when President Barack Obama made an official trip to China. It covers building energy efficiency, electric cars, and carbon capture and sequestration. “These initiatives are still going on, and it’s been five years. A lot of US companies have joined and contributed funding,” notes Finamore. “The idea behind the Clean Energy Research Center was to bring together researchers and scientists from both countries to do joint R&D and share the findings.” The close cooperation between Beijing and Washington became evidently stronger in March when Vice Chairman of National Development and Reform Commission Xie Zhenhua and Secretary of State John Kerry met in Washington for the US-China Climate Change Working Group. One of the five initiatives agreed upon during the meeting was directly related to sharing experience on greenhouse gas reporting – a key sticking point at Copenhagen back in 2009. “What’s happened at the Working Group meeting was that both parties finally agreed on concrete implementa-

What’s more is that there is much for China to learn from the US in the battle against environmental degradation. China today in many ways resembles what the US was decades ago at a time when US cities such as Los Angeles suffered from horrendous air pollution problems. Through cooperation, China can benefit from new American technology and US experience gathered over the years, Finamore says. However, China simply cannot implement a direct copy of the US strategy because China’s situation is unique and has undergone significant change in the past four decades, she cautions. “One difference [compared with the US] is the way air pollution in China spreads: it spreads not just in cities like Beijing or Shanghai but throughout much of the country. The levels of air pollution in China are also high and growing.” Public sentiments also play a much larger role in China today than they ever did a decade or so ago. “The level of public outrage about the level of air pollution that Chinese residents have to live with everyday is something I’ve never seen before,” Finamore says. The good news is that Chinese officials have also become much more aware of the importance of delivering results in curbing China’s pollution problems. “What’s happening now – as I understand it – is that the weight given to meeting environmental targets [as a criteria of official appraisals] has increased,” she says. “But it’s still a question of political will. It will only have an impact when officials realize that they have to actually achieve results – and not just to say the right things – in order to ensure social stability.”

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A continuous effort Nevertheless, China’s central government is pushing to combat the problem of pollution. In March, Chinese Premier Li Keqiang in his annual address to the National People’s Congress declared war on pollution. Last September, China issued the “Ten National Measures to Improve Air Quality,” followed by the “Clean Air Action Plan” outlining for the first time a regional approach to tackle air pollution across the country. “It’s somewhat complicated because China regulates through consensus. The Clean Air Action Plan is a positive step in the right direction; however, it is nowhere near as stringent as it could have been,” Finamore believes. “It’s good to have attracted national attention in that form, but it isn’t going to be enough to get the job done because a lot of that are just first steps.” The current state of the Chinese economy and infrastructure is at a stage where there is room for significant progress to be made. More importantly, experience in the US has shown that changes are possible without costing “an arm and a leg.” At present, a majority of China’s industries relies heavily on outdated technology and inefficient machinery and equipment. It is an area in which adoption of newer and more efficient technology can go a long way in meeting the government’s goal of a reduction in greenhouse gas emission, especially when industries in China consume about 75 percent of the electricity generated but are not nearly as energy-efficient as the world’s average on a GDP basis. “People often think of pollution control as end-of-pipe control. Therefore, it is a cost [on the economy] and doesn’t help the bottom line [of businesses],” Finamore says. “But there are ways – and we or NRDC have done this in China for many years – of revamping a factory’s production methods using low-cost approaches that will save money while reducing the use of electricity and air emissions.”

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Eight ways for collaboration between China and California on environmental protection: 1. Cleaner Fuels: Powering cars and trucks with cleaner fuels – one of China’s goals by 2017 and in line with California’s Low Carbon Fuel Standard 2. Sustainable Communities: Promoting sustainable development of cities across China by enabling residents to walk, bike or utilize public transportation 3. Energy Efficiency: Allowing savings through higher efficiency from electricity consumption for which opportunities to save energy remain 4. Renewable Energy: China is the world’s largest investor in renewable energy while California is also moving towards much cleaner sources 5. Cleaner Power Plants: China is experimenting with a cap on coal consumption as California is relying on cleaner and more efficient power plants 6. Green Ports: The ports of Los Angeles and Long Beach became the first green ports in the world while Hong Kong, Guangzhou and Shenzhen are looking to do the same 7. Regional Air Pollution Control: Beijing’s air pollution partly comes from neighboring provinces – and can be addressed through a regional approach like in Los Angeles 8. Cap and Trade Programs: China plans to launch pilot programs for carbon emissions trading similar to that of California

Source: Natural Resources Defense Council

In fact, it is a conclusion confirmed in a recent study by the World Wildlife Fund on the adoption of renewable energy in China, she adds. “What the WWF study said is that the first step China needs to implement is to mandate new standards of efficiency in different types of industrial equipment.”

A key message One of the key messages in environmental protection is how it can be achieved along with economic growth. “As a general matter – and I think it holds true around the world – people equate environmental protection to a cost increase. That is not necessarily the case, especially in the long run,” Finamore stresses. “For

example, Los Angeles which has had a horrendous level of air pollution has managed to slash its emission level by 80 percent while growing its economy. So, it is possible and it has been done.” And, it is important that NGOs continue to convey such a message in the public and private sectors. “We’ve certainly been working in China for a long time, and we’ve developed a reputation as a trusted adviser who is not for profit and not trying to sell anything to China,” Finamore says of NRDC. “So, we have established our credibility and expertise in the country where we are often called upon by government officials for advice on a number of issues.” Despite recent measures to tackle the issue of environmental degradation,

the problem of pollution remains a major challenge in China, partly because China today consumes more coal than the rest of the world combined. While rules and regulations are in place and look good on paper, they are more often ignored than enforced. China, after all, is a huge country with a complex set of environmental problems, but its environmental “police” force remains relatively small compared with other developed countries. Whether China can succeed in protecting its natural environment will depend on execution, Finamore says. “Are we going to see a cleaner China in a decade or so? We certainly could. Again, it’s a question of China’s political will, and China can make it happen if it is what China wants to do.”

A China-California Effort to Tackle Global Climate Change

overnor of California Edmund G Brown Jr and China’s National Development and Reform Commission (NDRC) Vice Chairman Xie Zhenhua have entered into a Memorandum of Understanding (signed last September) for a partnership on climate change “between China, between provinces in China, and the state of California as a catalyst and as a lever to change policies in the United States and ultimately change policies throughout the world.” It is a first-of-its-kind agreement between NDRC – which oversees China’s efforts to address climate change and much of the government’s economic strategy – and California, seeking to enhance cooperation on environmental protection through a range of activities. Areas covered in the MOU include mitigating carbon emissions, strengthening performance standards to control greenhouse gasses, designing and implementing carbon emissions trading systems, sharing information on policies and programs to strengthen low carbon development, exchanging personnel and jointly organizing workshops and training, and conducting research on clean and efficient energy technologies. This agreement is a result of more than a year and a half of significant diplomatic and business exchanges between California and China, including Governor Brown’s Trade and Investment Mission to China, a meeting with Chinese President Xi Jinping and the opening of the California-China Office of Trade and Investment in Shanghai.

China’s NDRC Vice Chairman Xie Zhenhua, left, and Governor of California Edmund Brown sign an agreement to strengthen efforts to combat global climate change and support low carbon development. Photo: Brad Alexander, Governor’s Office of Emergency Services

Partnership on climate change was one of many subjects Governor Brown discussed with President Xi and was a key component of the trade mission, which included a meeting with officials from NDRC and remarks on climate change at Tsinghua University in Beijing. In addition, California Air Resources Board Chair Mary Nichols was in Shenzhen (site of China’s first carbon trading program) to pledge cooperation on emissions trading.

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The Science behind

Air Quality Standards Christopher Frey, Professor of Environmental Engineering at North Carolina State University and Chair of US EPA’s Clean Air Scientific Advisory Committee (CASAC), talks in a conversation about the National Ambient Air Quality Standards (NAAQS) and how they protect the general public from air pollution

By Kenny Lau

biz.hk: Firstly, what are the National Ambient Air Quality Standards (NAAQS)? Frey: The history of the NAAQS goes back to the Clean Air Act of 1970, and amendments to the law in 1977 determined how standards must be developed – based on the latest scientific knowledge – for pollutants that cause or contribute to air pollution which may reasonably be anticipated to endanger public health and welfare. While it mandates some degree of protection, it doesn’t necessarily require zero-risk or complete protection of each single individual. For NAAQS, we have to set a standard that allows an adequate margin of safety that is requisite to protect public health. In setting the standards, we take into account not only the general population but also those in sensitive subgroups who would be more adversely affected by an agent. That includes children, the elderly and people with asthma or a cardiovascular disease. In addition to protecting public health, the NAAQS also protect public welfare, which covers things like ecological damage and the overall environment. By law, NAAQS is unique in that costs in compliance can’t be a factor when setting the standard. We can’t do a tradeoff for cost issues because it is

illegal. It has to be a health-based standard. This is stated in the Clean Air Act and confirmed by the US Supreme Court. For almost every other standard in the US, including those on certain types of emission control, cost is a factor in setting those limits, but that is not the case for the air quality standards. biz.hk: What’s the role of the Clean Air Scientific Advisory Committee (CASAC) in NAAQS? Frey: The Clean Air Act requires the formation of a scientific advisory committee and an independent scientific review of the criteria for pollutants and standards. CASAC is to provide scientific advice on what the range of concentration of a pollutant would meet the requirements under the law but not so much to recommend a single number. The administrator of EPA has the legal authority to interpret how protective the standards should be. To have a scientific basis and develop a recommendation for setting the standards, it involves a lot of different scientific disciplines. It deals with atmospheric science, toxicology, epidemiology, and a range of medical disciplines and ecological issues. It is very complex. While we have to make judgment when it comes to interpreting science, it is fairly objective. We have a

statutory mandate that puts a focus on public health for which cost is simply not considered. biz.hk: How often are the NAAQS reviewed? Frey: These standards are supposed to undergo a five-year review cycle, but they didn’t for the first 30 years or so. In 2006, EPA formalized this five-year review cycle. By and large, they are doing a much better job such that since 2006 we have gotten through a cycle for all six of the principal pollutants under NAAQS, and we are now in the second review cycle. Previously, NAAQS might have been reviewed every ten or 15 years, and science could have changed in that amount of time. In 5-year cycles, there is sometimes not a lot to form the basis for a change in the standards. So, just because we have a 5-year cycle, it doesn’t mean that the standards will change every five years. For instance, we just finished a review of the lead standard, and there is really insufficient evidence to suggest the current standard is inadequate or it should be made more stringent. biz.hk: Would you tell us more about the principal (criteria) pollutants? Frey: The six “criteria” pollutants are Ozone, Particulate Matters (PM2.5 and

