FINTECH EDITION ISSUE 191 | 2017
The Australian Chamber of Commerce Hong Kong and Macau 香港及澳門澳洲商會
Asia’s Digital Transformation Gathers Speed With Global Demand for FinTech
Feature interview Hong Kong FinTech Hub Focuses on Innovation and CBA Customer Service
Hong Kong Focus How Hong Kong’s FinTech Sector is Developing P.10
Special Feature Rugby Sevens Lunch 2017 www.austcham.com.hk
austcham news issue 191 03 Chamber Chatter 05 Events Update
Published By: The Australian Chamber of Commerce in Hong Kong and Macau Room 301-302, 3/F, Lucky Building 39 Wellington Street, Central, Hong Kong Tel: +852 2522 5054 Email: email@example.com
21 June - AustCham 30th Anniversary Cocktail
06 Cover Story Asia’s Digital Transformation Gathers Speed With Global Demand for FinTech
Editorial Committee: Drew Waters Karen Wu
08 Feature Interview Hong Kong FinTech Hub Focuses on Innovation and
Advertising: Karen Wu Email: firstname.lastname@example.org
CBA Customer Service
10 Hong Kong Focus 12 Special Feature - Rugby Sevens Lunch 2017
CONNEC T • ENGAGE • REPRESENT
15 Committee Comment
The Australian Chamber of Commerce in Hong Kong and Macau has more than 1,500 members from some 500 companies doing business here. It’s the largest Australian business grouping outside the country and the second largest of 28 International Chambers of Commerce in Hong Kong. The AustCham mission is: To promote & represent Australian business & values while enabling members to connect, engage & grow bilateral relationships.
16 Spotlight 18 ANZAC Day
19 Membership eCard Benefit
20 Committees in Action
22 Corporate Profile
23 On The Scene
Mount Kelly School Hong Kong
23 Book Review
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The views expressed in this publication are not necessarily those of the Australian Chamber of Commerce in Hong Kong and Macau, its members or officers. The Australian Chamber of Commerce in Hong Kong and Macau takes no responsibility for the contents of any article or advertisement, makes no representation as to its accuracy or completeness, and expressly disclaims and liability for any loss however arising from or in reliance upon the whole or any part of this publication. Copyright © 2017 The Australian Chamber of Commerce in Hong Kong and Macau
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Chairman's Column Australia presently has free trade agreements (FTAs) with several countries including, in Asia, the ChinaAustralia Free Trade Agreement, the Malaysia-Australia Free Trade Agreement, the Association of Southeast Asian Nations-Australia-New Zealand Free Trade Area, the Australia-Thailand Free Trade Agreement, the Singapore-Australia Free Trade Agreement and the Australia-New Zealand Closer Economic Agreement. However, it does not presently have a FTA with Hong Kong. This may change with an announcement this week (April 24) by the Minister for Trade, Tourism and Investment, The Honourable Steven Ciobo, that the Turnbull Government is taking the first steps toward a FTA with Hong Kong. Public submissions have been called for regarding the prospective FTA. AustCham intends making a submission. The Free Trade Agreements that are already in place in Asia make sense for Australia particularly when viewed through the lens of Australia’s desire to engage more closely with Asia and to be a key player in economic and political terms in the Asian Century. Establishing Free Trade Agreements is not a costless exercise, however, and the business case will need to be made to justify both to Australia and to Hong Kong that entering into a Free Trade Agreement is worthwhile in business and economic terms. This shouldn’t be too hard to do. Australia has important interests in Hong Kong and Hong Kong is Australia’s largest business base in East Asia. There is significant two-way trade in goods and services, and Hong Kong is also an important source of foreign investment for Australia. Many students from Hong Kong are enrolled in Australian educational institutions. Many tertiary courses are also offered by Australian institutions operating in Hong Kong. Some 100,000 or so Australians live in Hong Kong. The Australian Chamber of Commerce in Hong Kong and Macau is the second-largest foreign business chamber in Hong Kong, and the largest Australian Chamber of Commerce outside Australia. The Chamber, together with organisations such as the Australian Association of Hong Kong, the Australian Chinese Association, CPA Australia, Engineers Australia, the Australian International School, the Federation of Australian Alumni Associations and a large number of alumni groups, help in promoting business networks and in deepening ties between Hong Kong and Australia. Hong Kong’s economy is dominated by the services sector and Australian service providers are actively engaged in banking, transport and logistics, employment consultancies, engineering, construction, aviation, architecture, accountancy, legal services, insurance, tourism, and retailing. Strong people-to-people links, underpinned by an active dual-national community, tourists and students, continue to support and strengthen Australia’s economic and cultural links with Hong Kong. In sum, there is much to recommend an Australia-Hong Kong FTA. .......................... I hope that you will connect with the Chamber this month in some way, and that you will continue to share your views on how best the Chamber can serve you. Richard Petty email@example.com
issue 191 | austcham news
felt very privileged to be invited to present the award for Business Excellence for Agriculture, Food and Beverage to Evolution Health at last evenings glittering Australia-China Business Awards in Beijing. The long list of finalists was testament to the high caliber of contestants for this years awards, making the winners even more worthy of the rewards. Over 400 people attended the Gala Dinner at JW Marriott including diplomats and government officials from Australia and China, contributing to a lively and engaging event. Congratulations to all of the winners, and to Nick Coyle and his team at AustCham Beijing for producing such an event. Earlier this week, the Chamber teamed up with Austrade and DFAT as well as the Hong Kong General Chamber of Commerce, to present the announcement of Free Trade Agreement negotiations between Australia and Hong Kong. Minister for Trade, Investment and Tourism Hon Steven Ciobo, and Secretary for Development and Investment Hon. Gregory So provided a backdrop for the commencement of the process, addressing a broad range of issues and goals. A special thanks to the AustCham events team for bringing this together within a very short timeframe and with so many moving parts. A tribute to the close association with both the Australian and Hong Kong Governments the Chamber enjoys. As most of you are aware, the Chamber will be celebrating our 30th Anniversary shortly. You will have noticed the subtle change to our
silent auction for Hong Kong Rugby Sevens tickets as well as hospitality packages was held at the Rugby Sevens Lunch this year, aimed to raise donation for Australian Indigenous Education Foundation (AIEF), a non-profit organisation focused on empowering Indigenous children in financial need to build a brighter future for themselves and for the nation. AIEF is one of the three CSR partners that AustCham supports this year.
