Canada Hong Kong Exchange Vol 14 by CanChamHK

EXCHANGE

A Publication of The Canadian Chamber of Commerce in Hong Kong

Chairman’s Message “At the Chamber, our focus is to further broaden and develop the ‘Canada-Hong Kong Connect’. Our ongoing role is to provide a forum for connecting businesses and opportunities.”

ver the past few months, the Shanghai-Hong Kong Stock Connect, the investment channel between the two cities’ equity markets, has been gaining in volume and momentum, creating opportunities for investors and companies alike. This innovative scheme again strengthens Hong Kong’s position as an excellent platform for developing business opportunities across all of China, not to mention in the other exciting markets in Asia. At the Chamber, our focus is to further broaden and develop the ‘Canada-Hong Kong Connect’. Many share this vision. In early June, the Hong Kong Trade Development Council (“HKTDC”) leads a delegation to Toronto as part of its ‘Think Asia, Think Hong Kong’ initiative to promote Hong Kong as a platform for growth-seeking Canadian companies, entrepreneurs and professionals. The Chamber’s ongoing role is to provide a forum for connecting businesses and opportunities. This happens in many ways. On November 30th of this year, the second TransPacific Entrepreneurial Conference is under planning, hosted by the Chamber’s Entrepreneur and Small Business Committee (“ESBC”) and the Hong Kong-Canada Business Association (“HKCBA”), with its 1,300 members in eight chapters across Canada. With some 100 people in attendance at the inaugural event last year, the event was a great success. One of the themes of last year’s Inaugural TransPacific Entrepreneurial Conference is again taken up in this issue of EXCHANGE in Stephen Wortley’s ‘The Challenges and Successes of Setting Up and Doing Business in Hong Kong’ article. This is the first part of a series on Canadian companies and entrepreneurs establishing themselves in our community. The Consulate General of Canada in Hong Kong and Macao plays a pivotal role in expanding the ‘Canada-Hong Kong Connect’. As Ian Burchett says in our interview with him in this issue, “Hong Kong continues to be a vital platform for trade and investment that is key to Canada’s Prosperity Agenda. The strong friendship among Hong Kong, Macao, China and Canada is 2 EXCHANGE Vol.14

critical. Working to advance the ties between the economies is of great interest to me personally.” This issue of EXCHANGE highlights but a few of our members’ current business initiatives in the city and beyond. Read articles from Sun Life Financial, Colliers International, KPMG and one of our newest members, Miz Technology. Also here are interviews with Brian Brown, Managing Director of British Columbia’s Hong Kong Trade and Investment Representative Office and with Janey Leung, Sun Life’s Vice President (Internal Audit) who chronicle their challenges and successes of working in Hong Kong. EXCHANGE also provides the details of the Chamber’s upcoming events, both business-oriented and social. Join us for one of these which range from our well-regarded “China Series” through to the Chamber’s Annual Golf Tournament to be held this year in November. These events are meeting places to help members connect with one another and companies connect with other companies. Through dialogue, areas of common interest can be identified while trust and confidence are built. The strength of the Chamber’s network is a great foundation for expanding businesses, both those well-established and those newly-created. Finally, we are also pleased to welcome all of our new members please join me in ensuring that they are integrated well into our community – EXCHANGE provides the list. Over the years, Canadians have established or been instrumental in a variety of businesses based in Hong Kong. Enjoy EXCHANGE – send us your thoughts.

John R Witt Chairman The Canadian Chamber of Commerce in Hong Kong

Volume14 May 2015

CONTENTS 02 Chairman’s Message 04 The Chamber Platinum Corporate Sponsors

Committee Updates 06 Report: The Inaugural TransPacific Entrepreneurial Conference: Joint CanChamHK-HKCBA Conference December 1st, 2014

Advocacy 10 Why Are We Debating the Topic: Standard Working Hours (“SWH”)?

Adventures of Working Abroad in Hong Kong 12 Interview with Janey Leung, Vice President (Internal Audit), Sun Life Financial Asia 13 Interview with Brian Brown, Managing Director of British Columbia’s Trade & Investment Representative Office

Sharing Experience and Success: Leadership Column 14 Special Feature: Interview with Mr. J. Ian Burchett

Focus on Members 18 Self-storage in Hong Kong 22 Which Investments Can Reduce Your Tax Bill? 24 Growing the E-Commerce Market in China 26 Be A Smarter Start-Up

Community 28 “Think Asia, Think Hong Kong” Is Coming To Toronto

Gold Corporate Sponsors

30 The Challenges and Successes of Setting Up and Doing Business in Hong Kong – McMillan LLP

Professional Development 32 The Power of Thinking

36 Event Highlights 38 Welcome New Members

The Chamber The Chamber records with deepest sorrow the passing of our Governor, Dr. Hari N. Harilela, GBM, GBS, OBE, JP, on December 29, 2014. He was 92 years old. Dr. Harilela had been a great businessman, a respected philanthropist and an important voice in the community. He made tremendous contribution to the overall development of Hong Kong as well as the welfare of the Indian community. As a long-time Governor, his support for our Chamber community was enthusiastic and consistent. We will mourn the loss of this wonderful man – a visionary who participated actively throughout his long life yet at the same time someone who was both kind and generous. Executive Committee John R Witt Brian Lau Jennifer Chua Irene Chu Mati Pouliot Adam Khemiri Barrett Bingley Chris Roberge Don Roberts Fabien Jeudy Gina Hudel Guy Cloutier Hendrik Rosenthal Henri Arslanian Jean-Baptiste Roy Lynn McDonald Lawrence Nutting Michael Nardella Michael Yong-Haron Richard Brown Vanessa Ma Victor Yang Wai Ho Wong Wayne Lee Wendy Tong-Barnes William Said

Chairman Vice Chairman–Internal Vice Chairman–External Secretary Treasurer

Governors’ Counol Daisy Ho Head of Governors’ Council J. Ian Burchett Honorary Head of Governors’ Council Allan Matheson Allan Zeman Andrew Turczyniak Bernard Pouliot Bruce Hicks David Armitage David Kong David M Nesbitt David McMaster Dr. Eliza C. H. Chan Dr. Janet De Silva Dr. Patrick Y.B. Fung Dr. William Yip Dr. William W.H. Doo Elizabeth L. Thomson Joe Ng John Cheh John W. Crawford Lawrence Ho Lincoln K.K. Leong Michael Y.K. Chan Patrick Lam Raymond Chow Richard Siemens Robert Cook Stephen Chu Victor Apps

The Secretariat Philip Leung President email : philip_leung@cancham.org phone : 2110 8728 Carol Chan Operations & Finance Manager email : carol_chan@cancham.org phone : 2110 8708 Sarah Wai Administrative Assistant email : sarah_wai@cancham.org phone : 2110 8700 Janice Ip Events & Membership Manager email : janice.ip@cancham.org phone : 3695 5021 Jane Chin Deputy Events Manager email : jane_chin@cancham.org phone : 2110 8738 Sarah Cheng Communications Manager email : sarah_cheng@cancham.org phone : 2110 8718 Barbara Mok Membership Service Manager email : barbara_mok@cancham.org phone : 2110 8722 Janice Hon Membership Manager email : janice_hon@cancham.org phone : 2110 8722

Volume 14, May 2015

Published by

Editorial Board Madeleine Behan (Chair) Philip Leung Carol Chan Adviser Wendy Tong-Barnes Advertising Contact Carol Chan (carol.chan@cancham.org) Sarah Cheng (sarah_cheng@cancham.org) Project Management Meipo Yeung Design and Layout Sarah Cheng Sarah Wai Winnie Li Lilian Yu

4 EXCHANGE Vol.14

Jointly Published by The Canadian Chamber of Commerce in Hong Kong Suite 1301 Kinwick Centre 32 Hollywood Road, Central, Hong Kong Tel: 2110 8700 Fax: 2110 8701 www.cancham.org Speedflex Medianet Ltd 1/F, Hua Qin International Building 340 Queen’s Road, Central, Hong Kong Tel: 2542 2780 Fax: 2542 3733 Email: info@speedflex.com.hk Cover image credit to Chansiyuan

Claims, statements and assertions made by advertisers are the responsibility of the advertisers. The Canadian Chamber of Commerce in Hong Kong and Speedflex disclaim all responsibility and liability in connection with the content of any advertisement appearing in this publication. Canada Hong Kong Exchange is published in every four months. The opinions expressed in this publication are not necessarily the opinions of the publishers. All published material is copyright protected. No parts of Canadian Hong Kong Exchange may be reprinted or reproduced without the written permission of the publishers. Canada Hong Kong Exchange welcomes letters to the editor sent via email to canada@cancham.org. Submissions must include the author’s full name, address and daytime contact numbers. The Canada Hong Kong Exchange reserves the right to edit letters for length and clarity.

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15年4月22日上午11:28

Committee Updates

The Inaugural TransPacific EntrepreneurIAL

Joint CanChamHK-HKCBA Conference On December 1st, 2014, the Entrepreneur and Small Business Committee (the “ESBC”) of the Chamber and the Hong Kong Canada Business Association (the “HKCBA”) jointly presented the first Conference offering a broad range of discussions focusing on how companies, including MSEs (“Micro and Small Enterprises”), had set up and succeeded in Hong Kong, and what resources are available to help Canadian companies do business in Hong Kong. The overall objective aims to continue building upon Hong Kong’s entrepreneurial spirit to encourage Canadians to use Hong Kong as a platform to expand their business eastward.

Setting up a Business in Hong Kong: An Overview Panel Discussion Chair: Irene Chu, KPMG Hong Kong was a well-known springboard for Chinese business to go global while Canada had been seen as the Pacific gateway for North America. There had long been a close bond between Hong Kong and Canada, especially after the signing of the Double Taxation Arrangement in 2012. Companies chose to set up headquarters or global functions in Hong Kong for further expansion to Asia.

Speakers: Charles Ng, InvestHK and Stephen D. Wortley, McMillan LLP

Talking about the InvestHK’s StartmeupHK Programme, Charles commented that there were a lot of support and fundings available for startups but the information previously available was not organized enough. InvestHK therefore gathered all different things under one website for startups. When it came to the concern of the diminishing role of Hong Kong as a bridge to China with the emergency of free trade zones, Stephen

commented that Hong Kong, as a “known commodity”, was opened for more international trades with fewer restrictions such as free exchange of currency and skills or knowledge developed in investing China. Also, he considered the free trade zones still under early development with only around 5% of foreign investors at the moment. Finally, Charles further added that Hong Kong’s position was not only the gateway to China, but also with the Asia Pacific region with other opportunities.

