Hong Kong-Canada Business Association

Summary by Zachary Rowswell, The Canadian Chamber of Commerce in Hong Kong

On November 30^th, 2015, the Entrepreneur and Small Business Committee (the “ESBC”) of the Chamber and the Hong Kong Canada Business Association (the “HKCBA”) jointly presented the second annual Transpacific Entrepreneurial Conference.  The Conference featured a wide variety of topics focusing on how Canadian companies had set up and succeeded in Hong Kong, and what sort of resources were available to help these companies do business in Hong Kong.  Similarly to last year’s conference, the objective was to continue developing Kong Kong’s entrepreneurial spirit while encouraging Canadians to set up in Hong Kong to expand into Asia Pacific. 

Panel 1 - Hong Kong: Canada’s Gateway to Half the World

Panel Discussion Chair: Douglas Betts (McMillan LLP International Limited)

Speakers: Simon Galpin (Invest HK), Jeff Kwok (Neverblue, Globalwide Media), and Irene Chu (KPMG)

Douglas opened up the event touching on Hong Kong’s historic evolution as a manufacturing hub to a services hub and as a gateway to China. There was a need for Hong Kong to evolve further due to globalization and China’s rapid development. As such, the panel was to address the issue of how entrepreneurs could successfully launch and maintain new businesses in Hong Kong. 

Simon commented on recent changes in Hong Kong’s economic infrastructure. While the backbone of Hong Kong’s business sector consisted of local small-medium enterprises, there had been a recent increase of globally focused start-ups. Hong Kong was set to become a global centre in innovation and business start-ups, which was influenced by the high net worth of investing individuals, proximity to manufacturers in Shenzhen, and Hong Kong’s excellent service environment. Simon further recommended an online resource for start-ups called startmeup.hk.

Jeff shared his experience with his company on how it recently expanded into Asia Pacific with its regional centre based in Hong Kong. Jeff enumerated the various reasons to consider setting up a globally focused business in Hong Kong, well emphasizing that using Hong Kong as a gateway to mainland China should not be a major motivator. Advice was also given to have a practical reason for setting up in Hong Kong and to understand the competitive advantage of employing proper talent.

Irene talked about the issues that larger corporations in Hong Kong dealt with when faced with competition from start-ups entering the market. Size no longer equaled power and it was important for businesses to collaborate with each other to drive innovation. Irene also touched on the megatrends driving innovation, the drivers for collaboration between businesses, and the role of accelerator and incubator companies in stimulating innovation for big business. She concluded with the idea that big businesses and small start-ups should seek to create mutually beneficial relationships and learn from each other’s experience.

Panel 2 – “How I Started: How I Made it” Entrepreneur Experience Sharing Session

Panel Discussion Chair: David Armitage (Velocity Solutions Ltd)

Speakers: Christian Yan (Nanoleaf), Allan Matheson (Blue Umbrella), Wayne Bewick (Trowbridge)

David began the discussion by noting how business in Hong Kong could be seen as a hobby rather than a simple occupation and how Hong Kong was an ideal environment for such a hobby due to access to a variety of exciting groups. 

Christian provided insight from his experience with his company, which recently expanded into Hong Kong and looked to provide solutions for efficient lighting. Christian stated that business should be seen as harmony of cultures that came together to create a final product, with his own business being half Canadian and half Chinese. He also talked about the importance that his company attached to combining aesthetics and functionality in a product to affect the world beneficially.  He acknowledged that there existed a challenge for his company to drive sales and that his company had a need for guidance provided from experienced companies. In conclusion, the practical reasons for setting up the company in Hong Kong and Shenzhen were that it was able to leverage its cultural strengths, and the location was close to all of the company’s suppliers.

Allan gave advice to businesses to strengthen weaknesses and not just focus on existing strengths, highlighting that his company’s mandate was to always make sure it was learning and growing. Allan attributed importance to having a focused product and high sales in order to maintain a strong market share. It was also key to studiously study one’s competition with indifference, meaning that it was important to understand the competition, but not to get caught up in it. Allan asserted that business was a form of binary where one either had or did not have the skill to get things done.

Wayne began by discussing how Trowbridge was able to find a niche in the Hong Kong market by providing expats with financial services that were previously unavailable and how successful networking was key to market expansion. Emphasis was given to the importance of having good people in a company with a diverse skill set, and that the key challenge was always finding the right talent. Wayne also noted that success was to be found in failure, and that business expansion was always a learning experience.