Community Corner 4 â€˘ austcham news | issue 191
Across My Desk logo, to be used throughout the year, and I hope you will convey this to members who may not have been aware. The kick-off for the celebrations will begin with a very special "Then and Now" Summer Cocktail event at the Grand Hyatt Pool House on 21st June. Interest has been high for this already, and I hope to see many of you there. If you have some historic photos or information, please let the Chamber team know, as I am keen to be very inclusive. A number of activities are scheduled over the year which we'll keep you informed of, so we have a very Happy Birthday, indeed. You will have received notification of the 21st June Extraordinary General Meeting by email over the past few days. I am very happy to say that our revised, modern, and compliant Articles of Association have been approved by the Companies Ordinance, and are ready to be adopted by member vote at the EGM. Please contact the Secretariat with any questions you may have, and I urge you to complete your proxy if you cannot attend the meeting. Lastly, and as many of you are already aware, July will see the end of my tenure with the Chamber, and I plan on seeing the Anniversary celebrations off to a great start. I will also be encouraging the initiatives in the planning stages from within the strong committee structure to continue into the year, providing valuable information to the wider membership. Thank you all for a great month, and I will see you at the Summer Cocktails. Drew Waters, Chief Executive
A Letter from Canberra Just as the internet revolutionised how the world communicates, FinTech is revolutionising how the financial sector does business. FinTech start-ups are challenging the way lending, investment, insurance, wealth and asset management, equity financing and banking institutions deliver their services. And if they're to remain competitive in a digital world, these institutions have to sit up and take notice. Australian FinTech is growing and exporting. FinTech industries include incubators, venture capital funds, personal and business finance, capital market technology, payments and wealth management providers, business enabling technologies, data analytics and crowdfunding platforms.
success relies on getting the regulatory and cyber security settings right. The Australian Senate Standing Committee on Economics recently released its Review of the Four Major Banks, which acknowledged the close interaction between FinTech and cyber security. With the right regulatory settings and cyber security, FinTech products and services will continue to grow, as more and more customers and businesses interact online. That's good for FinTech, good for business, good for exports and good for our personal, national and international security. Gai Brodtmann MP, Federal Member for Canberra and Co-Convenor of Parliamentary Hong Kong Friendship Group
It's a growth industry, but a growth industry whose
EVENTS UPDATE MAY AT A GLANCE… Wed, 31 May, 6:30pm – 8:30pm Women’s Technology and Business Program: Session 4 Internet of Things CBA Office, 13/F, One Exchange Square, 8 Connaught Place
JUNE AT A GLANCE…
Thur, 8 June, 6:00pm – 8:30pm Better Business Innovation Series: Innovation in Education - Developing our Future Workforce T.T. Tsui Building, HKU Campus, Bonham Road, Sai Ying Pun Wed, 21 June, 6:30pm – 9:00pm AustCham 30th Anniversary Cocktail The Poolhouse, Level 11, Grand Hyatt Hong Kong, 1 Harbour Road, Wanchai
Thur, 1 June, 6:30pm – 8:30pm Business Life Cycle Session 2: Idea to Reality: Go or No Go? Metta, 21/F California Tower, 30-32 D'Aguilar St, Central,
Thu, 22 June, 12:30pm – 2:00pm Return to Oz: Crucial investment tax planning for wealthy Australians who'll one day return home Suite 4606, Two Exchange Square, 8 Connaught Place, Central
Wed, 7 June, 8:00am – 9:30am Challenges and Opportunities for Hong Kong under the Competition Ordinance DEACONS, 14/F, Alexandra House, 18 Chater Road, Central
Wed, 28 June, 6:30pm – 9:00pm Investment A-Z: Women’s Investment Forum 27/F, Club Lusitano, 16 Ice House Street, Central
issue 191 | austcham news
Asia’s Digital Transformation Gathers Speed with Global Demand for Fintech - Ingrid Piper
he digital revolution transforming global financial business began slowly in Asia but has now turned into an avalanche of information and innovation, as fintech rapidly gains attention, speed and momentum. Fintech broadly refers to innovation in emerging financial services1 that aims to make retail banking and investment more efficient and streamline. Whether it’s B2B, B2C or directed at clients and consumers, fintech is reshaping the financial industry and in doing so, changing the way global business is conducted. Innovation on such a grand scale also creates new challenges for the financial sector. These include IT security and risks, lack of regulation, job losses and changing skills within a workforce. In general, companies continue to see their digital transformation as defensive, as a way to save money, rather than viewing this change as a tremendous opportunity to also create new business. Asia and the rest of the world As highlighted by The Economist Intelligence Unit’s Connecting Capabilities, The Asian Digital Transformation Index (ADTI) the region still trails behind western markets when it comes to digital transformation. Good digital infrastructure still gives Australia, the U.K. and U.S. the edge over Asian economies. The report commissioned by Telstra, assessed overall progress of digital transformation across manufacturing, financial services, media, healthcare, professional services and logistics. On April 18, 2017, Darrin Webb, Regional Managing Director NEA Telstra, briefed AustCham’s Women in Business Network’s Technology and Business program about the report’s findings across 11 regional economies including China, Hong Kong, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
