Companies.asia » Business

Global Big Four Among Top 4 Accounting Firms In Hong Kong

admin — Sat, 15 Feb 2014 08:08:32 +0000

Deloitte Touche Tohmatsu Limited, usually referred to as Deloitte, is the largest professional services firm in the world by revenue and by the number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with more than 200,000 professionals in over 150 countries. In the fiscal year 2012 to 2013, it earned a record US$32.4 billion in revenues. Its global headquarters is located in New York City. It is one of the Big Four accounting firms, along with PricewaterhouseCoopers (PwC), Ernst & Young (EY) and KPMG.

PricewaterhouseCoopers, trading as PwC, is headquartered in London. It is the world’s second largest professional services firm measured by 2013 revenues. PwC has offices in 776 cities across 159 countries and employs over 180,000 people. It had total revenues of US$31.5 billion in its 2012 fiscal year, of which $14.9 billion was generated by its Assurance practice, $7.9 billion by its Tax practice and $8.7 billion by its Advisory practice. The firm was formed in 1998 by a merger between Coopers & Lybrand and Price Waterhouse. The trading name was shortened to PwC in September 2010 as part of its major rebranding strategy.

Ernst & Young (known as EY), also headquartered in London, operates as a network of member firms which are separate legal entities in individual countries. It has 175,000 employees and more than 700 offices in over 150 countries. EY is ranked third of the Big Four, based on its 2013 revenues of US$25.8 billion. It provides assurance, financial audit, tax, consulting and advisory services to companies.

KPMG, the result of merger of Peat Marwick International and Klynveld Main Goerdeler in 1987, has its global headquarters in Amstelveen, the Netherlands. KPMG employs 152,000 people and has three lines of services: audit, tax, and advisory. Its advisory services are further divided into three service groups – Management Consulting, Risk Consulting, and Transactions & Restructuring. Its 2013 global revenues are US$23.4 billion.

THE HONG KONG SCENARIO
The Big Four in the world are still ranked top 4 locally in Hong Kong, at least in terms of staff strength. For the year 2013, PwC reduced its number of staff by 100 while Deloitte increased its staff by 200 to tie for the top spot at 2400 each. The momentum seems to be with PwC though, as it finished the year with a proposed merger with management consulting firm Booz & Co. to complement PwC’s advisory business. According to respective spokespersons, this merger will bring 275 Booz partners and more than 3000 professionals to the PwC network in 33 countries.

Ernst & Young is third in Hong Kong with 2100 professionals, up from 2000 in the previous year.

KPMG increased its recruitment effort to arrive at 2000 staff, up from 1700 the previous year, to place 4th in terms of staff size in Hong Kong.

BDO is still ranked fifth with 1000 employees, unchanged from the previous year.

Currently, the managing partners for PwC, Deloitte, EY and KPMG in Hong Kong are respectively Cassie Wong, Joseph Lo, Agnes Chan and Andrew Weir.

IBM Poised To Dominate Asia-Pacific Cloud Computing Market

admin — Sat, 10 Dec 2011 09:07:56 +0000

International Business Machines Corp. (NYSE:IBM): its company motto is Think… and thinking was what it did when it discarded businesses it once dominated, such as personal computers, and transformed itself from a hardware manufacturer into the No.1 technology services company in the world. The old IBM, which sold large and costly mainframes, evolved into a new service-oriented business that helps customers manage their technology. The company’s services business now includes PwC, the technology consulting business IBM acquired for $3.9 billion in 2002, which was then absorbed into its own IBM Global Business Services. Today this consulting division employs more than half of IBM’s 427,000 employees.

In 2010, IBM’s consulting and technology services generated gross margins of 32%. The company’s software business, which accounts for 20% of revenue, had margins of 88% in the 3rd quarter of 2011. IBM also owns more patents than any other US based technology company. It invested $6 billion in R&D in 2010, the equivalent of 6% of its revenue, compared to $3 billion, or 2.4%, at its rival Hewlett-Packard.

