Hong Kong is a small economy with relatively small natural resources, but its superior geographical location, perfect trade services, and advanced financial systems make it a major international trade center. According to data released by the World Trade Organization, Hong Kong was the world’s ninth largest trading economy in 2012, accounting for 2.8% of world trade.
Hong Kong has become a favored place for traders around the world, and it is important that it has a high degree of openness. Hong Kong has a free trade policy, but also the implementation of free start-up enterprises, free exchange of foreign exchange, free access to funds and other ancillary measures. In order to maintain the free port policy unchanged, the government has always implemented less intervention in the free economic policy.
Less government intervention
Hong Kong’s economy is known for its minimum government intervention. This “small government” tends to be seen from Hong Kong’s trade operations management structure.
In Hong Kong, the department responsible for co-ordinating and developing industrial trade policy is the Hong Kong Business and Economic Development Board. The Hong Kong Trade and Industry Department deals with trade relations between Hong Kong and various trading partners. The Trade and Industry Department also assists Hong Kong enterprises, including small and medium enterprises (SMEs), to enhance their competitiveness and ensure that the Hong Kong trade system is sound and healthy. In addition to the daily customs clearance work, the Hong Kong Customs and Excise Department is also responsible for the control of textiles and strategic items and the fight against smuggling and piracy.
Hong Kong has more than 10 semi-official trade organizations. The most important thing is the Trade Development Council, which was established in 1966. Its chairman is appointed by the Governor, including representatives of major chambers of commerce, business leaders and two senior government officials. The agency is responsible for planning and planning the entire export development work.
The Hong Kong Export Credit Insurance Agency is also an important institution for trade promotion, which provides export credit insurance services to Hong Kong exporters.
In addition, there are more than 200 industrial and commercial organizations in Hong Kong, including comprehensive chambers of commerce (such as the Hong Kong General Chamber of Commerce, the Hong Kong Chinese Manufacturers’ Association), trade associations (such as the Hong Kong Garment Industry Association) and foreign organizations such as the American Chamber of Commerce. These business groups act as liaison agents, transfer information and deal with trade protectionism.
Private enterprises dominate logistics operations
At the government level, after building a simple and straightforward management structure, the operational aspects of trade-related logistics are most of the responsibility of the private sector in Hong Kong. Hong Kong’s air and sea trade is particularly important for the development of its trade, while the Hong Kong Airport Cargo Terminal and Container Terminal are operated by the private sector.
The Hong Kong International Airport was opened in July 1998 and the two air cargo terminals at the airport are private and managed by HACTL and AAT. All air cargo at Hong Kong International Airport is handled by HACTL or AAT, which has signed a management contract with the Hong Kong Airport Authority. The day-to-day management of the cargo terminal area is the responsibility of the tenants (HACTL and AAT) and the Airport Authority does not intervene.
Under the business model of air cargo handling, the two private air cargo handling centers provide a wide range of customer-oriented products and services, including cargo handling, document handling and apron dispatch. The services provided include not only air cargo companies, but also courier companies such as Federal Express, which has its own operating area in the AAT to dispatch its own aircraft and handle express delivery, while other courier companies such as DHL, TNT And UPS in the HACTL also has a dedicated operating area.
The maritime transport industry is very important to consolidate the position of the Hong Kong International Trade Center. Hong Kong is a natural port and has a good location. In 2011, Hong Kong is the third largest container port in the world.
Hong Kong’s container terminal is located in Kwai Chung-Tsing Yi Harbor, with a total of 9 berths and 24 berths. In 2011, Hong Kong handled 24.4 million TEU, of which 71.4% was handled by Kwai Tsing Container Terminal. The operation rights of the Hong Kong wharf are obtained by the private enterprises through public bidding. The private enterprises are very important to the planning and management of the freight stations. In order to improve the efficiency and smoothness of the operation, the companies have invested heavily in the improvement of the terminal. The various hardware and software facilities to meet and attract international logistics companies. Each terminal company fully uses the self-management way 24 hours a day operation, and each with the shipping company computer connection for the import and export of goods and re-export business. Advanced port facilities and efficient port services, so that the Hong Kong terminal has become the choice of many international logistics shipping companies.
Customs procedures are simple and convenient
Hong Kong does not have any tariff or surtax or any VAT or general service fee for general merchandise for import and export. But alcohol, tobacco, hydrocarbon oil and methanol and other four types of goods, whether imported or locally produced, are subject to the consumption tax, are imported, to receive import tariffs.
Only a small amount of trade control in Hong Kong is for the purpose of fulfilling international obligations and safeguarding the necessities of life of local residents. Import and export licenses for goods, strategic supplies, taxable goods and restricted goods, as well as imports or exports to certain countries, which are hazardous to public health or safety, such as rice imports are approved by the government; Import and export licenses and so on. The above items are required to apply for a permit, transhipment and transit to the Trade and Industry Department.
Hong Kong’s import and export trade procedures are very simple, generally as long as the goods within 14 days of import and export declaration, to the Customs and Excise Department to submit a correct and complete import or export declaration form, without prior approval. The import and export declarations are mainly used by the Census and Statistics Department to compile trade statistics. Trade statistics, in addition to providing detailed trade information on goods, can also show Hong Kong’s trade status, thus providing the basis for some major economic decisions.
The Customs and Excise Department has the right to inspect the exported goods. Customs has a customs clearance procedure for the import, export or re-export of goods. The main purpose of the goods clearance: First, to prevent drug trafficking and arrest without permission to import embargoed goods, such as pirated goods, dangerous drugs, etc .; Second, to ensure that import and export goods are in line with the visa and other relevant provisions.