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Singapore topped the overall Asian Digital Transformation Index score ahead of South Korea, and Japan with Hong Kong in fourth place, marginally ahead of Taiwan. Surprisingly China, with the world’s largest e-commerce market ranks seventh, followed by India in ninth place. Despite differences in economic development, one common issue Asian companies share with others worldwide is a workforce lacking in digital skills. Singapore vs Hong Kong When it comes to doing business in Asia, fintech is also having an impact on where businesses choose to base themselves. This is particularly important in light of the recent ADTI survey where 93 per cent of executives acknowledged that a country’s infrastructure is an important factor to take into account with their own digital transformation. Singapore outranks Hong Kong in digital infrastructure and industry connectivity, and with government support, tax benefits, regional access, regulation and a skilled workforce, it’s likely to maintain it’s lead ahead of Hong Kong. The difference between the two economies was dramatically highlighted last November when Singapore and Hong Kong held their first fintech conferences. More than 11,000 delegates attended Singapore’s event while numbers attending Hong Kong’s event was significantly lower.
“Singapore tops the overall Asian Digital Transformation Index score ahead of South Korea, Japan and Hong Kong”
“Whether it’s B2B, B2C or directed at clients and consumers, FinTech is reshaping the financial industry”
However, Hong Kong is making efforts to regaining some momentum. In September 2016, The Hong Kong Monetary Authority (HKMA) announced a collaboration with the Applied Science and Technology Research Institute (ASTRI) to create a fintech innovation hub. The hub aims to help the banking and payment industry conduct trials of products and services, as well as allowing regulators input during these trials. HKMA also launched a FinTech Supervisory Sandbox, permitting banks to trial new technologies, gather data and user feedback on pilot fintech projects without having to comply with HKMA’s usual requirements.
In response to global challenges, Australian banks, the Commonwealth Bank of Australia (CBA), ANZ, Westpac and National Australia Bank (NAB) have embrace the digital revolution with innovation laboratories and business partnerships. Last year, CBA established an innovation laboratory in Hong Kong, linked to similar hubs in London and Sydney. It’s also partnering to expand its reach, for example, a deal with Barclays united CommBank’s app with Barclays’ Pingit, as the first two global banks to link mobile payment platforms connecting Australia with the U.K.
Betting on Fintech: The digital revolution is increasingly attracting big investment. According to Bloomberg, global venture capital companies invested more than $U.S.17 billion in fintech startups in 2016, a six-fold increase in just four years. Last year China overtook the U.S. as the number one destination for fintech investment. FinTech investment in the Asia-Pacific region reached around $U.S.10.5 billion last year, $U.S. 2 billion more than Europe and the U.S. combined 2. Of concern to Singapore and Hong Kong is the fact nearly 90 per cent of fintech investment that year bypassed these financial centres and headed directly to China. Aussie banks embrace innovation Concern about fintech companies grabbing market share has resulted in global banks taking a closer look at how they service clients and how new technologies can increase productivity and services. 1 2
ANZ created an innovation hub in 2010, resulting in three notable firsts – the first major Australian lender to offer customers Apple Pay and Android Pay, the first to offer digital banking app goMoney and credit card payments via smartphones using ANZ FastPay. Westpac has invested $AUD 100 million in a venture capital fund Reinventure, investing in fintech startups while NAB’s innovation hub is in its second year. NAB’s product Quick-Biz aims to give SME customers access to loans of up to $AUD 50,000 in one working day, while its partnership with Medipass Solutions digital platform signals a move into products outside of traditional banking products. While each banks approach differs, these financial institutions clearly indicate fintech is transforming the financial landscape, disrupting traditional markets and changing the face of global business.
