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Hong Kong offshore company - why it remains popular?

Hong Kong has evolved into one of the important business centers in the region. Located on the South East Coast of China it became part of China on 1 July, 1997. It is a Special Administration Region (SAR) within the People's Republic of China with its own legislature and courts. Despite the presence of business centers such as Shanghai, Hong Kong continues to gain popularity as an offshore jurisdiction and commercial hub because of the economic and political stability and simple and straightforward tax regime and legislative system. A Hong Kong offshore company is a very popular vehicle for conducting offshore banking activities, international trade, investment activities, and for asset protection.

Some of the key benefits of Hong Kong as an offshore jurisdiction include:

Favorable Tax regime: Hong Kong follows a territorial policy of taxation, the companies are taxed only on the income that is derived from Hong Kong and profits earned beyond the shores of Hong Kong are exempted from tax. Moreover there is no VAT, or capital gains tax or tax on dividends this makes it a highly desirable jurisdiction. Thus, a Hong Kong offshore company that generates income from abroad practically pays Zero tax. Overseas profits are exempt from taxation in Hong Kong even if it is brought back to the jurisdiction.

Even for revenue generated from Hong Kong the tax applicable on taxable profit is just 16.5%, one of the lowest in the region. After deductions and exemption the effective tax rate will be much lower than the headline tax rate.

Positive Image: Hong Kong Companies are not perceived as offshore tax haven as Hong Kong is not regarded as a tax shelter. In an article published in May 2009, the Director of the OECD's Centre for Tax Policy and Administration commended Hong Kong's efforts to comply with the international standards on tax transparency and exchange of information while pointing out that Hong Kong is not a tax haven according to the OECD criteria. Subsequently, in its September 2009 report, the OECD vindicated again that Hong Kong is not a tax haven and recognised Hong Kong's commitments to the OECD standards. Therefore a Hong Kong Offshore company commands a respectable image and does not raise suspicions.

Strategic Location: Hong Kong is considered as the gateway to China, the world's biggest market and facilitates easy access to mainland China and all the key markets of Asia, most of the Asian cities are within four hours flying radius.

Free economy: Hong Kong is regarded as the world's most free economy with the lack of restrictions and government interventions in trade. The economic policy allows free inflow and outflow of capital and   there is no exchange control. The jurisdiction allows 100% foreign ownership of companies. It has been ranked as the freest in the world by the Index of Economic Freedom for 15 consecutive years.

Political Stability: Hong Kong a former British Dependent Territory became a Special Administrative Region of People's Republic of China in July 1997. Since then Hong Kong has retained its autonomous status and under the "one country two systems" concept, the Chinese government does not interfere with the governance of Hong Kong which has flourished by leaps and bounds with a significant share of world's largest banks, corporations and high net worth individuals. 

World Investment Report 2009 released by the United Nations Conference on Trade and Development (UNCTAD)reaffirmed Hong Kong as one of the world's and Asia's most attractive destinations for FDI. Despite the tough economic situation Hong Kong attracted US$63 billion inward investment in 2008 and continues to be Asia's second largest and is the world's seventh largest FDI recipient. This reflects on the investment climate and investor's confidence which are direct outcome of Political stability.

Strong Economy: With 7 million population and foreign exchange reserve of over US$140 billion the economy of Hong Kong is resilient and vibrant. The Hong Kong Stock Exchange is Asia's second largest stock exchange in terms of market capitalization, behind the Tokyo Stock Exchange. As of 31 December 2007, the Hong Kong Stock Exchange had 1,241 listed companies with a combined market capitalization of $2.7 trillion.

Absence of Nationality or Residency Limitation: As an international business center the jurisdiction does not have any stipulation regarding the nationality or the residency of share holders and directors. A minimum of one director and shareholder is required and there is no cap on the maximum numbers and a foreigner who is not residing in Hong Kong can act as the Director. The director and shareholder can be the same person. However the company secretary must be a resident individual or a resident company.

Minimum Share Capital: The minimum paid up capital is HK $1 and recommended share capital is HK$10,000. Bearer shares are not allowed.

Filing of Returns: If a company does not do any business in Hong Kong, which is usually the case with offshore companies, there is generally no requirement to file financial statements and no audit is required. It is only necessary to file an annual Declaration of "No business activity in Hong Kong." However if the offshore company has an office in Hong Kong or has employees in Hong Kong then it is required to file audited financial accounts. Moreover the government reserves the right to request for filing annual statements at a short notice any time therefore it is recommended to maintain the books up-to-date.

Provision for Anonymity: The names and details of the Directors and Shareholders are disclosed in public records however the nominee provision could be used in order to maintain anonymity.