The areas that IBM is focusing on now – cloud computing, analytics and emerging markets are part of its carefully planned strategies for global growth.

Earlier this year, IBM announced a $38 million investment to build a new Asia-Pacific Cloud Computing Data Center in Singapore to exploit the potential of cloud computing through its comprehensive solutions and services. The new facility in Singapore will extend IBM’s globally integrated cloud delivery network that includes centers in Canada, the United States and Germany. The company also has 13 global cloud labs, of which seven are based in Asia-Pacific countries namely China, Singapore, Korea, Japan, Hong Kong, Vietnam and India.

Another cloud computing data center will be built in Langfang, a city near Beijing, under the collaborative efforts between IBM and the China-based Range Technology. The 620,000 square meter facility, which is to be owned by Range Technology, is scheduled to be completed in 2016. The data center, the largest in Asia by floor area, aims to serve mainly government departments from Beijing and across the country, but will also be open to major banks and private enterprises throughout China. According to IBM spokesperson Harriet Ip, the center is also designed to support the development of a new information technology hub being built in the area.

IBM’s data-center business in China has tripled in the last four years. In 2010, China overtook Japan as IBM’s second largest data center market, with the U.S. as the company’s number one market. Moreover, the Asia-Pacific market for cloud computing is set to grow 40% per annum through 2014 to $4.9 billion, according to IDC Asia Pacific. IBM is well positioned to take advantage of this growth by establishing regional data centers that will provide the necessary infrastructure for growth of key cloud computing areas.

IBM is headquartered in Armonk, New York. As of September 2011, IBM is the second-largest publicly traded technology company in the world by market capitalization. In 2011, Fortune ranked IBM the 18th largest firm in the U.S., as well as the 7th most profitable. Globally, the company was ranked the 31st largest firm by Forbes for 2011, and 18th most innovative company by Fast Company. IBM employs more than 427,000 employees in over 200 countries, with occupations including scientists, engineers, consultants, and sales professionals.

For 2010, IBM’s brand was valued at $64.7 billion. IBM’s closing value of $214 billion on September 29, 2011 surpassed Microsoft which was valued at $213.2 billion. It was the first time since 1996 that IBM exceeded its software rival based on closing price. However, IBM’s value is still less than two-thirds of Apple’s value of $362.1 billion.

Though faced with strong competitors such as Oracle Corp. (NASDAQ:ORCL), Hewlett Packard Co. (NYSE:HPQ), Microsoft Corp (NASDAQ:MSFT) and EMC Corp (NYSE:EMC), IBM is still viewed by many industry analysts to be a heavyweight in the cloud computing market. Its strong cash balance will no doubt help it acquire more companies with high intellectual property assets, which will drive further growth in the upcoming quarters. New CEO Virginia “Ginni” Rometty says that despite IBM’s deep pockets and $100 billion in 2010 sales, she plans to keep pressing her management team to take more risks and embrace change. “Whatever business you’re in, it’s going to commoditize over time, so you have to keep moving it to a higher value and change”.

JYP Entertainment Preps Korean Music Supergroups For The World

admin — Wed, 05 Oct 2011 06:38:30 +0000

Suzy From The Korean Supergroup Miss A

JYP Entertainment Corporation (KOSDAQ: 035900) engages in the entertainment business in South Korea, Japan, China and other parts of the world. It is involved in the production of movies, TV dramas, and music recordings as well as the management of artists, including such famous Korean supergroups as Wonder Girls, 2AM, 2PM, Miss A, and Rain, under its various labels.

The company, originally named Tae-Hong Planning Corporation, was founded by Park Jin Young, an actor, singer and songwriter in 1997. It eventually became JYP Entertainment in 2001. J. Tune Entertainment Co. Ltd., a record label and artists management company founded by Rain, merged with JYP Entertainment and has operated under the umbrella brand JYP Entertainment Corporation since March 2011. JYP Entertainment is headquartered in Seoul, with offices in New York and Beijing.