Panel 3 - Growth through Partnership

Panel Discussion Chair: Alexandria Sham (HKCBA)

Speakers: Lawrence Nutting (The Canadian Chamber of Commerce in Hong Kong), Colin Hansen (Advantage BC), Michael Wong (University of Waterloo), Tytus Michalski (Fresco Capital)  

Alexandria began by introducing HKCBA as one of the largest bilateral business associations in Canada. She also mentioned that the association will be hosting its 2016 national conference in Calgary.

Lawrence reiterated the trend in the increasing amount of start-ups in Hong Kong and the focus in innovation that existed even in big businesses. He also talked about how companies could achieve growth through partnership with the Chamber and HKCBA by leveraging bridging opportunities and understanding the value of networking to other members. He concluded that individuals made a difference in business and that the mission of organizations such as the Chamber and HKCBA was to support members and future members in order to create value and develop talent.

Colin discussed how the government of British Columbia was looking to continue bridging to Asia with economic agreements. British Columbia’s vision is to become the most Reminbi (“RMB”) friendly market in Asia, with the recent establishment of “dim sum” bonds and the potential of issuing “panda” bonds in Vancouver. Canada had also recently been declared the world’s tenth RMB settlement hub, serving to further promote Canada as a financial gateway from China to the Americas.

Michael talked about the University of Waterloo (“UWaterloo”) and the benefits that its students received in participating in Co-Op education. The UWaterloo Co-Op Program allowed students to gain practical business experience while studying so that they could find their niche in the business world more easily. UWaterloo students partaking in the Program had demonstrated their potential for business innovation on many occasions, and the university is looking to increase partnerships in Asia to allow for more opportunities for this body of talent to grow.

Tytus provided eight lessons to learn in conducting successful business partnerships based on his experience. This advice included forgetting “or” and finding “and”, learning to look for opportunities that might not seem obvious, finding great talent, and remembering to stay open to new ideas as part of the learning process of business.

Panel 4 - Hong Kong: A Super Connector Between Asia and Canada

Panel Discussion Chair: Parker Robinson (The Word Factory)

Speakers: Jenny Too (HKTDC), Amanda Casgar (Lululemon), Albert Tam (Intercontinental Group), Arnold Leung (Appnovation Technologies Inc.)

Parker described Hong Kong as having evolved from a bridge to a gateway to a super connector between Asia and Canada. Its role as a super connector meant that Hong Kong was the ideal place for Canadian businesses to set up to enhance links with the mainland and expand across East Asia.

Jenny noted that Hong Kong and China had bucked recent global trends and seen an increase in foreign direct investment (“FDI’) flows over the past few years. Despite increasing globalization in mainland China, Hong Kong still played an important role there in facilitating FDI flows. There had also been growth in Guangdong enterprises operating in Canada and the HKTDC continued to play an important role in bringing such mainland businesses and investors to Canada while operating out of Hong Kong.

Amanda shared her company’s ideas in expanding to Hong Kong. The decision to do so was purposely led with the realization that Asia needed to be taken into account in the company’s world view. The company sought to motivate employees through the idea of the choice to love what you do. It practiced a decentralized business model that helped foster a culture of entrepreneurship and hard work. Concerning marketing, Amanda stated that the company relied largely on word of mouth through community connectors for organic brand growth.

Albert talked about his experience in accountancy and consulting and how he used it to help Canadians integrate comfortably into Hong Kong and use the region as a base for expanding into mainland China. He recommended Hong Kong as a good place to connect with the mainland and the Shanghai Equity Exchange as a useful resource to get into the market there.

 Arnold explained the reasons for choosing Hong Kong as the location of choice in Asia Pacific due to not only its proximity to China, but also the ability to conveniently provide service to Asia. He also listed several other benefits including the excellent legal system and the straightforward business culture.

Panel 5: How We Are Helping Canadian Companies Expand Their business into Hong Kong (and China)

Speakers: Lynn McDonald (Consulate General of Canada), Henri Arslanian (APrivacy)

Lynn focused on the role of Canada’s federal government in Hong Kong. The government operated through embassies and consulates not only to negotiate agreements with other governments, but also provide consular services to Canadian expats. Trade commissions were also located at the embassies and consulates, as well as in regional offices across Canada, operating with a vision for excellence in facilitating partnerships, deal flow and FDI to Canada provide a range of services to Canadian businesses abroad, such as market assessment and recommendation of qualified contacts.

Henri built on Lynn’s presentation by asserting how Global Affairs Canada had been positively affecting businesses abroad through the embassies and consulates. He gave an overview of his company as providing electronic email security to diplomats, militaries, and financial service providers. The Consulate General in Hong Kong was pivotal in facilitating the company’s expansion to Hong Kong through providing the contacts and networking needed to do so.