“How I Started: How I Made It” Panel Discussion Chair: Elizabeth L. Thomson, The Amber Foundation Limited

Christopher commented that flexibility was one of the most important elements in running business in Hong Kong. Entrepreneurs could spot opportunities, which could be a possible area for future expansion. Also, Christopher appreciated the attitude of Hong Kong people where they were willing to try for anything and never excused based on job descriptions. Janice considered that the key learning in Hong Kong was to reinvest yourself upon difficult times and learn to make things work. Compared to the reporting system in Canada, Janice thought that everything in Hong Kong was

Where We Are Now: Where We Want to Go. How We Want to Get There with Your Help in Hong Kong, in the PRC and South East Asia 6 EXCHANGE Vol.14

Panel Discussion Chair: Jimmy Mitchell, Advantage BC Speakers: Wayne Berg, HKCBA (Immediate Past President) and Alexandra Sham, HKCBA (Newly elected President) Wayne mentioned that Hong Kong was an important gateway to Asia, especially to China. Understanding the importance as such, the HKCBA wished to support its members by facilitating business between Canada and Hong Kong. The HKCBA was established in 1984, aiming to provide business partnership, education and networking opportunities to its members. There were certainly challenges that the organization was currently facing: competitions from similar organizations, being dependent on funding from corporate companies, the age demographic of the organization, which addressed the need to drive in more youth. Alexandria commented that the Association should be able to provide benefits to their members. As mentioned, the HKCBA was facing competitions as more and more similar organizations were founded with the same goal. Talking about challenges, one of them was that it was hard to make members make use of their benefits. Many members did not know what benefits they were

Reported drafted by Lauren Koch & Sarah Wai, edited by Madeleine Behan, on behalf of the Entrepreneur and Small Business Committee

Conference:

December 1st, 2014

Committee Updates THANK YOU SPONSORS: Cocktail Title Sponsor

Cocktail Co-Sponsor

Folder Sponsor

Experience Sharing Session

Conference Sponsor

Speakers: Christopher Dillon, Dillon Communications Limited; Jeremy Masters, Shipping Masters (HK) Ltd and Janice Henderson, Reaction Design much simpler to handle. In addition, the simple, low tax structure in Hong Kong encouraged the spirit of entrepreneurship to grow. However, Janice sometimes found the language as a barrier to deal with local suppliers, especially at the start-up stage. Jeremy mentioned that there were different ways to save costs in early stages, such as starting with a virtual office and having freelance part-time workers. Also, he was inspired by the flexibility of the part-time workers in Hong Kong that they did not mind working during weekends.

entitled to. Another challenge was that it was hard to maximize the benefits that the organization could offer to its members. To sum up, given the obstacles, the Chamber and the HKCBA were looking for partnering opportunities such as a joint membership program and more joint events, to provide better membership privileges to their members. Given the rapid changes in business nature, such partnering would allow a better transfer and exchange of information and knowledge between the organizations and ultimately will benefit the members of both CanCham Hong Kong and HKCBA.

Wine Sponsor

Venue Sponsor

Supporting Organizations

Committee Updates

SECOND Trans-Pacific Entrepreneurial CanChamHKHKCBA Conference November 30, 2015 Hosted by the Entrepreneur and Small Business Committee 2pm – 6pm Conference 6pm – 8pm Networking Cocktails

December 1 – 2, 2015: Hong Kong Forum December 3 – 5, 2015: World SME Expo 8 EXCHANGE Vol.14

Practical Issues of Developing a Business in Hong Kong and Preparing to Enter and Invest in China

Perspectives of Local Entrepreneurs and Micro and Small Enterprises (MSEs) Panel Discussion Chair: Danny Choi, Baker Tilly Hong Kong Speakers: Stephen Liang, HKTDC; Raphael Cohen, Hotel Quickly and Gene Soo, Startups Hong Kong

Committee Updates Stephen provided a look into the many different ways that businesses could gain exposure and work on their brand in Hong Kong. The Hong Kong Trade and Development Council (the “HKTDC”) hosted many events and fairs that provided chances for business trade and networking. In addition, with the shifting interest to invest and enter China, the HKTDC had shifted emphasis to providing information and tools for businesses and companies to expand and transit into China, such as how to effectively use social media, mobile commerce, and franchising. Raphael commented on how to succeed in a small market such as Hong Kong’s. Focusing on a business’s specific niche was important in creating a successful product. Being able to focus on all aspects of a business, marketing, platform and financing made it possible for Raphael to succeed in a highly saturated hotel market. Funding was a second topic that was commented on, placing an emphasis on the ability to expand beyond the Hong Kong market to look for investors and interested parties.

Gene spoke on the challenges of developing businesses in Hong Kong. A common idea among starting businesses was the belief that the Hong Kong market was too small to accommodate the ideas of start-ups and SMEs. From observing successful and failed businesses; the ability to scale a business, in expectations of product and exposure, was crucial for a succeeding business.

How the Canadian Consulate General in Hong Kong Can Help You Do Business in Hong Kong Speaker: Ms. Lynn McDonald, The Consulate General of Canada in Hong Kong and Macao Lynn provided the background and introduced the services that the Consulate General of Canada in Hong Kong and Macao was offering. The presentation mainly focused on the Trade Commission’s service sectors. Overall, the mandate of the trade commissioner service was to promote Canada economy and Canadians’ economic interest in global market place. Trade commissioners offered services to small, moderate, and large Canadian companies. Before they delivered services, the Consulate General would determine if the company was prepared and was legitimate to deliver their products. The Consulate General generally offered help in the following four areas: deliver value to

business, offer potential market assessments, qualify contacts, and problem solving. Canada had recently concluded a few free trade agreements with other countries. One of the trade commissioners’ missions was to help companies to take advantages of the policy. Lynn also reiterated the importance of the regional offices in Canada as these offices generally offered great advice in different aspects. Another important factor that the Consulate General valued a lot was their partnership with other organizations. When the Consulate General could not offer the service that the client was looking for, the Trade Commissioners would connect their partners to provide the services.

Editor’s Note: To build upon the success of the Inaugural Conference, the Second TransPacific Entrepreneurial CanChamHK-HKCBA Conference hosted by the Chamber’s Entrepreneur and Small Business Committee will be held on November 30th, 2015.

Advocacy

Why Are We Debating the Topic:

Standard Working Hours (“SWH”)? Editor’s Note: This is the first part of a series on “Standard Working Hours”. The purpose of this discussion is not to agree or disagree on the topic, but to identify and understand the issues revolving around it so we can spearhead a well-balanced discussion.

There is so much debate about Standard Working Hours (“SWH”) legislation in Hong Kong that it may be worth going back to the beginning – in fact we ought to go to the beginning whenever we think about SWH. By Brian Renwick, Managing Director, Signium International, FormerlyVice-Chair of the Employers’ Federation of Hong Kong Why are we even debating the topic? Around the world, there are different reasons for introducing such legislation: • Occupational health and safety – airline pilots and professional drivers are examples. The UK has this as its main aim for SWH; • Job creation and job sharing such as might happen in countries with large unemployment; • Better work/life balance – Australia might be a good example, France another; • Fair compensation for overtime – might be relevant for countries without effective employment laws The structure and purpose of legislation will vary depending on which alternative one chooses. In a recent survey undertaken by Hong Kong’s Standard Working Hours Committee: “The top three working hours policy objectives recognised by employees were “better work-life balance for employees” (37.5%), “protecting occupational safety and health” (27.7%) and “specifying compensation for overtime work”

10 EXCHANGE Vol.14

(19.0%). The top three working hours policy objectives recognised by employers were “protecting occupational safety and health” (32.7%), “better work-life balance for employees” (26.1%) and “maintaining a favourable business environment” (10.9%).” Despite the debate that has raged over the issue in the last few years, therefore, we are no closer to agreeing on the reason for considering legislation of working hours in Hong Kong. Interestingly enough – also in the survey results: “74.3% of all employees considered their working hours in the past seven days before enumeration “just right”, while 24.4% considered them “too long”. 69.9% of the latter group of respondents did not wish to have their working hours reduced if their income would also decrease. Among all employees, 41.8% of them were willing to work more overtime if the overtime work would be reasonably compensated.” So, if we cannot agree about why Hong Kong needs SWH legislation and if, furthermore, the vast majority of Hong Kong employees are

happy with the working hours, what possible rationale can there be for spending any more time and effort on the debate? And here I turn to an excellent report and analysis of the UK situation produced by the UK Government in December 2014. “In a perfectly competitive labour market the most efficient outcome would be reached by allowing workers and firms to agree patterns of work by free bargaining,” the authors state clearly. This is one of the key arguments used by opponents of SWH legislation in Hong Kong. The report goes on: “Free bargaining between workers and firms is only possible where there is a competitive labour market and workers have a large number of alternative employment opportunities.” Again Hong Kong employers would say that there has been full employment in Hong Kong for years; that there is, in fact, a serious labour shortage. Most workers are content with their hours of work. And there is a thoroughly competitive labour market in which workers have a large number of employment opportunities. Hong Kong seems to have a ‘perfectly competitive’ labour market.

Advocacy But could they be wrong? Hong Kong’s labour groups certainly think so. In the UK report, its writers suggest that: “… individuals may fail to accurately value their leisure time due to underestimating the risks to their health and wellbeing of working long hours” and that “…firms may also lack information on the health and safety effects of requiring their workers to work long hours.” Remember, in the UK context, SWH was implemented to improve health and safety. But one could presumably suggest arguments that employers and employees may overlook for the other justifications for SWH also.

So what does influence our labour market if employers and employees do not reliably operate a perfect labour market? In a wide-ranging review of the topic, highly respected Professor Richard Wong of Hong Kong University, wrote in the South China Morning Post on February 24th: “First, working hours (in Hong Kong) are determined by supply and demand and they have declined as wage rates increased, with the exception of specific areas such as the finance and business sectors where there is an acute short supply.

Is this just an example of a ‘nanny state’ trying to second-guess its intelligent citizens? Or could it be a reality – namely that few people can and do think widely enough about an issue to be able to form a fully considered judgement?

Second, highly skilled workers in these areas are working longer hours due to labour supply shortages that reflect Hong Kong’s inadequate manpower strategies regarding education and attracting skilled immigrants.

Certainly Hong Kong’s labour groups argue that workers, who have weak bargaining power, need help to establish their own priorities; that employers are wickedly venal and try to get the utmost out of their workers for the lowest cost. Thus our labour market in not perfect, they argue, because both sides are seriously distorting it with mistaken beliefs and judgements.

Third, jobs requiring fewer skills are increasingly being filled by part-time and casual workers. Since 1996 the male labour force has remained stagnant in numbers. Total labour force has increased solely because of the entry of more women. The growing number of women workers has placed considerable stress on domestic life, especially with rapidly rising divorce rates and single-parent families.” He

Appendix: Madeleine Behan, Co-Chair, Entrepreneur and Small Business Committee

average working hours in Hong Kong is 2,296 hours per year, which ranked the fifth longest yearly working hours among 72 countries under study.

Till now, Hong Kong has no legislations regarding maximum and normal working hours. However, as Hong Kong implemented the minimum wage law in May 2011, the Chief Executive of the Special Administrative Region pledged that the government will standardize working hours in Hong Kong. Subsequently, the government will begin in March 2013, through a special committee, to study the feasibility of legislation on standard working hours for Hong Kong’s workers as a follow-up to the 2013 Policy Address.

Standard working hours (or normal working hours) refers to the legislation to limit the working hours per day, per week, per month or per year. If an employee needs to work overtime, the employer will need to pay overtime payments to employees as required in the law. Generally speaking, standard working hours of countries worldwide are around 40 to 44 hours per week, and the additional overtime payments are around 25% to 50% to the normal hourly payments.

