What%20are%20the%20opportunities%20and%20potentials%20for%20HK%20businesses%20in%20the%20mainland?

1
What are the opportunities and potentials for HK
businesses in the mainland?
2
The economic growth in China

• Continuous growth in real GDP
• Also, there is an obvious growth in GDP per
  capita ?Increasing in purchasing power
• Enlarging the potential market in China

3
Chinas Average Annual Real GDP Growth Rate
Year GDP growth rate
2004 10.1
2005 9.9
2006 9.5
2007(forecast) About 9.25
4
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5
Globalization

• becoming a single-world society
• Stages of production finished in different
  countries
• Customers are no longer concern about the origin
  of products (low regional preference)
• Minimizing the possible risks
• Reinforcing global development

6
The development of e-commerce

• General use of computer and internet
• People do business through internet (e.g. e-mail,
  e-conference )
• Easy to manage business and operations oversea
• Cross broad business become possible

7
The development of e-commerce (continued)

• E-commerce is well-developed in HK
• Possess the necessary skills and talents
• A potential to enlarging the business in China

8
Information Technology (Example)

• one of the focus for HK firms
• - Telecom market
• - e-commerce
• - and software industries

9
What are the strengths and weaknesses of HK
businesses vis-a-vis mainland firms and
multinationals?
10
Strengths

• Developed a good image in China
• High quality products and services
• Good infrastructure and business system
• Adequate talents and business experience
• Similar culture and language with China
• Market sensitive
• CEPAzero tariff

11
Weaknesses

• Less innovative ideas
• Not enough famous and local brands
• High costs
• Lack high-tech professionals