Read more at http://www.cancham.org/blogpost/758018/236084/The-Second-Transpacific-Entrepreneurial-Conference 

By Technoculture, Art and Games (TAG)

On November 4^th, the Hong Kong Canada Business Association held the first of a (potential) series of conferences surrounding investment in the gaming industry in Hong Kong. The keynote speaker was Jose A. Rueda from Sheridan College; a phenomenal speaker who focuses on Game Design at their Faculty of Animation, Arts and Design. He brought his experience of working with the industry in Hong Kong (prior to his time at Sheridan) and his expertise in game design to highlight the benefits of gamification of business in general, Hong Kong as an ideal gateway to the Asian market, and the environment in the market itself.

His description of gamification was as simple as you would expect; the demographics of the conferences were a mix of people from the industry, and people who saw potential in creating opportunities between Quebec and Hong Kong business. He showed two case studies that emphasized the importance of psychologizing and designing for the clients in a way that engaged curiosity in a positive feedback loop. The case studies he chose were specifically outside of the gaming industry, to emphasize the benefits of employees that understand game design – he made a quip about helping his students get jobs, while I noticed most of the documents received on entry were documents about Sheridan’s Bachelor of Game Design Program.

Rueda moved on to Hong Kong as an ideal gateway to the Asian market, and two concepts that – if you know much about the business world – didn’t particularly surprise me. The first was the ideal strategy for approaching the market: Set up a joint venture with a business in Hong Kong that already has operations within the Mainland. For those who don’t know, Hong Kong and Mainland China have two different systems of government; Mainland China only asserts control in specific areas like the military. During the QA session Jean-Philippe Mikus (a partner and trade-mark agent at Fasken Martineau) also highlighted Hong Kong having its laws previously established by the British, made it a lot easier to understand and navigate than attempting to approach the mainland directly. In addition, Shirley Wong from InvestHK (Canada) emphasized the beneficial corporate tax rate.

Rueda’s second point was to avoid innovation at all costs, and to transfer established expertise. From an outside perspective, that likely sounds a bit unprogressive, but trying to enter a market with something new is not easy. At the end of the day these are businesses and they want to work with what makes money, and it’s hard to make a convincing argument on a potential bet.

He ended his keynote with a section on engaging the market, focusing primarily on building relationships and partnerships in Hong Kong and how it was fundamentally different than in North America. He highlights the importance of establishing trust not just on a business level, but most importantly on a personal level. Therefore networking, and knowing the right people are the most important asset to entering the market successfully. Shirley Wong also pointed out the various support available to businesses both large and small interested in engaging in international business opportunities, not just with her company Invest Hong Kong, but also the often unrecognized support offered within our own federal government.

Through all this, some people might be wondering what does this mean for us? As indie game designers, writers, creators or game scholars? For some of you, this might not seem like the most critical thing in the world; but it’s important to recognize this shift in interest among the business elite – their interest to learn and engage with the industry here in Montreal, and spread that out into the international market is significant. As mentioned before, the demographics of the conference was wide spread from people in the industry and community like Jason Della Rocca, to academics like Jose Rueda, and representatives of several businesses. The event and reception afterwards was a learning opportunity for everyone involved. It also opened my eyes to the growing community of small game developers in Hong Kong – Rueda described how many of his students there now develop indie games and encouraged people to take interest in these rapidly growing groups.

Geoffrey Bush, Executive Director at HKCBA- Montreal further stated after the event that “HKCBA-Montreal was pleased with its first gaming sector event, and more important so were those in attendance. We look forward to further exposing the opportunities that Hong Kong offers the Montreal business community.” I was very impressed with the organizers of the conference and was pleased with their genuine curiosity and growing interest in the industry and its potential in Hong Kong. Although most of the information didn’t particularly surprise me, I wasn’t necessarily the audience they were attempting to entice; regardless, I look forward to how their interests and messaging develops as they continue to research the industry and potential opportunities.

Read more: http://tag.hexagram.ca/hkcba-business-of-play-whos-game-conference-overview/?utm_source=hootsuite

By Hong Kong Economic Trade Office (HKETO)

Hong Kong's powerful business and financial edge as reinforced by its unique role as a "super-connector" between Mainland China and the rest of the world was once again promoted by Invest Hong Kong (InvestHK) and the Hong Kong Economic and Trade Office (Toronto) (HKETO) at a seminar held in Toronto today (October 8, Toronto time).