Source http://www.investopedia.com/terms/f/fintech.asp Source https://www.bloomberg.com/news/articles/2016-12-07/with-fintech-rising-hong-kong-singapore-rivalry-gets-new-twist issue 191 | austcham news
Hong Kong FinTech Hub Focuses on Innovation and CBA Customer Service - Ingrid Piper
n January 2016, the Commonwealth Bank of Australia (CBA) unveiled a new fintech laboratory in Hong Kong linked to its existing hubs in London and Sydney, creating a global network of innovation aimed at client engagement and project development. CBA Head of Innovation Hong Kong, Liam Gilligan says these three labs are the bank’s eyes and ears into what’s happening in the rest of the world. They also explore fintech solutions occurring outside of the financial industry that could help accelerate CBA’s development. “We need to think about how we deliver experiences in financial services similar to experiences a customer has with any other tech company. How do we make banking as easy as booking an Uber, as personalised as your Netflix account and something you want to use as much as Facebook,” Gilligan says. The Hong Kong innovation lab’s bright and airy non-traditional workspace in Exchange Square, Central, includes two full-time staff plus cross-functional teams both inside and outside CBA. Teams of between five to seven people with critical skills work on individual projects. The lab also supports offices in Singapore, Japan, China, Vietnam and Indonesia. As a leading financial centre with great infrastructure, high adoption of technology and a strong tradition of entrepreneurship, Hong Kong natural advantages as a regional innovation hub. “Over 70 of the top 100 banks have a presence here, so it’s a perfect market for fintech companies who have developed solutions to help banks serve their customers better. It’s less of a retail orientated market and more of a B2B fintech market,” Gilligan says. “This is important because we don’t invest or have a venture arm like lot of banks. CBA doesn’t take that venture approach. Rather than speculating, we are more focused on how do we serve our customers better. “The other thing that’s interesting about Hong Kong is the proximity to Shenzhen. The smart manufacturing capability in Shenzhen is really interesting. Being close to this, and the FinTech developments throughout the rest of Asia, puts us in the hot seat to see cutting edge innovation, so we can bring those solutions back to the Australian market to better serve our customers.”
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One area of interest to CBA’s team is cyber security. The lab recently worked with APrivacy, a Canadian founded start-up that moved to Hong Kong. The start-up encrypts data individually, to securely transfer data to and from a customer over any channel e.g. WhatsApp. Another recent CBA project included partnering with Australian start-up Airtasker where CBA confirmed the identity of participants on the platform by adding a Commbank Identified badge to the Airtasker platform. “Identity validation isn’t a role banks have traditionally done for third parties, but new technologies allow a bank to add value to our customers in new and interesting ways,” Gilligan says. Internally, CBA encourages staff to convert their light bulb moments into practical applications through several ingenious processes including an annual competition called Intrapreneur. “We coach people through rounds of testing and validating of ideas with customers. We give finalists an opportunity to pitch to senior leadership and the winner gets funding and time in the innovation lab. The Hong Kong lab has twice participated in this – and it’s only the second year the lab has existed,” Gilligan says. CANapult is another internal way to foster innovation. Simply by sending an email, staff toying with an idea are sent what looks, at first glance, to be a large can. Inside, is a kit containing a design thinking handbook, prototype tools including play dough, plus a few sugary treats (to keep the energy flowing), and advice about how to take steps needed to get their ingenious idea to the next level, where it can be tested and where they can pitch for funding.
“How do we make banking as easy as booking an Uber, as personalised as your Netflix account and something you want to use as much as Facebook…” Liam Gilligan, CBA Head of Innovation Hong Kong
From a client engagement perspective, CBA in Australia operates as a full service bank but in Hong Kong, the focus is on financial institutions including banks and non-banks (i.e. insurance), infrastructure (i.e. utility providers such as MTR, HK airport), transport (i.e. shipping and airline customers like Cathay Pacific) and natural resources (i.e. Chinabased mining companies).
“Hong Kong’s a perfect market for fintech companies who developed solutions to help banks serve their customers better…” Liam Gilligan, CBA Head of Innovation Hong Kong
Over the next five years, Gilligan believes Hong Kong’s unique position as a key part of the Belt and Road Initiative will help drive development in the use of blockchain applications, not just around digitising documentation and settlements, but also in providing surety around things like the provenance of products, for example, giving customers certainty that their organic Darling Downs steak is really from a certified organic farm in Queensland. “From a retail perspective, I think we will see the emergence of digital banks. We’re seeing the start of this now with stored value facility licences being issued to companies like WeChat, Octopus, TNG and HKT. Although we’re yet to see a full service digital retail bank, I think this could be a very exciting development in Hong Kong. “Technology will allow CBA to serve its customers in new, more personal and relevant ways, and it’s also an opportunity for the bank to play a role in our customers lives in surprising ways,” Gilligan says.
Liam Gilligan, Head of Innovation Hong Kong, Commonwealth Bank of Australia
issue 191 | austcham news
Hong Kong Focus
How Hong Kong’s FinTech Sector is Developing - Marin Ivezic, Partner, PwC China and Hong Kong
he global financial services sector is accelerating its transformation in response to changing values and shifting consumer preferences. Hong Kong is responding in its own unique way. Global events over the last decade have brought home the reality that we are living in a fast-changing world. The economic crisis and rapid technological development are changing consumer behaviour. Millennials – with a particular distrust of traditional financial institutions and an affinity with the digital world – have adopted an entirely different set of attitudes towards financial services. The Millennial Disruption Index found that 71% of millennials would rather go to the dentist than listen to what banks are saying, while 73% would rather handle their financial services needs through Google, Amazon, Apple or PayPal. These new consumers expect frictionless, transparent, fast, omni-channel, and personalized experience - something more synonymous with hospitality than traditional financial services. Above all, they are looking to avoid face-to-face business interactions if there are more efficient ways.