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PM10), Lead, Carbon Monoxide, Nitrogen Oxide, and Sulfur Dioxide. Ozone appears to be the one causing the biggest air quality problem in the US, in terms of the number of regions in the US not at attainment and the number of people living in areas exceeding the standard. The second biggest problem is with fine Particulate Matter (PM2.5). It is not clear how carbon dioxide (CO2) or greenhouse gas (GHG) will be regulated as a criteria pollutant under the air quality standards. It seems more amenable to source-based regulations, which is the approach taken so far in the US. In fact, a new standard on fuel efficiency for lightduty vehicles came out a few years ago and for heavy-duty trucks more recently – these are essentially national CO2 standards. EPA has also announced a proposed rule for CO2 emission from power plants.

“The Clean Air Act requires the formation of a scientific advisory committee and an independent scientific review of the criteria for pollutants and standards. CASAC is to provide scientific advice on what the range of concentration of a pollutant would meet the requirements under the law but not so much to recommend a single number. ” biz.hk: Will a multi-pollutant approach be adopted for NAAQS in the future? Frey: I don’t know whether it will or not, but there is certainly a level of interest in a multi-pollutant approach – which was recommended in a 2004 report by the National Research Council.

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The first step toward such an approach in setting air quality standards was an assessment looking into having one standard for SO2 and NOx as they both contribute to acid rain. In order to develop a standard like that, you have to have baseline data of what makes a multi-pollutant indicator and you need to have enough baseline data to be able to make a determination of which areas where attainments are to be achieved. As far as for public health, EPA has not proposed a multi-pollutant air quality standard because pollutants are linked together in different ways. biz.hk: How do you determine emission levels from a particular source in a scientific way? Frey: The scientific method used to look at that is called source apportionment. There are different ways of doing that. One way is to measure the total mass of the particles or the chemical constituents. The ratios of those chemical constituents tell you something about the sources that contribute to it – as different sources of emission have different ratios of those constituents. For example, a vehicle running on diesel will have different trace metals and ratios than, say, gas. It can also be done through a modeling based estimate with air quality models and emission inventories. Another way is to do a sourceoriented monitoring – similar to Hong Kong EPD’s 145 monitoring stations, including three roadside monitors. biz.hk: So, vehicle emissions are responsible for the health problems? Frey: That can be justified using these techniques. Another factor is to look at when and where people spend their time and how they may come in contact with pollutants Pedestrians or drivers on the road are going to be more exposed to traffic-related pollution. Nonetheless, an average person is not necessarily better off spending more time indoor because ambient pollution penetrates from outside. Most of a person’s exposure to air pollutant from the outside actually takes place inside their home, office or

Christopher Frey

school. The question then becomes whether being inside a building provides any protection from outside air pollution. It varies with different pollutants. It provides some protection against large particles but less so with fine particles. Up to 60 percent of them penetrate indoor. The amount of ozone you breathe indoor could be some 10 40 percent of what you would outdoor. biz.hk: What’s your view on Hong Kong’s new air quality index? Frey: The strength of the new index is that it is based on data of local health effects. By linking concentration of pollutants to hospital admissions of respiratory-related emergency room visits, it is representative of Hong Kong and of what actually happens here. But there is also a limitation because emergency room visits at a hospital are not the only thing that happens to someone with a respiratory disease. While you could include other indicators and refine these models, it is a good step to have a multi-pollutant model based on local data. It is surely an improvement over the previous index. The air quality here is also influenced by trans-boundary air pollution. Even if Hong Kong achieved zero emission, it probably wouldn’t eliminate air quality as a problem. It does call for cooperation with Guangdong and other provinces to work together in reducing air pollution.

REAL ESTATE

Brian Brenner

An “Uncharted Territory” of Hong Kong The landscape of Hong Kong’s office market is undergoing a shift as a result of an increase in supply across the city and a number of critical trends. With ample experience in representing numerous corporate clients in the dynamic commercial property market of Hong Kong for 14 years, Brian Brenner – currently Regional Director and Head of Tenant Representation Markets at JLL – reflects on the dramatic peaks and troughs of the past decade in commercial rentals as well as the findings of a recent JLL report entitled Hong Kong Office 2020

By Wilson Lau Photos: Silver Image

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ith ample experience in representing numerous corporate clients in Hong Kong’s dynamic commercial property market for 14 years and having concluded over 400 transactions in excess of 6 million square feet of office space, Brian Brenner – currently Regional Director and Head of Tenant Representation Markets at JLL – is certainly no stranger to the landscape of one of the city’s vibrant industries. “I was confronted with this massive wall of skyscrapers on both sides of the Victoria Harbour and was so blown away by the difference between Hong Kong and [the US state of] Ohio that I had this urge to understand how Hong Kong worked, and I had a feeling that I would be here for a long time,” Brenner recalls his thoughts on a ride onboard the Star Ferry shortly after landing a job in Hong Kong in October 2000 for a 2-year assignment.

The first decade Back in 1996, before starting his career in Real Estate Asset Management in Cincinnati, Ohio, Brenner spent six weeks backpacking across Europe and became enamored with meeting people from around the world. His desire for opportunities to work on a global level had led to a role in Tenant Representation at The Staubach Company (a real estate company founded by acclaimed NFL player Roger Staubach and now owned by JLL) in Cleveland. Following a joint venture between Staubach and DTZ, Brenner was invited to join its Hong Kong Agency Team in 1999. “So, at 26 I moved to Hong Kong and became involved with AmCham immediately,” he says. “It was like going to university and learning from the best professors. This accelerated my ability to better understand Hong Kong.” However, uncertainty shrouded the market – and demand – for office space in the aftermath of 9-11. “I was in a quandary as my career just started in

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Hong Kong,” he remembers. “I considered enrolling in an MBA back in the states but then met my future wife and decided to stay in Hong Kong for a little while longer to see how it would work out. Interestingly, I met her at an AmCham event. “I later had the fortune of getting my MBA in Hong Kong at the Kellogg-HKUST Executive MBA program which brought both of my worlds together. While remaining in Hong Kong, my career had developed, and we have decided to stay in Hong Kong indefinitely and raise our three children here.” The market was a roller coaster ride between 2000 and 2010 – a decade in which office rents skyrocketed and then plummeted in a number of cycles as a result of an over-supplied office market that coincided with global events including the dot-com bubble, terrorist attacks on 9-11, accounting scandals, SARS outbreak and the Iraq War. During the period, rents for offices at Two International Finance Centre, for example, increased from HK$20 psf to over HK$200 psf, a 10-fold increase from the floor in 2003 to the peak in 2008, Brenner points out. “Prices were so low in Central that tenants started moving back to Central from markets such as Causeway Bay before the rents started to skyrocket,” he says. “Eventually, these tenants with non-essential reasons to be in Central moved back to lower cost options that sparked an era of decentralization which remains to this day.” “The period following the 2008 global financial crisis saw rentals dropped significantly across the board but then recovered in 2011,” he adds. “Rentals have been relatively stable compared to years past. I don’t envision it will stay this way forever, but I don’t think there will be such dramatic peaks and troughs as in years past.” “Hong Kong is a very unique market, and I have become confident in explaining about the market practices and why things work the way they do here,” Brenner says. “In my early days, I questioned everything

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which has helped me explain accurately the marketplace and its practices to clients from the US and other countries.”

An evolving market A shake-up is expected to loom in Hong Kong’s office leasing market, thanks to a combination of emerging trends. They include an increase in office space supply, an enhanced transport infrastructure, a wider adoption of sophisticated information communication technologies (ICT), a rise in corporate office ownership, and increased importance of health and safety issues in the workplace (Green buildings), Brenner says, noting the findings in a recent JLL report entitled Hong Kong Office 2020. According to the report, the Hong Kong office market is becoming “multi-nodal” and a main driver behind is a further improved transport infrastructure locally, including additional MTR links in Wanchai and a Central-Wanchai Bypass connecting to Island East. While office rents in Central are high, it remains an attractive location for some tenants – particularly those in the financial and legal services sectors – who may have difficult seeking available space. “Occupiers are seeking higher ceilings, larger floor plates and lower prices to what exists in Central in most buildings constructed before 2000,” Brenner points out. “Most new developments are designed to support the type of office environment sought by large companies, and with improving infrastructure, locations are being considered across the territory.” “Quarry Bay and Causeway Bay are the only two areas of significant developments on Hong Kong Island for the next 5 years while a significant amount of developments continues to materialize across Kowloon and the New Territories,” he notes.

Beyond Central With a supply of quality development, Quarry Bay (Island East) has

become the office location for companies in the insurance, media, technology and non-front office banking sectors. There will be a 41-story building completed in 2018, with an additional tower planned for three to four years later. “It is envisioned that with the improved infrastructure across Hong Kong, companies in Central may shift their presence to these areas,” Brenner says. “As a result, the price gap between Central and Island East will likely narrow. If rents in Island East continue to go up, then Kowloon East – which has a large untapped supply of new buildings – may benefit from a growing demand for more affordable space.” “The key is there needs to be a big enough margin in terms of cost reduction between Hong Kong Island and Kowloon for companies to consider relocating their offices across the harbor,” he says. “The gap needs to be wide enough to cover all the costs involved in a move such as fitting-out and reinstatement of the current offices and then show enough of a substantial cost benefit to justify the move.” “This has been the case in Kowloon East – which is now home to a majority of garment sourcing offices as well as insurance and local bank back offices that shifted from markets like Tsimshatsui,” he adds.