The average weekly working hours of full-time employees in Hong Kong is 49 hours. According to the Price and Earnings Report 2012 conducted by UBS, while the global and regional average were 1,915 and 2,154 hours per year respectively, the

In general, various sectors of the community show concern about the possible legislation of standard working hours in Hong Kong. As with the Minimum Wage, some feel that it will not make much impact on SMEs – or anyone else. But just like the Minimum

goes on: “Imposing standard working hours on such a labour market would have very severe consequences. Where will the extra work hours come from?” So – consider the facts (as opposed to the emotions strewn about by journalists and labour groups): • Hong Kong so far cannot agree on the reasons to introduce legislation on SWH; • The majority of workers are happy with the hours they work; • If not a perfect labour market, Hong Kong enjoys full employment that is causing labour shortages in vital industries. Workers can change jobs easily; • Long working hours have reduced, are reducing and are the product of market forces not manipulation by workers or employers. Professor Wong concludes: “SWH legislation solves no problems and further distorts the adjustment process in a tight labour market. Government and society should focus on better ideas.” I am bound to say, I agree! Wage, Standard Working Hours (if legislated) will make a significant difference to every company in Hong Kong. Brian Renwick’s contribution is a follow-up to a Discussion Forum – “Standard Working Hours – The Possible Impact for Your Business” presented by the Chamber’s Entrepreneur and Small Business Committee in 2013. This article is the first part of a series on “Standard Working Hours”. The purpose of this discussion is not to agree or disagree on the topic, but to identify and understand the issues revolving around it so we can spearhead a well-balanced discussion. We would like to invite you to join us in the discussions and send us your thoughts - what it may mean to you and the arguments for and against this potential legislation. 11

Adventures of Working Abroad in Hong Kong

Interview with Janey Leung

By Lauren Koch & Sarah Wai,The Canadian Chamber of Commerce in Hong Kong

Had you ever planned to move to Hong Kong previously when you were in Canada?

ung e L y e n a J al Audit

ent, Intern Vice Presid ancial Asia in if L Sun e F

Janey first joined Sun Life Financial in Toronto in 2005 as a Director in Internal Audit responsible for the Canadian Group Benefits and Group Retirement Services portfolio. In 2014 Janey and her family moved to Hong Kong where she is accountable for audit work related to the Asia Business Group and also leads the Sun Life Financial Asia’s Internal Audit Team. Prior to joining Sun Life Financial, Janey was a Manager at PricewaterhouseCoopers in the Audit and Assurance Group and a Senior Manager in Internal Audit at the Bank of Nova Scotia. Born and raised in Toronto, Ontario, Janey holds a Bachelor of Commerce with a Specialist in Economics from the University of Toronto. She became a Chartered Accountant in 1999.

12 EXCHANGE Vol.14

I arrived in Hong Kong in January 2014. Prior to October 2013, I never thought I would leave Toronto. My husband and I had had discussions as to whether we would move to other countries, but always concluded that we had too large of a support system – family and friends – in Toronto to leave. When the opportunity arose to work in Hong Kong, however, the conversation with my husband did not last long before we concluded that Hong Kong was “the place” to be and that if we were to ever relocate Hong Kong was the ideal place. We thought it would provide us with an opportunity to gain international exposure at an accelerated pace. On a personal level, it was an opportunity for my children to see where our family came from, to experience the stories they heard from their grandmother and other relatives, and be immersed in a place where they could learn Chinese and experience Asian culture firsthand.

You have worked in Canada for most of your life. How does working in Canada differ from working in Hong Kong? Someone said to me when they learned that I was moving to Hong Kong: “Janey, I know you work hard, but you don’t know anything about working hard until you are in Hong Kong.” I laughed not yet knowing the number of evening conference calls in which I would be participating. I have been inspired working in Hong Kong – everyone around me is driven, entrepreneurial, and does what it takes to get things done. It’s been quite motivational. Hard work, in this environment, is easy. Working smart and focusing on the right things at the right time is the differentiator. Being relevant, positive and building a network are key. Hong Kong has a high networking culture.

You have been in Hong Kong for less than a year. How do you feel about it? Were there any challenges upon your arrival? How did you overcome these difficulties? Sun Life and my colleagues made my transition to Hong Kong easy. The most challenging issue we had was integrating our kids and getting them enrolled in schools. I am fortunate to have a supportive and persistent husband who followed up on everything. Thanks to my husband, both our kids are happy in their new school. He volunteers at their school and has built a social network for himself and the kids.

What aspects do you enjoy most in Hong Kong? I have had a great overall experience in Hong Kong. People here are extremely welcoming and helpful. I was running late for a meeting once and hailed a taxi and the taxi driver said it was close by and tried to give me directions. I wasn’t clear on where to go, so he stepped out of the car and walked two blocks with me to show me. I was grateful for his help. My original image of Hong Kong was very metropolitan. I was surprised to find that Hong Kong is actually very family-friendly with trails and lots of green space. There are a number of playgroups, parks, and activities available for kids throughout Hong Kong. My kids love water sports and they get to do more of that in Hong Kong than in Toronto with the warm weather, proximity to beaches and convenient transportation system.

Would you consider staying in Hong Kong for retirement? I would say it all depends on opportunity. There are still many years ahead before I start thinking of where I will settle in retirement. At the moment, I am happy where I am in Hong Kong. I can see myself here for the next few years.

Adventures of Working Abroad in Hong Kong

Interview with Brian Brown By Lauren Koch & Sarah Wai,The Canadian Chamber of Commerce in Hong Kong

Did you plan to move to Hong Kong? Have you ever visited Hong Kong prior to moving to Hong Kong?

How do you find Hong Kong’s working environment different from Canada’s?

Surprisingly nope, though I had always known that I wanted to do something outside Canada. A friend of mine once told me about the “Restless Gene” that roughly 20% of people possess and they have the inclination to explore. I am part of that 20%! Hong Kong was very distant that I never considered and even visited before prior to moving here.

Hong Kong’s reputation for being a fast paced environment is well deserved. You can arrive on a Sunday afternoon, view a dozen flats, and close on a lease that evening. There is a prevailing service-oriented culture, unlike anywhere else.

You have been in Hong Kong for more than a decade, how would you compare Hong Kong now and then? Hong Kong has definitely and is continuing to change. When I first arrived, there was a debate about Hong Kong’s future, with some holding the perception that Hong Kong’s best days were over. There were also arguments over Shanghai and/or Singapore being able to displace Hong Kong’s relevance as a financial centre. But now, in my view, Hong Kong has clearly established itself as an international financial hub for Asia. We have one of the most diverse international communities, and dynamic business environments. Hong Kong’s financial industry has become more robust, and the city continues to attract people from all over the globe. .

What aspects do you enjoy about Hong Kong? Hong Kong is a great place with a great dynamic community. There are dramatic cultural differences between Hong Kong and Canada, but with the huge Canadian community in Hong Kong, I rarely get homesick. We had 200 people out to watch the Winter Olympics Men’s Gold medal game together last winter. I also like that Hong Kong is very family- oriented. There is so much I can do with my family.

What would you like to see Hong Kong do more as your home? Which area do you wish to see improvement? I would love to see improvement on revitalization of old buildings and factories. The Hong Kong Government has done a lot but they could be more progressive in incentives for conversion of Hong Kong’s industrial properties, because these are great assets, that could be converted to loft apartments, youth hostels, elderly housing, and so on. The preservation of the city’s heritage alongside the modern architecture lends to Hong Kong’s unique character.

Any advice you would like to share with our readers? Instead of advice, I would like to share what I learned in my first interview in Hong Kong, he told me that “Hong Kong is like a Japanese sauna, too hot when you get in, but once you get in it is too comfortable to get out.” I find this to describe Hong Kong very well and hope this would give newcomers or people plan to move here an idea of Hong Kong.

rown B n a i Br Managing Director, British Columbia’s Trade & Investment Office in Hong Kong Brian Brown is a former executive of Morgan Stanley and long-time resident of Hong Kong. Since leaving the corporate world, he has authored a book, Chasing the Same Signals, and has been involved in a variety of new business ventures. He is the founder of the Shogi Group, which focuses on approaching investment from the perspective of a social enterprise, looking at the needs of the community and then finding creative partnership to organize and to achieve a desired impact. Currently Brian is the Managing Director of International Trade and Investment Office Representing the Government of British Columbia in Hong Kong and the office works directly with prospective investors, providing client-focused and personalized business services to help major investors access the dynamic economy of British Columbia.

Sharing Experience and Success: Leadership Column

Special Feature Interview with

Mr. J. Ian Burchett The Canadian community may all have had the opportunity to meet with him already: he is everywhere – at different kinds of events, ranging from community events like the Beach Cleanup to formal meetings or receptions with visiting delegations or influential leaders. He is our Consul General, J. Ian Burchett. Consul General Burchett arrived in the spring of 2012 and has been active in the community since his first day. Let’s learn more about him and his views on living in Hong Kong. By Sarah Wai, The Canadian Chamber of Commerce in Hong Kong

14 EXCHANGE Vol.14

Sharing Experience and Success: Leadership Column Q: When you had the opportunity to move to Hong Kong, what were your major considerations before taking the offer? A: On the professional side, it is a great privilege and honour to be the head of Canada’s Consulate General. Hong Kong is Canada’s seventh largest mission globally, with 22 diplomats and 117 locally engaged staff. Therefore, it is a tremendous responsibility and a privilege to work with such dedicated colleagues.

Having served in Beijing as Counsellor of Public Affairs between 2003 and 2006, I used to visit Hong Kong as part of my work. I also visited friends and colleagues at the Consulate General, so I knew Hong Kong as a Foreign Service officer and also as a frequent tourist.

I was excited by the opportunity to live and work here, alongside an excellent team of locally engaged staff and Canada based employees, across all programs from Trade, to the Foreign Policy and Diplomacy Service, to Immigration, to Consular, to Human Resources and Finance. These are the people who provide the backbone to Canada’s presence in Hong Kong and Macao, along with the engaged Canadian community.

Another key consideration was the fact that Canada has a robust, multifaceted bilateral relationship with Hong Kong. Hong Kong continues to be a vital platform for trade and investment that is key to Canada’s Prosperity Agenda. The strong friendship among Hong Kong, Macao, China and Canada is critical. Working to advance the ties between the economies is of great interest to me personally.

Q: Did you have an image of Hong Kong before you moved here? And has Hong Kong changed a lot during your stay?

The people-to-people ties are also a key underlying factor of our strong bilateral relationship. As you know, there are 300,000 Canadian passport holders in Hong Kong, many of whom are dual-citizens. Over 26% of those who have returned to Hong Kong still maintain a professional license in Canada, including lawyers, accountants, engineers, etc. These people contribute significantly to the growth of the Hong Kong and Canada relationship. Furthermore, there are 500,000 people of Hong Kong descent living in Canada who return regularly to Hong Kong, which accelerates the knowledge transmission between Hong Kong and Canada and creates new trade and investment opportunities.

A: As a young boy growing up in Victoria, British Columbia, I knew friends of my parents who fought in the Second World War in Hong Kong. I have heard their stories about fighting on the hills of Mount Butler. Also, the West coast of Canada has a significant Asian population. I was fortunate to have been exposed to Hong Kong culture and history since childhood. As a result of this, Hong Kong has always been special to me. Several of my high school classmates are now close business contacts here.

In terms of changes, it is fascinating to see how Hong Kong has evolved from a colony into a Special Administrative Region.

Furthermore, 17 years after the handover, it is very interesting to see how Hong Kong has evolved under “One country, Two systems”. The opportunities it has embraced by being part of China and the challenges that it faces as it looks towards good governance and democratic development are of great interest to me.

During my tenure, I have witnessed tremendous growth in trade between Canada and Hong Kong. In 2012, Hong Kong was ranked as the eleventh largest trade market for Canada. I am proud to say that thanks to the team’s effort and commitment and the engagement of Canadian companies, Hong Kong is now ranked as Canada’s sixth largest merchandise export market and seventh for services.

I accepted this role because I knew that it would be a tremendous privilege and opportunity to lead the Consulate General of Canada in Hong Kong and Macao and to work with the team to enhance the partnership between Hong Kong and Canada under Canada’s Foreign Policy Agenda. I am extremely fond of nurturing Canada’s robust ties and harnessing the potential of the market with the support of our local partners, such as the Chamber.

Canadian companies can take advantage of the trade and investment opportunities in Hong Kong to do business with Asia and vice versa. Our office is also tracking more Chinese companies using Hong Kong as their platform to make new investments into Canada.

During my posting, I have witnessed an increasing number of Canadian corporations and small- and medium-sized enterprises setting up their regional offices in Hong Kong. In fact, there are more than 200 Canadian companies using Hong Kong as their platform for regional business.

(To learn more about Canada’s engagement in Hong Kong and the work of the Consulate General follow the Consulate General of Canada in Hong Kong and Macao’s Facebook Page.)