Figure 1 - What percentage of your annual turnover do you allocate to FinTech matters (investments into FinTech, IT projects, dedicated resources)?
A new breed of financial technology companies, known as FinTech, has taken advantage of these changing preferences and advances in technology to try and disintermediate incumbent providers by developing alternative platforms for financial activities. FinTech-driven disruption in financial services has been brewing for a while and it looks like 2017 will be the year the disruption becomes tangible. Hong Kong, with its position as a global financial centre and with its own rapidly growing millennial workforce, is starting to take the fight for its FinTech future seriously. PwC’s 2nd Global FinTech Survey shows that the vast majority of financial institutions in Hong Kong are investing in FinTech. Probably reflecting Hong Kong’s maturity, the level of investment is subdued. Financial institutions are allocating on average 14% of their annual turnover to FinTech, which is significantly lower than in China (32%), and somewhat lower than the global average (15.4%). Figure 2 - What changes do you expect to see in your sources of innovation over the next 3-5 years? (Hong Kong respondents)
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The race for talent could also be an issue: 87% of Hong Kong respondents say it is difficult to hire and retain people who can innovate. This is a higher rate than in China (71%), Singapore (79%) or globally (80%).
Figure 3 - What are the threats related to FinTech within your industry? (Percentage of respondents saying IT security / privacy threat)
However, the survey found that there are some issues that can dampen the FinTech enthusiasm. 60% of Hong Kong respondents are concerned by the regulatory uncertainty (compared to a global average of 54%). More starkly, 70% of Hong Kong respondents believe that FinTech firms can increase information security and privacy threats – against 48% of respondents globally.
The Hong Kong government and regulators are not standing still. They are being increasingly strategic about the development of a healthy FinTech ecosystem in Hong Kong. From the 2017/18 academic year, local universities will offer dedicated publicly funded first-year first-degree and senior year programs in Fintech. The Hong Kong Monetary Authority (HKMA) and the Hong Kong Applied Science and Technology Research Institute (ASTRI) launched the FinTech Career Accelerator Scheme. The HKMA recently launched a “Fintech Supervisory Sandbox” to allow banks to test innovative FinTech products. The HKMA is also undertaking a research and proof of concept (PoC) on central bank digital currency as a well as a PoC on blockchain for trade finance. Hong Kong has yet to develop a sizable FinTech industry. The financial services industry and the government are making pragmatic moves to develop a FinTech ecosystem. In terms of investment, Hong Kong is lagging behind other financial centres. It remains to be seen whether the savvy and sustainable pace led by established banks partnering with FinTech start-ups is the right model.
Source: http://www.pwchk.com/en/financial-services/publications/ fintech/hong-kong-fintech-survey-2017.pdf
Figure 4 - Do you have trouble hiring and retaining people with the right skillset to innovate? issue 191 | austcham news
Rugby Sevens Lunch 2017 1
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AustChamâ€™s annual Rugby Sevens kick off lunch event which included David Campese and MC Justin Sampson was held at Grand Hyatt Hong Kong before the Sevens weekend.
Our full back for 19 years:
AustCham and Commonwealth Bank of Australia have been partnered to run this key event on the Australian business community calendar since 1999.
Warm up cocktail sponsor:
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Marcello De Guisa, Julian Vella and Geoff Wilson of KPMG. Leopold Visser and Jamee Hawn of Tesla. Akashdeep Grover of IL & FS, Donald Soo of ORB Global Wealth Management, Christopher Leach of Sanguine Capital Advisory and Simon Parfitt. Andrew Stewart, Marcus Lake, Sebastian Rosholt of Minter Ellison. David Henderson and Violet Kwek of Global Jet Capital, Gordon To of Ping On Insurance Group. Trevor Benson, Ian Robinson of Robinson Management Ltd and Ashley Bond of Treasury Wine Estates. Jason Weatherhead and Eric Van Oosten of CNW. Bonnie Leung of Flight Centre Hong Kong and Charles Ho. Nick Smart of PAG Asia and Shelby Au of CBA. Kathryn Morrison and Nixie Lam of Tsuen Wan District Council. Janssen Chan and Ronald Yam of CPA Australia. Adam Scharfman and Joyce Cao of CBA. Dave Chapman and Hugh Madden of ANX International. Leong Keae Hah with Lillian Quoc, Elodie Norman and Niamh Targett of ANZ. Louise Moat of Nomura and Kimberley Cole of Thomson Reuters. AustCham Deputy-Chair Andrew Macintosh, Michele Colenso of Delta Capita, Mark Devadason of Azabu Management Services. Derek Poon, Legislative Council Member Ma Fung-kwok, SBS, JP and AustCham Advisory Council member Herman Hu. Tiffany Wong and Liam Collette of PizzaExpress (HK) Ltd. Jim Mehren and Vivian Lee. Ben Mak of LIMAdvisors, Bernard Poon and Paul Ho of CPA Australia. Nigel Steffensen of Bank of America Merrill Lynch, Lee Baker of CBA, Philip Hodgkinson of Bank of America Merrill Lynch and JJ Wang of CBA.
issue 191 | austcham news
Rugby Sevens Lunch 2017
James Wall, Executive General Manager International of Event sponsor Commonwealth Bank of Australia gave opening remarks to kick off the Lunch.