Longer leasehold An increasing number of companies are seeking to amortize the capital expenditure for relocation with longer lease terms than a normal three-year leasehold. In Hong Kong, a typical cycle runs about six years, with a term review every three years on new lettings. “Larger occupiers for office space of 40,000 square feet and above are likely to prefer a lease running at least nine years and sometimes up to 15 years in some cases,” Brenner says. “Traditionally, there is market reversion every three years, and our clients are always looking for ways to prevent

JLL Grade A Office Rental Trend & Forecast Forecast

110 100 90 80 70 60

Opportunity is everywhere. everywhere So are we.

40 30 20

Source: JLL

future rental volatility by securing caps on future periods if possible.” Meanwhile, there has been an increased interest in office ownership, despite uncertainty with respect to the global capital market and possible increase in interest rates in the next few years, he also notes. “The current pricing level may not justify office purchases at the moment; but, with increased supply, there may be more opportunities for ownership, particularly in new developments where the some developers have an increased willingness to sell their assets upon completion.” “A lot of potential buyers are from the finance and insurance sectors, including companies from Mainland China, for self-occupation verses investment,” he adds.

Tech/green innovation Emerging ICT and management styles are creating new trends for office architecture and design, and a contemporary strategic workplace is increasingly important because it optimizes work patterns and engagement of employees, Brenner says. “The goal is to create a work environment that will improve productivity and mobility of people.”

Overall Tsimshatsui

Central Hong Kong East

Mobile devices will soon become the norm rather than the exception, and innovations such as wireless power can potentially be a big game changer. “It opens up the opportunity for more flexible working environments which could eliminate the need for some occupiers that desire raised floors for example,” Brenner points out. “It is something to keep in mind when designing your office space because tablets and other small devices will increasingly replace desktop computers,” he says. “The shift will also change the way people interact and work in the office which will increase the density in the workplace and will certainly help companies reduce costs by taking up less space.” While many sustainability measures deployed in an office setting are driven by global environmental policies, customized solutions often work best on a local level, Brenner notes. “Most new developments in Hong Kong are designed to comply with global environmental standards, and larger developers continue to ensure these standards across their portfolios. However, there is always room for improvement on this important subject, particularly with some of the older buildings that are stratatitled (multiple owners) in nature.”

Jan-19

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HKD per sq ft per month (NFA)

120

Wanchai/Causeway Bay Kowloon East

Future leasing strategies According to Brenner, companies are increasingly interested to set their sights on developing a future strategic workplace that will allow them to better engage in their business on all fronts. “These companies need to build a solid and in-depth understanding of the sort of workplace they need in five years because it is important to create and maintain a quality work environment in order to remain competitive,” he says. “From our experience, a company should consider all available options available to them, understand how they want to interact with their staff, and understand ways of working with customers to meet their needs in the future,” he suggests. “It essentially comes down to considering opportunities that are in the best interest of your company, and every company is different,” he adds. “And then it’s a matter of time to find the right opportunities in the market to support this, have enough time to build a case within your company and, of course, ensure that you can get the best value in the market place so that your company remains ahead of the curve.”

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CHINA BUSINESS

2012 GDP Growth Rates Sichuan

12.6%

Yunnan

Chongqing Guizhou

13.6%

13%

Peter Haymond

Doing Business in Southwest China Despite trailing behind Beijing, Guangzhou and Shanghai in economic development, Southwest China amid strong growth has created enormous opportunities for international trade and investment. Speaking in Hong Kong about the region’s economic prospects, US Consul General Peter Haymond of the US Consulate in Chengdu describes how US companies can benefit from a “huge” regional market in China

By Kenny Lau

hile the southwestern part of China – a region that includes the provinces of Guizhou, Sichuan and Yunnan as well as Chongqing municipality – trails behind Beijing, Guangzhou and Shanghai in economic development, it is growing very rapidly and is creating enormous opportuni-

ties as it continues to open up for international trade and investment in one of China’s largest markets. “The region is growing very fast in economic terms both as a production and a consumption center, and it has great potential for international trade and investment,” says US Consul General Peter Haymond of the US

13.6%

Source: US Commercial Service

Consulate in Chengdu (which covers major provinces in southwest China), speaking in Hong Kong about a “huge market” for US companies. “It is an important market partly because other coastal areas like Beijing and Shanghai are quite mature, and there are many business opportunities in Chengdu and Chongqing; Yunnan Province and its capital city Kunming are going to be next,” he says. “We would very much like to see more American companies coming out for these opportunities.”

China’s new frontier Since becoming one of the four municipalities under the direct control of the Chinese central government in 1997, Chongqing has experienced significant economic development and has achieved a GDP totaling US$ 209 billion in 2013, a 12.3 percent increase

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over the previous year. With a population of 33.4 million and large industrial sectors in chemical, pharmaceutical, automobile, and aviation components manufacturing, it is one of the largest and fastest growing metropolitan areas in the world. Sichuan, China’s fourth most populous province with a population of nearly 91 million, has consistently achieved economic growth above the national average in recent years, with GDP reaching US$ 429 billion in 2013. It is a place where key industries in agriculture, energy, aerospace, automobile manufacturing and information technology play a significant role in driving growth. Chengdu – Sichuan’s capital city – is the largest trading center in southwestern China today and has particularly strong trade relations with the US. “The US was in fact the number one trading partner of Sichuan Province; it has only been slightly

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surpassed by ASEAN to become the second largest since 2012,” Haymond points out. “The US remains the number one trading partner with Chongqing.” “There is a very high level of awareness in the region about the US as a brand of products, services, education and tourism destinations,” he says. “More and more people are raising their standards of living as they now have higher household income. In many cases, foreign goods and products – including edibles and non-edibles – are something they would want to buy.”

A land of possibilities Chengdu is the region’s primary financial and commercial center, where multinational corporations continue to make large sums of investment and expand their operation. By 2010, many

MNCs such as the Australian ANZ Bank, JFE Steel Corporation and Electricite De France had established permanent offices in Chengdu, where others like JPMorgan Chase & Co, Henkel, and GE – which have already established a permanent presence – continued to increase their investment. As of 2011, over 200 of the world’s top companies had operations in Chengdu, with a total investment of US$ 8 billion. Citibank, Standard Chartered Bank, HSBC, ABN AMRO, JPMorgan, Bank of Tokyo-Mitsubishi UFJ and Nanyang Commercial Bank are some of the major international banks and financial institutions doing business in Chengdu today. “Chengdu and Chongqing are certainly the leading area as the twin motors of western China,” Haymond says. “There is a whole range of industries in which US companies are already doing very well and being very successful, and we are looking for more. Some of the industries that I see great business potential for US companies are healthcare, IT and telecommunication as well as high-end consumer goods.” “As a measure of consumption, Chengdu has the second highest number of car registrations after Beijing, and is the third largest luxury goods consumption center after Beijing and Shanghai, according to Forbes magazine,” he says. “These are trends which indicate the level of the tremendous economic growth, rising consumer demand and overall development in western China.”

Internationalization Chengdu and Chongqing are well positioned for further growth because they have been designated as “centers” of a larger economic development zone in the region. Chengdu’s Tianfu New District, for instance, is one of the five key new districts in western China embarking on a “sweeping and ambitious” project – which aims to accelerate the transformation of the area towards a “modern, international metropolis.”

“Just in the past couple years, I’ve seen enormous progress in the development of infrastructure, including Chengdu’s international airport, which has doubled in size, and a plan for another airport which will be twice the size of the one currently in operation,” Haymond says. “We are also seeing development of new roads and rails – which will help cut traveling time between Chongqing and Chengdu.” “The newly launched non-stop flight between Chengdu and San Francisco on United Airlines and an exponential growth in international travel are indicative of a time of change and growth in Southwest China,” he says. “In fact, demand from Chinese tourists and students as well as business people for US visas at our Consulate has increased by some 70 percent in the past 2-3 years.” The US Consulate in Chengdu adjudicated close to 80,000 visas in 2013, and the number continues to grow. According to the US Department of Commerce, almost 1.5 million Chinese travelers visited the United States in 2012 – an increase of 35 percent over the previous year. “Part of our promotion with the Foreign Commercial Service office has been about tourism possibility in the US as we want to export more tourism services,” Haymond says. In an effort to provide better, faster service for visa applicants, the US Consulate in Chengdu has recently doubled the number of service windows in the consular section, expanded the waiting room and added a new entrance to allow visa applicants to enter more quickly. The Consulate also has increased the section’s staffing by 30 percent to accommodate the growing number of people in southwest China who are looking to travel to the United States for tourism, study and business. The expansion of the consular section is “a tangible expression of US commitment to expanding travel and exchange between the United States and southwest China,” former US Ambassador to China Gary Locke says. “Among people in southwest China, there is a lot of interest in

United Airlines Launches Chengdu-San Francisco Service traveling to the US and sending their kids to study in the US,” Haymond says. “Part of what we are trying to do is to introduce broader awareness of other tourism sites in America, besides places like San Francisco, Los Angeles, New York, Las Vegas or Washington DC. The US – in the minds of the larger Chinese population – is a fascinating place to visit.”

