Hong Kong-based CALC is among the world’s top 10 aircraft leasing companies in the freight sector, says CEO Mike Poon. He says Hong Kong is an easy location for expertise in the sector, which also includes orders for aircraft parts, re-sale and recycling. CALC is connected to the Belt and Road Initiative through what is now called the “Aviation Silk Road”.

Speaker:
Mike Poon, CEO, China Aircraft Leasing Group Holdings Limited

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Dezan Shira & Associates (DSA) is a pan-Asia, multi-disciplinary services firm that provides professional consultation in accounting, auditing, taxation, IT and human resource management to multinational corporations and foreign investors.

DSA aims to assist and guide companies through the establishment, maintenance and expansion of their business operations in Asia. Their clientele is spread across many Belt and Road countries and regions including Hong Kong, mainland China, India, Vietnam, Indonesia and Singapore.

DSA used to run their internal data applications through a common network and IPSec VPN. However, after they installed a new large-scale Microsoft ERP system, the shared internet access was not sufficient to support a sound operation, and they found themselves in urgent need of more data security.

HKT devised a comprehensive virtual private enterprise network and internet service for DSA, that provided a high-quality, stable and speedy network connecting other regions.

HKT set up private networks for DSA at several core offices in the Greater China region, allowing interconnection and interoperability at various sites. Each branch enjoyed completely exclusive bandwidth, while DSA’s key ERP system was protected with high levels of privacy and stability of data transmission via HKT’s Quality of Service (QoS) and Flow Control Technology (CoS).

Enabled by HKT’s one-stop solution, DSA has managed to improve the user experience of their internal data applications. DSA now uses HKT’s Premium Internet services for all their mainland-based offices to resolve the issue of connection failure when staff access information from other regions from their offices in the Greater China region. HKT’s services have been well received by DSA staff, as speed has more than doubled when loading websites of other regions and transmitting documents online.

For example, the average data transmission delay between its Beijing office and other branches has been reduced from 120 to 40 milliseconds, with the packet loss ratio dropping from the previous 10% to close to zero*.

With HKT’s support, DSA’s is expanding rapidly, and offering comprehensive foreign investment services for multinational companies looking to enter Belt and Road markets.

*Remarks: All test results were provided by DSA

Contact us:
http://www.hktchina.com/contact-us.php?lang=En

China Aircraft Leasing Group Holdings Ltd (CALC), an aircraft operating lessor founded in Hong Kong, specialises in providing aircraft full-life solutions, such as aircraft leasing, purchase and leaseback, structured financing to airlines around the world. It also provides value-added services including fleet planning, fleet upgrade and aircraft recycling. In a dynamic market that has been gaining traction year after year, CALC is one of the market players that stand to benefit from the boom. Today, the company has grown to become China’s largest independent aircraft operating lessor, Asia’s first large-scale aircraft recycling facility operator, and one of the top 10 global aircraft lessors in terms of the combined asset value of its fleet and orders placed. Its global presence is continuing to expand.

CALC’s business is mainly divided into two areas: CALC itself is responsible for the leasing of new aircraft; its member company, Aircraft Recycling International (ARI), focuses on the disassembling and recycling of used aircraft and spare parts supply. This unique business model means the company’s services cover an aircraft’s full life cycle – from its days as a new plane to the time it comes to the end of its lifespan. As the first full value-chain aircraft solutions provider in Asia, CALC currently owns and manages 130 aircraft in its fleet and is on track to expand its fleet to more than 300 by year 2023.

Over the past three decades, the aviation leasing industry has been growing at a remarkable speed as more and more airlines prefer to lease, rather than own, their aircraft for operation flexibility and efficiency. The outlook for the industry has become even more positive in recent years, with low interest rates and surging demand for air travel providing strong tailwinds. Amid the boom, CALC launched in 2014 a “globalisation strategy” aimed to carve out a global presence for the company. In less than two years, CALC’s clientele expanded to include airlines in Asia Pacific, Southeast Asia, Europe, Middle East and the United States, many of which are flag carriers or top-tier airlines in their markets.

The aircraft lessor first set its sights on Harbin, the pivot hub of the Longjiang Silk Road Economic Belt under the Belt and Road framework, which connects Eurasia with the Pacific and Baltic countries through a comprehensive land and sea transportation network. In 2014, CALC signed an agreement with the Harbin Municipal Government on the establishment of China’s first and largest aircraft disassembly project, the China Aircraft Disassembly Centre. The centre features an ageing aircraft material recycling system, which provides services to countries including those along the Belt and Road routes.

