9 March 2017 – Co-chaired by Mr Tom Tang, Managing Director Asia Pacific Region of TTM Technologies Enterprises (HK) Ltd and Mr Jean Lemierre, Chairman of BNP Paribas, the 12th Hong Kong – France Business Partnership plenary session was concluded with success on 9 March 2017, in Paris.

The plenary covered discussion topics including the implications of Brexit, “Made in China 2025” Strategy, as well as potential collaboration of Hong Kong and France in the areas of technology and Innovation.

Mr Tang highlighted that France was the third largest investor in Hong Kong among all European countries. The trade volume between Hong Kong and France amounted to €9.3 billion in 2016, representing an increase of 4%.

Mr Lemierre shared that France had the largest number of Fortune 500 companies and the largest business real-estate market among all European countries. With growing interests of Hong Kong companies in innovation and technology sectors such as Fintech, Greentech and Foodtech, he anticipated that Hong Kong investors would continue to play a vital role in connecting Chinese companies with the French counterparts.

Hong Kong Economic Development
Ms Margaret Fong, Executive Director of Hong Kong Trade Development Council remarked the significant role contributed by Hong Kong for attracting foreign companies to gain access to the Chinese Mainland, particularly in Greentech and Fintech.

“Since Chinese firms had a high demand for environmental technology, France would have good experience to offer.” Ms Fong said. She also quoted that Fintech companies in Hong Kong had increased substantially from 86 in mid-2015 to 138 in 2016.

“In order to support the development of Fintech industry in Hong Kong, the Hong Kong Monetary Authority established a platform which attracted many companies including French firms to test their innovative Fintech products.” Ms Fong added.

Challenges and Opportunities of Brexit to France
In light of Brexit, Mr Arnaud de Bresson, Chief Executive Officer of Paris Europlace revealed that several measures would be undertaken by the French government to improve the attractiveness of the financial sector.

Mr de Bresson mentioned that apart from reduction of corporate tax in line with the European average, foreign banks and asset management companies would be given facilities and incentives for setting up new business in Paris. The government would also develop new incubation initiatives to further promote the Fintech sector.

Another French member, Mr Bruno Cabrillac, Managing Director, International Affairs of Banque de France supplemented that inflation was estimated to rise to 3% since the weakening Pound would raise the cost of imports to the UK. “The economic growth of the UK would be expected to slow down, with a forecast of 2.5% drop in GDP.” Mr Cabrillac said that “France would be in a good position to take advantage of the withdrawals of British companies.”

Smart City Incentives
Hong Kong member, Prof John Chai, Managing Director of Fook Tin Group Holdings Ltd gave an overview of the smart city incentives and green tech development in Hong Kong. He updated that the key pilot scheme of developing the Kowloon East into a smart city district had been earmarked as a test bed, with the objective of improving the use of smart mobility resources while enhancing the living environment.

Prof Chai added that the Chinese government had selected 300 cities as smart cities between 2012 and 2016, which would bring unprecedented opportunities for collaborations between EU and China.

French speaker, Mr David Dornbusch, Special Advisor to the CEO of Air Sûr anticipated that the business potential related to improving indoor air quality would be huge. He forecasted that approximately Euro 60 billion revenues would be generated from air purifier business by 2020.

Hong Kong and French Co-operation on Technologies and Innovations
Hong Kong member, Prof John Mok, Chairman, AML Holdings Ltd shared that technology companies often worked with universities and research institutions for invention of new technologies.

Reiterating Hong Kong’s strengths in legal compliance, integrity and capital fund raising, Prof Mok proposed that French counterparts could contribute their strengths in scientific discovery, technical innovation, proof of concept and application of patents, while Hong Kong firms could provide high-end manufacturing, quality management and distribution capabilities.

Another Hong Kong member, Prof Albert Yu, Chairman & CSO of Hai Kang Life Corporation Ltd commented that Hong Kong’s technology development would be further enhanced with the launch of the Hong Kong - Shenzhen Innovation and Technology Park. Prof Yu believed that Hong Kong's role as a super-connector would facilitate French companies for entering the mainland market.

A total of 24 business leaders from Hong Kong and France took part in the 12th Plenary Meeting.

Side Visit
Ahead of the Plenary Meeting in Paris, Mr Tang led a Hong Kong delegation to Alsace, visiting several leading technology firms and start-up hubs in the region, including Aquatic Show International (an entertainment company), Illkirch Innovation Park (an industrial park dedicated to innovation and biotech sectors) and Thurmelec (an electronic board company).