Going global Many Chinese companies in Sichuan and Chongqing are looking to expand internationally and are already investing abroad in the US, Haymond points out. “There is great awareness of investment opportunities abroad among these companies. We would really like them to be successful investing in the US where we can create more employment opportunities.” “We see a lot of potential opportunities in the expanding market of southwest China where there are many Chinese investors who want to go overseas but don’t have much experience,” he says. “The Consulate is very happy to facilitate meetings to help them find potential partners. And, we would encourage professional services providers in Hong Kong – which are a reservoir of expertise and experience

in international business and commerce – to come out and partner with these Chinese companies.” “We’d also like to get more US firms in Hong Kong to come out and meet with some of these companies,” he adds, noting that the US Consulate in Chengdu has participated in a number of SelectUSA programs. “This provides a great way to help Chinese companies to have a better understanding of the process of making an investment in the US and how foreign firms can help them.” “We really want US companies to be successful in finding trade opportunities in the region and Chinese companies to be successful in going global,” Haymond says. “We see our role at the consulate as helping companies find appropriate partners who can help achieve that success. We are there to help both sides succeed in a way that builds economic success. That includes investment from China and export of products and services from US firms. “And, we will be doing our best to provide all the expertise we’ve built up to help new American companies coming out to find new opportunities with potential partners and to help Chinese companies going to the US find highly capable service providers that will help them succeed.”

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By Kenny Lau

nited Airlines has recently inaugurated a new service between San Francisco and Chengdu (China’s fourth largest city, where more than 250 of the Fortune 500 companies are located) and has become the first international carrier to fly non-stop from the US to a city in Mainland China other than Beijing, Shanghai and Guangzhou. It is also the first US-based carrier to serve Chengdu. Chengdu is the capital of Sichuan province in southwest China – a region famously known for its natural habitat of the giant panda and one of China’s most popular cuisines. It has a population of approximately 14 million in the urban area and is one of China’s fastest-developing cities in terms of economic growth. “The economy in Chengdu – and the entire Sichuan province – has been growing phenomenally during the past 15 years,” says Walter Dias, Managing Director, Greater China and Korea, of United Airlines. “Sichuan was in fact the first province in western China to surpass RMB 1 trillion in regional GDP back in 2007. Since then it has continued to achieve double-digit GDP

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growth year after year.” “With a focus of the 12th five-year plan on development of western China, Sichuan province will continue to outperform in terms of economic growth,” he adds. “I have been visiting Chengdu for more than four years, and during our exploratory process for a possible flight, we’ve met with some of the most proactive and enthusiastic provincial and city government officials I have ever encountered anywhere in my 27 years of working in the airline business,” Dias says. “They are very visionary in their desire to create a modern, livable, business-friendly world-class city for the future,” he says. “Chengdu, in particular, has taken many initiatives to drive a number of high value added projects, including a designated industrial zone for high-tech development and an effort to create a multi-billion-dollar biotechnology and pharmaceutical sector.” “Driving through the Tianfu New Area District, which is a new urban area south of downtown, you can see the physical transformation with new office towers, shopping areas and art centers,” he adds. “The city is well positioned to become an economic powerhouse.”

United Airlines has had a long history of serving the markets in China. Today, it has a comprehensive network of flights to major Chinese cities from its hubs in Chicago, New York/Newark, San Francisco and Washington/Dulles as well as Los Angeles. It will deploy a Boeing 787-8 “Dreamliner” for the threetimes-weekly service between Chengdu and San Francisco where passengers can connect on nearly 300 daily flights to more than 90 destinations in the US and around the world. “United is the leading airline serving multiple routes between the US and China, and has been doing so for over 28 years,” says Dias. “We operate the largest number of daily flights between the world’s two largest economies and offer unparalleled choices to our customers traveling between the two countries.” “With the addition of our ChengduSan Francisco service, we operate twelve non-stop services from Greater China. This includes four daily flights from Beijing, four daily flights from Shanghai and three daily flights from Hong Kong,” he points out. “We also operate four flights weekly from Hong Kong to the US territory of Guam and will be adding a service from Shanghai to Guam this fall.”

HUMAN CAPITAL

Top Trends in Employee Relocation An increase of overseas assignments in less-than-ideal locations and an influx of millennials entering the workforce are among the top trends affecting employee relocation, according to a recent survey. Lisa Johnson, Global Practice Leader of Crown World Mobility’s Consultant Services, elaborates how these shifts are having an impact on companies looking to expand internationally

By Nan-Hie In

t’s a sign of the globalization era. Companies are more frequently sending staff abroad for varied reasons, a prominent one being to seek growth opportunities in emerging or critical targeted markets. Even during tumultuous times when parts of Europe and the US are still recovering from the financial crisis of 2008, the number of international assignments is unlikely to recede anytime soon. “When growth is happening outside of your major developed locations, there is always a need for these assignments,” Lisa Johnson, Global Practice Leader of Crown World Mobility’s Consulting Services, says in an interview with biz.hk. The cost of deploying talent

overseas, however, is considerable, particularly in well-developed cities. According to a report released by ECA International in May, Hong Kong is the fifth most expensive destination in Asia Pacific for expatriate compensation packages (for mid-level managers) at an average of US$ 273,000 annually. Furthermore, packages for expatriates in Tier-1 Chinese cities such as Beijing and Shanghai have surpassed those in Hong Kong, making China the 4th most expensive place in the region. As a result, managing international talent has become integral to companies as it can shape the fate and outcome of a given assignment. Johnson has noticed in recent times a more educated approach to talent relocation in businesses. “There is a

recognition that it’s not one-size-fitsall in terms of policies, packages and how you do it.” Gone are the days of high pay packages with lavish perks (such as huge housing allowances and access to elite clubs) as incentives to encourage employees to take up international assignments. Instead, as companies have become more global today, staffs are also expected to be more mobile. “It’s less about the big perks to get employees to go partly because more people are interested in a global career and more people are now willing to go,” Johnson says. “That’s a big shift.” A veteran in the industry with 18 years of experience including having worked abroad in Japan, Spain and Central America, Johnson has

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observed the impact of shifting trends and globalization on employee relocation practices. She notes a number of “big shifts” that can help companies reflect and possibly refine their existing staff mobility practices.

A refined selection process The traditional approach to deploying talent overseas in the past was simple: find a qualified person who is also willing to embark on the assignment. That’s not good enough anymore, says Johnson. Assessing the candidate for a move to a foreign country has become a much more sophisticated – and even technical – process. Organizations with a mature

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employee mobility program often incorporate a performance management-style system to its assignee selection process. It is to identify how a potential candidate will likely perform in a different culture, in addition to assessing technical competence of the individual, Johnson points out. “An example would be a nine-box performance approach, and you would select assignees who have some of those boxes ticked.” Companies in the early stages of developing their selection system for assignees can adopt measures of small steps such as identifying the top characteristics of successful assignees in order to develop a “checklist” to help HR managers select candidates most ideal for an international assignment.

Challenging locations

Another trend is the rise in overseas assignments to difficult destinations – a trend that is having a considerable impact on employees assigned to emerging or high-growth markets where living conditions and cultural differences can be a challenge to varying degrees. Extreme locations are generally defined by limited availability of expat-style housing, unreliable supply of energy and water, insufficient healthcare and medical facilities, inaccessibility to transportation, a lack of options on the education front for expatriates and their dependents as well as security concerns and others.

Gross expatriate salary packages in Asia Pacific Middle Manager (USD)

400,000

300,000

200,000 Tax Benefits

100,000

Salary

Lisa Johnson

As it’s sometimes difficult for assignees to relocate their loved ones to a foreign location, it is not unusual that family members often have to stay behind in their home country. It is an issue for which companies have put in place specific policies to minimize the adverse effects. One way to ease such difficulty is through a rotational assignment system. “This is becoming the norm especially for extreme locations where employees would go in for two or six weeks in some cases, although it depends on location,” says Johnson. “In cases where families have to be split up temporarily, it should not last more than 12 months because it is not very healthy to remain away from your family longer than that.” It is important for companies to define in advance the longevity of an assignment, select early those who are qualified for the move, and provide strategic support for employees whose family members have to stay behind

because of difficult circumstances, Johnson advises. In such cases, providing more opportunities for them to return home periodically would be essential.

Millennials and mobility

The dominance of a young, techsavvy generation in the workplace is imminent. In the US, for example, millennials will make up around 50 percent of the workforce by 2020, according to the US Bureau of Labor Statistics. The role of a generation of young talent in the workforce will have a significant impact on how employee relocation schemes of companies are defined. Companies need to constantly refine their existing employee mobility strategies and practices in order to cater to a group of rising young workers in their 20s and 30s who are very much unlike their predecessors. More importantly, their motivations in

career development are very different from those of the past. “They’re not seeking a 20-year career path [working in the same position or company]. That just isn’t the norm anymore,” Johnson notes. “Money is no longer a key and only motivator since millennials seek more intrinsic value and meaning to their career. It is why they tend to join companies that reflect those values.” And, it is a generation of young workers who are very eager to gain many different opportunities and experiences as quickly as possible. However, it is important that companies need to be aware of the fact that not all millennials are alike. Particularly in Hong Kong, they are an elite group who expect to have a career in a sophisticated environment upon having graduated from a top university. And, “they’re not looking to go to third- or fourth-tier cities in China but want to move to places like London and New York,” Johnson says.

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Since many of the growth opportunities are coming from emerging markets where infrastructures are simply not as well established, it is a factor that has posed a challenge to companies looking to set up the right corporate assignment policy. To adapt to the changing human capital landscape for an effective mobility program, companies need to integrate the needs of employees to the assignment and to showcase the value of experiences that one can gain from the move, Johnson notes. Johnson has seen how this generation of socially- and environmentallyconscious youngsters has transformed the workplace. “Our clients are requiring us as a service provider to provide their assignees with information about the host location with regards to recycling laws, or community activities with which their company may be involved so that they can start volunteering in these CSR-based initiatives as a way to familiarize themselves to the location.”