Also in 2014, CALC entered into leasing agreements with Air India – its first non-Chinese customer – for five new Airbus A320 aircraft. The first of the five planes was delivered during Indian Foreign Minister Sushma Swaraj's trip to China in February 2015.

As the “Aviation Silk Road” continued to gather momentum, CALC expanded its reach into more and more Belt and Road countries. In 2016, it delivered two new Airbus A320 aircraft to Pegasus Airlines, Turkey’s leading low-cost carrier, and four Airbus A320 aircraft to Jetstar Pacific, Vietnam’s first low-cost carrier. In 2017, CALC continued to deliver aircraft to airlines in various parts of the world, including in Russia, one of the largest markets on the Belt and Road.

Currently, aviation is one of the key areas of focus of the Belt and Road Initiative. As of the end of December 2016, China had signed bilateral air transportation agreements with 120 countries and regions. Mike Poon, Chief Executive Officer of CALC, said CALC sees great growth opportunities arising from the Belt and Road Initiative.

“In China, demand for domestic and international air transport services, including different aviation financial services, is growing rapidly. Meanwhile, many Belt and Road countries are emerging economies with an underdeveloped aviation sector. We believe our growth potential is high since we are the first-mover in the industry and one of the few operators that provide full value-chain aircraft solutions and value-added services to our clients around the world,” Poon said.

That is not to say there is no challenge. As with many other cross-border industries, the aircraft lessor sector is exposed to different operational risks, including political instability, credit risk and interconnectivity risk. To counter the risks, which are not unusual in Belt and Road countries, CALC relies on its own professional team with substantial experience in global financing and a comprehensive risk management system. This enables the company, which is listed on the Hong Kong Stock Exchange, to keep risks under control when expanding internationally.

According to Poon, in its continued effort to expand its international presence, CALC, being a Hong Kong company, also enjoys a diversity of advantages that the city offers. They include an open economy, the city’s sophisticated banking and financial sector, the common law system, and Hong Kong’s role as a facilitator of Belt and Road opportunities. In addition, the Hong Kong government’s move last year to grant aircraft leasing tax concessions to qualifying lessors has taken the city a step towards establishing itself as an international aircraft leasing hub. All these local advantages stand CALC in good stead, enabling it to grow fast and in the right direction while playing an effective role in building the “Aviation Silk Road”.

When Anthony Espina visited Kazakhstan for the first time in 2007, he felt right at home. “I was struck by how similar Kazakhstan was to Australia, from the open fields to the friendly people and multicultural society,” said Espina, a Filipino-Indonesian born in Hong Kong and educated in Australia.

Espina was attracted by the growth potential of Kazakhstan. On his first trip to the country in 2007, Espina, then owner of a Hong Kong-based securities dealer of the Hong Kong stock market and Chairman of the Hong Kong Securities Association, was part of a government delegation to promote Hong Kong Stock Exchange as a destination for listing Kazakh companies. Meeting the locals allowed him to glean a better understanding of Kazakhstan, which, as he learned, has an abundance of natural resources and is one of the best economic performers among all former republics of the Soviet Union in Central Asia. Espina immediately saw business opportunities.

His instinct proved right. A few months later, a Kazakh business contact approached him and sought his help to import TV set-top boxes from China.

“They had sourced set-top boxes from Ukraine and other former Soviet republics. The cost was US$40 to $50 per unit, compared with only $30 from Shenzhen manufacturers. So they wanted to source directly from China. But in those days, trade between China and Kazakhstan was rare and language was a barrier. Chinese companies required Kazakh buyers to settle all payments before goods were shipped out of China,” Espina said.

“For me, the deal was very simple. I only had to cross the border to liaise with mainland manufacturers and help with the shipping, making sure everything was right before and after payment was made,” he said. “Hong Kong is a long-established trading port and we have the experience to handle such deals.”

The collaboration was soon followed by more business opportunities. For instance, another Kazakh company enlisted Espina’s help to import agricultural chemicals. Espina also started to dabble in Kazakhstan’s financial sector, facilitating companies to complete merger and acquisition transactions. In 2012, a turning point came. The Italian bank UniCredit wanted to sell its stake in ATF Bank, one of Kazakhstan’s five largest banks by assets. At the time, Espina had been with a Kazakh company handling a merger and acquisition transaction. He then helped that company take over ATF from UniCredit. The deal was closed in early 2013 upon getting approval from the National Bank of Kazakhstan, and Espina has been ATF’s CEO since then.