Australian Rugby Sevens Team.
Andrew Penfold of Australian Indigenous Education Foundation talks about the aims and projects of the foundation. Former ESPN Star Sports Rugby Commentator MC Justin Sampson interviews Andy Friend, Coach of the Menâ€™s sevens Team.
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AustCham Chairman Professor Richard Petty thanks sponsors and event partners.
Great sharing from speaker David Campese.
Crowdfunding – What You Need to Know - Nicole Denholder, Next Chapter
Equity-based: Backers can invest in the company early on and receive shares to the company. This is generally limited to “accredited” investors, not the general public.
You may have heard of crowdfunding, but there is still confusion over the different types of models.
Although the main purpose of crowdfunding is to rally monetary support behind a project, there are other benefits including: • Idea validation and feedback loop • Reaching likeminded individuals • Fine tune marketing messages • Enables continuous customer engagement
long with the growth of fintech, there is a rising trend in entrepreneurship and social media use. These are creating a prime environment for entrepreneurs to reach directly to their customers through a new online funding model called crowdfunding.
Crowdfunding, by definition, is “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.” Instead of traditional investors, crowdfunding campaigns are funded by the general public. In particular by friends, family, extended networks or acquaintances. There are four main types of crowdfunding: Rewards-based: The most popular form of crowdfunding, this format allows small businesses to communicate directly to customers and offer them pre-sale opportunities for products, services, or creative projects. Donations-based: Usually charities, NGOs, or the public would appeal to existing and potential donors to fund a charitable or personal cause or project. Lending-based: Just like any other loan, this format allows the borrower to pay back lenders over time with interest.
Hong Kong has recently seen local growth in donations and rewards based crowdfunding platforms with the launch of Next Chapter, Fringebacker, Umadx and Sparkraise to help reach into the HK community, validate business ideas and raise the funds needed to start businesses or support local causes. At Next Chapter, we work with female entrepreneurs and womenowned businesses in HK to improve their access to funding. Currently we start with determining if crowdfunding is right for their business, and our long term focus is to assist them to continue to identify channels for funding their business. Source: About the author: Nicole Denholder is the founder and CEO of Next Chapter, a Hong Kong-based funding portal for female entrepreneurs and women-owned businesses. For more information, visit https://nextchapter.com.hk issue 191 | austcham news
Official Launch of Negotiations: Australia â€“ Hong Kong Free Trade Agreement On 16 May, AustCham organised the official launch of the Free Trade Agreement (FTA) negotiations between Australia and HKSAR, where Steven Ciobo, Australian Minister for Trade, Tourism and Investment and Hong Kong Secretary for Commerce and Economic Development, Gregory So, shared their vision of how an FTA will deliver greater prosperity and growth in trade through closer economic integration. Photo credit: DFAT
From left: Professor Richard Petty (Chairman, Australian Chamber of Commerce Hong Kong and Macau); Steven Ciobo (Trade, Tourism and Investment Minister); Gregory So (Hong Kong Secretary for Commerce and Economic Development); Michaela Browning (Australian Consul-General to Hong Kong and Macau); Stephen Ng (Chairman, Hong Kong General Chamber of Commerce).
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n terms of trade in services, Australia was Hong Kong's 7th largest trading partner in 2015, with value amounting to HK$41 billion. In terms of merchandise trade, it was the 19th largest trading partner in 2016, with value amounting to HK$52 billion. At the end of 2015, Australia was the 6th major destination of foreign direct investment (FDI), with an FDI stock of HK$135 billion. Mr So said: "Australia is a very important trading partner of Hong Kong. Hong Kong and Australia have respective strengths in different business areas, in which some are complementary to each other. "We see tremendous room for us to further our co-operation and deepen our trade and economic liberalisation with a view to bringing our economies to new heights." He added. Professor Richard Petty, Chairman of AustCham Hong Kong and Macau, and moderator of the event, welcomed the launch of negotiations of the Australia-Hong Kong FTA. “An Australia-Hong Kong Free Trade Agreement makes sense for Australia particularly when viewed through the lens of Australia’s desire to engage more closely with Asia and to be a key player in economic terms in the Asian Century. Some 100,000 or so Australians live in Hong Kong. The Australian Chamber of Commerce in Hong Kong and Macau is the second-largest foreign business chamber in Hong Kong, and the largest Australian Chamber of Commerce outside Australia. AustCham, together with many other organisations, helps in promoting business networks and in deepening ties between Hong Kong and Australia. Strong people-to-people links, underpinned by an active dual-national community, tourists and students, continue to support and strengthen Australia’s economic and cultural links with Hong Kong.