Sharing Experience and Success: Leadership Column

It is also great to support the development of Canadian banks, as well as the continuous growth of Canadian pension fund offices and insurance companies here in Hong Kong.

We are also fortunate to have the Canadian Chamber of Commerce to help Canadian business to grow. Hong Kong is truly Canada’s city in Asia.

Q: How do you find working or living in Hong Kong different from Canada? A: Hong Kong has a smaller geographic territory but much faster pace than Canada, which aligns well with my fast paced character. Personal space is different than living in Canada; however, Hong Kong is a cosmopolitan city which offers great deal of opportunities. What surprises me the most about living here is that you begin to appreciate how “green” Hong Kong is. In that vein, I have been hiking a lot and spending time outside busy districts. My Canadian and local friends who live here have been very generous in helping me experience all facets of Hong Kong and introducing me to local culture and cuisine. These new experiences provide terrific networking opportunities. Q: Where would you go often in Hong Kong during your weekends or leisure time? A: I spend my leisure time hiking, not only the area in which I live, but also in areas where I can explore and appreciate the skyline and beauty of Hong Kong. I value my time with my friends and enjoy sharing great meals with them as well. There is a diversity of cuisine here, Cantonese, Chinese, Thai, and Vietnamese -- all you can imagine. For that matter, Canada exported over $760 million Canadian agri-food products to Hong Kong last year. So it is not hard to find good Canadian beef or fresh seafood in Hong Kong restaurants (wink wink)!

(See www.Canadafood.hk for more details about Canadian food products in Hong Kong.)

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Q: Your networking approach is successful in the community. From your points of view, what approach would work best in Hong Kong? A: The key is being proactive, sincere and prompt to follow-up. As many in the Canadian community know, I like to follow up with personal letters to the individuals that I meet. I feel that this is a good way for me to engage with my new friends and contacts. I think that in this technology era with people relying ever more on their gadgets, it is nice and novel to receive a handwritten letter, which demonstrates a degree of commitment to the friendship and partnership; nurturing the network!

I also have a special way to organize and maintain my business cards, and after a meeting, I write down critical meeting information about the needs of different parties. That helps me to connect people across all of my networks and build these ties.

I also take advantage of Canada’s Official Residence, which I use to host events and advance the business interests of Canadian companies and organizations here in Hong Kong. Since my arrival, I have hosted over 5,600 guests at Canada’s Official Residence. For example, I’ve used it to host a launch event for Canadian products. I’ve also hosted visiting ministers and delegations, private meetings with influential leaders, dinner receptions for the Canadian Chamber’s key sponsors, etc. I want people to appreciate Canadian hospitality, to welcome people to a home environment, and to help distinguish Canada from other regions.

My colleagues used to laugh at me when I first got here. Whenever I was in an elevator, I stood at the door, looked at the people and asked, “Who has connections to Canada?” And every single ride I got to meet people with new local Canadian connections!

Networking in Hong Kong is a bit different from that in Canada. Here people emphasize long term relationship building. It is difficult to succeed here if one does not devote time to understand the people they meet and to develop strong relationships. This is the most rewarding aspect of my job – making the connections.

Sharing Experience and Success: Leadership Column community hosts a commemorative service in remembrance of these brave souls and to educate the young ones about the bonds between our two Pacific jurisdictions. I think that it is essential to know and learn from this history. I would never say the Consulate General of Canada in Hong Kong and Macao hosts the ceremony. This is a Canadian community event in Hong Kong and for Hong Kong led by the Consulate General, in which all Canadians can share.

I also take pride in the fact that the Canadian community in Hong Kong gives back to the less fortunate. For example, at the Terry Fox Run last year we broke the record in terms of the number of people who participated and donations. Also, we were active in the Ice Bucket Challenge for ALS and special community activities such as the annual local Beach Cleanup with our Chamber friends.

If I could add the fourth memorable moment, I was proud that we had the National Arts Centre Orchestra tour in Hong Kong in October 2013. This was a chance to showcase Canadian culture and art in Hong Kong. I’m also pleased to highlight that with the support of the Consulate General and the Hong Kong government, Canada’s equestrian ballet, Cavalia, has been performing a spectacular show in Central Harbourfront since March 31, 2015 and has extended its stay on account of popular demand. Cavalia illustrates the very best of Canadian creativity and innovative spirit.

(See www.cavalia.net/en for further information.)

Q: What are your top most memorable moments in Hong Kong? A: There have been many memorable moments during my tenure. One of which is related to how the Consulate General can help start-ups. I was invited to an alumni reception last year and introduced to three Canadian gentlemen who were actively looking for funding and business contacts for their new company, Nanoleaf. However, in Asia, bringing new products to market requires a great deal of support and interest from investors. I was proud that the Consulate General was able to put them in touch with investors and now, just a year later, we can find their innovative light bulbs in Fortress and across Asia. The company has now established a business presence and R&D centre back in Canada to develop new products. This is a great example of knowledge transmission across the Pacific that is happening every day through commercial partnerships between Hong Kong and Canadian businesses.

Furthermore, as mentioned earlier, I have personal pride that over 2,000 Canadian soldiers fought alongside allied forces with Hong Kongers in World War II to protect Hong Kong. 575 Canadians lost their lives in the Battle of Hong Kong. This history is important to all of us and contributes enormously to the ties that bind Canada and Hong Kong. Every year since 1947 the Canadian

Q: Any challenges that you encountered and could share with us? A: A challenge is always time management. Hong Kong is such a fast-paced city and it is so easy to be caught up in its dynamism. I prefer describing Hong Kong as an onion, which you need to peel back different layers to discover. The key to time management is to prioritize. For me, that means looking for the best opportunities to advance Canadian values and interests in Hong Kong, to enhance Canadian prosperity, and to nurture contacts and make new and lasting friends to build Canadian ties locally and regionally. Q: What was the one Canadian thing that you missed the most while you are living in Hong Kong? A: I would not hesitate to tell you my answer: Snow! I am fond of downhill skiing. Every January, I spend almost two weeks in Whistler-Blackcomb. I share my love of downhill skiing and encourage my friends to come with me and enjoy outdoor activities. I have sent photos of myself from the top of the mountain back to Hong Kong to my friends and colleagues which you can check out on the Consulate General’s Facebook page!

(For more information about tourism in Canada, please visit the Canadian tourism commission https://www.canada.travel/ ) 17

Focus on Members

Self-storage in Hong Kong By ArthurYim, Colliers International Hong Kong is well-known for its “shoebox” apartments. The Hong Kong Government provides public housing to meet grassroots families’ housing needs, with an average living space of 140 square feet (“sq ft”) per person in 2013. There are approximately 1.1 million private residential units in Hong Kong. Only 8% of the private housing is classified as “large units” with a saleable area of over 1,076 sq ft, while the rest are classified as “small-medium size units”.

Among the existing popular private residential estates, 18% of the small-medium units and 88% of the large units are equipped with a dedicated storage room. Assuming the two ratios are representative for all private residential properties in the city, about 852,000 or 76% of private residential units lack a dedicated storage area. There is a substantial gap between the existing stock of self-storage facilities and demand from households without a dedicated store room.

Increasing Demand for Self-storage Improvement in Accessibility and Security Accessibility and security are two major concerns for self-storage users. Traditional operators do not provide 24-hour access (which presents a hurdle for domestic users who desire unrestricted access to their possessions) nor surveillance systems. A number of the self-storage operators have installed automatic identification systems, such as smart card readers, to provide their customers with 24-hour accessibility. Additionally, most self-storage sites are now equipped with CCTV and other security systems. Together, these systems have helped improve customers’ confidence in the concept of self-storage. Storing Valuable Items in Self-storage Domestic users have traditionally stored bulky and/or infrequently accessed items in self-storage. Recently, however, users are becoming increasingly comfortable storing highly valuable and ‘special’ items in facilities with robust security

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systems. Sports gear, wine collections and seasonal clothing are increasingly being stored as these items usually require a climate-controlled environment which is costly in a private flat. Value-added Services are Attracting More Customers The provisions of value-added services that cater to the users’ needs are also bringing in more self-storage users. For example, some self-storage operators provide moving assistance, while others offer product receiving services for customers who make purchases online and want the items delivered to and stored in their self-storage space. An Affordable and Flexible Storage Option The average rent of self-storage is on par with private residential flats in nearby locations. Despite this seemingly high cost, because self-storage provides size options down to 15 sq ft monthly rentals below HK$1,000 per month are common, meaning it is still an affordable option for many domestic users. Self-storage also offers private and corporate users flexibility with respect to their commitment over time. This is particularly pertinent to corporate users when compared with the typically minimum 3 year office lease term.

Focus on Members

Investment Risk and Return for Self-storage

Impact of Government Policy

The self-storage investment opportunity has often been overlooked because the existing size of the sector is relatively small in Hong Kong. Virtually all of the 2.8 million sq ft of self-storage area is established in existing industrial buildings, which represents only a small portion of the more than 200 million sq ft of existing industrial property stock.

The revitalising industrial building policy is a double-edged sword for self-storage companies. Under this policy, the whole block of eligible industrial buildings can be converted to other uses at nil waiver fees. According to the Government, a total of 54 special waiver cases have been executed. Most of these building owners opt to convert their premises to office, retail and hotels. The impact to the investor is positive, but this creates a risk to self-storage operators operating under a head lease (which often have redevelopment clauses). A landlord will often have the right to terminate leases for the purpose of redevelopment. Thus it becomes imperative that this risk is considered when entering into any new lease – a minimum period of tenure is essential to ensuring the businesses viability.

There is a shift of investment demand from traditional to non-traditional property sectors in view of higher returns. Self-storage gained real estate investors’ interest because the sector provides a better return when compared with the traditional option of buying industrial premises simply to lease out. Market Risk Similar to other business sectors, local economic performance affects the demand for self-storage services. However, a structural need exists as a significant portion of private housing lacks dedicated storage space. Given the extreme undersupply even if a significant downturn in the economy occurred this sector is likely to outperform other property sectors. Price Volatility Comparing to the long-term industrial yield average of 8.7%, today’s average of 2.8% indicates there is a risk of softening yields in the medium term. The trigger for this is often speculated on, but an increase in US interest rates will almost certainly occur during the hold period of any investment in this sub-sector. Despite potential price volatility, industrial property prices are expected to trend upwards in long term. During the period from 1Q 1995 to 1Q 2014, the average year-on-year change in industrial property prices was 8.1%. Given the government incentives to enable conversion of industrial assets into other uses and the low new supply levels the overall supply of industrial property is likely to reduce and thus support capital appreciation. We believe the industrial sector will outperform other mainstream investment sectors.

Tenure is Key Frequent relocation is not an option for self-storage operators. The cost of set up requires a long period of occupancy in which to amortise these costs, not to mention the disruption to customers. Overseas operators are looking for leases of nine years or more to allow them to amortise their setup costs and minimise the risk of losing customers should they need to relocate. In view of the operators’ requirements for these longer lease terms, a viable property option is those premises owned by long-term investors for lease. Depending on the investment strategies, some owners accept a three-year lease with an option to renew for three years followed by another three-year renewal option. This still leaves a degree of exposure to the operator as at lease renewal they are exposed by the cost of relocation when negotiating rental rates. Some operators have entered into joint ventures with property owners to ensure location stability and aligned interests.

Tenancy Risk Developing self-storage sites in locations with compromised accessibility will negatively impact occupancy rates. Good accessibility to public transport is a major factor considered by private customers. Corporate clients are less sensitive towards public transport links, but accessibility to a good road network that provides easy access to their off-site inventory is important.

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Focus on Members

Which Investments Can Reduce Your Tax Bill? Original source:Which investment can reduce your tax bill written by Tessa Wilmott for BrighterLife.ca.