For Hong Kong businesses interested in investing in Kazakhstan, Espina said patience and finding a reliable local partner are key. “There are many business opportunities in Kazakhstan, but it takes time to capture them.”

In September 2013, Chinese President Xi visited Kazakhstan and outlined for the first time the plan to build a Silk Road Economic Belt when he delivered a speech at Nazarbayev University in Astana. The Silk Road Economic Belt is a land-based component that, together with the oceanic Maritime Silk Road, forms the Belt and Road Initiative.

It is a development that has excited Espina till this day. “Central Asia occupies the biggest share of the Belt and Road. Kazakhstan, the biggest country in the region, has many advantages as far as the Belt and Road Initiative is concerned,” he said.

According to the Kazakh government, Kazakhstan and China have drafted more than 50 projects totalling US$27 billion and involving various fields, including the chemical, mining, infrastructure, energy and agricultural sectors.

Hong Kong, being a financial hub that has long been playing the role of financial intermediary to China, also stands to gain, Espina said. “Under the Belt and Road Initiative, Hong Kong is the ideal place for fundraising for Kazakh companies and foreign companies doing projects in Kazakhstan. Given Hong Kong’s financial knowledge, we can help Kazakh companies carry out feasibility studies and raise funds at lower financial costs.” he said. “Hong Kong is more than a ‘connector’. It is an international financial centre that Kazakhstan can use to build its own capital and debt markets.”

According to Espina, the Kazakh government has set a strategic goal to reduce its role in the economy through privatisation. In February 2018, he was appointed as advisor to the CEO and Chairman of the management board of Samruk Kazyna, the sovereign wealth fund of Kazakhstan. The fund is the holding company of all the major state-owned enterprises of Kazakhstan. Espina is currently advising on the privatisation of four companies of the fund. The state-owned companies to be privatised will be listed on the Astana International Exchange (AIX), which is part of the Astana International Financial Centre (AIFC).

Officially opened in July 2018, the AIFC is a planned financial free zone in Astana designed to open up the country for international business. Positioned as a financial hub in Central Asia, it has a special legal framework based on the principles of English law and the preferential tax regime, which will make it easier for foreigners to invest in Kazakhstan. Espina said the AIFC encourages Kazakh companies to list debt and equity securities there, and in the long run other Central Asian companies will also be attracted to list their shares on the AIFC. In the process of privatisation, Hong Kong can also play a part, he said.

“Hong Kong has played an important role in the privatisation of mainland state-owned enterprises. We have the knowledge, expertise and experience in facilitating the privatisation of mainland companies. We can do the same for Kazakhstan,” Espina explained.

“If Kazakh companies decide to dual-list their shares on the Hong Kong Stock Exchange (SEHK) and the Astana International Exchange (AIX), then Hong Kong-based financial services providers will definitely have to set up operations in the AIFC to advise on SEHK listing rules. Also, if Kazakh companies were to raise funds through Hong Kong from the Chinese mainland, for example, the financial services providers can also advise on taxation and other issues.

Espina called for the Hong Kong government, the Financial Services Development Council and the SEHK to take the initiative to promote Hong Kong’s advantages and bring Hong Kong-based financial services companies to Kazakhstan.  

Medical and security risks have brought global players Control Risks and International SOS together as partners in professional services for over 10 years, including on the Belt and Road Initiative. Hong Kong provides a centre for Control Risks’ large business growth, says the firm’s Neal Beatty, while International SOS’s Lim Hui Ject views Hong Kong as “a mega operational hub”. 

Speakers:
Neal Beatty, Partner and General Manager, Control Risks
Lim Hui Ject, General Manager, Sales and Marketing, Asia, International SOS

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Global special risks consultancy, Control Risks, is working in Hong Kong with international and Chinese mainland firms to ensure they are “secure, compliant and resilient,” says the company’s Neal Beatty. Client firm Environmental Resources Management (ERM) meanwhile works closely with Control Risks as it aims to solve sustainability challenges on the Belt and Road. Hong Kong is an important centre for such professional services, says ERM’s Piers Touzel.

Speakers:
Neal Beatty, Partner and General Manager, Control Risks
Piers Touzel, Country Manager, China, ERM

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Hong Kong-based Outblaze aims to pioneer a path on the Belt and Road Initiative with its digital entertainment and educational media, covering areas such as movies and games. Founder Yat Siu says Hong Kong is strategically situated for diverse cultural exchange while Outblaze’s location in a smart space centre at Hong Kong’s Cyberport is valuable for its dynamic, innovative community.