Dual-career households It often becomes a challenge when a spouse is unable to find work in a foreign location because of immigration

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restrictions or nature of the local job market, particularly when the additional income is essential to the family. Hence, it creates a disincentive for employees who may otherwise be an ideal candidate for an overseas assignment. Times have changed as employees today are asking for more help in terms of assisting their spouses in addressing employment issues in their respective assignment locations. “Around 25 years ago, a typical assignee was male accompanied with a spouse or partner,” Johnson describes. “Today, dual career couples are increasingly the norm.” This has complicated talent relocation policies when an employee’s spouse or partner may be reluctant to give up his or her career in their home country for relocation, especially if there is a dearth of employment opportunities in that destination. “We have found this to be the number one barrier for our clients looking to relocate to China,” Johnson says. “This issue has in fact become widespread all over the world.” As a result, some organizations have become more supportive to the employee’s spouse or partner in the assigned location by sponsoring work visas for spouses or partners of expatriate employees.

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ila a

ng Ko g

on H

Si ng

hi na C

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Source: ECA International

HR goals Overall, employee relocation schemes are increasingly being aligned with the organization’s long-term talent management initiatives, a trend in which more companies are integrating diversity initiatives to their employee relocation policies. In the past, when employees were asked to move overseas they did so promptly. Today, companies are more flexible about the timing of the relocation as they now realize the previous approach inhibited men as well as women from taking international assignments. “We’ve seen companies trying to get more women in their leadership pipeline, and this may require an international assignment as part of a career path for a future leader,” Johnson explains. A solution is to inform in advance female – and male – assignees that they are on the way to embark on an international assignment within the next five years. It is one way to afford employees more control of the timing before setting foot in a different location and is particularly useful when they plan for life-long decisions such as having a baby.

CHARITABLE FOUNDATION

US Consul General for Hong Kong & Macau Clifford Hart gives his welcoming remarks at the annual AWA Awards Tea.

In Support of Local Charities The partnership between AmCham Charitable Foundation and American Women’s Association (AWA) has made 2014 another fruitful year in recognizing and supporting local charities for their philanthropic efforts in a spectrum of humanitarian endeavors to help those in need across the community of Hong Kong

By Queenie Tsui

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he long-awaited annual Awards Tea – organized by the American Women’s Association (AWA) and supported by AmCham Charitable Foundation – was held on the balmy morning of May 30. More than 90 guests, including members of AWA and representatives of local charities, fashioned in lovely spring outfits, gathered for a celebration of achievement at the residence of US Consul General. The annual award ceremony is the result of a close collaboration in what is described as a “real American family affair” – for which AmCham Charitable Foundation partners with AWA in reaching out to different parts of the city to select smaller and lesser-known local charities and providing them with recognition and financial assistance. The Foundation in tandem with AWA has supported numerous charities over the years – and no less than 25 local organizations in the past few years alone. These charitable organizations in turn have benefitted thousands of people who are socially disadvantaged. “AWA’s charitable donations program is strengthened and greatly enhanced by our partnership with AmCham. Together we make annual awards to the charities that serve some of the neediest and most deserving women, children, elderly and disabled in Hong Kong,” Eileen Glynn, President of AWA, said in her opening remarks at the ceremony. “All of the charities have great stories to tell of the people whom they are helping. It is not only the stories that touch people’s hearts but also the actions that they take to make a difference,” AmCham Charitable Foundation Chairman James Sun said. Sun is humbled to see the good causes of these charities, which have been serving the community without asking for rewards, and is particularly thankful that AWA has provided great support over the years in helping the Foundation to identify suitable charities and meaningful projects that require support. US Consul General for Hong Kong & Macau Clifford Hart also expressed his

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heart felt gratitude to AWA for a remarkable record of service to the community since its establishment in 1956, while also noting the significance of local charities in giving a helping hand to the most deserving groups in Hong Kong. “In a population of 7 million [here in Hong Kong], there are well over a million people who are at poverty level and there are many social problems that we may not come to know,” he said. “Because of the dedication of the organizations here and what AWA has provided them, we are seeing many of these problems getting addressed.” While recalling a heart warming account of her early years growing up in the city and expressing her affection for Hong Kong, spouse of Deputy President of American Women’s Consul General and Association Eileen Glynn, left, and honorary AWA President Chairman of AmCham Charitable Deborah Cooney tells of Foundation James Sun her appreciation for AWA and AmCham of their long standing tradition of enabling the local American community grow. Emphasizing the importance of education that is critical in shaping a future generation of young people, AmCham Charitable Foundation continues to provide scholarships and awards to local secondary and university students every year, while also recognizing outstanding individuals who demonstrate a strong commitment to the local community. With a history of nearly 30 years of philanthropic activities, AmCham Charitable Foundation pledges to give back to the community by leveraging support from the business community in Hong Kong, including fundraisers at the annual AmCham Ball. This year, it has awarded nearly HK$200,000 in grants to the following nine local organizations through the AWA program.

zŽƵƌ ƐƵƉƉŽƌƚ ŝƐ ŽƵƌ ƐƵĐĐĞƐƐ͊

Against Child Abuse Limited Established in 1979, Against Child Abuse serves tens of thousands of children, youth and families every year. Through its provision of remedial and preventive protection programs, the organization specializes in child protection with a mission to remove all forms of child abuse and neglect in Hong Kong. The grant will provide sex education programs through workshops and outings for teens, and help parents implement sex education at home.

Animal Asia Animals Asia is devoted to animal rights and promoting ending the practice of bear bile farming, and is the only organization with a bear sanctuary in China as a part of ongoing bear-rescuing mission. The grant will support its Professor Paws program – which started in Hong Kong in 1994 – where registered therapy dogs visit schools to educate responsible pet care and compassion for all animals, as well as to help others overcome their fear of dogs and learn about safety around dogs among young students.

Ebenezer School & Home for the Visually Impaired The Ebenezer School & Home for the Visually Impaired supports children who are challenged with visual, intellectual and physical disabilities. The grant will enable the school purchase educational tools to help in the strengthening of children’s communication abilities and self-learning motivation.

End Child Sexual Abuse Foundation

Founded in 1998, the Foundation is devoted to protect young people under 18 from sexual abuse through educational programs and workshops. The grant will assist the Foundation to create educational videos and programs about sexual abuse prevention for mentally challenged students in special schools and empowering them to protect themselves.

Suen Mei Speech & Hearing Centre

Suen Mei Speech and Hearing Centre is devoted to developing the language potential of hearing impaired children through

the provision of immediate hearing tests and intensive language programs from an early age. With an emphasis on early education and amplification, the organization also offers programs in language acquisition, cognitive development, parent guidance, and ultimately a systematic integration into ordinary schools. The grant will replace the Centre’s old and damaged toys and books with new educational tools to facilitate parents in teaching their children.

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

Sunshine Action Ltd Founded in 1998, Sunshine Action aims to provide food and medicines to needy families in the poorest areas in China and Southeast Asia. It runs both global and local programs with a purpose to bring happiness through real action in volunteering, caring and contributing. The grant will help finance the purchase of food and personal products to be distributed to local people in need.

The Children’s Institute of Hong Kong TCI was founded in 2003 by the parents of two children with special education needs. Through its individualized instructions and partnering with parents and families, the Institute aims to maximize children’s potential during their education process, offering every child an opportunity to enjoy an independent life as a functioning member of society. The grant is for charging stations for iPads used by TCI children.

The Springboard Project Limited

For nearly 20 years, the Springboard Project has supported children and young people with mild to moderate learning difficulties. The fund will enable the charity help teens with special education needs to learn, interact and develop appropriate behaviors and skills, and to help them to apply into daily life.

Watchdog Early Education Centre

The organization was founded in 1983 to provide early intervention and therapy programs to young children with Autism Spectrum Disorders (ASD), Down Syndrome (DS) and ADHD. The fund will enable the organization to purchase reference materials and educational toys to meet the needs of a growing population of children with these challenges.

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

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

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

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

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

Pledge Card ƶ HK$1,000

ƶ HK$2,000

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

ƶ HK$5,000

ƶ Other amount: HK$ ___________

Contact no.: _______________________________________________ Company: _______________________________________________

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

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*The American Chamber of Commerce Charitable Foundation is an approved charity and tax exemptions for donations may be made under section 88 of the Hong Kong Inland Revenue Ordinance.

GUIDE TO

HEALTHY LIVING 2014

What You Ought to Know about Diabetes Approximately 382 million people in the world were diagnosed with diabetes in 2013 – a staggering number that is expected to increase by some 55 percent in the coming 20 years. Currently, roughly 10 percent of Hong Kong’s population suffers from diabetes – a disease in which their body fails to regulate the level of glucose (blood sugar) in an optimal way. Professor Juliana Chan, Professor of Medicine & Therapeutics and Director, Clinical Research Management Office, International Diabetes Federation Centre of Education at the Chinese University of Hong Kong / Prince of Wales Hospital, and CEO of Asia Diabetes Foundation, explains in detail how diabetes affects the human body and what people can do about it

By Kenny Lau

biz.hk: What is diabetes? And, what is the correlation of glucose and insulin? Chan: Glucose is our energy source critical for survival. Our body has a lot of mechanisms to raise blood glucose by breaking down our body reserve (for example, glycogen in our liver and muscle) to keep our blood glucose at a certain level at all times and our body functioning. Blood glucose is maintained within a narrow range of 5-8 mmol/l irrespective of our diet and exercise. Similar to a broken thermostat which fails to stabilize the room temperature, people with diabetes lose this fine control and thus their blood glucose can fluctuate widely depending on what, how or when they eat, how physically active they are, and a number of other factors such as concurrent illnesses, sleep, emotions, changes of body weight and medications. Insulin is the only hormone that will lower our blood glucose. In nondiabetic individuals, pancreatic islets are fit enough to secrete insulin to keep the blood glucose within a normal range; but in people with diabetes, this corrective function by insulin is compromised, resulting in a continuously high blood glucose level. biz.hk: How does diabetes damage the human body if left untreated? Chan: High blood glucose on a longterm basis will destroy all blood vessels, which play a critical role in transporting nutrients and oxygen to – and removing waste products from – the body. Depending on the severity, uncontrolled blood glucose over a long period of 5 years or more can affect every single organ – the most vulnerable ones being the heart, kidney and eyes – resulting in feet numbness and ulcers that are hard to heal and may require amputation. Besides, many people with diabetes, especially those who are overweight, may have high blood pressure and abnormal blood fat levels which increase the risk of heart disease, stroke and kidney failure. All these can happen very silently until a person suddenly comes down with a stroke or heart attack.

biz.hk: What are the major factors leading to diabetes? Chan: Diabetes has a strong familial component, but it is not all or none; rather it is due to complex interactions between environment, lifestyle and genetic factors, with many variability and possibilities. The three main risk factors for diabetes are family history, age and obesity. In other words, we may have a touch of diabetes as part of a wearand-tear process; if we are obese, especially early on in life, it will put extra strain on our pancreatic islet which will fail faster; and if we have genetic risks with vulnerable islets, we may develop diabetes even earlier at the age of 30 or 40 years old with the risk of exposure to abnormal blood glucose levels and multiple complications if not treated or controlled. An important note is genetic factor causing inadequate insulin secretion plays a major role in young people with diabetes who may even be lean, and as such drug treatment including insulin will be needed early.

