2010 scorp p. 1 2010 annual survey of companies in hong kong representing parent companies located...
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2010 SCoRPP. 1
2010 Annual Survey of Companies in Hong Kong
Representing Parent Companies
Located outside Hong Kong
政 府 統 計 處Census and Statistics Department
2010 SCoRPP. 2
(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
Survey Objectives
2010 SCoRPP. 3
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 of investors
Survey Coverage
2010 SCoRPP. 4
Survey Coverage
• RHQs + ROs + LOs ≠
Total no. of companies in HK with investment from outside Hong Kong
2010 SCoRPP. 5
Survey Targets
Parent companies located outside HK
Companies in HK representing parent companies located outside HK
>
( > 6 561) ( 6 561)
2010 SCoRPP. 6
First working day in June
Survey Reference Date
1 June 2010
2010 SCoRPP. 7
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?
Non-RHQ/RO/
LO
No
Yes Geographical responsi
bility?
LO
HK only
RHQ
Yes
In the region
Any managerial control over offices in the
region?
RO
(i.e. only coordinates offices and/or operations in the region)
No
2010 SCoRPP. 8
6 397
1 252
2 3282 817
1 285
2 353
6 561
2 923
1 000
2 000
3 000
4 000
5 000
6 000
7 000
RHQs ROs LOs RHQs+ROs+LOs
20092010
No. of RHQs, ROs and LOs in HK Representing Parent Companies Located Outside HK
No.
of
Com
pan
ies
2010 SCoRPP. 9
100
200
300
400
500
600
700
USA Japan MainlandChina
UK
RHQ
RO
LO
0
1139%
998%
22417%
28822%
Country/Territory where Parent Company was located
No.
of
com
pan
ies
1987%
52818%456
16%44615%
Note: The top 4 countries/territories shown in terms of total no. of RHQs, ROs and LOs.
1948%162
7%
40517%
52922%
2010 SCoRPP. 10
500
1 000
1 500
2 000
2 500
MainlandChina
Taiwan Singapore Korea Japan
RHQ
RO
0
54323%
53723%
68729%
74632%
1 88180%
30023%
30624%
41732%
40932%
1 10286%
Geographical Responsibility of RHQs and ROs
in the Region (other than HK)
No.
of
com
pan
ies
Note: The top 5 countries/territories shown in terms of total no. of RHQs and ROs having responsibility for the business/operations there.
2010 SCoRPP. 11
250
500
750
1 000
1 250
1 500
RHQ
RO
LO
0IE trade, wholesale
and retailProfessional,business and
educationservices
Financingand banking
ManufacturingTransportation,storage and
courier services
13511%
13210%
62449%
21116%
665%
1938%
1 18650%
42818%
25711%
753%
2729%
1 08837%
48216%
62221%
863%
Major Line of Business of RHQs, ROs and LOs
Note: The top 5 major lines of business shown in terms of total no. of RHQs, ROs and LOs engaged in the lines of business concerned.
No.
of
com
pan
ies
2010 SCoRPP. 12
250
500
750
1 000
1 250
1 500
RHQ
RO
LO
0IE trade,
wholesale andretail
Manufacturing Financingand banking
Transportation,storage and courier
services
Professional,business and
educationservices
17213%
12810%
45435%
44935%
13310%
1757%
30413%
87437%
84036%
2219%
28910%
81328%
78327% 667
23%
2639%
Major Line of Business of Parent Companies
No.
of
com
pan
ies
Note: The top 5 major lines of business shown in terms of total no. of RHQs, ROs and LOs with parent company engaged in the lines of business concerned.
2010 SCoRPP. 13
Views on Importance of Factors for Choosing a Location for Setting up
RHQs/ROs and LOs
*In descending order of importance
RHQs/ROs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption-free government
4. Absence of exchange controls5. Political stability and security
LOs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption-free government
4. Absence of exchange controls
5. Political stability and security
2010 SCoRPP. 14
Views on Importance of Factors for Choosing a Location for Setting up
RHQs/ROs and LOs
*In descending order of importance
RHQs/ROs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption-free government
Amongst the top three since 2004
LOs*
1. Simple tax system and low tax rate2. Free flow of information
3. Corruption-free government
2010 SCoRPP. 15
FactorFavourable Unfavourab
le
Views on Favourable Factors for HK as a Location for Setting up RHQs/ROs
• Simple tax system and low tax rate• Free flow of information
• Corruption-free government• Absence of exchange controls
73%72%69%69%
1%
<0.5%<0.5%1%
• Communication, transport and other infrastructure
67%
1%
• Free port status 66%
1%• Geographical location 64
%1%
2010 SCoRPP. 16
FactorFavourable Unfavourab
le
Views on Unfavourable Factors for HKas a Location for Setting up RHQs/ROs
• Availability and cost of residential accommodation
• Availability and cost of business accommodation
13%
18%
36%
33%
2010 SCoRPP. 17
FactorFavourable Unfavourab
le
Views on Favourable Factors for HK as a Location for Setting up LOs
• Simple tax system and low tax rate• Free flow of information
• Corruption-free government• Absence of exchange controls
• Communication, transport and other infrastructure
72%70%68%67%
66%
1%
<0.5%1%
1%
1%
• Free port status 64%
1%
2010 SCoRPP. 18
FactorFavourable Unfavourab
le
Views on Unfavourable Factors for HKas a Location for Setting up LOs
• Availability and cost of residential accommodation
• Availability and cost of business accommodation
14%
18%
33%
32%
2010 SCoRPP. 19
Views on Overall Business Environment in HK
as a Location for Setting up RHQs/ROs and LOs
Deteriorated 12%
No comment 11%
Improved 13%
Same 64%
Deteriorated 13%
No comment 11%
Improved 13%
Same 64%
RHQs/ROs LOs
Comparing June 2010 with June 2009
Note: Percentages of components may not add up to 100 owing to rounding.
2010 SCoRPP. 20
Views on Effect of CEPA Implemented since January 2004 on RHQs/ROs and LOs
Very much beneficial
2%
Negatively affected
1%
To some extent
beneficial23%
Not affected
63% No comment
11%
RHQs/ROs LOsVery much beneficial
2%
Negatively affected
1%
To some extent
beneficial22%
Not affected
65% No comment
11%
Note: Percentages of components may not add up to 100 owing to rounding.
2010 SCoRPP. 21
Effect
Setting up new
business expansion
plans
Advancing business
expansion plans
No comment
11%
No79%
Yes10%
Views on Effect of CEPA on Investment Activities of RHQs/ROs and LOs
Whether investment activities affected ?
No comment
11%
Yes8%
No81%
RHQs/ROs LOs