There is significant two-way trade in goods and services, and Hong Kong is also an important source of foreign investment for Australia. Many students from Hong Kong are enrolled in Australian educational institutions. Many tertiary courses are also offered by Australian institutions operating in Hong Kong. Hong Kong’s economy is 93% services so we see enormous opportunity for Australian service providers who are actively engaged in banking, transport and logistics, employment consultancies, engineering, construction, aviation, architecture, accountancy, legal services, insurance, tourism, and retailing to benefit from this initiative. Australia has important interests in Hong Kong and Hong Kong is Australia’s largest business base in East Asia. Knowing that both Governments are committed to growth, trade, and business stability is in the best interests of our members and is fantastic for the entire business community,” said Professor Petty, following the announcement of negotiations. The pact will provide a new platform for enhancing capital flow, innovation and professional exchanges between the two places, as well as research and development collaboration. It will cover tariff reduction, the lowering of non-tariff barriers, preferential rules of origin, customs facilitation procedures, better market access for trade in services, promotion and protection of investment, as well as legal and institutional arrangements. Further information on how to make a submission: www.dfat.gov.au/a-hkfta
issue 191 | austcham news
Anzac Day in Hong Kong and Macau
ore than 700 Australians and New Zealanders attended the Anzac Day service at the Hong Kong Cenotaph on 25 April 2017. Australian ConsulGeneral Michaela Browning and New Zealand ConsulGeneral Gabrielle Rush laid poppy wreaths at The Cenotaph.
On the next day, the two Consul-Generals re-laid poppy wreaths at the graves of Australian and New Zealand servicemen at the Hong Kong Commonwealth War Graves Cemetery. 33 Australian servicemen are at rest at the cemetery in Sai Wan.
Ms Browning said at the commemoration, “The Anzac spirit, with its qualities of courage, mateship, and sacrifice, has become an important part of our national identity and continues to shape our future.
Anzac Day is the most significant national day of commemoration for Australians and New Zealanders. It marks the anniversary of the first major military action fought by Australian and New Zealand forces during the First World War.
“It is our duty to ensure that this spirit is passed on to new generations to treasure, respect and honour as an important part of our nation’s character”, she added.
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Photos: Australian Consulate-General Hong Kong
AustCham Macau based members gathered on 26 April at MGM Macau for the Anzac Day observance. Thanks for the support from the Consulates-General of Australia and New Zealand. Samantha Birkwood addressed the audience on her army life and the importance of what Anzac Day means today.
AustCham Board Director Martin Darveniza thanks all for coming to the observance.
Will Ewing from Australian Consulate-General and Svar Barrington from New Zealand Consulate-General laying wreaths.
k Than ! You
In International Alumni Job Network (IAJN) is offering a 50% discount on all online recruiting services to AustCham members until 31 August 2017. To take advantage of this offer and learn more about their recruitment services, visit www.ia-jn.com or email Lieve Kooijman - Lieve@ia-jn.com IAJN is Asia’s biggest network of internationally AUSTCHAM MEMBER OFFER educated job-seekers. IAJN's alumni members hold Want local staff who think global? qualifications from Australia, USA, UK, Canada, IAJN is Asia’s biggest network of Internationally educated job-seekers. Europe and New Zealand Our alumni members holdto qualifications from Australia, USA, UK, Canada, Europe and and are looking build their New Zealand and are looking to build their career in Hong Kong and Asia beyond. career in Hong Kong and Asia As a proud new member of AustCham Hong Kong, IAJN is offering a 50% discount beyond. off of all online recruiting services to all AustCham members until 31 August, 2017. st
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issue 191 | austcham news
Committees in Action
Construction, Property and Infrastructure Committee: A Disrupting Property Market
s companies struggle with business disruption and rising costs, decision makers are looking at ways to balance their business and real estate needs and meet the demands of new business practices and the next generation of workers. Combined with a lack of long term office supply and insufficient planning, companies are struggling with their business strategies. With fewer real estate solutions available, the speakers looked at ways to analyse, brand and occupy office accommodation in the city. AustCham’s CPI Committee hosted a breakfast session and invited Nigel Smith from Colliers International to moderate and lead a discussion with panel speakers including Fiona Waters, Managing Director from Waters Economics; Daniel Shih, Director, Research from Colliers International; Guy Parsonage, Partner, The Experience Centre from PwC, and Michelle Buultjens, Head of Operations from blueprint, on the opportunities and challenges facing companies when reviewing their real estate options.
Finance, Legal and Tax Committee: Federal Budget 2017
great discussion by Sue Ann Khoo, Partner of PwC and Christy Tan, Head of Markets Research and Strategy for Asia of NAB at the 'Unravelling the 2017 Australian Federal Budget' breakfast session on 11 May. Special thanks to Peter Wells from Financial Times for moderating the session.
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Construction, Property and Infrastructure Committee: Progress and New Opportunities of West Kowloon Cultural District
uncan Pescod, CEO of West Kowloon Cultural District Authority (WKCDA), shared the stories and plans for their upcoming projects with AustCham's Construction, Property and Infrastructure Committee members at a breakfast session in Hong Kong Club on 19 May.
