HONG KONG

By : JAIDEEP SINGH KACHHWA

MAP
POLITICAL MAP
 CONTENTS
1. HISTORY
2. GEOGRAPHY
3. DEMOGRAPHY
4. INFRASTRUCTURE/COMMUNICATION
5. GOVERNMENT
6. ECONOMY
7. MAJOR INDUSTRIES
8. HEALTH CARE INDUSTRY
9. PHARMA INDUSTRY
 HISTORY
• Hong Kong began as a coastal island geographically located in southern
China

• Initially a fishing village, salt production site and trading ground, it

eventually became an international financial centre that enjoys the world's
6th highest GDP per capita , supporting 33% of the foreign capital flows
into China.

• The territory was incorporated into China during the Qin Dynasty (221 BC -
206 BC)

• The last dynasty in China, Qing Dynasty, was the last to come in contact
with Hong Kong until 1800`s.
 Hong Kong have been under constant colonization, be it CHINA,JAPAN
or THE BRITISH , Hong Kong was never an independent country.

Pre-historic Era –

 Imperial China era (221 BC – 1842)

 Colonial Hong Kong era (1800s – 1930s)

 Japanese occupation era (1940s)

 Hong Kong under British rule (1950s – 1997)

 Modern Hong Kong under China (post-1997 – present)

 Hong Kong in the late nineteenth century was a major
trading post of the British
Empire

 In the 1960s, the manufacturing industry along with the

construction industry opened a new decade utilizing
large portions of the population making it the first turning point
for the country`s economy
 On 1 July 1997 Hong Kong was handed over to the People's
Republic of China by the United Kingdom

The government dealt with the SARS outbreak in 2003.

Other health crisis such as the Bird Flu Pandemic (H5N1)
gained momentum from the late 90s, and led to the disposal of
millions of chicken and poultry
 GEOGRAPHY
• Hong Kong is one of the two special administrative regions of the
People's Republic of China, the other is Macau.

• Situated south of the Tropic of Cancer, climate is humid

subtropical climate.

• Situated on China's south coast and enclosed by the Pearl River

Delta and South China Sea, it is renowned for its expansive
skyline and deep natural harbor.

• With land mass of 1,104 km2 (426 sq mi) and a population of

seven million people, Hong Kong is one of the most densely
populated areas in the world.
 DEMOGRAPHY
• Population: 6.9 million

• Population Density: 6,420 people per square kilometer

• Ethnic Groups: Chinese (95%), Others (5%)

• Languages: Cantonese, Mandarin, English

• Literacy: 94.4%

• Education: 75.5% of children finish upper secondary or equivalent vocational education

• Subdivisions: Hong Kong, Kowloon, New Territories

• Suffrage: Permanent residents, aged 18 and over, living in Hong Kong for the past
seven years are eligible to vote (political franchisee).
 INFRASTRUCTURE

• Hong Kong has a superb infrastructure, which meets its

population's needs and contributes to the efficiency and growth
of the economy.

• Hong Kong has an advanced land, sea, and air transport and
communications system, including 1,831 kilometers (1,138
miles) of paved roads (1997 est.) and 34 kilometers (21 miles)
of electrified railways (1996 est.).

• The railway system is one of the most efficient systems of the

world and is connected to Chinese railways via the Kowloon
peninsula.
 COMMUNICATION
• The telecommunications system of Hong Kong is excellent,
consisting of fixed-line and cellular services.

• Hong Kong has one of the highest rates of usage of cellular

phones in the world.

• Personal computers are widely used and their availability is

high (254 computers per 1,000 people in the same year).
Internet services were provided by 49 Internet service
providers in 1999.
 GOVERNMENT

Legislative Council of Hong Kong

Government House, the official residence

of the Chief Executive.
• One country two systems: Hong Kong is a Special Administrative Region of
the People’s Republic of China, with a high degree of autonomy in all matters
except foreign and defense affairs.

• Hong Kong will retain its political, economic and judicial systems for 50
years after reversion and will continue to participate in international
agreements under the name of “Hong Kong, China.”

The primary institutions of government are:

• The executive:
The Executive Council, headed by the Chief Executive who is elected by
the Election Committee and then appointed by the Central People's
Government.
• The civil service:
Public servants are appointed based on meritocracy

• The legislature:
The Legislative Council has 60 members, 30 elected by permanent residents of Hong
Kong
The other half, known as functional constituencies, are directly headed by
the President of the Legislative Council who serves as the speaker

• The judiciary:
The Judiciary of Hong Kong, comprising the Court of Final Appeal, the High
Court (which includes the Court of Appeal and the Court of First Instance),
the District Court et cetera.
 ECONOMY

The International Finance Centre in Central

 Hong Kong – A Dynamic Economy
• Fiscal year: 1 July – 30 June

• GDP Per Capita: $29,826 (2009)

• GDP Growth: -3.1% (2009)

• Work Force: 3.5 million (2009)

• Retail Sales: $32.2 billion (2009)

• HK Industry: Textiles, clothing, electronics, plastics, toys,

watches, clocks

• Total Exports: $355.5 billion (2009)

• HK Exports: Clothing, electronics, textiles, watches,
clocks, office machinery

• Total Imports: $377.3 billion (2009)

• HK Imports: Consumer goods, raw materials, semi-

manufactures, capital goods, foodstuffs, fuels

• Exchange Rate: $US1.00 = $HK7.77 (12-30-2006)

In 2009, Hong Kong was ranked third in the Ease of Doing
Business Index.

