Trade and Project Financing in Hong Kong

A Hot Tip about Banking and Finance in Hong Kong SAR

Posted on: 29 Mar 2010

How Do I Get Paid (Methods of Payment)

The importance of trade finance to Hong Kong has resulted in a high level of bank efficiency in providing import payment services. Letters of credit, documentary collections and international remittance services are widely available. The risk of financing receivables can be readily evaluated via locally available credit information. Prospective U.S. exporters frequently access established U.S.-Hong Kong banking relationships when determining credit risk. The U.S. Export-Import Bank (Ex-Im Bank) offers both trade financing and insurance for U.S. exports. Ex-Im Bank generally provides trade finance through financial institutions in the U.S. and the importing countries. Ex-Im Bank has taken measures to increase its capacity to facilitate exports in light of the global economic crisis. For more information concerning Ex-Im Bank programs and application procedures, contact Ex-Im Bank in Washington, D.C. at (800) 565-EXIM or (202) 565-3946. Fee calculations and applications can be found on line at www.exim.gov. The preferred method of quoting is to use the "CIF" or "C and F" destination term of sale in Hong Kong dollars (HK$). The U.S. dollar and other freely convertible currencies may be accepted for bids and pro forma invoicing. Terms of payment depend on the relative negotiating strength of the buyers and sellers. U.S. suppliers should seek to obtain letters of credit or sight draft terms when dealing with buyers who are not well known to them. Asking for a letter of credit is a standard business practice, and your potential customer will not generally interpret this as a sign of mistrust. How Does the Banking System Operate Return to top Hong Kong has an open financial system, with no controls on currency movement. A description is contained in Chapter 6: Investment Climate (Hong Kong) – Efficient Capital Markets and Portfolio Investment. Macau also has an open financial system, with no controls on currency movement. A description is contained in Chapter 6: Investment Climate (Macau) – Efficient Capital Markets and Portfolio Investment.

Foreign-Exchange Controls

Hong Kong The local currency, the Hong Kong Dollar (HK$), is freely convertible, and there are no foreign exchange controls.

 

Project Financing

Because of its strong financial system and proximity to strategic markets in Asia, Hong Kong is a key player in project finance in the region.

 

The U.S. Department of Commerce maintains a congressionally mandated Commercial Liaison Office for the Asia Development Bank (ADB) in Manila; part of the U.S. Trade Advocacy Center in Washington, D.C. The office provides counseling, advocacy, and project information to help American firms access, enter and expand in Asian markets that benefit from ADB assistance. The ADB works actively with CS Hong Kong to help Hong Kong-based U.S. companies and affiliates better target ADB business opportunities including co-financing and private sector development projects.

 

The U.S. Commercial Liaison Office for the Asia Development Bank (ADB)

American Business Center

Address: 25th Floor, Ayala Life-FGU Building

6811 Ayala Avenue

Makati City, Philippines 1226

U.S. mailing address:

PSC 500 Box 33

FPO AP 96515-1000

Tel: (632) 887-1345(-6)

Fax: (632) 887-1164

 

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, is the world’s largest source of multilateral equity and loan financing for private enterprises in developing economies. The mission of the IFC is to promote sustainable private sector investments in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investment in the developing world, mobilizes capital in international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.

 

The IFC provides US$5 billion in financial assistance annually to private sector projects throughout Asia. As of 2008, the top four recipient countries of the IFC’s equity and quasi-equity investments, loans and guarantees, technical assistance and advisory services were mainland China, Indonesia, the Philippines and Thailand. In the East Asia Pacific region, the IFC maintains offices in Beijing and Hong Kong SAR, PRC; Bangkok, Thailand; Hanoi, Vietnam; Jakarta, Indonesia; Manila, the Philippines; Ulaanbaatar, Mongolia; Phnom Penh, Cambodia; and Vientiane, Laos. Contact information for the IFC office in Hong Kong is:

Mr. Richard Ranken, Senior Advisor

Ms. Karin Finkelston, Director

East Asia and Pacific Department

International Finance Corporation

Address: 14th Floor, One Pacific Place

88 Queensway, Admiralty

Hong Kong

Tel: (852) 2509-8100

Fax: (852) 2509-9363

 

The U.S. Department of Commerce maintains a congressionally-mandated Business Liaison Office for the World Bank Group, including the IFC, in the Office of the U.S. Executive Director to the World Bank at World Bank headquarters in Washington, D.C. An American Senior Commercial Officer, Mr. David Fulton, is the Director of the World Bank Business Liaison Office. Contact information for this office is:

Mr. David Fulton

Advisor & Director of U.S. Business Liaison

Office of the U.S. Executive Director

U.S. Trade Advocacy Center

MSN MC-13-1307

The World Bank, 1818 H. St., N.W.

Washington, D.C. 20433

Tel: (202) 458-0120

Fax: (202) 477-2967

 

Mr. Bryan Lopp

Advisor & U.S. Business Liaison

Office of the U.S. Executive Director

U.S. Trade Advocacy Center

1818 H. Street, N.W.

Washington, D.C. 20433

Tel: (202) 473-2742

Fax: (202) 477-2967

 

 

 

Read the full market research report


Posted: 29 March 2010

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