“Treating diabetes is managing a person and not a disease...it is like helping a child to learn and grow, and once they are empowered with the appropriate knowledge, skills and attitudes, many people with diabetes live an active, healthy and happy life.” biz.hk: How is diabetes a chronic disease? Chan: Currently, there is no cure for diabetes, and the only hope is islet transplant to replace the primary defect resulting from insufficient number of islets or inadequate function of these islet cells. Islet cells can regenerate to some extent if they are spared the continuous stress.

Juliana Chan

Besides, high blood glucose can be ‘toxic’ to the islets once blood glucose goes beyond the normal range, and the islets may rapidly lose its ability to secrete insulin, thus setting up a vicious cycle. Similarly, obesity – often associated with low-grade inflammation and high fat level – may also have a negative impact on our islets (which weighs only 1 gram in an adult weighing 50-60 kg). It is therefore very important that we – especially those diagnosed with diabetes – keep our body healthy as much as we can at any stage by keeping a good balance. This is also the reason that patients are given insulin early in order to preserve the islets so that they may recover and work better at a lower blood glucose level. biz.hk: Has there been any recent breakthrough in treating diabetes? Chan: During the last two decades, we have learned a great deal about the causes and effects of diabetes, which have led to the development of many new technologies. There are now also many technologies to help control diabetes, such as blood glucose strips, continuous blood glucose monitoring

Photo: Thinkstock

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Speaking at a recent AmCham seminar, Professor Juliana Chan explains how diabetes affects the human body and what people can do about it.

Top 10 countries/territories of number of people with diabetes(20-79 years), 2013 China

98.4 65.1

India 24.4

USA Brazil

11.9

Russian Federation

10.9

Mexico

8.7

Indonesia

8.5

Germany

7.6

Egypt

7.5

Japan

7.2 0

50 60 Millions

90 100

Source: Diabetes Atlas (Sixth Edition), International Diabetes Federation

systems, insulin pens and apps that have made management of blood glucose a lot more user-friendly and effective. Compared to the three classes of drugs used since 1920s, there have been an explosion of no fewer than 10 classes of new drugs – oral medications and injections – which have been shown to reduce blood glucose effectively, often with lower risk of low blood glucose and weight gain (main limiting risk factors for controlling blood glucose). Another important development is bariatric surgery where very obese individuals (BMI>32 kg/m2) undergo surgery to remove part of the gut or bypass part of the gut using some devices which have resulted in not just sustained weight loss but have also marked improvement in blood glucose and other risk factors. However, these operations must be recommended and performed by an experienced multidisciplinary team with careful evaluation before and after the surgery. biz.hk: What are the emotional aspects for people with diabetes? Chan: It is increasingly evident that 10-15 percent of people with diabetes are at risk of depression, and similarly patients with depression are at high risk of diabetes. It is not certain at this stage whether they share common risk factors including genetic factors, but their frequent coexistence should alert doctors, patients and their family members to consider this potential emotional problem which will require counseling and at times referral to a psychiatrist who may prescribe some form of medication. As many as 30-50 percent of patients with diabetes are anxious and distressed, in part due to the multiple treatment demands on their daily life (such as taking life-long medications, regular self blood glucose monitoring, and self discipline in daily living), misconceptions about the disease, uncertainties about the future risk of complications, lack of knowledge or support on how to live with diabetes on a daily basis (what to eat, when to eat,

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when to exercise, how to exercise, how to interpret high and low blood glucose etc). Thus, education from healthcare professionals is necessary in the early stage of the disease and in those who are difficult to treat. In general, a person with diabetes may need up to 6-12 hours to learn about the basics of the disease, followed by reinforcement, feedback and ongoing support provided by a healthcare team. Nurses play a particularly critical role here as they have in direct contact talking to patients. biz.hk: What kind of support should be provided to people with diabetes? Chan: Most overweight or obese people, if given the right coaching and support with a sense of self-discipline, can lose 3-5 percent of body weight which can go a long way in improving blood glucose and blood pressure while reducing the number of medication required. The challenge is how to give the right intervention to the right person at the right time for the right outcome. Thus, diabetes management is very individualized; to do this, we need to periodically assess the medical and psychological needs of people with diabetes and then use not only medications but also education and continuous support to help people cope with the disease for the rest of their life. More recently, there is a trend among patients to learn from peers who have successfully coped with the disease, and results are very encouraging. All in all, diabetes management is now taking on a new face, and it is a lifelong process. The role of the healthcare team is to build an infrastructure and support system to help patient cope. Indeed, treating diabetes is managing a person and not a disease. Diabetes is very motherly – it is like helping a child to learn and grow, and once they are empowered with the appropriate knowledge, skills and attitudes, many people with diabetes live an active, healthy and happy life.

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About the CUHKPWH Diabetes and Endocrine Centre The Chinese University of Hong Kong (CUHK) – Prince of Wales Hospital (PWH) Diabetes and Endocrine Centre, founded in 1984 and supported by employees of CUHK and Hospital Authority, provides diabetes- and endocrine-related medical services, conducts clinical and scientific research and organizes training for healthcare professionals. In 2011, it became one of eight designated “Centres of Education” under the International Diabetes Federation – which itself is an umbrella organization of over 200 national diabetes associations in over 160 countries – for professional excellence in medical practice and a strong commitment to improving the quality of diabetes care through innovative research. The IDF Centre of Education at the CUHK-PWH comprises six units focusing on a number of complementary functions. One of its objectives is to disseminate clinical information and provide support on diagnosis and to create an environment conducive to holistic and preventive medicine. One of the projects supported by the center is the Joint Asia Diabetes Evaluation (JADE) program between CUHK and Asia Diabetes Foundation (ADF), affording people with a comprehensive assessment of their existing health conditions, including running blood and urine tests at diagnosis and at 12-18 monthly intervals in accordance to local and international recommendations. In the JADE program, personalized assessment reports are issued with decision support and feedback to better inform patients as well as their primary care providers of their conditions as an important step in forming a treatment strategy. Patients can refer themselves for an assessment at the CUHK-affiliated Yao Chung Kit Diabetes Assessment Centre.

http://www.yckdac.hkido.cuhk.edu.hk/ Telephone no: 2647 8806 Email: yckdac@cuhk.edu.hk

Maintaining a Healthy Digestive System Dr Angela See, who has focused her research on the role of Vitamin A in embryonic development and worked previously in research and development at a biotechnology company in the US before joining Wyeth Nutrition Hong Kong as Medical Affairs Specialist, talks about digestive health and how a balanced diet rich in fiber can be beneficial to the human body

By Kenny Lau

he digestive system is a critical structure in the human body – it is a complex system tasked with the important function of turning food into energy inside our body before nutrients can be delivered to every single cell through the blood stream. Yet, the digestive system is also something of a health issue to which people generally pay very little attention, particularly in terms of a healthy diet and eating habits. Just like in a car or any type of vehicle, our body needs fuel in order to function properly, and more importantly, it needs the right kind and the right amount of fuel that is burned correctly inside an engine. Otherwise, there will likely be a compromise on performance in the short term and potentially poor effects and significant health problems in the long run as a result of poor habits. As the saying goes, “we are what we eat.” “We all know our digestive system is responsible for digestion of food and absorption of nutrient from our diet, but it is sometimes easy to forget just how important it is to maintain a healthy digestive system,” says Angela See, Medical Affairs Specialist, Wyeth Nutrition Hong Kong. “We do not normally ‘feel’ the process of digestion or even think about the existence of our digestive system, unless something goes wrong, such as when we get a stomachache because of eating too much or too little,” she says.

Risk factors One of the more common causes of an upset stomach, besides food poisoning, over- or under-eating, is a high level of stress. “Stress is definitely a risk factor,” See points out. “Many of us are under stressful situations because of a hectic urban lifestyle particularly in a fast-paced city like Hong Kong. “And, because we have a hectic schedule, we are always short on time. This can in turn lead to a range of

behavior such as eating too fast, eating at irregular hours or skipping meals – all of which are factors not very good for a healthy digestive system.” “Although the human body – including our digestive system – can withstand a certain level of stress either directly from food consumed in our diet or stress from an emotional aspect, it could only do so for a limited time,” she says. “When our digestive system is under constant stress for a prolonged period, health-related problems may eventually start to show up, often as a result of a vicious cycle of stress accumulation over time.”

