WELCOME to the Hong Kong Business Update. This provides you with up-to-date information on the latest business developments and commercial opportunities in Hong Kong. It is researched and published by the Foreign Commercial Service, U.S. Consulate General Hong Kong. For more information regarding any of the articles below, please send an email to the specialist referenced at the end of each report. For general information on the wide variety of services available through the Foreign Commercial Service, U.S. Consulate General Hong Kong, please visit our website at http://www.buyusa.gov/hongkong.

1. CEPA III FURTHER OPENS TRADE BETWEEN HONG KONG AND MAINLAND CHINA

CEPA III, an agreement signed between the Hong Kong SAR Government and the Central People’s Government in October, 2005, will come into effect January 1, 2005. CEPA III enables over 1,300 products to be traded from Hong Kong into China with zero export taxes or tariffs, making partnerships with Hong Kong businesses the most effective and least costly way for U.S. exporters to enter into China’s markets.

For more information on CEPA III, contact Sarah Kemp, Commercial Consul, Tel: (852) 2521-2842, email: sarah.kemp@N0SPAM.mail.doc.gov

2. HONG KONG HOSPITAL AUTHORITY URGENTLY SEEKING SODIUM THIOSULPHATE

The Hong Kong Hospital Authority is urgently seeking U.S. suppliers for sodium thiosulphate injections (25% in 50ml) and is ready to place an order for 403 vials through Hua Tai Pharmaceuticals Co. Hua Tai Pharmaceuticals is a licensed wholesaler of pharmaceutical products in Hong Kong. Interested U.S. suppliers should contact Hua Tai immediately with a price quotation, packing measurements and weight information:

Mr. Peter Chua, Director
Hua Tai Pharmaceuticals Co., Ltd.
Unit 301DD, Block B, 3rd Fl.
Sea View Estate, 2-8 Watson Road
Causeway Bay, Hong Kong
Tel: (852) 2473-3367; Fax: (852) 2471-8845

Please send a copy of any correspondence to commercial Specialist Rose Mak at rose.mak@N0SPAM.mail.doc.gov or fax: (852) 2845-9800 for further assistance.

3. HONG KONG GOVERNMENT GRANTS US$3.8 MILLION FOR DIGITAL ENTERTAINMENT

The Hong Kong Government has awarded US$3.8 million (HK$30 million) to the Cyberport Management Company Ltd. to set up “IncuTrain,” a digital entertainment training center. Targeting both existing players and start-ups, the IncuTrain Center provides office space and equipment at favorable terms, focused technology and business development.

The center, with a total area of 24,000 sq ft, opened in November 2005 and can support up to 45 projects over a 3-year period on a 6-month rotational basis. Applications for the second rotation are due in April 2006. Applications are limited to companies registered in Hong Kong. Interested parties can download the application form and mailing instructions from http://www.incutrain.cyberport.hk.

For detailed guidelines and further information, please visit http://www.incutrain.cyberport.hk, email: incutrain@N0SPAM.cyberport.hk , or call (852) 3166-3900.

4. ASIA’S LARGEST BEAUTY EVENT AN ANNUAL SUCCESS

Cosmoprof Asia, the largest and most prestigious international beauty trade event in Asia, was held November 9-10, 2005 in Hong Kong. With over 960 exhibitors, including 50 from the U.S., this showcase of color cosmetics, skincare, personal care, perfumes, toiletries, hair products, spa and hair salon equipment, raw materials, machinery and packaging was a tremendous success for U.S. exporters.

This year, the U.S. Department of Commerce selected Cosmoprof Asia to as one of four shows to receive upgraded support under the Asia Now Program. Targeting small and mediums-sized U.S. exporters, the Foreign Commercial Service, U.S. Consulate Hong Kong offered free or economically priced programs and services, assisting companies to break into the fast-growing Asian market.

For more information on exhibiting at Cosmoprof Asia 2006, please contact Ms. Swee-keng Cheong, Commercial Specialist at (852) 2521-5233, fax: (852) 2845-9800 or by email at swee-keng.cheong@N0SPAM.mail.doc.gov .

5. CONNECTING THE WORLD THROUGH BEAUTY OPENS DOORS FOR TRADE AND OPPORTUNITY

In November 2005, two delegations of businesswomen from Iraq and Afghanistan attended Cosmoprof Asia, the trend-setting wellness and beauty event for the Asia-Pacific region, through the Foreign Commercial Service, U.S. Consulate General Hong Kong’s Connecting the World Through Beauty initiative. Over the course of one week, these female entrepreneurs had the opportunity to network with women from other parts of the world, purchase beauty supply products and equipment from U.S. and international exhibitors, and hone the skills necessary to grow their beauty-related businesses as well as teach other women in their home countries. Their visit to Hong Kong inspired numerous companies to donate supplies and services to help build the Connecting the World Through Beauty initiative, empowering women in developing and post-conflict countries to set up their own businesses.

To become a sponsor or to be involved in the initiative, please contact Sarah Kemp, Commercial Consul, tel: (852) 2521-2842, email: sarah.kemp@N0SPAM.mail.doc.gov .

6. FOURTH NATURAL PRODUCTS EXPO ASIA SHOWS MARKET GROWTH IN ASIA

For the fourth-straight year, the Natural Products Expo Asia has shown Asian consumers are becoming more health-conscious and trends are pointing toward an emphasis on healthier lifestyles and increasing use of natural products throughout Asia. Exhibitors at the Foreign Commercial Service, Consulate General Hong Kong’s U.S. Exporters’ Pavilion found that Hong Kong’s strategic location as a trading hub provided an excellent match-making opportunity to meet retailers, importers and distributors and to break in to the Asian market.

For more information on the 2006 Natural Products Expo Asia, please contact Ms. Rose Mak, Commercial Specialist at tel: (852) 2521-7173, fax: (852) 2845-9800 or email rose.mak@N0SPAM.mail.doc.gov .

7. MORE THAN 100,000 COUNTRY AND INDUSTRY REPORTS AVAILABLE ONLINE

More than 100,000 industry and country-specific market reports, web sites, events and trade directory listings are now available online in the U.S. Commercial Service Market Research Library at http://www.export.gov/market_research.