Customs through the pre-document review, such as the audit manifest, the implementation of the control of imported goods. Inspection of imported goods in a sampling manner, the warehouse receipts, the selected goods by the Customs and Excise Department notified the shipping company to park the ship at the designated terminal, detained by the Customs and Excise Department, and by the customs officers for cargo inspection.
Capital out of freedom
Hong Kong’s foreign exchange market has become a fully liberal free foreign exchange market after the withdrawal of foreign exchange control in 1973. Hong Kong’s foreign exchange market is closely linked to overseas foreign exchange markets, and Hong Kong investors can trade in foreign markets 24 hours a day in markets around the world.
If a Chinese mainland enterprises handle offshore accounts, you can get a lot of benefits, first of all, from the offshore account on the free transfer of funds, not by the Mainland Banking Regulatory Bureau and the management of foreign exchange. Assuming that your offshore company’s account has foreign currency, when you pay to the trading partner, the funds can be transferred directly from the offshore company’s foreign currency account, without the need to use RMB at the central parity purchase.
Since 2004, Hong Kong has launched the RMB offshore business. In 2009, it launched the pilot project of RMB settlement for cross-border trade and expanded its business scope. Hong Kong’s Hong Kong Monetary Authority (HKMA) data show that the renminbi trade settlement transactions handled by Hong Kong banks in 2012 increased by about 30% to more than 2.6 trillion yuan. Hong Kong has the largest offshore renminbi pool in Hong Kong.
In July 2009, after conducting the RMB settlement pilot business for cross-border trade, Hong Kong could provide trade financing to overseas enterprises engaged in renminbi trade settlement of Mainland enterprises. The financing amount should be limited to the real amount of the relevant trade transactions and must be paid directly to the Mainland enterprise.
The Hong Kong government has also set up an efficient foreign exchange trading platform. In the annual report of 2012, the Hong Kong Monetary Authority (HKMA) introduced a mechanism for the simultaneous settlement of foreign exchange transactions in Hong Kong. It was a mechanism to ensure that the two currencies were completed at the same time. In the Hong Kong, Hong Kong dollar, US dollar, euro and RMB RTGS (Real Time Gross Settlement) system, six cross-currency foreign exchange transactions have been established. The foreign exchange transaction synchronization mechanism greatly improves the efficiency of settlement and eliminates the risk of settlement due to the time difference between delivery and different time zones.
Complete legal system
Hong Kong has a policy of full liberalization of normal industrial and commercial investment in the world. The investment has not been limited by industry restrictions and mode of operation due to country differences. Belong to the normal industrial and commercial activities within the scope of land transactions, foreign companies equity acquisition, merger, transfer, employment, investment, etc., are with the local company to take policy policy. Commodity trading and labor to pay the price is basically to maintain a full free competition. Foreign companies and local companies, government agencies and private companies to compete on an equal footing.
Registered companies in Hong Kong are simple and time-consuming. Generally speaking, Applicants may obtain a company registration certificate within 6 working days. Overseas companies will set up a business hall in Hong Kong to obtain a company registration certificate on 29 working days The Hong Kong Trade Development Bureau economist Zhao Yongji in an interview with reporters, “in the Mainland to set up a company, you have to pass the Trade and Industry Bureau, Customs, Taxation Bureau and many other organs in Hong Kong, you use one to two days to set up, And the fee is very low. ”
“Quickly a few hours just fine, there are some specialized lawyers, accountants, you can help the procedures to run well, the name also has, as long as you change the name, you become a shareholder. This procedure quickly. The minimum registered capital Is a Hong Kong, so many people in the morning to Hong Kong in the afternoon to open a company. “Zhao Yongji said.
Hong Kong also provides a firm and impartial legal system for enterprises to improve their property rights system, protect private property rights, judicial and legislative system, accounting review system, credit system and information disclosure system is sound. Commercial disputes can be resolved outside the court, using other methods, common methods are negotiated by both parties, mediation by a third party and arbitration. In Hong Kong, arbitration is a common way to solve commercial disputes. Such proceedings are carried out by one or more arbitrators, and the decisions made are final and binding on both parties to the dispute, and only in exceptional circumstances. The arbitration procedure applies to the Arbitration Ordinance, which contains two distinct systems, namely, the local system and the international system.
In May this year, the International Chamber of Commerce (ICC) Anti-Counterfeiting and Piracy Business Operation (BASCAP) issued a report calling for the prevention of unfair trade in the free trade zone and the protection of intellectual property rights.
How to attract financial talent
Since the 1980s, Hong Kong has experienced economic transformation and manufacturing northward, resulting in traditional industries, low education level population surplus, high-end talent supply is relatively inadequate. While Hong Kong’s university admission rate is very low, only 18% of the students admitted to public universities.
However, Hong Kong’s financial and trade talent, to Chartered Financial Analyst (CFA), for example, as of the end of June 2011, Hong Kong has more than 4,000 franchise financial analysts. Hong Kong Institute of Financial Analysts is the “Chartered Financial Analysts Association” Asia’s largest and the world’s fourth largest society. In mid-2011, Hong Kong has 4270 registered financial planners, that is, every 10,000 people have six registered financial planners, the highest proportion in the world.
At present, Hong Kong and the world more than 170 countries and regions have “visa-free” arrangements, travel convenience, coupled with low tax rates, pay relatively generous. In recent years, more and more global financial professionals, especially those with Mainland background, have chosen to join the financial sector in Hong Kong. Some have become executives in Hong Kong’s financial sector, such as the Chief Executive of the Hong Kong Stock Exchange, Asian Investment Bank Vice Chairman Fang Fang.