Jo Dong-Won is the current Chief Executive Officer and a director of JYP Entertainment Corp. Son Goo-Ho, former managing director of Softbank Ventures Korea Inc., now serves as a director of JYP entertainment. Park Jin Young is also a director of this company.

JYP Nation 2010 (JY Park, Wonder Girls, 2PM, Miss A, Lim Jeong Hee)

JYP Entertainment’s total revenue for the year ended June 2010 was 10.16 billion KRW (USD 8.51 million), according to its annual report, with a net income/loss of 10.36 billion KRW (USD 8.685 million) compared to a 6.35 billion KRW loss for the previous year 2009. Year on year, the company net income fell 63.24% despite revenues that grew 12.15% from 9.06 billion Won to 10.16 billion. An increase in the selling, general and administrative costs as a percentage of sales from 25.2% to 32.86% was a component in the falling net income despite rising revenues.

Many industry analysts believe that the marketing prowess of Wonder Boy Park Jin Young and the global brand value of all the artists and groups managed by JYP Entertainment are underrated company assets that could turn the company around in the future.

Hormel’s Plan To Position SPAM as a Premium Brand In China

admin — Sat, 17 Sep 2011 08:39:14 +0000

Musubi, Hawaii's Favorite SPAM Treat

Hormel (NYSE: HRL), the maker of SPAM, America’s favorite luncheon meat, has plans to position it as a premium product in China. A blend of chopped pork shoulder, ham, salt, sugar, binders and preservatives like potassium chloride and sodium nitrite, SPAM made its market debut in 1937 and immediately became the number one selling luncheon meat in America. It still remains as one of the top brands in Hormel’s family of grocery products, and accounted for close to 15% of Hormel’s $7.2 billion in sales last year. More than 122 million cans of SPAM products are sold worldwide each year, 90 million in the U.S. alone. Hawaii has the highest consumption per capita for SPAM and the most popular way to enjoy it there is the musubi, a sushi like roll with grilled SPAM, seaweed and rice. SPAM’s overseas revenue has doubled in the past five years as it entered Asian markets such as Japan and South Korea. Burger King restaurants in Tokyo actually have SPAM burgers on the menu.

Hormel currently has 2 factories in China, but only fresh meat products such as pork sausages and pepperoni are made there for retailers and restaurants including Pizza Hut.

Hormel’s plans to introduce SPAM as a premium product into the Chinese market may face cultural obstacles and strong local competitions. While pork has long been a big part of the Chinese diet, consumers can choose from a variety of fresh meats such as horse and beef as well as other locally produced luncheon meats. The pressure is on SPAM to differentiate itself; hence the premium strategy, which taps into the growing Chinese fondness for foreign and more expensive brands. Without a large budget for advertising in China, Hormel’s marketers are focusing on product tasting, in-store posters and online Chinese food recipes using SPAM. The biggest hurdle for Hormel; however, may be its premium pricing strategy. At about US$3.20 a can, SPAM is almost 40% more than the price of other local brands such as Great Wall and Ma Ling.

SPAM and Shark Fin Soup anyone?

Coca-Cola Share Price On The Rise; Considers Shanghai Listing

admin — Fri, 08 Jul 2011 02:11:52 +0000

Global soft drinks juggernaut The Coca-Cola Company (NYSE: KO) is considering a possible future listing on the Shanghai Stock Exchange to coincide with part of its plan to expand into China. “We continue to have positive discussions with Chinese government officials as we look at this opportunity,” Geoff Walsh, Coca-Cola’s public affairs and communications director for Asia Pacific region recently told a major newspaper in Hong Kong.

As of now, no foreign companies are allowed to list in China’s domestic stock exchanges. China had indicated earlier in 2009 that it would eventually allowed qualified foreign companies to list in Shanghai, with rules and regulations that have yet to be announced.