Hong Kong’s local market of 6.9 million people is augmented by

25.3 million tourists, including 13.6 million from mainland China.
 MAJOR INDUSTRIES
• The textile and garment industry

• Other industries include the manufacture of electrical and

electronic equipment, plastics, toys, watches and clocks,
appliances, metal and rubber products, chemicals, and jewelry.

• A major component of the industrial sector is the construction

industry.

• Tourism is a major source of revenue, in addition to motion-

picture production, finance and insurance, and publishing.
HEALTH CARE INDUSTRY
• Hong Kong's medical and healthcare equipment industry is mainly targeting at the household consumer
market.

• In 2008, Hong Kong's total exports of medical and healthcare equipment grew by 23%.

• The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) came into effect on 1
January 2004. All goods made in Hong Kong, including medical and healthcare products, subject to the
CEPA's rules of origin, can enjoy duty-free access to the Chinese mainland beginning January 2006.

• In the Chinese mainland, the State Food and Drug Administration (SFDA) is in charge of the registration
and monitoring of imported medical devices.
PHARMA INDUSTRY
• The industry is greatly pressured by stringent regulations
governing the production, manufacturing process, logistics and
sales of chemicals products

• Local pharmaceutical brands, especially proprietary traditional

Chinese medicine (TCM), are highly sought by Mainland
consumers. However, due to Mainland’s strict control over
pharmaceutical products, it has barred Hong Kong products
from crossing the border
• The pharmaceutical distribution sector is very fragmented with about
10,000+ state-owned pharmaceutical wholesalers.

• Direct marketing to doctors, is not developed much in Hong Kong.

• Hospitals generate 60 percent of their revenues from the sale

of prescription drugs.

• Hospital pharmacies are still the main retail outlets for pharmaceuticals,
accounting for 80 percent of total drug sales.
 MARKET SIZE

• The Hong Kong Over the Counter(OTC) Healthcare market led by traditional medicines
representing almost 41 percent of the market and accounting for US$155.5 million in
sales.

• Vitamins and minerals are the next largest segment accounting for 18.4 percent with a
value of US$69.9 million.

• The total value of the OTC healthcare products market is US$379.2 million.

• According to a survey- the Census and Statistics Department during February to May
2005, it was found that 22.8% of all persons aged 15 and over in Hong Kong had taken
health supplements during the previous twelve months.
• The following are some key points from this survey:

Age and sex

People aged 35-44
had highest rate of taking health supplements (29.3%),
persons aged 45-54 (24.5%) and
those aged 25-34 (23.0%).
Females- a higher rate of taking health supplements(27.1%)
Males-18.4%

Economic activity status

About two-thirds (63.8%) of the persons aged 15 and over who had taken health
supplements as in the survey were “economically active” (i.e. employed).
Monthly household income
Persons with higher monthly household income had a greater tendency to take health
supplements.

Types of health supplements taken over half of those aged 15 and over who had taken health
supplements reported they had
taken vitamins (5.2%), Chinese herbs/over-the-counter Chinese drugs (21.0%), calcium
tablets (15.1%), cod liver oil (12.5%), products for strengthening immune system (10.6%).

Purpose of taking health supplements:

The majority (80.8%) were “to improve body functions”, followed by “to prevent diseases”
(26.1%) and “to cure diseases” (10.1%).
 Major players in the market
Hong Kong mainly imports health products from USA, UK, Switzerland, Japan,
China, Korea, Australia and Canada. Minor suppliers include Malaysia, Singapore,
New Zealand,
Germany and Finland

REGULATORY OVERVIEW
Duties/taxes
• As Hong Kong is a free port, there are no customs tariffs on goods imported into or
exported from Hong Kong.

• Excise duties are levied on only four types of goods – liquors, tobacco,
hydrocarbon oil and methyl alcohol
 Labeling requirements
The Hong Kong Medical Council (http://www.mchk.org.hk/) requires that all
pharmaceuticals and doctor-dispensed medicines should carry labels that include
Chinese and English
explanations of dosage and frequency.
Under the guideline set out in the Pharmacy and Poisons Ordinance and Regulations,
general labeling requirements include:
(a) Name of the product
(b) Name and quantity of each active ingredient
(c) Name and address of the manufacturer
(d) Hong Kong registration number of the product (HKXXXXX)
(e) Batch number
(f) Expiry date
(g) Specific storage conditions
 List of retailers
• Watsons - http://www.aswatson.com/eng/retail_hb_watson.html
• CR Care - http://www.crcretail.com/index.asp?Lang=E
• Health Plus - http://www.healthplus.com.hk/
• Green Dot Dot - www.greendotdot.com
• PARKnSHOP -
http://www1.parknshop.com/WebShop/AboutParknshop.do
• Market Place - http://www.marketplacebyjasons.com/
• Three Sixty - http://www.threesixtyhk.com/
• Taste - http://www.aswatson.com/eng/retail_fegm_221_taste.htm12
• Vanguard - http://www.crvanguard.com.hk/crcshopweb/web/index.php
• Vole’ - http://www.vole.com.hk/
• City Super - http://www.citysuper.com.hk/
• Jusco - www.jusco.com.hk
Hyper link to the list of hospitals in
Hong Kong

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