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2008 Annual Survey of Companies in Hong Kong Representing Parent Companies

2008 Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong. Survey Objectives. (i) To enumerate number of RHQs, ROs and LOs in HK representing parent companies located outside HK (ii) T o obtain basic information of these companies

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2008 Annual Survey of Companies in Hong Kong Representing Parent Companies

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  1. 2008 Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong 2008 SCoRP

  2. Survey Objectives (i) To enumerate number of RHQs, ROs and LOs in HK representing parent companies located outside HK (ii) To obtain basic information of these companies (iii) To seek their views on HK as a location for setting up RHQs/ROs and LOs 2008 SCoRP

  3. Survey Coverage Covers companies in HK taking charge of business/operations in HK or in the region on behalf of parent companies located outside HK Does not cover companies in HK which are funded by investment from outside HK and manage the business in HK or in the region independently but not on behalf ofinvestors 2008 SCoRP

  4. Survey Coverage • RHQs + ROs + LOs ≠ Total no. of companies in HK with investment from outside Hong Kong 2008 SCoRP

  5. Survey Targets   Companies in HK representing parent companies located outside HK Parent companies located outside HK > ( > 6612 ) ( 6612) 2008 SCoRP

  6. Survey Reference Date • First working day in June • 2 June 2008 2008 SCoRP

  7. Geographical responsibility? Any managerial control over offices in the region? In the region Yes No (i.e. only coordinates offices and/or operations in the region) No HK only Yes Non-RHQ/RO/LO LO RHQ RO How is a company classified as an RHQ, RO or LO? Taking charge of business/operations on behalf of its parent company located outside HK? 2008 SCoRP

  8. Country/Territory of Location of Parent Companies No. of companies Note : Top 4 countries/territories listed in terms of total no. of RHQs, ROs and LOs. 2008 SCoRP

  9. Geographical Responsibility of RHQs and ROs in the Region (other than HK) No. of companies Note : Top 5 countries/territories listed in terms of total no. of RHQs and ROs having responsibility for the operation /business there. 2008 SCoRP

  10. Major Line of Business of RHQs, ROs and LOs No. of companies Note : Top 5 lines of business listed in terms of total no. of RHQs, ROs and LOs engaged in the lines of business concerned. 2008 SCoRP

  11. No. of companies Major Line of Business of Parent Companies No. of companies Note : Top 5 lines of business listed in terms of total no. of RHQs, ROs and LOs with parent company engaged in the lines of business concerned. 2008 SCoRP

  12. Views on Importance of Factors for Choosing Location for Setting up RHQs/ROs and LOs RHQs/ROs* LOs* 1.Simple tax system and low tax rate 1. Simple tax system and low tax rate 2.Free flow of information 2. Free flow of information 3.Corruption free government 3. Corruption free government 4. Political stability and security 4. Political stability and security 5. Absence of exchange controls 5. Absence of exchange controls *In descending order of importance 2008 SCoRP

  13. Views on Importance of Factors for Choosing Location for Setting up RHQs/ROs and LOs RHQs/ROs* LOs* 1. Simple tax system and low tax rate 1. Simple tax system and low tax rate 2. Free flow of information 2. Free flow of information 3. Corruption free government 3. Corruption free government Amongst the top three since 2004 *In descending order of importance 2008 SCoRP

  14. Views on Favourable Factors for HK as a Location for Setting up RHQs/ROs 71% <0.5% • Simple tax system and low tax rate • Free flow of information 69% <0.5% • Absence of exchange controls 68% 1% • Corruption free government 67% 1% • Political stability and security 65% 1% • Communication, transport and other infrastructure 65% 1% 65% 1% • Free port status 2008 SCoRP

  15. Views on Unfavourable Factors for HK as a Location for Setting up RHQs/ROs • Availability and cost of residential accommodation 14% 34% • Availability and cost of business accommodation 18% 32% 2008 SCoRP

  16. Views on Favourable Factors for HK as a Location for Setting up LOs • Simple tax system and low tax rate 68% 1% • Free flow of information 64% 1% • Corruption free government 63% 1% • Absence of exchange controls 63% 1% • Communication, transport and other infrastructure 61% 1% 2008 SCoRP

  17. Views on Unfavourable Factors for HK as a Location for Setting up LOs • Availability and cost of residential accommodation 13% 33% • Availability and cost of business accommodation 17% 31% 2008 SCoRP

  18. Deteriorated 15% Same58% Improved 15% No comment 12% Views on Overall Business Environment in HKas a Location for Setting up RHQs/ROs and LOs Comparing June 2008 with June 2007 RHQs/ROs LOs Deteriorated 15% Same57% Improved 14% No comment 14% 2008 SCoRP

  19. Very much beneficial2% Very much beneficial2% To some extent beneficial26% To some extent beneficial24% Not affected58% Not affected59% No comment14% No comment12% Negatively affected1% Negatively affected1% Views on Effect of CEPA Implemented since January 2004 on RHQs/ROs and LOs RHQs/ROs LOs 2008 SCoRP

  20. No comment 15% No comment 12% Yes8% Yes10% No78% No78% Views on Effect of CEPA on Investment Activities of RHQs/ROs and LOs Whether investment activities affected ? RHQs/ROs LOs Effect Setting up new business expansion plans Advancing business expansion plans 2008 SCoRP

  21. 2008 Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong 2008 SCoRP

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