Hong Kong A meeting of capitalism and communism
The Basics • Special Administrative Region (SAR) • Approx. 1100 sq km, divided into 4 regions • Population of ~7M, 98% Chinese • Officially bilingual: Cantonese and English • Principal religions are Taoism & Buddhism • Currency is the HK$, pegged to US$ at a rate of 7.80 to 1
History • First settled 6,000 yrs ago by fishermen and farmers • 1500 yrs of ruling dynasties, governed by magistrate • Many races: Cantonese, Hakka from the North, and Tankas who lived on the water in boats • Villages clan based, self-contained and fortified • Eventually, trade is established with Western civilizations through small outposts on fringes of Chinese empire • Opium trade developed to address trade imbalance • Chinese attempt to abolish this trade, and British take HK Island in 1st Opium War • Kowloon and Stonecutter Islands ceded to British in 2nd Opium War,1856
History, cont. • British acquire northern area of Kowloon peninsula, or Northern Territories, through China’s loss in Sino-Japanese War, 1898 • Turn of 20th century, improvements in manufacturing • Japanese occupation 1941-45 • 1950, Communists come to power causing traders and businessmen to flee to HK, creating industrial centre • HK returned to China in 1997 with same legal and capitalistic system for next 50 yrs • Exodus of educated professionals, collapse in tourism, loss of int’l business confidence
A Mixture of Architectural Styles • Skyscrapers of Central district, ramshackle town housing, and centuries old Chinese temples • Design guided by the principles of FengShui • Literally “wind & water,” reflects Taoist beliefs in interconnectedness of all parts of the universe • Seeks harmonious relationship between natural forces and peoples’ living environments • Examples are mirrors above doors and woks placed outside windows • Technical term is “geomancy”
Hong Kong Island • HK’s economic heart, home to towering skyscrapers and Central, the business district of HK • Traditional China nearby in areas of Sheung Wan, Hollywood Rd, and Kennedytown • Herbalists, raucous mkts, smoky temples, calligraphy stalls in cramped alleys largely unchanged since colonial times • Victoria Peak, 550m by tram or foot • East of Central: Wan Chai and Causeway districts • Shops, restaurants, bars, and nightlife • South of Central: bays and beaches • Aberdeen’s floating restaurants, Stanley Mkt, Shek O beach
Hong Kong Island, cont. • The place for reasonably priced food and nightlife is the Lan Kwai Fong neiborhood • Victoria Park weekday mornings to see “slow motion forest of tai chi practitioners” • Zoo-like 4 story Central Market selling everything from quails to eels • Macau side-trip • Portuguese colonial architecture, relaxed atmosphere, casinos, islands of Taipa and Coloane
Kowloon • Home to Tsim Sha Tsui shopping centres • Nathan Road and The Golden Mile • Find anything, stolen or traded • More North, less Western and more authentic • Noisy residential and shopping areas of Yau Ma Tei and Mongkok (one of the worlds most densely populated areas) • Yuen Pro Street Bird Mkt, Flower Mkt, Jade Mkt, and the Temple Street Night Mkt
Outlying Islands • 234, but only 4 have significant populations • ~90% of Hong Kong land mass • Less than 1 hr ferry ride from Central • Isolated temples, traditional villages, colonial forts, and ornamental gardens • Lamma - renowned fresh seafood restaurants • Lantau - white sand beaches • Cheung Chau - fishing villages and remote beaches • Peng Chau – smallest and most traditional, narrow alleys and open-air meat and vegetable markets
New Territories • Mainland between Kowloon and Chinese border • Best insight into the real HK, with traditional rural life, but in transition • Exemplified in towns like Shatin, Tsuen Wan, Tuen Mun, Yuen Long • Sai Kung Peninsula: country parks, islands, beaches and bays • Walled villages of Kam Tin area • Shui Tau, 17th century, prow shaped roofs decorated with dragons and fish
Shopping! • Tax free zone except for alcohol, tobacco, perfume, cosmetics, and cars • HKTB’s Guide to Quality Merchants and Official Shopping Guide • Most shops open 7 days/wk, street markets open late • Bargaining is expected, but not in larger stores • Antiques – Hollywood Rd area • Porcelain – traditional export of HK for 100’s of yrs • Clothes – Best buy in HK, Granville Rd, Austin Ave • Computers & electronics – big discount on older gear • Jewelry – low prices as stones imported w/out duty