Speaking at the seminar "Hong Kong: The Super-Connector", which was held by the Toronto Region Board of Trade and supported by the HKETO and the Hong Kong-Canada Business Association, the Director-General of Investment Promotion, Dr Simon Galpin, told participants that the "one Country, two Systems" principle guarantees Hong Kong's competitive edges in the international business community.

The seminar was told that the principle ensures Hong Kong's business-friendly environment, free flows of capital and information, a sound and independent legal system and a low and stable tax regime. Against this backdrop, it serves as a perfect platform for Canadian companies to enter into the Mainland and other Asian markets.

According to the United Nations Conference on Trade and Development World Investment Report 2015, Hong Kong registered foreign direct investment inflows of US$103 billion in 2014, a year-on-year increase of 39 per cent. The figure puts Hong Kong second only to Mainland China (US$129 billion) and ahead of the United States (US$92 billion), the United Kingdom (US$72 billion) and Singapore (US$68 billion).

Dr Galpin said that the numbers highlight Hong Kong's role as a "super-connector" and a conduit for direct investment.

Currently around 7 600 overseas and Mainland Chinese companies keep offices in Hong Kong, including some 100 Canadian companies. In the first half of 2015, InvestHK assisted a record 260 companies from 32 economies to set up and expand in Hong Kong, and Canada made it into the top 10 list of originating economies.

"Hong Kong is not only a magnet for multinationals and individual founders and entrepreneurs, it is also an ideal location for corporate treasury centres," added Dr Galpin.
 
He told the seminar that with a highly international outlook and positioning in terms of finance, legal services, accounting, trade, logistics, shipping and aviation, Mainland companies will continue to use Hong Kong to "go global", while overseas companies will also use the city to manage their global activities.

"There have been new trends developing in Hong Kong, such as the fast-growing startup ecosystem," said Dr Galpin. He told the participants that Canadian companies are most welcome to come to Hong Kong and commercialise their new technologies for other markets.

Statistics shows that in August this year, a total of 1,558 start-ups at 40 co-work spaces were registered in Hong Kong, up 46 per cent compared to a similar poll last year.

Also speaking at the seminar, HKETO Director Miss Gloria Lo noted that Hong Kong-Canada bilateral trade reached nearly CAD$5.7 billion last year and there was 4.5 per cent increase year-on-year for the first seven months of this year.

"Hong Kong can be the launching pad for Canadian start-ups given its sound legal system, a level playing field, simple and low taxation and facilitating measures for business. The city can also provide an ideal platform for the commercialisation of new technologies to cater for the Mainland market and other Asian markets, as well as for intellectual property trading."

She added that there are strong social ties between Hong Kong and Canada, and encouraged more exchanges between the youths and students of the two places.

The President of the Hong Kong University of Science and Technology (HKUST), Professor Tony Chan, was also a keynote speaker at the seminar. Established in 1991, HKUST has been ranked 28th globally (ranked first in Hong Kong) in 2015-16 and as Asia's top university for three out the last five years in the Quacquarelli Symonds World University Rankings.

Read more: http://www.info.gov.hk/gia/general/201510/09/P201510080571.htm

By Hong Kong Trade Development Council (HKTDC)

More than 1,500 business people from across Canada took part in the largest-ever international business conference held in Toronto. Organised by the Hong Kong Trade Development Council (HKTDC), "Think Asia, Think Hong Kong" helps companies from Canada, Hong Kong, and the Chinese mainland explore business opportunities using the Hong Kongplatform.

HKTDC-Canada Sign Commercial Arrangement
As part of the main symposium, the HKTDC signed an Arrangement on Mutual Cooperation with Foreign Affairs, Trade and Development Canada (DFATD) to facilitate collaboration in promotion of commercial activities in areas of mutual interest. The arrangement was signed by the Honourable Ed Fast, Minister of International Trade, Canada and Margaret Fong, Executive Director of the HKTDC.

Minister Fast said: "Canada and Hong Kong have a long-standing partnership, strengthened by our people-to-people ties. Hong Kongis an important hub for Canadian exports of goods and services to Asia, and this trade promotion arrangement will help our companies work together to take advantage of the rapid growth in the Asia-Pacific region."

Ms. Fong added, "We are pleased to conclude this arrangement with Foreign Affairs, Trade and Development Canada. Based on an already robust trade relationship between Canada and Hong Kong, this arrangement further promotes business opportunities in financial services, logistics, food, technology and intellectual property." 

Strong Connections
Guests of honour at the "Think Asia, Think Hong Kong" symposium were Minister Fast and Hong Kong SAR Chief Executive, C.Y. Leung.