Speaker:
Yat Siu, Founder, CEO, Outblaze

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Zai Lab is a high-tech biopharmaceutical company headquartered in Shanghai that specialises in transformative medicines. With its expertise and experience in innovative medical research and development (R&D), Zai Lab partners with the world’s top multinational companies and institutions to carry out joint research and product development. For Zai Lab, global data transmission and internet accessibility are vital to its daily operation.

HKT provides ICT solutions to a number of the world’s top 500 companies and many established pharmaceutical enterprises. HKT’s project team possesses extensive experience to offer customised solutions to Zai Lab – using multiprotocol label switching (MPLS) to create virtual private networks (VPN).

HKT’s experienced advisory service team understood the project objectives and was able to tackle issues encountered during implementation. The project team coordinated across various departments in Zai Lab and was able to complete the project ahead of schedule.

HKT’s MPLS VPN solution to Zai Lab has improved the company’s internet accessibility significantly. Zai Lab’s staff can now access information from overseas websites more easily and data transmission has become faster, more stable and more secure.

Going forward, leveraging the expertise of HKT, Zai Lab plans to expand its business worldwide to capitalise on the opportunities presented by the Belt and Road Initiative.

Contact us:
http://www.hktchina.com/contact-us.php?lang=En

Online actuarial expertise offered by Hong Kong’s JPWALL for insurance companies tackles risk factors across the Asia Pacific and Belt and Road Initiative – given that “InsureTech” is a hot word in the industry – says Group Managing Director, Jeremy Wall. He says actuarial requirements for Belt and Road risk analysis are growing, while Senior Partner Duncan Spooner says potential business is “immense”.

Speakers:
Jeremy Wall, Group Managing Director, JPWALL
Duncan Spooner, Senior Partner, JPWALL

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

In addition to partnering and collaborating on infrastructure projects, such as building ports, roads and bridges, countries and regions involved in the Belt and Road Initiative have also agreed to synergise medical research and epidemic prevention efforts, which fit with the Belt and Road objectives of promoting cooperation, mutual learning and mutual benefits.

A good example of Belt and Road cooperation involving Hong Kong is the comprehensive Asia Pacific Viral Hepatitis Policy Survey, which published its findings earlier in 2017. The extensive survey, the first to be conducted since 2012, was carried out by the Centre for Global Health under the School of Public Health and Primary Care, Chinese University of Hong Kong (CUHK CGH), with the support of the Coalition to Eradicate Viral Hepatitis in Asia Pacific (CEVHAP), an independent, multidisciplinary non-profit organisation dedicated to hepatitis policy advocacy.

A key aim of the survey was to evaluate the systems and preparedness of Asian governments in the goal to eliminate viral hepatitis by 2030. China’s President Xi Jinping and former World Health Organisation (WHO) Director General Margaret Chan agreed to bring a global health focus to economic development, starting with Belt and Road countries. The countries and territories surveyed included Australia, Bangladesh, China, Hong Kong, Indonesia, Japan, Malaysia, Myanmar, Pakistan, Philippines, Taiwan, Thailand and Vietnam. While globally millions of people have infected with viral hepatitis, the Asia Pacific region is home to the highest percentage of people whose lives are impacted by the virus. Termed by some as the "silent epidemic", estimates suggest that globally, viral hepatitis is responsible for more than a million deaths.

Having worked on hepatitis policy advocacy for a number of years, Elizabeth Fung, Senior Account Manager of FleishmanHillard (Hong Kong) said the international communications firm was ready to provide assistance again. Previously FleishmanHillard worked with various public sector organisations including the provision of communications support to CEVHAP. FleishmanHillard worked closely with CUHK CGH and CEVHAP to provide corporate communication services and helped to compile the final survey report. 

"Hong Kong is a key member of the wider Asia Pacific community, and as an agency based in Hong Kong, we want to contribute to the creation of a hepatitis-free future in Asia Pacific," Fung said. Hong Kong has a number of well-known health related research institutions. Hong Kong is also a globally recognised knowledge hub for public health and hepatology (the branch of medicine that incorporates the study of liver, gallbladder and pancreas). "This means we have access to a research team more than capable of meeting international standards," said Fung who also points out that Hong Kong is a regional media hub, with over 50 international media with sizeable operations which contribute to international news coverage. "The presence of quality research partners and access to the media makes Hong Kong an attractive option for coordinating a regional survey," noted Fung.