Taxes may be inescapable, but your choice of investments can have a huge impact on how much tax you pay. It all depends on your personal situation and how you structure your investment portfolio. © Sun Life Assurance Company of Canada, 2012

Investment income A basic investment portfolio can generate three types of income: 1. Interest income. If you have a savings account or a money market fund, you will receive interest income. Ditto, if you have a fixed income or bond component in your portfolio. A five-year Government of Canada bond, for example, may have a “coupon” of 3.75%, meaning for every $1,000 invested, you will receive $37.50 in interest each year. If your bond component is held in a mutual fund trust, you will receive annual “distributions.” 2. Dividend income. If you buy shares in publicly traded companies, you may receive dividends, a company’s way of sharing its profits with its shareholders. You will receive a certain amount per share quarterly, semi-annually or annually. Likewise, you can receive dividend income from a mutual fund that buys dividend-generating stocks and makes an annual distribution to unitholders like you.

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3. Capital gains or losses. If you sell your company shares, your mutual fund units or a bond you own before its term expires, you may generate a capital gain or loss. For example, if you bought shares in ABC Co. for $10 each and sold them for $20 each, you would have a $10-per-share profit. That is a capital gain. If, on the other hand, you bought at $20 a share and sold at $10, you would have a loss of $10 per share. That is a capital loss. Each source of investment income is subject to a different tax treatment, but how that affects your overall tax bill depends on where you hold those investments.

Investments in registered accounts If you hold your investments in a registered account — such as a registered retirement savings plan (RRSP), a registered education savings plan (RESP) or a tax-free savings account (TFSA) — any investment growth inside your account will not be taxed.

Focus on Members The tax treatment for your contributions and withdrawals will be different for each account, though. With RRSPs, you get a tax deduction for your contribution. But when you withdraw money, your entire withdrawal will be taxed at your marginal tax rate (the rate of tax you would pay on an additional dollar of taxable income). Because RRSPs were originally conceived as retirement savings vehicles, the expectation is that you will not begin taking money from your account until you retire. Presumably by that time your income will be lower than it was during your working years, and you will be in a lower marginal tax bracket. With RESPs, you don’t get to deduct your plan contributions, so withdrawals of those contributions are not taxed. Withdrawals of any investment growth are taxed, however, but in the hands of the child who uses the money to pay for his or her post-secondary education. That person presumably is in a lower tax bracket than you, and can also use some of those education expenses to further reduce his or her tax bill. TFSAs are the exception. TFSA contributions are not deductible, and withdrawals are not taxed. Any investment income and growth is entirely tax-free.

Investments in non-registered accounts If investment income goes into a non-registered account, the tax treatment is entirely different. Interest income is 100% taxed. So, if you hold your Government of Canada bond in a non-registered account, that $37.50 in interest will be added to your income in the year it’s earned, and you will pay tax on it at your marginal rate. Dividends from foreign corporations are taxed as ordinary income, just like interest. But dividends from Canadian corporations receive better tax treatment. Because companies pay dividends from their after-tax income, to tax that income again in your hands would be double taxation, something the Income Tax Act (ITA) tries to avoid. Instead, the ITA requires you to “gross up” the amount of dividend income you report by a specified percentage to bring it back to approximately what it would have been before the corporation paid tax on it. Then the tax you pay on that dividend is offset by a tax credit. It sounds complicated, but the end result is that you pay a lower rate of tax on dividend income from Canadian sources than you do on interest income.

mutual fund, you are required to include only half of that gain in your income, which is then taxed at your marginal tax rate. To go back to our ABC Co. example: You sold the shares, for which you paid $10 a share, for $20 a share, making a $10 profit. Only 50% of that gain, or $5, is added to your income. That’s one tax advantage for capital gains. Another is that they are under your control. You can decide when you want to sell the asset and take the gain. For example, you could take the gain in a year when you have an offsetting loss, or when your taxable income is lower because you were out of work. When you choose to take the gain becomes part of your tax strategy. So, how could these tax differences affect your investment strategy? They won’t affect your overall asset allocation strategy. You’ll still have the same percentage of your investments in bonds, dividend stocks and equities held to produce capital gains. But you won’t necessarily have identical asset allocations for each account. Instead, you’ll adjust the allocations for each account to take advantage of the varying tax treatment that each investment and account offers, while still maintaining the same overall asset allocation. For example, your registered accounts could own more of the investments that earn heavily taxed interest income, to protect that income from tax. But your non-registered accounts could own more of your investments that produce dividends and capital gains, because those assets already offer some tax sheltering. This is an extremely simplified picture. Anything to do with taxes and investing should be part of a larger plan that takes into account your income needs, your investment time horizon and when you want to withdraw your money. But understanding the tax treatment of the different sources of income is a great basis for a serious discussion with your investment advisor or your accountant.

The most favourable tax treatment goes to capital gains. In the year in which you sell your stock, bond or

Focus on Members

Growing the E-Commerce Market in China By Calvin Chan, Miz Technology Co. Ltd

In China, eCommerce is booming. If you want to begin your eCommerce business in China, what do you need to know and how can you share a slice of it?

here are five things you should know about the China eCommerce market before joining it:

China’s market is huge and the potential for access is even higher • Everyone knows what eCommerce is, but not everyone understands the market in China. In 2014, China contributed 64% of B2C eCommerce sales growth among the world - compared to the US with 12%. By 2020, it is expected that China’s B2C eCommerce will reach RMB 30 trillion, becoming the world’s largest eCommerce market. Whatever you’re selling, it’s hard not to take notice of China eCommerce.

Online shopping becomes more common and popular in China • In 2012, there were 242 million Chinese people registered as online buyers, and in 2013, there were more than 300 million. By 2015, the number of registered online buyers is predicted to expand to 520 million, which will be far more than the sum of online buyers in the US, India, Japan, Russia, and Indonesia. The Chinese government is putting its weight in the latest 5-year plan by implementing a policy of quadrupling annual e-shopping volumes from 2010 to 2015 to RMB 18 trillion.

Reaching the Inaccessible Masses • There are approximately 200 major cities with over one million people in China, many of which may be other towns and places that you’ve probably never heard of. 25% of the population live in major cities and the rest live in other smaller ones. When consumers from these small cities want to buy foreign brands, they purchase online. Selling your products online is the most convenient and effective way to reach them.

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Mobility is critical to online shopping • In 2014, there were 648 million Chinese “netizens”, while approximately 560 million of them were mobile users. Smart phones sales reached 390 million units, an increase of 21.9% since 2013. Chinese consumers are shifting to online shopping through mobile electronics. For instance, 51% of Tmall transactions were completed on mobile phones and tablets. Compared to PCs which cannot be carried around, mobile phones and tablets were more convenient to use.

Alibaba Group dominates China eCommerce business • Alibaba Group raised US$21.8 billion on NYSE, making it the largest US-listed IPO in history after Visa. Alibaba Group generates more than 80% of Chinese eCommerce business with subsidiaries such as TaoBao, Tmall, Alipay and Aliyun. In 2013, China online transactions, including the B2C and C2C market, were RMB 18.9 trillion, by which around RMB 15 trillion of them were completed by the Alibaba Group.

Focus on Members Before 2014, it was difficult and time consuming for an overseas company registered outside mainland China to get into the market. But now it is easier. Alibaba Group established an online shopping platform called “Tmall Global” in 2014 to fast track foreign brands into the China market. Many famous brands, including CostCo, New Balance, UNIQLO, GODIVA and ToysRus are already operating on Tmall. But why Tmall?

B2C is taking the C2C market and Tmall is the largest B2C platform in China • China’s B2C eCommerce online shopping market in 2013 was 39.7% and 44.2% in 2014. The ratio is expected to surpass 50% by 2015. With its B2C business, Tmall has approximately 61.4% of the market share, the second largest B2C platform being JD.com with 18.6% of the market share. Tmall would be an ideal choice if you want to sell your products in China’s eCommerce market.

Easier registration • In order to attract more foreign companies to join Tmall Global, the registration requirements are much easier when compared to those for Chinese companies. Foreign companies do not need any office or staff in China. What they need is an agency company in China to manage the e-store, which is similar to a virtual office. With the support of the Alibaba Group, the logistics, warehouse, customs clearance and transaction payment process become simpler and faster. However, it is expected that the registration requirements will be tightened once there are enough foreign brands registered.

Chinese consumers love overseas brands • Chinese consumers are used to shopping online, and are particularly in love with imported products. Overseas brands are generally perceived as having better quality and are safer, with an added “cool-factor”. 86% of Chinese consumers refuse to buy luxury goods made in China. 61% of Chinese have less confidence in local food, and 28% plan to replace their domestic purchases with imported goods.

Reduce risk of counterfeits • Chinese stores are less trustworthy than stores elsewhere because China is swarming with counterfeits, from commonly known replica handbags and watches, to bogus Starbucks restaurants and Apple Stores. Hence, the Alibaba Group established a dedicated B2C website, Tmall, which only sells genuine products from brand owners or authorized distributors. Each Tmall store needs to place a refundable security deposit before opening to guarantee that the products they are selling are original and genuine in order to boost consumers’ confidence.

Lower operating cost • Some foreign companies already have their own authorized distributors and retail stores in China, but they still choose to open a Tmall store. Casio Computer, a Japanese electronics maker of G-Shock watches, digital cameras and calculators, is one of the examples. Recognizing how many users can be attracted, Tmall is not only another excellent distribution channel but it also can have a great impact on brand awareness and market advertisement. Retail business is relatively struggling in China. The average rent of a retail store in Shanghai is over RMB 100,000 per month, and there is no sign of slowing down. Compared to Tmall’s annual fee which is a maximum of RMB 60,000 and could be waived if the yearly sales target is met, Tmall offers a lower cost to business. As to the difference between Tmall and official online stores, companies would need to spend heavily on search engines for advertising and other cost means to generate traffic for official online stores. Given the large number of visitors on Tmall’s website, less advertising fees and management costs is required.

MiZi Tech. Co., Ltd. is a service provider company focusing on developing the Tmall eCommerce business in Hong Kong and China since 2010. It is a one-step solution provider from licensing brands on Tmall to e-store design, operation, management, and customer support services. Currently it operates 12 Tmall stores, posting more than 15,000 packages everyday to end customers throughout everywhere in China.

Focus on Members

Be A Smarter Start-Up

There has long been a wave of activity in the market helping start-ups with their funding or helping them grow their business. Given that more people choose to set up their own companies, how to be a smarter Start up?

By High Growth Technology & Inovation Group, KPMG Original source: www.kpmg/cn/start-up Founders face considerable challenges as they work to bring new ideas to the marketplace while taking on leadership responsibilities. Raising capital, finding talent, establishing a corporate governance framework, and other management initiatives take time and are important to maximise business success. Here is a short guide for business founders on how to be a smarter start-up to attract investors and inject more funds to grow.

1. Injecting money to energise your business Raising capital can typically take place in several stages (known as rounds), each of which will likely carry different terms, conditions and milestones. These include equity and debt financing. Equity is the most common approach to early-stage investment, since most start-ups will not have enough revenue or history to attract debt financing (bank financing). Equity financing may come from: • Accelerators • Strategic investors • Angel investors • Government investment funds and grants • Venture capitalists Talking about equity financing, we have to understand what potential investors look for. Growth

Time

Needs

Need for a growth strategy

Need to raise funds and bring in strategic investors

Need to set up accounting policies and financial reporting structure

Need to hire staff from overseas to work in Hong Kong

Need to set up a company outside of Hong Kong

Need to acquire a new business

Desire for an exit strategy or an IPO

Support/ Business Advice needed

Mergers & acquisitions (M&A) advice

Corporate finance advisory

Advice on accounting policies, and financial reporting which meets investors’ requirements

Advice on employment, compensation and tax compliance

Advice on efficient tax structure and coordination of local tax and audit services

Advice on M&A, buy-side transaction services, accounting and tax treatment, and their impact

Advice on M&A, sell-side transaction services, IPO readiness and preIPO preparation

Figure: Indication of typical needs during the start-up journey and how you can access to specialists at the right time.