Currently, Coca-Cola share price ($68.75 as of July 7) is enjoying a gradual upward climb towards its record high of US$88 a share reached in 1998. Chief Executive Officer Muhtar Kent is continuing the corporate strategy started by his predecessor E. Neville Isdell to refocus the company more on its core products, which include Coke, Diet Coke, and Coke Zero, rather than on its other noncarbonated drinks. Kent also reconfigured serving sizes globally and introduced minicans and smaller bottles with new pricing to meet consumer demands and boost profit margins. In 2010, Coca-Cola purchased its largest franchised bottler in Atlanta, essentially bringing it in-house to cut supply-chain costs, and giving the company control of 90% of its North American distribution.

As close to 80% of Coca-Cola’s sales are done outside the United States, Kent plans to spend at least US$27 billion through 2020 for new bottling and distribution facilities in emerging markets such as China and Mexico. Last year, the company opened three bottling plants in the Inner Mongolia region at a cost of about US$246 million, part of the company’s three-year, US$2 billion expansion plan in China. A Shanghai listing seems like a logical extension of Coca-Cola’s plan as it would provide access to China’s huge local currency deposits as well as increase the already strong brand value of the best selling soft drink in the world.

Subway Overtakes McDonald’s As World’s Largest Restaurant Chain

admin — Sun, 13 Mar 2011 11:17:33 +0000

Unusual Location For Subway Sandwiches In China

The Subway sandwich group, operated by privately held Doctor’s Associates Inc., has officially overtaken McDonald’s Corp (NYSE: MCD) as the world’s largest restaurant chain in terms of number of restaurant outlets, according to the year-end store count filed by Subway to the Securities and Exchange Commission at the end of February 2011.

Subway has reported that it has a total of 33,749 restaurants worldwide at the end of year 2010, compared to the 32,737 restaurant units of McDonald’s. That number has already increased to 34,246 units according to Subway’s own corporate count as of March 10, 2011.

Both companies have aggressively expanded into international markets using successful franchise business models during recent years. Subway was founded by Fred DeLuca and Peter Buck in 1965 when they opened the first store in Bridgeport, Connecticut. It now has restaurants in 95 countries. McDonald’s Restaurant as a franchise concept was established by Ray Kroc in 1955 and sold 100 million burgers in just 3 years’ time. It now has restaurants in 117 countries around the world. From a revenue perspective, McDonald’s is still leader of the pack with a global revenue of US$24 billion compared to Subway’s US$15.2 billion for the year 2010.

As of March 2011, Subway has 1000 restaurant outlets operating across Asia, including 17 in Hong Kong, 199 in India, 236 in Japan, 63 in Malaysia, 14 in Philippines, 92 in Singapore, 38 in South Korea, 118 in Taiwan, 36 in Thailand, 1 in Vietnam and 199 in China. According to Don Fertman, Subway’s Chief Development Officer, the company is looking towards China for its future expansion plans. It is expected that the number of outlets in China will surpass 500 by the year 2015.

Other major restaurant chains are also looking for expansion into Asia, and to China in particular, as part of their overall strategic plans. Starbucks (NASDAQ: SBUX), already the largest coffeehouse chain in the world with 16,858 outlets in over 50 countries, plans to triple its café outlets in China. Kentucky Fried Chicken (KFC) with 16,200 restaurant outlets in 105 countries, also the largest and fastest growing restaurant chain in mainland China today with over 3,200 restaurants in more than 700 cities, and Pizza Hut, the largest pizza chain in the world with 13,100 restaurants, and Taco Bell with over 6000 franchise locations, are all operated by Yum! Brands Inc. (NYSE:YUM), which plans to increase its dominance in the global fast food market by opening significantly more stores across Asia in the near future.