“First and foremost, we need to consume a healthy diet – which means eating food that is rich in dietary fiber, reducing intake of processed foods, taking plenty of water and minimizing intake of alcohol as much as possible.” Moreover, stress can affect our nervous system that regulates our digestive system, causing an upset of the digestion process, See adds. “Some people will experience a slowing down of the digestion process which may cause bloating, abdominal pain and constipation; others may experience frequent bowel movements and they may have watery stools. “If not properly managed in the long term, stress could lead to worsened symptoms and quite possibly other serious health issues such as peptic ulcers and irritable bowel syndrome.”

Simple but important habits There are several simple yet important steps to take for maintaining a healthy digestive system, See suggests.

Angela See

“First and foremost, we need to consume a healthy diet – which means eating food that is rich in dietary fiber, reducing intake of processed foods, taking plenty of water and minimizing intake of alcohol as much as possible,” she says. “These are all important steps because they have a direct, immediate impact on how well our digestive system functions.” “Secondly, we need to eat slowly, moderately and on a regular schedule,” she adds. “Eating a right portion of food is essential because over-eating can cause pressure not only on our digestive system immediately but also on our whole body in the long term. It simply creates extra stress unnecessarily to the body.” “Another important step is regular exercise – something that has been proven to benefit in almost all aspect of the human body,” See says.

Photo: Thinkstock

biz.hk 6 • 2014

Guide to

Healthy Living 2014 “One thing that will also help us to maintain a healthy digestive system is to refrain from smoking,” she recommends. “That’s because smoking can loosen the pressure in the area between the oesophagus and stomach – which in turn will allow stomach acid to easily backflow into the oesophagus and cause conditions like heartburn. “Moreover, smoking is also linked to serious conditions like peptic ulcers and inflammation in the bowel.”

A balanced diet A balanced diet is foundational in maintaining a healthy digestive system and critical in prevention of many associated diseases, See reiterates. “As mentioned previously, a healthy diet should be rich in fiber, low in processed foods, with plenty of fluid intake such as water. “The Gastroenterological Society of Australia recommends a consumption of at least 30 grams of fiber in a balanced diet as a way to reduce the risk of developing heart disease, diverticular disease or colorectal cancer.” “We should also consume moderate amount of ‘good fat,’ such as omega-3 and omega-6 fatty acids in our diet while reducing our consumption of saturated fat and trans fat,” she adds. “Diversity is another key for a healthy diet – we should aim for selecting a variety of food for consumption in order to avoid insufficient intake of a particular nutrient,” See says. “If we as healthy adults consume a balanced diet and obtain all the necessary nutrients from different food groups, then nutritional supplements are most likely not necessary as we are able to obtain all we need adequately from a good, well-balanced dietary source.” “However, for people who do not consume a balanced diet or have certain illnesses, especially when they are under certain medications, a healthy diet might not be enough and nutritional supplements might provide an alternative,” she adds. “In such case, consultation with healthcare professionals is always

recommended before starting on any nutritional supplements.”

Dietary fiber & microorganisms Dietary fiber has long been appreciated for its beneficial effect on the digestive system in terms of laxation, See points out. “Dietary fiber can increase stool weight which is a result of a combination of three causes: the physical presence of fiber, water held by the fiber and an increase of bacterial mass from fermentation of the fiber. Insoluble fibers – fibers that cannot be dissolved in water – increase fecal bulk and decrease intestinal transit time.”

Probiotics have been suggested to have potential clinical importance on different diseases or conditions related to digestive system. For example, they have been reported to suppress diarrhea, alleviate lactose intolerance, reduce irritable bowel syndrome and prevent inflammatory bowel disease.” Conversely, soluble fibers – fibers that can be dissolved in water – can be metabolized by bacteria in the large intestine. Prebiotics are soluble fibers that can provide a huge benefit to the body by selectively stimulating the favorable growth or activity of bacteria that are beneficial to human health, she explains. “Since prebiotics cannot be digested by us either in our stomach or intestines, they are fermented by bacteria in the colon which can be viewed as the ‘ecosystem’ of bacteria in

our body where we have both pathogenic and health-promoting bacteria,” she adds. Bifidobacteria is one such class of bacteria that confer health benefits to in a human body by inhibiting the growth of harmful bacteria, stimulating some components of the immune system and also helping the synthesis of B-type vitamins, See points out. “Inulin and oligofructose are prebiotics that have been extensively studied and they have been shown to significantly increase fecal bifidobacteria,” she says. “This health benefit is not only observed in adults but also in children as well.” Probiotics, on the other hand, are living microorganisms that could provide health benefits to the host when an adequate amount is ingested, she further notes. “Probiotics have been suggested to have potential clinical importance on different diseases or conditions related to digestive system. “For example, they have been reported to suppress diarrhea, alleviate lactose intolerance, reduce irritable bowel syndrome and prevent inflammatory bowel disease.” “Bifidobacteria is in fact a strain of probiotics. Dairy products are a good dietary source of probiotics,” she adds. “Emerging researches also show that probiotics may contribute other benefits outside the digestive system.”

Dr. Vio & Partners Company Activities/History According to the 2012 Vital Statistic from the Centre of Health Protection, Pneumonia overtook heart disease as the No.2 killer disease in HK, only second to the top killer Cancer. Apart from children and elderly being the high risk groups for pneumococcal disease infection, data from the UK, US and HK shows that the incidence of Invasive Pneumococcal Disease (IPD) rapidly increases after the age of 50. For this, Dr. Vio & Partners is now introducing to all AmCham members an exclusive offer of Prevenar 13 HK$750 per shot (List Price: HK$960) and a doctor consultation prior to the injection at HK$250 (List Price: HK$400) for you and your family (1 family member), who are aged 50 years and above. Service / Product: About the service / Product: Key Personnel: Tel: Email:

Healthcare and Medical Services Core medical services, paramedical services, preventive healthcare programs Kelly Lo (852) 3183 9982 Kelly.lo@drvio.com.hk

drvio.com.hk

A Partner with Experience, Quality & Innovation Presence in Hong Kong since 1947, Dr. Vio & Partners is the first medical group in Hong Kong to achieve accreditation of ISO9001 in compliance with a set of high standards and procedures. While we are appointed Medical Practice for many major corporations and insurers, we also look after many individual patients and families in Hong Kong.

Hong Kong Adventist Hospital 40 Stubbs Road, Hong Kong SAR China

Company Activities/History

Prebiotics: Non-digestible fibers that favor growth of bacteria beneficial to human health

Probiotics: Living microorganisms associated with health benefits in the digestive system

About Dr. Vio & Partners

Service / Product: Tel: Fax: Email:

Health and Medical Services (852) 3651 8888 (852) 3651 8800 hkahinfo@hkah.org.hk

Hong Kong Adventist Hospital is dedicated to providing first-class health care services with state-of-the-art equipment and facilities. The hospital has received international accreditations from TRENT and the Australian Council on Healthcare Standards (ACHS), and recently, together with Tsuen Wan Adventist Hospital, became the first Hong Kong members of WHO’s Health Promoting Hospitals Network. The hospital provides medical assistance 24 hours a day, and also offers out-patient clinics and specialist units, such as the Hong Kong Heart Center and the Cardiac Catheterization and Interventional Center. It is committed to introducing the latest medical technologies such as the robotic da Vinci Surgical System, and is the only hospital in Hong Kong to offer Tomotherapy and Cyberknife treatments. The hospital also offers a variety of health assessment programs to corporate and individual clients.

www.hkah.org.hk 48

biz.hk 6 • 2014

Guide to

Healthy Living 2014 Mead Johnson Nutrition Hong Kong

Wyeth Nutrition Hong Kong

Rm 03-08, 30/F, ACE Tower, Windsor House, 311 Gloucester Road, Causeway Bay, HK

12/F Lincoln House, Taikoo Place, 979 King’s Road, Island East, Hong Kong

Mead Johnson has a long and proud heritage. Our company was founded in 1905 and for more than a century, Mead Johnson has led the way in developing safe, high-quality, innovative nutrition products. We continue to push the boundaries of nutritional knowledge with consistent, strong investments in scientific exploration and we are now the only global company exclusively focused on pediatric nutrition and is recognized as a world leader in the category. Mead Johnson's Mission is to nourish the world’s children for the best start in life. Our infant products undergo extensive quality and safety checks throughout the manufacturing process - from raw materials to finished product. That way we are sure our products continue to meet our rigorous internal standards as well as the guidelines proposed by CODEX.

Mead Johnson is committed to advancing the science of pediatric nutrition around the world. To further its efforts, the company has established the Mead Johnson Pediatric Nutrition Institute (MJPNI). MJPNI brings together research, technology and leading science experts inside and outside the company to better understand and address the nutritional needs of children. We have established a growing global network of MJPNI technology centers demonstrates the company's ongoing commitment to pursuing the benefits of science-based nutrition on behalf of children today and tomorrow.

‘Feeding Hope’ to the Community

Nutrition Product

About the service / Mead Johnson’s portfolio of brands represents specialized products moms Product: have trusted for more than a century to encourage healthy growth, support brain development and address common feeding issues. From formulas for routine feeding, to those for rare metabolic disorders that require specialized treatment. Key Personnel: Miss Ruthia Wong, General Manager Tel: (852) 2510 6321 Fax:

(852) 2969 5528

Email:

www.meadjohnson.com.hk/contact-us

www.meadjohnson.com.hk 50

Caring for Your Nutrition Need

Wyeth Nutrition is part of Nestle S.A. Wyeth Nutrition develops premium-quality nutritional products scientificallydesigned to meet the needs of people in different life stages. As pioneers in infant nutritional science, our mission is to provide the best nutritional support for future healthy outcomes. For nearly a century, Wyeth Nutrition has leveraged clinical rigor, scientific research, world class manufacturing and product safety standards to drive scientifically-sound solutions that offer parents confidence, help nourish children and support their healthy futures.