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Focus on Members – Founders who have ‘skin in the game’ Founders who have made a financial commitment to the growth of their start-up are more attractive to investors. Investors will be less likely to invest if founders have not taken personal and financial risks to get the start-up off the ground. – Sound financial reporting The completeness and accuracy of underlying records for all business transactions, including equity transactions, are the priorities. – Controls over cash flow • Conduct monthly bank reconciliations • Regularly compare actual results to the budget • Protect systems and intellectual property from unauthorised access and use • Review expenditures before purchase commitments • Establish standard terms and conditions for sales arrangements, with exceptions subject to appropriate review and approval • Implement procedures to comply with applicable equity issuance requirements, including board approval of stock option grants with proper support for fair value-based assumptions • Understand obligations and restrictions embedded in financing arrangements Therefore, you are advised to: • Focus on cash forecasting to keep investors informed about liquidity • Understand and fulfil your tax compliance requirements • Seek advice on revenue recognition; e.g. if you are a tech company – we have a number of professionals who are experts on this topic • Possibly implement a full-scale Enterprise Resource Programme (ERP) system – if you are considering it, contact an ERP expert at KPMG for advice • Focus on employment matters and payroll taxes • Upgrade accounting personnel and systems when the core business gains momentum and before a major liquidity event

2. Managing Your Finances Not having enough capital to cover everyday running costs is one of the main reasons why start-ups fail. Therefore, managing your cash flow needs to be one of your top priorities. You need to make sure you have enough capital. Here are some tips on how to manage your working capital. – Budgeting You need to have a firm plan in place that shows how the business will maintain a sufficient cash flow. Performing a

cash flow forecast on a regular basis is a useful way to identify your capital needs. Once you understand the financial cycles of your business, you can set aside the right amounts of working capital to meet your current goals and prepare for future ones. – Improve cash flow To streamline cash flow processes, send out invoices as soon as possible after you have sold a product or delivered a service, and keep the time you have to wait for payment short. Collecting debt is key – the longer it takes for debtors to pay you, the longer you have to finance that sale. – Credit terms Credit terms should be set for customers based on their financial strength and their history. Keep these terms under constant review, as one large bad debt could sink the business. When it comes to paying suppliers, try to stagger your payments to them and negotiate more favourable payment terms so that you can keep cash in the business for as long as possible.

– Free up cash locked away in invoices ‘Invoice factoring’ involves an invoice financier managing your sales ledger and collecting money owed by your customers. The financier will make most of the invoice value (around 85%) available to you up front. The remaining money (less interest and fees) will be made available to you once the financier has collected from the customer. – Invoice discounting This is when an invoice financier lends you money against your unpaid invoices, but does not manage your sales ledger or collect debts on your behalf. Invoice financiers tend to focus on commercial invoices, so if you sell directly to individual customers, you probably will not be eligible. With invoice discounting, you usually receive an agreed percentage of the invoices’ total value. 27

Community

Think Asia, “ Think Hong Kong Is Coming To Toronto

”

By Corporate Communications, Hong Kong Trade Development Council “Think Asia, Think Hong Kong” – this is the message being brought to Canada this summer by the Hong Kong Trade Development Council (“HKTDC”). The HKTDC will stage its mega promotional event, “Think Asia, Think Hong Kong”, in Toronto on June 8, bringing together business and political leaders from Hong Kong and Canada with a view to lifting bilateral trade and investment to new heights. The programme includes thematic workshops, business-matching activities, sector-specific trade missions and a Gala Dinner.

ong Kong’s Chief Executive CY Leung is set to lead the mission, aiming to build contacts and promote the huge opportunities for North American companies to partner with Hong Kong counterparts and use Hong Kong as a springboard to markets in the Chinese mainland and throughout Asia. “We are very excited to be staging this “Think Asia, Think Hong Kong” promotion in Canada,” said Raymond Yip, Deputy Executive Director of the HKTDC. “Canada and Hong Kong already enjoy close business and cultural ties. By holding this event, we hope to deepen this relationship by presenting an up-to-date view of Hong Kong and the benefits of doing business in Asia through our city.” In 2014, bilateral trade between Hong Kong and Canada was valued at US$4.6 billion, with exports reaching US$2.9 billion and imports worth US$1.8 billion last year. Around 20,000 Canadian citizens live and work in Hong Kong, making it one of the city’s largest expatriate communities. 28 EXCHANGE Vol.14

Many of Canada’s largest banks are already operating in Hong Kong alongside multinationals including Air Canada, Delmar, Four Seasons Hotel, Manulife International, Port of Montreal and Sun Life Assurance. Canadian small and medium sized enterprises (“SMEs”) are also realizing the possibilities that the city has to offer; companies like Nanoleaf, the brainchild of three University of Toronto graduates. The company is lighting up the LED industry, including producing the world’s most energy-efficient bulb. Headquartered in Hong Kong with offices in Shenzhen and Toronto, Nanoleaf’s light bulbs are manufactured in Dongguan, meaning the team can make frequent visits to the factory and keep an eye on quality control. “Hong Kong is truly an international hub for business and we can’t imagine choosing anywhere else to set up shop,” Jonathan Tam, Nanoleaf’s Business Development Manager – Asia Pacific, told the HKTDC’s business information website, Hong Kong Means Business. “The city has all the essential elements to become a high tech hub: proximity to China and its manufacturing/supply chains; rule of law to protect intellectual property; favourable taxation; a strong talent pool; favourable government resources; strong logistics hub and access to quality capital. We strive to be a global company with a global perspective, and being in Hong Kong is allowing us to achieve that vision.”

Community “Think Asia, Think Hong Kong” – networks, ideas and opportunities “Think Asia, Think Hong Kong” is a large-scale business promotion event organized by the HKTDC around the world, aiming to create a platform for networking, exchange of information and ideas to promote Hong Kong as a key hub for businesses to expand into China and Asia. The “Think Asia, Think Hong Kong” promotion was launched in the United Kingdom in September 2011 with great success. Since then, the format has been successfully replicated in Japan in 2012 and the United States in 2013. The most recent “Think Asia, Think Hong Kong” promotion was staged in Paris, France and Milan, Italy in October 2014, featuring more than 2,600 business people, 1,500 business-matching sessions and some 50 distinguished speakers.

“

Judging from our previous experience, the mega “Think Asia, Think Hong Kong” promotions not only open up new doors for business, they also have a longlasting positive impact for participants,” said Mr Yip. “These large-scale events have a ripple effect for months and years to come as initial contacts turn into real business opportunities.

”

The “Think Asia,Think Hong Kong” campaign in NewYork and Los Angeles in June 2013 attracted more than 5,000 participants, and featured business missions covering fashion, technology, wine and gourmet, information communications technology and joint investment opportunities

This June, some 1,500 Canadian business leaders, government officials and SMEs are expected to take part in “Think Asia, Think Hong Kong” in Toronto. As well as sector-specific breakout sessions, business-matching meetings and seminars on hot-button issues, participants can also take advantage of the professional services experts onsite at the Business Support Zone. These professionals will be pleased to offer practical advice on business expansion in Asia, particularly the Chinese mainland, through Hong Kong. Their expertise covers accounting, branding & marketing, finance, legal, ICT, e-business and corporate services. The HKTDC welcomes Chamber members to join the Business Support Zone and lend their valuable insights and experience to the Canadian business community. A delegation of more than 100 business leaders from Hong Kong and the Chinese mainland will be in Toronto, representing a variety of sectors including technology, professional services, food and wine. The breakout sessions are being organised under the topics of “Selling to China and throughout Asia”, “Chinese Outbound Investment”, “Technology Collaboration” and “RMB Internationalisation”. For Canadian businesses looking to expand internationally, “Think Asia, Think Hong Kong” in Toronto is an event not to be missed.

More than 2,600 business people took part in the “Think Asia,Think Hong Kong” promotion in Paris and Milan in October 2014, during which the HKTDC arranged over 1,500 business matching meetings

Community

The Challenges and Successes of setting up

and doing business

in Hong Kong Q1

Can you give us a brief background on McMillan and its presence in Hong Kong?

McMillan is the only Canadian national law firm with an office in Hong Kong. We first opened our Hong Kong office back in 2009 in association with a local law firm - Angela Ho & Associates. For the past six years, our office has operated as a base bridging centre for our Chinese and Canadian networks enabling us to better serve our clients who do business on both sides of the Pacific. Our decision to establish on the ground presence signifies our commitment to Hong Kong and the Chinese market. It has now been more than 20 years since we began working in Asia and, over this time, we’ve built a strong track record in the region.

By Stephen Wortley, McMillan LLP

Why did you choose Hong Kong over other Asia-Pacific cities?

We had considered Beijing early on but we discovered that Hong Kong is a unique hub for commerce and trade among countries that comprise the ASEAN group. The city also boasts a robust legal system, an expansive infrastructure, and great access to financial and technical expertise. We believe Hong Kong will continue to play a critical part in launching trade and investments going in and out of Mainland China. So, being based in Hong Kong places us in a good position to take advantage of these opportunities. We like to think that Hong Kong is the gateway in which McMillan can later expand into other areas. Lastly, our lawyers, when working in Hong Kong, benefit from accessibility in terms of both language and geography – making the city a highly desirable place to live and work.

Have you personally lived in the city? How do you find Hong Kong as a place to work and live?

Hong Kong has been critical to the development of my career. I travel there several times a year and spend up to months at times in Hong Kong. My first business trip there was in 1995, when we first developed a relationship with the Sunwah Group. When it came to establishing an office, the choice of Hong Kong was easy. There are two very distinct sides of Hong Kong. There is the business side focused in Central Hong Kong where it is extremely easy to connect in person with a multitude of opportunities. Then there is the side of Hong Kong that you really only come to appreciate when you live here and that includes the phenomenal country parks at the city’s back door. There are the incredible beaches of Sai Kung, and I enjoy participating in the Standard Chartered Run and golfing just across the border at Mission Hills. I feel extremely privileged to have lived in Hong Kong.

You mentioned that McMillan is the only national law firm with offices in Hong Kong; can you elaborate?

Yes, we remain the only major national Canadian law firm registered to practice in Hong Kong. Being on the ground enables us to be more efficient and responsive in the services that we are providing to our clients in Hong Kong. We are also one of the few Canadian law firms that understands how to list on the Hong Kong Stock Exchange.

30 EXCHANGE Vol.14

What advice would you give Chinese investors considering doing business in Canada?

Canada continues to be a lucrative investment destination. The HK-Canada tax treaty provides low withholding tax at only five percent but also the country’s natural resources will always be an important component in two-way investments. In the future, however, we will see more and more companies getting involved in an array of industries including aviation and automotive, and manufacturing and distribution. That all being said, investors should use Hong Kong as the jumping off point for their transactions; do their due diligence and establish positive relationships with local partners.

Community

What are some of the successes and challenges that McMillan has experienced in setting up operations and doing business in Hong Kong?

In order for us to successfully do the work that we do for our clients, understanding and appreciating the varying dynamics in cross-border deals with Chinese and Canadian counterparts is crucial. This means understanding how to navigate the cultural and business landscapes of the two systems and the different ways of doing business. I think much of our success can be attributed to our depth of experience and cultural understandings in this regard. The cost of doing business in Hong Kong remains high in terms of both real estate and operational costs. That being said, our Hong Kong office remains relatively small to date, which allows us greater flexibility and helps minimize costs. Hong Kong has a vast business community. Our local presence here has helped us build solid relationships with Canadian investment banks operating in Asia and a variety of international and Chinese firms. These connections continue to CanCham_Ad_Mar15.ai 1 23/3/15 上午11:26 be important sources of referrals for us.