Join Telstra to Celebrate Outstanding Women
elstra is calling for nominations for the second annual Telstra Business Woman in Asia Award. If you know of any successful and inspiring female in Asia, please help Telstra recognise them by making a nomination. This year, the Telstra Business Woman in Asia Award is open to residents of Asia who are:
We invite you to join this campaign – either by nominating yourself or someone you know – to recognise outstanding women. Entries for the 2017 Awards open Wednesday 26 April 2017 and close on Thursday 15 June 2017. Nominations can be made on https://www.telstrabusinesswomensawards.com/nominate/.
• Employees in the private and corporate sectors • Entrepreneurs with a 25 percent share or more, who are fully engaged and active in day-to-day running and decisionmaking in a business they’ve been operating for a minimum of two years • Owners or employees of organizations that deliver positive social/environmental change as their core mission (includes not for profit and social ventures). Award winners and finalists join a vibrant Alumni community of like-minded women helping to build stronger, more productive and more relevant business communities across Asia.
issue 191 | austcham news
Mount Kelly School Hong Kong Admissions Office and Playgroup Centre, 2/F, Austin Tower Phase Two, 152 Austin Road, Tsim Sha Tsui www.mountkelly.com.hk Mount Kelly School Hong Kong is Hong Kong’ first and only British preparatory school offering a globally recognized curriculum and an outstanding educational experience for pupils from Preschool to Year 8. We are committed to enabling students to fulfil their potential and instil in them an authentic sense of self and community spirit. Our school will open its City Campus in September 2017 with the International Preschool (Nursery and Reception) in Tsim Sha Tsui and the Preparatory School (Years 1 – 6) in Hung Hom. The Tuen Mun Campus Preparatory School (Years 1 – 8) is planned for opening in September 2018. The “Child Development” Playgroup Classes commenced in May at the Playgroup Centre in Austin Tower, Tsim Sha Tsui. What are the main skills of your job? Interpersonal skills - so prospective parents and pupils become interested and excited about the unique offerings of our school. An in-depth knowledge of the School and programmes you represent, and knowledge of your competition to be able to best apprise parents of the differing options and what “best fits” for them. What does your company do really well? Education! We will be opening our International Preschool and Preparatory School in September, and I know we will be offering an environment of support, personal leadership and academic success for our pupils, a real holistic learning experience for every child.
Jo Stanley Admissions Manager What is the vision of the school in 10 years? To be Hong Kong’s premier British International School providing a distinctive educational experience, committed to global relevance, our contemporary society and individual care. What’s something most people don’t know about the school? We will have four permanent sites: Our City Campus: Preparatory School in Hung Hom and International Preschool in Tsim Sha Tsui; the Tuen Mun Campus Preparatory School; and the Playgroup in Tsmi Sha Tsui. This will allow us to provide a world class education from 6 months old to University. What’s the schools’ connection to Australia? There is no direct connection, however the British Curriculum prepares pupils for senior school and universities anywhere in the world. We have Australia pupils enrolled in our school plus a few Australians in the workplace – including me. How would you describe your workplace and colleagues? We are quite small, but growing rapidly; there is a family feel at work, everyone is supportive and helps out. It is such an exciting project, the team all play an important part as we have the same ambition and vision for the school. I am part of a great team. What’s your favourite place to go on the week-end? My family loves to go to Mount Austin Road Playground on the Peak – it’s lush with beautiful flora, and a big green grass area to run around, have a picnic and play with our little one.
To enquire about advertising, submit an article, comment or respond to austcham news, please contact Karen Wu at email@example.com or call +852 2522 5054. 22 • austcham news | issue 191
On The Scene The second session of AustCham Sustainability Series: A PLASTIC OCEAN film screening was held at Fringe Club in late April. We are delighted to have Director of the Film, Craig Leeson as special guest with us on the day.
Thank you to our Series sponsor:
A selection curated by Bookazine team.
The End of Alchemy: Money, Banking, and the Future of the Global Economy by Mervyn King The former Governor of the Bank of England argues for fundamental changes to the financial system in order to reduce the risk of a new crisis. In this refreshing and vitally important book, Mervyn King - an actor in the recent financial crisis - proposes revolutionary new concepts to answer the central question: are money and banking a form of Alchemy or are they the Achilles heel of a modern capitalist economy? The Upstarts: How Uber, Airbnb and the Killer Companies of the New Silicon Valley are Changing the World by Brad Stone A look deep inside the new Silicon Valley, from the New York Times bestselling author of The Everything Store. Like The Everything Store, which was a forensic examination into the conception, establishment, and phenomenal growth of Amazon, The Upstarts takes an insiderâ€™s look into other Silicon Valley start-ups which are turning established industries upside down and inside out. Uber and Airbnb have ushered in a new era: redefining neighborhoods, challenging the way governments regulate business, and changing the way we travel. In Brad Stone's riveting account of the most radical companies of the new Silicon Valley, we discover how it all happened and what it took to change the world. The Fourth Industrial Revolution by Klaus Schwab World-renowned economist Klaus Schwab, Founder and Executive Chairman of the World Economic Forum outlines the key technologies driving the impending technological revolution and discusses how it will change our lives. The fourth industrial revolution, says Schwab, is more significant, and its ramifications more profound, than in any prior period of human history. In The Fourth Industrial Revolution, Schwab offers bold ideas on how to harness the changes and shape a better future.
Available from Bookazine, www.bookazine.com.hk
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