Nightlife • bc magazine and HK magazine for updates & reviews • Newer, trendier bars in Central • Lan Kwai Fong and Wan Chai areas open till breakfast • Many open around the clock, most have no closing time • San Miguel is HK brew, also Tsingtao from China and countless imports • Expensive to drink - $US 5-8 / drink
Eating • HK Chinese live to eat, one of world’s widest selection of cuisines, excellent Indian and Pakistani • Keep an open mind, some of the best food is in the most unlikely looking places • Dai pai dongs, or street vendors • serve dumplings, noodle soup, intestines, and fish • Fresh food cooked in front of you • Dim Sum served for breakfast and lunch • Steamed or braised dumplings served in bamboo baskets, • all varieties, stuff yourself for $HK 100 • Cantonese, Chiu Chow, Beijing (Peking), Hakka, Szechuan, Shanghai • Fill others first, no chopsticks in rice, clean bowls
GDP Growth in Hong Kong-- Recovering from Asian financial Crisis of 1997
Industry and Trade in HK • Main industry: Financial, sightseeing, real estate, electronics, Fiber etc • Major Trade Partners: Export: China, USA, Japan Import: China, Japan, Taiwan • Constitute a big industrial area with neighboring big cities such as Guangzhou (Canton). This area produces the largest number of PCs in the world.
(Appendix)Big Industrial Areas in China • Beijing/Tianjin: R&D of IT industry (software) • Shanghai: Center of banking and commerce High-end manufacturing (Celphone,Semiconductor etc) • Guangzhou (Canton)/Hong Kong: Produces the largest number of PCs in the world. Many parts companies are available.
Hong Kong as a gate city to mainland China • Many international firms had established Hong Kong offices as a base for mainland China. • But recently many firms moved their Asian HQ from Hong Kong to Shanghai to get better relationship with Chinese Government. ex) HSBC --- Government is in Beijing. But most of the influential person of the Government is from Shanghai. • Can Hong Kong continue to attract international firms?
Company Visit (1)JP Morgan (2) Hong Kong University of Science and Technology (HKUST)
The new JP Morgan Chase • Created on July, 2004 by the merger between J.P. Morgan Chase(No.2 in USA) and Bank One(No.6 in USA). • The world’s second-largest financial organization next to Citi Bank • Serves more than 30 million individual, corporate, institutional and government clients • Headquartered in New York • employs about 110,400 people. • Assets: $1.1 trillion and operations in more than 50 countries • Revenues: $44,363 million (FY2003)
Major lines of business • Asset & Wealth Management • Card Services • Commercial Banking • Investment Banking • Retail Financial Services • Treasury & Securities Services
History of JP Morgan(1) • Began in 1838 in London, UK. • Adopted its current name in 1861. • Expanded its business internationally, and by 1895 had operations in New York, Philadelphia, London, and Paris. • In response to the US banking act of 1933, which separated commercial, and investment banking, the company decided to concentrate on its commercial banking activities. Some partners left and formed Morgan Stanley.
History of JP Morgan(2) • Merger of JP Morgan and Chase Manhattan in 2001 created a company strong both in investment banking and commercial banking. • In 2001 Badly affected by the Enron collapse, writing off $451 million of its Enron exposure in the last quarter of the year. • Merger between J.P. Morgan Chase(No.2 in USA) and Bank One(No.6 in USA) on July, 2004 created the current JP Morgan.
JP Morgan in Hong Kong • One of the key offices in Asia/pacific Region (Revenue by region) FY2004 FY2003 FY2002 Americas $ 6,870 $ 7,250 $ 6,360 Europe/Middle East/Africa 4,082 4,331 3,215 Asia/Pacific 1,653 1,103 1,107
Hong Kong University of Science and Technology (HKUST) Founded to propel Hong Kong towards a knowledge- based economy, and provide the entrepreneurs and innovative ideas; the scientists and groundbreaking research; the engineers, global business managers and other leaders necessary. Admitted its 1st students on October 1991.