What advice do you have for our readers who want to do business in Hong Kong?

It is important for anyone looking to do business in Hong Kong to understand the business environment and the changing policies. Consideration needs to be given on how you will use the resources available to your advantage—whether that be sources of capital, business opportunities coming in and out of Mainland China, or the vast network of international firms and businesses located in Hong Kong. It’s also important to understand that while the business environment in Hong Kong can be more formal, it certainly isn’t stuffy. One of the great things about doing business in Hong Kong is how easy it is to network. Get involved in the community; it will serve you well in your business endeavours.

Where Business Goes to Grow From business planning, to office establishment, to expansion, InvestHK is with you every step of the way. We have the experience, the expertise and the connections to help you set up smoothly in our city — and then to help you grow. Our services are free, confidential and tailored to your needs.

Get in touch at investhk.gov.hk Head office: 25/F, Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong Tel: (852) 3107 1000 Email: enq@investhk.gov.hk Toronto office: Shirley Wong Tel: (1) 416 324 8150 Email: shirley_wong@hketotoronto.gov.hk

Professional Development

The Power of

THINKING By MaryAnnVoli, Potential Squared Asia Pacific

Steven Covey said “if you keep doing what you are doing, you will keep getting what you are getting”. But actually what we think drives what we do, so in order to change what we do, we need to change what we think. In his famous quote, Henry Ford reminded us “Whether you think you can, or you think you can’t--you’re right.” We are the real protagonists in being the best we can be, be it a leader, wife, husband, son, friend or a responsible citizen. In this article I’ll take you through a short journey into understanding the impact of our thoughts on our behaviors, others’ behaviors, some typical beliefs that block us, plus techniques that could change our thinking.

32 EXCHANGE Vol.14

Professional Development

he Iceberg Model (image below) illustrates how forces beneath our conscious awareness shape our behaviors.

Observable Behaviours Emotions Thoughts Beliefs Values Purpose

What we will be focusing on in this article are beliefs, defined as “acceptance that something exists or is true, especially one without proof”. The key words in this description are that they are “without proof”. The other day at a networking event I heard these classic words from a change management consultant: “that IS reality” and it was said with such authority and conviction, I almost wanted to believe him… but what is reality? It is just our interpretation of a fact. The CEO of my old company would ask us, “If 1000 women give you a standing ovation when you launch a product, you know what it is?” we would all answer, “they loved the product, they will sell more, they are engaged with us”, and he would reply “no, they stood up and applauded after you finished launching the product” – and this is reality, what it means, is a construct of our mind based on our beliefs.

Belief Behavior Cycle The image below demonstrates how beliefs influence our behavior, which in turn influence other people’s behaviors towards us. My Beliefs which reinforces

influence

Others’ Behaviour

My Behaviours

which influence

which affect Others’ Beliefs

Let me give you an example. I just started in a new firm. If I hold the limiting belief that new people don’t have much to add, I most likely won´t express my point of view in meetings and I will be silent. Other people observe me as somebody quiet, they start thinking, this person doesn’t have much to add, and so they might stop including me, which in turn confirms my belief that “new people don’t have much to add”. If instead I hold the empowering belief that “as a new person I have a fresh perspective about what is going on, and I can ask good questions”, I will speak up in meetings and ask questions. People will think that I’ve got something interesting to say, they will include me in the conversation and, bingo, my empowering belief will be confirmed: “I have a fresh perspective about what is going on.”

Identify Limiting Beliefs. Here are some limiting beliefs I’ve seen in my career as a leadership development professional, see if any applies to you: • This person is against me • Clients that complain are mean and difficult • I need to know everything before speaking up • I’m not good at this • I’m never going to get it right • Bringing my personal self into work will cost me respect from others • I have all the answers • Shouting is the best way to get through to these people • I don’t have what it takes • They always do this to me • All the senior jobs go to foreigners Anything that has the ‘always’, ‘never’, ‘all’ or a negative judgment about ourselves or others, are good signs that it’s a limiting belief

Identify the impact of a limiting belief One of our clients is an Managing Director in a multibillion dollar global service company. He held the belief that “my role is mainly to deliver results”. As a consequence he was demanding and intolerant with his team; he stressed out when results weren’t coming in. Needless to say, he was not a popular leader within his team. Once he identified the negative impact of this belief on his behaviour and was introduced to the type of leader he wanted to be, he changed his belief to: “my role is to develop leaders”. He shifted his thinking towards a “develop my people” mindset. His engagement scores improved. He became a much more optimistic and satisfied person. As a consequence, his team is now performing beyond his wildest expectations and bringing in the results.

Changing Limiting Beliefs Once you’ve identified your limiting beliefs, ask yourself: is this ALWAYS true? What different interpretations could there be? Says who? Another way of creating empowering beliefs is to look for objective evidence that contradicts our limiting belief. Once we do this, we can create new balanced view of the world. “I’m NEVER going to get it right” could become “I can get it right once I have the right preparation”. So if you are not getting the results you want, by identifying your limiting beliefs, checking out the impact they have on other’s and your behaviors and shifting to beliefs that empower you, I can guarantee that if you think you can, you are right! You will not only change your business results and team’s engagement, you might even change your life.

MaryAnn Voli is the Managing Director of Potential Squared Asia Pacific, a UK based global firm specializing in leadership, innovation and change. We do this by helping our clients create a sustainable edge bristling with attitude and energy. Our team of leading consultants instill courageous, innovative mindsets in our clients’s leaders, teams and talent. With high impact insights, conversations and interventions we improve our clients’ futures through accelerating change. We work with leaders, teams and individuals on the skills and mindsets necessary to see, think and act clearly. MaryAnn can be contacted at maryannv@potential2.com. 33

Event Highlights

Photos by Sarah Cheng

Chinese Outbound Investment Into Canadian Property Mr. Lorne Burns from KPMG and Mr. Andrew Ness from DTZ shared their outlook on Canadian and Chinese real estate. This event was jointly hosted by the Chamber’s China Business Committee and the Property Committee.

September 26th, 2014 - KPMG Office

Team Canada – Beach Clean Up 2014 With the support of the Consulate General of Canada, Canadian University Association (Hong Kong), CLP Power Hong Kong and Bonaqua Mineralized Water, Canadians and friends joined Team Canada to help clean-up the Sok Kwu Wan beach as part of the 2014 Hong Kong Coastal Cleanup Challenge.

October 19, 2014 - Sok Kwu Wun, Lamma Island

KPMG Presents: The China Series 2014 The series brought the audience information and opportunities from China’s economic and financial reforms, and opening-up policies, with initiatives such as RMB’s internationalization, launching of free trade zone and Shanghai-Hong Kong Connect. Also, successful Canadian companies shared the experience in breaking the barriers in the Chinese market during the series.

October 21, 2014 - The Hong Kong Bankers Club December 10, 2014 - The Hong Kong Bankers Club 34 EXCHANGE Vol.14

Event Highlights Financial Services Committee Presents: How Asia’s Wealthy are Investing Mr. Michael Yong-Haron from RBC Wealth Management and Mr. David Wilson from Capgemini shared the key trends – starting globally, then narrowing their focus to Asia and specific Asian countries – of the wealthy in Asia Pacific to understand where wealth had grown, where it was invested, and what kinds of instruments were employed.

October 22, 2014 – RBC Hong Kong Office

Terry Fox Run 2014 The Chamber once again joined forces with the Canadian Universities Association (Hong Kong), SFU Alumni Association in Hong Kong and the Renaissance College for the second Terry Fox Community Run in Hong Kong to help continue Terry’s spirit to raise money for cancer research.

November 8, 2014 – Renaissance College

A Networking Evening for Entrepreneurs and Small Business Owners: Our 3rd Anniversary The Entrepreneur and Small Business Committee of the Chamber co-hosted with the Italian Chamber of Commerce for the third Entrepreneur and SME Cocktail Evening, with food and wine sponsored by Buonissimo. January 28, 2015 - SICIS Art Mosaic Factory 35

Event Highlights Young Professionals Committee Mentorship Programme Seminar: “Developing Leadeship Potential” by HKUST Leadership Thanks to the support of HKUST, the Young Professionals Committee pulled together one of the two interactive panels under the Mentorship Program, focusing on leadership potential development within young professionals and followed by a networking cocktail.

January 29, 2015 – CanCham Boardroom

Visit to the Last Remaining Agarwood Plantation in Hong Kong The Chamber had the unique opportunity to visit the last remaining Agarwood plantation in Hong Kong. Attendees learned about how Agarwood was grown and how through sustainable farming, Asia Plantation Capital had helped to protect and secure its future.

January 31, 2015 - Ping Che Village

KPMG Presents: Innovation & Technology Series – Developments in the Pearl River Delta Event Sponsor: Air Canada Ms. Janet Wong Wing Chen from the Innovation and Technology Commission, Mr. Egidio Zarrella from KPMG, Mr. Thomas Lee from Star Vision Limited and Dr. Samson Tam from Group Sense Limited shared their insights on upcoming technological government policies, new business models targeting the technology and the business implications of these new models.

February 12, 2015 - KPMG office

KPMG Presents: The China Series 2015 - China’s Fourth Plenum: Developments to Watch The Chamber, together with KPMG, kick-started the new China Series in 2015 with the update on China’s Forth Plenum. Dr. David Zweig from HKUST, Dr. Annie Wu and Professor Qiao Liu from the Peking University shared the insight on reforms to China’s legal system with four takeaways.

March 26, 2015 - Club Lusitano 36 EXCHANGE Vol.14

Event Highlights Executive Presence for Women Leaders Presented by CanCham Women’s Network The sold out workshop on “Executive Presence” for Women Leaders was sponsored by Manulife Financial Asia who had two executive women present. It was facilitated by Ms. MaryAnn Voli of Potential Squared International and her team. Participants took part in a very interactive and engaging session while learning the key ways to maximize their Executive Presence.

March 26, 2015 – CanCham Boardroom

SES Presents – Leadership Series 2: Luck is Where Opportunity Meets Preparation Event Sponsor: Hongkong Land Limited, Quam Limited Mr. Frederick Ma Si-Hang shared with the audience his insights on how he turned challenging opportunities into successes as well as his tricks on how to turn luck and opportunity into a tool to becoming a successful leader.

April 1, 2015 – Club Lusitano

Baker Tilly HK & Air Canada Present: Marketing and Growth Strategies for A New or Developing Business Venue Sponsor: Quam Limited; Coffee Sponsor: Nespresso Mr. Lawrence Morgan from Nest, Mr. Brian Ho from Hong Kong Freelancers Network and Ms. Janet Bibi Ferreria from Baker Tilly had an interactive panel discussion on the rapidly developing eco-system of startups and entrepreneurship in Hong Kong. Topics included how freelance, outsourcing and new services sharing platforms support the growth of the new forms of entrepreneurs and small/micro business. The event was organized by the Entrepreneur and Small Business Committee and the Young Professional Committee.