Panasonic Corporation Leader In International Patent Filings

admin — Tue, 08 Mar 2011 09:31:24 +0000

International Patent Filings Dominated By Asia

China, Japan, and South Korea show dominating growth in international patent filings and exhibit a significant shift of economic, competitive and scientific power to Asia, based on data released in February 2011 by the World Intellectual Property Organization (WIPO).

The World Intellectual Property Organization said China had increased its international patent filings in 2010 by 56.2% to 12,337, tripling its 2006 figure and elevating China into fourth place in global rankings. These figures include a 33% increase in patent filings in electrical engineering and 220% increase in nanotechnology.

South Korea, ranked 5th with 9,686 filings, grew 20.5%, and Japan, a country with a mature economy, still attained growth of 7.9% with 32,156 applications to place 2^nd, and Germany, with 17,171 applications, ranked 3^rd on the list.

The United States is stilled ranked number one, although it experienced a drop of 1.7% to 44,855 filings, some 20% below its 2007 level. International patent applications by universities are still dominated by U.S. schools. Leading the pack is the University of California, Massachusetts Institute of Technology, University of Texas, and University of Florida. Under this ranking, the University of Tokyo follows closely at number 5.

The top 10 companies by filings include 3 from Japan, 2 from China, and 1 from South Korea, with 1 U.S. and 3 European firms completing the list.

Looking at the data from a corporate perspective, Japanese consumer electronics group Panasonic Corporation (NYSE: PC; TYO: 6752) again led the list with 2,154 applications, and China’s telecommunications giant, ZTE Corporation (SZSE: 000063; SEHK: 0763), jumped into 2^nd place with 1,863 applications. U.S. chipmaker Qualcomm Inc. (NASDAQ: QCOM) was in 3^rd place with 1,677 filings, and Chinese telecoms equipment maker Huawei Technologies Co. Ltd. is in 4^th place with 1,528 applications. LG Electronics Inc. (KRX: 066570; LSE: LGLD) of Korea takes the 7^th place with 1,298 applications. Of the top 10 corporate applicants, 6 are from Asia. The U.S. juggernaut Google Inc. is ranked only 80^th with 171 applications.

Under the Patent Cooperation Treaty (PCT), the WIPO offers inventors and industry an easier route for obtaining patent protection internationally. By filing one “international” patent application under the PCT, protection of an invention may be established simultaneously in each of the current 142 treaty member countries.

Both applicants and patent offices of PCT member states benefit from the uniform formality requirements, the international search and preliminary examination reports, and the centralized international publication provided by the PCT system.

Macau: Gambling Capital Of The World

admin — Sun, 30 Jan 2011 06:14:01 +0000

Macau Tower With Fireworks At Night

With increasing foreign investments and liberalization of its gaming industry, Macau is currently experiencing unprecedented economic growth. $7 billion revenue in Macau’s gaming industry surpassed Las Vegas’ $6.1 billion near the end of 2006 to make it the world’s biggest gambling hub. Analysts estimate that revenue is expected to climb 30% to $30 billion this year and at least another 25% to $38 billion for the year 2012.

Macau now has 33 casinos and more are being developed and built. Until 2002, Macau gambling was a monopoly; casinos were controlled and operated by tycoon Dr. Stanley Ho’s flagship company Sociedade de Turismo e Diversões de Macau (STDM). Casino operators now include foreign casino giants such as Wynn Resorts, Sands and MGM Grand. Sands opened on the Macau waterfront in 2004 and earned back its $260 million investment in less than a year. Continuing its success, Sands opened in the summer of 2007 the 3000-room, 350 shop, $2.4 billion Venetian Macau, a hotel, casino and shopping complex, the largest of all the casinos in Macau and the first of many family and convention-friendly developments to come.

According to Macau Government statistics and CLSA research report:

Stanley Ho’s SJM Holdings (subsidiary of STDM) is Macau’s largest casino operator, with a 32% share of Macau’s gaming market.

Sands China, the Macau arm of Sheldon Adelson’s Las Vegas Sands Corp., is the owner of the Venetian Macao, the world’s largest casino by floor area. It has a 16.5% market share.

