Hong Kong attracts biotech companies and tech startups to raise funds
“I invite Indian startups and biotech companies to explore Hong Kong as a promising destination to raise capital, commercialise intellectual property and expand business overseas. Hong Kong has two major incubators, viz. Hong Kong Science Park and Cyberport which have funding and mentorship programs for startups. Five of the top 100 global universities are located in Hong Kong and the government offers funding for local universities to partner with foreign counterparts in joint research and development projects. Since 2018, Hong Kong allows foreign biotech companies to raise capital through IPO and list on its stock exchange despite having zero revenue in the last five years. Already, 40 biotech companies have listed in Hong Kong. This offers huge opportunity for biotech companies and medtech companies in India to raise global capital by listing in Hong Kong stock exchange,” said Ms. Vian Cheung, Director, Thailand and South Asia, HKTDC at an interactive meeting at WTC Mumbai. The event was organised jointly by World Trade Center Mumbai and All India Association of Industries (AIAI). Hong Kong Trade Development Council (HKTDC)was set up in 1966 as a not-for-profit organisation to promote global trade through Hong Kong and it has 50 offices worldwide.
Ms. Cheung pointed out that Indian medical device companies can use the trading platform of HKTDC for exhibition for promoting their products and sourcing inputs. Hong Kong can also be a gateway for testing of medical devices and equipments manufactured by Indian companies across hospitals in China.
Highlighting the advantages of Hong Kong as a gateway to global market, Ms. Cheung remarked, “Hong Kong has zero import duty and value added tax. It has low corporate tax rate of 16.5%; the country allows 100% foreign direct investment in most sectors and it is easy to set up a company as the process is completely digital. Hong Kong has the world’s third leading centre for Arbitration and Mediation. Indian companies can benefit from Double Taxation Avoidance Agreement (DTAA) with Hong Kong. Hong Kong is home to 70 of the 100 top global banks and there are 9,000 foreign companies in the city state. Hong Kong has excellent air connectivity as most of the Asia Pacific countries can be reached in five hours by flight.”
Ms. Cheung invited Indian companies to explore Hong Kong as an entry point to global market. She informed, “Hong Kong has excellent logistics and supply chain infrastructure. It has the world’s busiest air cargo hub and one of the busiest seaports in the world. Hong Kong has duty free market access to ASEAN and China under different trade agreements. Indian manufacturers and e-commerce companies can export goods via Hong Kong by setting up warehousing facility here. Hong Kong is the 10th largest goods exporter in the world and it is the 9th largest trade partner of India.”
Ms. Cheung further pointed out that Hong Kong is also the world’s leading financial center. Around 96% of renminbi offshore trading happens in Hong Kong. Indian companies can raise green bonds for sustainability projects; Also, Hong Kong government provides funding for green technologies to registered companies.
In his remarks, Mr. Rajesh Bhagat, Consultant South Asia, HKTDC invited Indian companies to participate and benefit from the 35 trade shows conducted by the organisation annually. He said, “We conduct 35 trade shows, across lighting, electronics, houseware, entertainment and other sectors, which attract 8,800 exhibitors from across the globe. Indian companies can also participate in our Buying Missions and our online platform Click2Match, which connects buyers and sellers through Artificial Intelliegnce. Indian companies can also benefit from our online sourcing platform, which generates 24 million enquires and has matched 2 million buyers.
Mr. Bhagat invited Indian fintech startups to participate in the Asian Financial Forum, the largest international forum that attracts 3,600 delegates from 50 countries that matches investors, private equity and venture capital firms with project owners. He said, “For those approved nominated startup’s, HKTDC would reimburse the participation fee in this forum to grow their business overseas. We are also in discussion with Maharashtra State Innovation Society for fruitful collaboration to support startup ecosystem in India.”
He also invited Indian medtech, biotech, healthcare & pharma companies to participate in the Medtech & Healthcare Fair and also in the Asia Summit on Global Health, which facilitates one-to-one business matchmaking for delegates.
Mr. Bhagat also suggested Indian companies and startups to commercialise their intellectual properties through the Asia IP Exchange Platform, which brings together IP owners, investors, IP service providers and other companies.
Earlier in his welcome remarks, Dr. Vijay Kalantri, Chairman, WTC Mumbai and President, All India Association of Industries (AIAI) mentioned, “India has strong economic relations with Hong Kong ever since it was a British colony. It is home to more than 40,000 Indians and 2 lakh Indians visit Hong Kong annually for business and tourism. There is huge potential to grow bilateral trade, which stands at USD 28 billion now. Especially, there is scope for partnership in IT, science & technology, financial services, tourism and other service sectors.”
Dr. Kalantri informed that in the past, WTC Mumbai and AIAI worked jointly with HKTDC in facilitating participation of Indian companies in their trade shows.
Dr. Kalantri assured that WTC Mumbai and AIAI will continue to work with HKTDC in focus sectors such as manufacturing and services to deepen bilateral trade and investment relations.
Ms. Rupa Naik, Executive Director, WTC Mumbai proposed vote of thanks for the event. Ms. Naik mentioned, “Hong Kong is a promising gateway for Indian companies as it can be reached in 5 hours by flight from most Asian countries. It is not just a global financial hub. It is also a vibrant destination to do business. Indian MSMEs can learn a lot by participating in the trade shows of HKTDC and networking with delegates from across the world.”
Ms. Vian Cheung, Director, Thailand and South Asia, HKTDC (3rd from left) felicitating Dr. Vijay Kalantri, Chairman, WTC Mumbai and President, All India Association of Industries (AIAI). Also seen in the photograph are (from left to right) Mr. Rajesh Bhagat, Consultant South Asia, HKTDC and Ms. Rupa Naik, Executive Director, WTC Mumbai
Mr. Rajesh Bhagat, Consultant South Asia, HKTDC (left) felicitating Ms. Rupa Naik, Executive Director, WTC Mumbai (right). Also seen in the photograph are (from left to right): Dr. Vijay Kalantri, Chairman, WTC Mumbai and President, All India Association of Industries (AIAI) and Ms. Vian Cheung, Director, Thailand and South Asia, HKTDC