Speaking at the symposium, Mr. Leung said Canada and Hong Kong are extended business partners. "I'm here today, leading a delegation of more than 100 high-profile business leaders and government officials, including 27 from the Mainland of China. We're here, because we believe that our strong and longstanding connections, in business and in culture, offer the promise of a far more rewarding future for our two economies and the companies that drive them," Mr. Leung said.

In his welcome remarks, HKTDC Chairman Vincent H.S. Lo highlighted the mainland's "One Belt, One Road" initiative and Hong Kong'scompetitive edge as a gateway to mainland and the region. 

"The Chinese mainland is committed to market-driven growth, and no-one knows the mainland markets better than we do in Hong Kong," Mr. Lo said.

"Our strategic position – not only as the gateway to mainland China but also as the global trade hub in Asia – also gives us a natural advantage as a springboard for international companies entering the Asian market."

Explore + Connect = Opportunities
More than 150 business leaders from Hong Kong and the mainland interacted with delegates and businesses from Canada. Networking activities were also arranged and free onsite consultation services were provided by Hong Kong professional service providers. In total, more than 860 business-matching sessions were organised to connect Canadian entrepreneurs with business partners from Hong Kong and the mainland.  

Videos:
Think Asia, Think Hong Kong: https://youtu.be/2BAoxSgqsZY

Download photos: http://filesharing.tdc.org.hk/hktdc/download.php?fid=_phpKXBpiy 

About the HKTDC

A statutory body established in 1966, the Hong Kong Trade Development Council (HKTDC) is the international marketing arm for Hong Kong-based traders, manufacturers and services providers.

Read more: http://www.newswire.ca/news-releases/think-asia-think-hong-kong-toronto-attracts-1500-517908521.html

BY JENNY LEE, VANCOUVER SUN

Read more: http://www.vancouversun.com/canada+cathay+sticking+focus+vancouver+toronto/9387704/story.html#ixzz3sNUwaTBl

Cathay Pacific Airways and the Hong Kong Canada Business Association held a luncheon event attended by over 200 travel and business professionals at the Four Seasons hotel in Vancouver yesterday. 

The theme of the event was "Hong Kong and Cathay Pacific: Continuing a Successful Journey". Last year marked the 30- year anniversary of Cathay Pacific’s Vancouver- Hong Kong service, which launched in 1983. 

Vancouver was the first gateway Cathay Pacific opened in North America, with 747 service across the Pacific to Hong Kong. 

The Hong Kong Canada Business Association is also celebrating it's 30 year anniversary in 2014. 

Top Cathay Pacific executives were on hand to introduce the airline’s current director of sales and marketing Rupert Hogg. Hogg has also been appointed Cathay’s new chief operating officer, effective in March. 

"[It’s] great to see such a large turnout at today's Hong Kong Canada Business Association lunch," said Chris Vandenhooven, Cathay Pacific's general manager, sales, Western Canada.  

"Being Rupert Hogg's first North American speaking engagement since his announcement to chief operating officer underlines the importance YVR [and] Western Canada plays in the airline's global success," Vandenhooven added.  

Hogg’s keynote address focused on the ever-strengthening aviation and business ties between Vancouver and Hong Kong.

“Vancouver has a very special place in the heart of those of us based in Hong Kong,” said Hogg. “Vancouver is important to us, and Canada has placed an incredible role in the evolution of Cathay Pacific.”

The address emphasized a “20 year view” on Hong Kong and Cathay Pacific’s path to continuing their successful partnership. 

Hogg emphasized that Cathay Pacific’s Vancouver service contributed to the growth of Hong Kong international airport, and the airline’s commitment to the future of Hong Kong aviation. 

“When [we] first started Vancouver- Hong Kong service, we carried 3.2 million passengers per year, we now carry 30 million passengers per year and connect to 40 points in mainland China,” Hogg said.
 

With sister airline Dragon Air, Cathay Pacific now flies to 60 destinations in China and India. 

“The Hong Kong hub carried 56 million people last year, it’s the largest aviation hub in Asia the third largest international aviation hub in the world, and the largest cargo hub in the world,” Hogg said.  

108 airlines now fly in and out of Hong Kong, which is home to 3,500 regional and international business headquarters. 

Cathay Pacific also has its sights set on new destinations, and plans on introducing new product. 

“We do intend to continue to grow in Canada, we want to be the preferred airline in Canada on the aviation side of the Pacific Rim, and we want people to choose us above all other airlines because of the standard of service, and that’s our commitment for the next 20 years,” said Hogg.