Wynn Macau, owned by Las Vegas based Nasdaq listed Wynn Resorts (Nasdaq:WYNN), has a 15% market share.

Galaxy Entertainment Group (HKSE:00027) has a market share of about 12.6%. Launched in 2004, Galaxy owns 4 casinos, the StarWorld Resort, and the Galaxy Macau Resort (to be opened early 2011).

Nasdaq listed Melco Crown Entertainment (Nasdaq: MPEL), run by Stanley Ho’s son Lawrence Ho, has about a 11.7% share. It owns the City Of Dreams, Altira Macau Resorts and several smaller Mocha Club casinos.

MGM china, a 50-50 joint venture between MGM Resorts International and Stanley Ho’s daughter Pansy Ho, has a 11.6% share.

During the year 2010, close to 25 million people visited Macau, an increase of about 15% from the year before; however, less than 12% of the visitors were from outside of China, Hong Kong or Taiwan. There were 13.3 million visitors from mainland China last year, accounting for 53% of all the visitors to Macau for 2010. The number of international visitors; however, has increased only slightly for 2010 over the previous year. “We hope we can gradually raise this, for over the long-term Macau ought to develop the international market,” Maria Helena de Senna Fernandes, deputy director of Macau’s Tourist Office, said during a news conference. “Strategy-wise it’s very important for us to go for diversity. Diversity in terms of product, and diversity in terms of the markets we are pursuing. So international markets will be very important in the future.”

Currently, the Macau gambling industry generates over 40% of the GDP of Macau. Taxes on gambling profits generated over 70% of Government revenues annually.

The recent controversy surrounding Stanley Ho’s decision to transfer shares in Lanceford Co., the company that controls SJM Holdings Ltd., to the families of his second and third wives, together with the absence of a clearly defined succession plan for his empire, had caused the shares of SJM to plunge and no doubt resulted in sleepless nights for investors and shareholders….

But then again, Macau, like Vegas, is a city that never sleeps.

Lawson To Buy HMV Japan From Daiwa Group

admin — Thu, 11 Nov 2010 06:55:17 +0000

HMV Japan Flagship Store at Shibuya Closes In 2010

Japanese convenience store chain Lawson Inc. (TYO: 2651) announced on October 28, 2010 that it will acquire music retailer HMV Japan K.K. from Daiwa Securities SMBC Principal Investments Co. Ltd. for 1.8 billion Yen (US$21.9 million).

The acquisition will allow Lawson to strengthen its stores’ weak music CD and DVD sales. According to Lawson’s own press release, this purchase will enable Lawson to create extensive entertainment merchandise and full range services in all formats, by enhancing the merchandise offerings through its Lawson & HMV stores, Loppi (Lawson’s multi media kiosks) and all its online storefronts, and by utilizing HMV Japan’s highly reliable brand for music and video software, as well as HMV’s leading market share in Japan for these products in both actual store and Internet sales. Industry analysts concur that this strategic move will likely attract more young consumers, the largest segment of customers of convenient stores, by tapping HMV Japan online sales expertise and its more than 4.7 million loyal members.

HMV Japan posted a net profit of 877,000 yen for the fiscal term that ended in April, 2009, but saw a net loss of 4.6 billion yen for the 2010 fiscal year. In an attempt to turn around its business, the company has initiated many cost-cutting measures including the reduction of the number of its stores from 57 to 37 in April of 2010. Its parent company, Daiwa Securities SMBC Principal Investments Co. Ltd. has been looking for a buyer for its struggling subsidiary since the recent slump in the music retail industry.

Culture Convenience Club (TYO: 4756), operator of Japan’s Tsutaya movie and music rental chain, had shown strong interest in buying HMV Japan earlier this year, but negotiations had broken down after both parties failed to agree on a purchase price.