April 22, 2015 – Quam Office 37

Welcome New Members CORPORATE MEMBERS

Art Future Group Co. Ltd. Mr. Jon Reade, Managing Director cailey.li@artfuturesgroup.com Tel: 852 3758 7888 www.artfuturesgroup.com

ASD WT HK Mr. Stéphane Ha, Asia Branch Manager Mr. Arnaud Philibert, Chief Operating Officer Mr. Samuel Samyn, Chief Operating Officer sha@asd-int.com www.asd-int.com

Associated Surveyors & Auctioneers Ltd. Mr. Aaron Chi Keung, Chairman of the Board Mr. Ivan Sze-Chit Wan, Managing Director awan@associated.com.hk Tel: 852 2110 9011 www.associated.com.hk

Berlitz Languages Ltd. Mr. Tony Lee, District Director of Southern China Ms. Erina Altherr, Program Manager Mr. Paul Lee, Corporate Account Manager tony.lee@em.berlitz.com Tel: 852 2157 2277 www.berlitz.com

Hong Kong Sotheby’s International Realty Ms. Francoise Detanger, Senior Manager, Business Development, International Accounts Ms. Melanie Krepp, Real Estate Consultant, International Accounts Ms. Letizia Garcia Casalino, Director, International Accounts francoise.detanger@hksothebysrealty.com Tel: 852 3108 2174 www.hksothebysrealty.com

HKU SPACE Mr. John Cribbin, Deputy Director Dr. Wing Wah Chan, Deputy Director Mr. Kong Yui Leung, Acting Head, College of Business and Finance john.cribbin@hkuspace.hku.hk Tel: 852 2975 5747 www.hkuspace.hku.hk

Jardine Lloyd Thompson Mr. Nicholas Cousins, Managing Director Mr. Ali Chaudhry, Managing Director- FLG Asia Ms. Mabel Chiu, Director -FLG nick_cousins@jltasia.com Tel: 852 2864 5595 www.jltasia.com

Jones Lang LaSalle Limited Ms. Mandy Wong, Head of International Residential Property Service Mr. Paul Tam, Associate Director, Markets Ms. Rita Wong, International Director, Valuation Advisory Service mandy.wong@ap.jll.com Tel: 852 9023 2280 www.jll.com

38 EXCHANGE Vol.14

Mercer (Hong Kong) Limited Ms. Celine Ng Tong, Director | APAC Regional Consulting Ms. Eva Liu, Business Development Head celine.ngtong@mercer.com Tel: 852 3476 3800 www.mercer.com.hk

China Maple Leaf Educational Systems Limited Dr. Sherman Jen, Founder, President & Chairman gracejensl@mapleleaf.net.cn Tel: 852 www.mapleleafschools.com

Rocky Mountaineers Mr. Mark Richardson, Sales Manager, APAC mrichardson@rockymountaineer.com Tel: 160 4606 7245 www.rockymountaineer.com

Cliftons Hong Kong Mr. John Murphy, General Manager Tel: 852 2159 993 john.murphy@cliftons.com www.cliftons.com

Royal Cargo Combined Logistics (HK) Limited Mr. Donald Campbell, General Manager, South China Mr. Patrick Yen, Sales Manager, South China Donald.Campbell@royalcargo.com Tel: 852 2543 3066 www.royalcargo.com

Diana Chang Consultancy Ms. Diana Chang, External Relations Associate, Asia-Pacific Tel: 852 5115 6494 dc@dianachangconsultancy.com www.shawnigan.ca

Surface Mount Technology Limited Prof. Kei Biu Chen, Chairman & Senior Managing Director Mr. Eddy Chan, IT & Business Development Manager Mr. Lawrence Chan, General Manager kbchan@smthk.com Tel: 852 3757 4066 www.smthk.com

Dragon Sourcing Mr. Olivier Levy, Managing Director olivier.levy@dragonsourcing.com Tel: 852 9180 4057 www.dragonsourcing.com

St. Margaret’s School Ms. Cathy Thornicroft, Head of School Ms. Kathy Charleson, Director of Admissions Mr. Gregg Wiltshire, Director of Advancement cthornicroft@stmarg.ca Tel: 250 479 7171 www.stmarg.ca

Dynasty Premium Groups Mr. Wong Yung Shing, Deputy Chairman yungshing@dpval.com Tel: 852 9880 4075 www.dpval.com

Towers Watson Mr. Robert Charles, Managing Director, Asia Pacific bob.charles@towerswatson.com Tel: 852 2827 8833 www.towerswatson.com

Etonhouse International School Ltd. Mr. Gim Choo Ng, Group Managing Director gim@etonhouse.com.sg Tel: 852 2353 5223 www.etonhouse.com.hk

CORPORATE ADDITIONAL MEMBERS Mr. Bob Grove CEO- North Asia, Edelman Public Relations Worldwide (HK) Ltd. Prof. Chris W.H. Chan Professor & Associate Dean, Asia, Ivey Business School Mr. Jeffrey Hau Director, KPMG Mr. Ignatius Chong Managing Director, Royal Bank of Canada Mr. Joel Goh Managing Director, Royal Bank of Canada Ms. Lorraine Lam Executive Director & Team Head, Royal Bank of Canada Mr. Mark Nicholls Managing Director, Canadian Imperial Bank of Commerce

ENTREPRENEUR MEMBERS

ACW Services (Hong Kong) Limited Ms. Shirley Tsang, Regional General Manager Tel: 852 2838 6238 enquiry@acw-group.com.hk www.acw-group.com

International Sound + Light Limited Mr. Scott Mclean, Managing Director Tel: 852 9315 0808 scott@isl.bz www.isl.bz

LAM Institute Mr. Perry Lam, Chief Excellence Officer perry@laminstitute.com Tel: 852 2297 2883 www.laminstitute.com

Maison Birks Mr. Ivan Santamaria, Director istantamaria@maisonbirks.com Tel: 954 590 9477 www.maisonbirks.com

Megabyte Ltd. Mr. Matthew Man, CEO Tel: 852 3999 4300 matthewman@myndar.com www.myndar.com

Welcome New Members Shenzhen MiZi Technology Co., Ltd. Mr. Calvin Chan, General Manager chanmingk82@gmail.com Tel: 852 9790 9555 www.szmizi.com

Nice Things Mr. Aaron Pang, Managing Director & Co-Founder aaron.pang@nicethings.com.hk Tel: 852 6994 0957 www.nicethings.com.hk

Nord Anglia International School, HK Mr. Brian Cooklin brian.cooklin@nais.hk Tel: 852 3958 1488 www.nais.hk

Sinclair Communications Mr. Kevin Lam, Account Director +852 2915 1234 kevin@sinclairasia.com www.sinclairasia.com

Star Vision Limited Mr. Lee Wai Pang, Managing Director info@starvision.com.hk Tel: 852 2897 0975 www.starvision.com.hk

Target International Projects Ltd. Ms. Renee Sou, Managing Director rs.myanmartargetips@gmail.com Tel: 852 5196 0930

The Factory Workshop, Ltd. Ms. Jenny Lun jenny@the-factory.com.hk Tel: 852 9035 3669 www.the-factory.com.hk Zhenai Inc. Dr. Song Li, CEO +852 6024 5288 dr.song.li@gmail.com www.zhenai.com

INDIVIDUAL MEMBERS Mr. André LeBlanc International Trade & Business Development Consultant Mr. Andy Wong CEO, Property Agency Ltd. Mr. Barnes Lam Managing Director, Tappity Technology Limited Mr. Benjamin Willis Director and Senior Vice President Mr. Bill Tang Senior Manager, Hong Kong Airport Authority Mr. Brian MacDougall Director, Cheetah Investment Management Mr. Daniel Martin Creative Director, Censere Mr. David Chan Business Development Team Manager, A Plus International Services Ltd. Mr. David Gravet Managing Director, Birkenstock Asia Pacific

Mr. David Hu Marketer, Lyconet Mr. David McMaster Head of School, Fairchild Canadian Academy Ms. Dede Marconato Designer/Goldsmith, Dede Marconato Contemporary Jewellery Ms. Doris Lam Senior Manager, Savills (Hong Kong) Limited Mr. Douglas Narine CEO, Dataflow Group Mr. Eric Cheng Principal Consultant, Innovation Business Accelerator Co. Ltd. Ms. Else Chan m0851 Mr. Eugene O’Hagan FHKIoD Mr. Frank von Thun Founding & Managing Director, VTC Group Mr. Geoffrey Cotton Regional Director- Asia, Altus Group (Hong Kong) Limited Ms. Grace Leung Senior Manager, HSBC Ms. Iris Hoi Director, Urbis Limited Mr. Isaac Wat General Counsel & Company Secretary, CGN Meiya Power Holdings Co., Ltd. Ms. Janie Wong Senior Associate, Orrick, Herrington & Sutcliffe Mr. John Ryan Partner, PricewaterhouseCoopers Ms. Josephine WY Chan Investments Ms. Katherine Leung Member Events Manager, Hong Kong Parkview Mr. Kwong Yui Fai Kerry Music Mr. Laurent Madore Director of Marketing and Development, Hong Kong Sports Institute Mr. Ludwig C.Y. Hon Director, C.Y. Hong Consultants Ltd. Mr. Mark Sy Senior Marketing Consultant, PricewaterhouseCoopers Ms. Martha Collard Founder, Red Doors Studio Ltd. Mr. Monty Yuen Senior Compliance Manager, BEA Ms. Olena Smith Director, Xytorok Mr. Patrick Lam Executive Director, NWS Holdings Limited Mr. Peter James Szekely Managing Director, Standard Chartered Bank Ms. Polly Tang Forensic Manager, JLA Asia Limited Mr. Rupert Shea Senior Director, Matsunichi Mr. Samuel Luft CEO, Mel Global Investments Mr. Shafin Remtulla Finance Manager, Asia Pacific, Husky Energy (HK) Ltd. Mr. Timothy Chow Executive Director, Goldman Sachs (Asia) L.L.C Mr. Timothy Lam General Manager, Sun Chong Fung Insurance Agency Dr. Tom Vinaimont IHIVIT Ms. Wai Yan Yip Senior Editor, Face Magazine Limited Mr. Will Lam Director, B.C. Finefood Ltd. Mr. William Cheung

NON-PROFIT MEMBERS Ms. Christina Xu Council Member, RCS Ms. Ching Tien President & Founder, Educating Girls of Rural China Mr. Dickson Tong HK Guangxi Chamber of Commerce Mr. Matthias Li Deputy Chief Executive, CPA Canada Hong Kong Chapter Ms. Melody Song Senior Development Officer International Development, Calgary Zoo Dr. Neale Gilbert O’Connor Associate Professor, Hong Kong Baptist University Mr. Phil Wong Principal Interior Designer, Phil&osophy Design Concepts

YOUNG PROFESSIONAL MEMBERS Mr. Alexander MacIsaac Research Assistant, University of Windsor Mr. Bharat Kumar Relwani BSc Graduate (Geology) Mr. Brian Lam Senior Associate, CPP Investment Board Mr. Bryan Peter Lee Associate, The Bank of Nova Scotia Mr. Daniel Silverstein China Operations Manager, R2P Pet Ltd. Mr. Dimas Bornhausen Neto Trader, LP Export Mr. Eugene Chan Assistant Public Relations Manager-Digital Media, MTR Corporation Limited Mr. François Bolduc BIM Project Manager, InteliBuild Mr. Isaac Liu COO, Rich Trend Properties Ltd. Mr. Jack Kuan Chung Wang Associate, J.P. Morgan Mr. James Thomson-Sakhrani Community Manager, nu HK Ms. Janet Chow Ms. Jordana Trek Digital Marketing and Sales Manager, Kapok Ltd. Mr. Matthew Wong Marketing Manager Ms. Natalia Lech Jewellery Marketing and Sales, Haywards of Hong Kong Mr. Nick Warelis Project Manager, International Union of Food Science and Technology Mr. Riley King Section Manager, Hays Mr. Robert Fong Research Analyst, Cayuga Research Mr. Sheldon Hunt Ms. Sonia Merena Membership Manager, Quintessentially Lifestyle Mr. Thierry Chouteau Strategy and Special Projects Assistant, CTC Group Limited Mr. Tyler Ehler Project Manager, Chinney Concepts Ltd. Ms. Valeriya Lisitsyna Management Consultant, Octopus Financial Corp. Mr. Vincent Dassault Art Embassy Mr. Wai Keung Chung MBA Candidate, The University of Hong Kong Mr. William Boivin Manager - Society Relations, APAC

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