Established in 1985, Wyeth Nutrition Hong Kong is primarily responsible for the sales, distribution and promotion of safe and quality nutrition products in Hong Kong and Macau. Commitment to innovation is a sustaining hallmark for our business. Aiming to enhance the health of young children, women and adults, we participate in collaborative partnerships with various stakeholders, including the Government, public bodies, health care professionals, non-governmental organizations, as well as our customers. We are committed to maintaining our product leadership, as well as contributing to the well-being of our society by supporting corporate social responsibility programs.

Professionalism as Principle

Committed to Advancing the Science of Pediatric Nutrition

Service / Product:

Science as Foundation

Mead Johnson Nutrition (Hong Kong) Ltd. has been established in Hong Kong for more than 40 years. Our “A+” product line, including “Enfapro A+”, “Enfagrow A+”, “Enfakid A+” and “Enfaschool A+” are well-liked by parents, making our products the top selling brand in the infant milk formula market in Hong Kong for a consecutive of twelve years*. We are also committed to giving back to the community and have been supporting The Boys' and Girls' Clubs Association of Hong Kong, a local NGO, on the “Feeding Hope Program” since 2009. The program aims at improving health and nutrition of children from underprivileged families and recorded a total attendance of more than 60,000.

*Nielsen Infant Milk Formula MarketTrack Service data shows that Mead Johnson ranked first in Sales Volume and Sales Value within the Infant Milk Formula market from May 2002 to April 2014 in Hong Kong. (Including all purchase made by any party via supermarkets and drug stores) (Copyright 2014, the Nielsen Company)

biz.hk 6 • 2014

At Wyeth Nutrition, quality and professional integrity are our highest priorities. Our commitment to quality and integrity has always extended beyond formulation to manufacturing. Milk formulas are among the most stringently regulated consumer products in the world. We manufacture our products with reference to food quality and safety standards set by the Codex Alimentarius Commission, a body run jointly by the United Nation's Food and Agriculture Organization and World Health Organization, and we comply with all regulations in the countries where we operate. We bring to the manufacture of nutrition products the same diligence and attention to detail used in pharmaceutical production, striving for total consumer confidence in our products. With our persistence of state-of-the-art facilities and the strictest standards of quality and safety, all formula products of Wyeth Nutrition Hong Kong are manufactured by its plants that achieve ISO and HACCP certifications in recognition of their manufacturing excellence. Service / Product:

Nutrition Product

About the service /

Wyeth Nutrition Hong Kong offers a full line of safe, quality and scientifically-designed nutrition products, including infant formula, follow-on formula, growing-up formula, prenatal and lactating supplements, and adult supplement.

Product:

Key Personnel:

Mr Clarence Chung, General Manager

Tel:

(852) 2599 8888

Fax:

(852) 2599 8999

Email:

enquiryhk@wyethnutrition.com

IMPORTANT NOTICE: The World Health Organization recommends exclusive breastfeeding during the first 6 months of life and continued breastfeeding for as long as possible. Wyeth® Progress GOLD®, illuma® Stage 3 and Wyeth® PE GOLDTM Stage 3 are not breast milk substitutes but growing-up milk specially suited to young children aged 1 to 3. Products listed above are formula milk or nutritional supplement for women who are planning to become pregnant, who are pregnant, or who are breastfeeding, and are not breast milk substitutes. Before taking any maternal supplement, please consult your healthcare professional to determine which product is appropriate for you. For picky eating children, should provide them with normal diet and continue to correct their picky eating behavior. If there is any question, please consult doctors or dietitians for details.

WYE-PM-167-MAY-14

Nourish Children for the Best Start in Life

www.wyethnutrition.com.hk biz.hk 6 • 2014

Guide to

Mark Your Calendar

Healthy Living 2014 Jul

Matilda International Hospital 41 Mount Kellett Road, The Peak, Hong Kong

Company Activities/History

Service / Product:

Tel:

Healthcare and hospital services for corporate and individual clients provided by Matilda International Hospital and its Matilda Medical Centres (852) 2849 0111 (general enquiry) (852) 2849 0389 (corporate enquiry)

www.matilda.org

Matilda International Hospital (MIH) offers comprehensive outpatient and inpatient services. Key centres of excellence are wellness and health assessments, women’s health, general surgery, and spinal care and orthopaedics. It is one of Hong Kong’s first private hospitals to adopt clinical governance, and is ISO and ACHS accredited. To maintain the hospital at the forefront of worldwide surgical advances, MIH has been diligently investing in the latest medical equipment and facilities. The surgical service is supported by an experienced and compassionate clinical team, a well-equipped medical and surgical ward, and a day-case unit, which are designed to provide a private healing environment. The hospital’s primary and preventative medical services have been extended to centrally located Matilda Medical Centres (MMC) in Central and Tsim Sha Tsui. Together, MIH and MMC provide comprehensive results-oriented health and wellness services that address specific medical and budget needs of corporate and individual clients.

All You Need to Know about SME Funding in Hong Kong Tommy Lai, Principal Trade Officer, Trade and Industry Department, HKSAR Lawrence Cheung, General Manager, Hong Kong Productivity Council Charles Ng, Associate Director-General of Investment Promotion, Invest Hong Kong While the government may have allocated resources to support SMEs in Hong Kong, many are unclear how to go about getting started and applying for it. In view of this, AmCham and ecVision Limited have jointly organized a seminar to provide information about the support available for entrepreneurs and owners of SMEs. In addition, representatives from the Trade and Industry Department of HKSAR and HKPC will speak at the seminar. Tommy Lai of HKSAR’s Trade and Industry Department will talk about support measures available for SMEs, while Lawrence Cheung of HKPC will cover the introduction of funding schemes and support programs for small and medium enterprises in Hong Kong. Charles Ng, Associate Director-General of Investment Promotion at Invest Hong Kong, will provide answers to any questions raised during the Q&A session. Tommy Lai is Principal Trade Officer overseeing the Small and Medium Enterprise (SME) Services and Export Marketing Fund Section in the Industries Support Division of the Trade and Industry Department. He heads the SME Services Unit that provides support services to SMEs via the Support and Consultation Centre for SMEs (SUCCESS) for a comprehensive range of business information, advice and services. Lawrence Cheung is General Manager of the Automotive and Electronics Division within Hong Kong Productivity Council. His division is focused on promoting new technology development and standards, such as Green Electronics and Manufacturing Standards, Automotive Electronics, Electrical Vehicle, Image Processing, Wireless Power and Smartphone peripherals to the industries in Hong Kong.

Shadow Banking in China: Jul Implications on Real Estate and the Real Economy

Henry Chin, Head of Research, Asia Pacific, CBRE Simon Gleave, Regional Head, Financial Services, KPMG China’s shadow banking system has been growing at a tremendous rate. Recording an increase of 42 percent in 2012 alone, it is currently estimated to account for as much as US$ 3.5-5 trillion, equivalent to 26-55 percent of the country’s GDP. Will there be more cases of default cases in the Chinese residential markets? How will it affect the overall real estate market? Will it have a knock-on effect on an already slowing economy in China? Please join our lunchtime event to explore these issues. Henry Chin is responsible for overseeing all research activities across the region, including India, Greater China, South East Asia, Japan, Australia and New Zealand. Before joining CBRE, he was Head of Asia Pacific Research and Strategy at Pramerica Real Estate Investors, Prudential Financials Inc. Prior to that, Chin was with Deutsche Bank Group as Global Real Estate Strategist based in London and as Co-Head of Real Estate for Asia Pacific for their private banking business. China was also a real estate analyst in DTZ’s London office. Simon Gleave has been working in Beijing since 2001 and has been involved in the IPO projects of China Construction Bank, CITIC Bank and, most recently, China Everbright Bank as well as the restructuring of a number of banks across Europe and Asia. He is currently the global lead partner for Industrial and Commercial Bank of China and is the lead partner for a number of Chinese clients listed on the Hong Kong stock market. Gleave was also the engagement partner for the Hong Kong Monetary Authority Consultancy Study on the Hong Kong banking sector.

Can South Asian Elephants Dance?

Jul The Challenge for India and Prime Minister Modi

Thomas M Britt III, CEO, Global Equity Corporation Patrick de Courcy, Managing Director, Pi Square India’s new Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) swept into office in a landslide election in May with a mandate for reform and focus on the economy. Given Modi’s pro-economic development campaign rhetoric and pro-business management of Gujarat, his government has the potential to reset the Indian economy to attract foreign investment. What are the implications for business? What should companies interested in India consider as they map out an early outreach strategy? Join us for a discussion. Thomas Britt is CEO of Global Equity Corporation, a financial advisory and private investment firm specializing in outbound and inbound mergers & acquisitions between Asia and the rest of the world. Prior to joining GEC, Britt was Senior Partner in Asia for Debevoise & Plimpton LLP, a leading international law firm. He has resided in Asia for two decades, focusing on international mergers and acquisitions, private equity financings and capital markets transactions for financial sponsors, investment banks and corporations throughout the region. Patrick de Courcy is Managing Director of Pi Square, a Hong Kong-based, Asia-focused specialist consultancy serving the payments and transaction banking industry. He has over 20 years of experience in transaction banking, strategy, business development, sales and management of large-scale complex programs. de Courcy was previously Deputy Chief Executive (Asia Pacific) at SWIFT, the global cooperative providing financial messaging services to financial institutions and corporations worldwide.

Venue: The American Chamber of Commerce in HK 1904 Bank of America Tower 12 Harcourt Road Central, Hong Kong Time: 12:00 - 2:00pm (Sandwiches & beverages included) Fee(s): Member: HK$280 Non-member: HK$380

Venue: Conrad Hong Kong Hennessy Room (7/F) Pacific Place 88 Queensway Admiralty, Hong Kong Time: 12:00 - 2:00pm Fee(s): Member: HK$580 Non-member: HK$680 Corporate table: HK$7,300

biz.hk 6 • 2014 For information, see website: www.amcham.org.hk

Tel: (852) 2530 6900

Fax: (852) 2810 1289

Email: byau@amcham.org.hk

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