Lawson stores form the 2nd largest convenience (Konbini) store chain (after 7-Eleven) in Japan and currently operate in all 47 prefectures of Japan and in Shanghai, China. It actually originated in the U.S. as Lawson’s Milk Company in 1939. It expanded into a chain of Lawson’s stores throughout the 40s and 50s and was bought by Consolidated Foods in 1959. In 1975, Consolidated signed a deal with Daiei Inc. to establish a series of Lawson stores in Japan. The first Lawson convenience store opened in Osaka in June 1975 and was operated by Daiei Lawson Co. Ltd. which later changed its name to Lawson Japan, Inc.

In 1985, Consolidated Foods changed its name to Sara Lee and sold all its Lawson stores in the U.S. to Dairy Mart which then renamed all the Lawson stores to Dairy Mart stores. From that time on, Lawson stores no longer existed on U.S. soil. In 2002, Dairy Mart was purchased by Quebec based Alimentation Couche-Tard (ACT) which then proceeded to rebrand all the Dairy Mart stores as Circle K stores.

Lawson posted a net profit of 12.56 billion yen for the fiscal year ended February 28, 2010 and has a fiscal forecast of 22 billion yen in profit for 2011.

The 3 Best Emerging Cities For Starting A Business In China

admin — Mon, 08 Nov 2010 06:40:14 +0000

A recent survey conducted by Companies.Asia Group has identified the top 20 new cities in China with the most potential for starting a business. These 20 selected cities were ranked based on information gathered from interviews of business managers, entrepreneurs, both foreign and Chinese, working in China, as well as data from independent sources regarding the costs of doing business, the local talent pool, and the overall general business environment of these cities. Here are the top three:

The Kempinski Hotel In Suzhou

No.1 SUZHOU (population of 6.3 million; located in the province of Jiangsu)
Suzhou became a foreign investment center in the 1980s and now has the 5th largest local GDP in China, at $113.4 billion (GDP per capita is $17,169). It is the 2nd largest factory town after Shanghai.

By the end of 2007, foreign-invested companies in Suzhou had a total registered capital worth of US$13 billion, and the city’s Hi Tech Industrial Zone now hosts more than 1,500 foreign companies. Nike, Samsung, and Epson all have factories and offices here. Suzhou is currently evolving into a center for biotechnology and alternative energy.

Ad For A High-Tech Metal Components Company In Suzhou

No.2 SHENZHEN (population of 8.9 million; in the province of Guangdong)

Shenzhen City

As a small town in close proximity to Hong Kong, Shenzhen began as China’s first Special Economic Zone in 1978. Now it has the highest local GDP at US$120.1 billion (GDP per capita at $13,580) in the nation.

Being southern China’s major financial centre, Shenzhen is home to the Shenzhen Stock Exchange (SZSE) as well as the headquarters of numerous high-tech companies. Shenzhen is also the third busiest container port in China, ranking only after Shanghai and Hong Kong.

A thriving real estate market and a sophisticated financial services sector are putting Shenzhen on course to be the next mega city.

No.3 QINGDAO (population of 8.5 million; Province of Shandong)
Its close proximity to Japan and Korea, and its roots as a former German colony made this city a destination for foreign investments since the late 1970s. By 2009, due to extensive investments from Korea, more than 100,000 Koreans were working or studying in Qingdao, making it the 2nd largest Korean population (after Beijing) in China. Today Qingdao, also known as Tsingtao, is a premier tourist attraction and home of the famous Tsingtao Brewery.

Qingdao, Home Of The Famous Tsingtao Beer

Qingdao’s port will open the world’s largest iron ore terminal by late 2010 and the city plans to invest close to US$4.3 billion on downtown subway construction to be completed before 2016. Global Fortune 500 companies have invested in over 50 large-scale projects in the Economic and Technical Development Zone, and more than 2000 projects have been approved for the Free Trade Zone. Qingdao’s GDP has surpassed US$66.7 billion with a GDP per capita at US$7,948.