Regulatory Compliance: The other regulatory compliance are simple and is similar to any resident companies such as maintenance of proper records, renewal of licenses,  notifying any changes in the registered details etc

Hong Kong as a tax haven

Hong Kong Offshore Companies and their Tax Liability

Taxes only apply to business profits, salaries and property rental income. This means there is no capital gains tax and no inheritance tax - the two biggest bugbears of expats. The beauty of the Hong Kong tax regime is that it is one of the few jurisdictions in the world that tax on a territorial basis. Many countries levy tax on a different basis and they tax the world-wide profits of a business, including profits derived from an offshore source. Hong Kong offshore companies profits tax is ONLY charged on profits derived from a trade, profession or business carried on in Hong Kong. Consequently, this means that a company which carries on a business in Hong Kong, but derives profits from another place, is not required to pay tax in Hong Kong on those profits. 

Hong Kong sourced profits is currently subject to a rate of taxation of 16.5 per cent. There is no tax in Hong Kong on capital gains, dividends and interest earned. The principle of Hong Kong profits tax is that it is a tax on profits that has its source in Hong Kong rather than a tax based on residence. Income sourced elsewhere, even remitted to Hong Kong, is not subject to Hong Kong profits tax at all. Consequently, if a Hong Kong offshore company's trading or business activities are based outside Hong Kong no taxation will be levied.

A factor that determines the locality of profits from trading in goods and commodities is generally the place where the contracts for purchase or sale are effected. "Effected" does not only mean that the contracts are legally executed. It also covers the negotiation, conclusion and execution of the terms of the contracts. If a business earns commission by securing buyers for products or by securing suppliers of products required by customers, the activity which gives rise to the commission income is the arrangement of the business to be transacted between the principals. The source of the income is the place where the activities of the commission agent are performed. If such activities are performed through an office in Hong Kong, the income has a source in Hong Kong.

Certain sums, like royalties, paid or payable to non-resident persons for use of or right to use certain intellectual property are subject to withholding tax. The payer who claims deduction for the use of the intellectual property against its assessable income is required to withhold a prescribed percentage from the payment while that recipient is not subject to Hong Kong profits tax. The prescribed percentage is 4.95% on the gross payment if the payer and the recipient are not related, but 16.5% if the payer and recipient are related. The recipients of the royalties who are tax residents of Belgium, Thailand, or Luxembourg enjoy the respective treaty rates.

Hong Kong Double Taxation Agreements

Hong Kong has arrangement with a number of jurisdictions for double taxation relief of shipping or airline income. It has also comprehensive double tax agreements with Belgium and Thailand respectively to relieve taxation on income, for instance, dividends, interest and royalties. The Hong Kong Inland Revenue Department allows a deduction for foreign tax paid on a turnover basis in respect of income which is also subject to tax in Hong Kong. Therefore, businesses operating in Hong Kong do not generally have problems with double taxation of income. The respective comprehensive double tax agreements with Brunei, Hungary, Indonesia, Kuwait and Netherlands will become effective from 1 April 2011 to relieve the applicable double taxation on various incomes.

Hong Kong Offshore Company Banking

At Offshore Formations 247 we work closely with HSBC bank and can therefore combine the formation of your Hong Kong offshore company with a top class bank account.

Hong Kong Offshore Company Formation / Registration

Offshore Formations 247 are able to incorporate a Hong Kong offshore company. Company formation normally takes up to 7 days to register a new company. Hong Kong Offshore Company Shares. The usual authorised share capital is HK$1,000. The minimum issued capital is one share of par value. Ordinary shares, preference shares, redeemable shares and shares with or without voting rights are all permitted.

There is no limitation on the amount of authorised or issued share capital. Capital duty at the rate of 0.1% of the authorised capital is payable to the government on incorporation and subsequent increase of any amount of the authorised capital. Shares must be expressed in a fixed amount. Hong Kong does not permit no par value shares. While it is usual for the share capital to be expressed in Hong Kong dollars, shares may be expressed in other currencies. A multiple currency share capital is also permissible. Our Services - Offshore Company Formation, Nominee Director, Nominee Shareholder, Mail forwarding and Bank Accounts

Offshore Formations 24.7 specialize in Hong Kong company formations ranging from simple company registrations to complex structures including offshore Trusts and in providing a very comprehensive assortment of administrative services to Hong Kong companies, including the provision of Nominee Director, Nominee Shareholder, Mail Forwarding and Bank Account services. We are also able to offer a 'transfer in' service whereby we can take over the management of your existing Hong Kong Offshore Company, often for no cost at all.

Our specialist Hong Kong company formation and company registration team:
  • Retains well-established affiliations with local company agents in the Hong Kong
  • Maintains an experienced staff with knowledge of legal requirements for company formation in Hong Kong
  • Guarantees that all company filing fees and documents are up-to-date and notifies clients of all Hong Kong compliance changes
  • We are NOT tax planners or advisers and as such cannot give advice to clients regarding the advantages / disadvantages of Hong Kong offshore structures

Top Sightseeing Spots in Hong Kong

As the economic and financial center in East Asia, Hong Kong enjoys all the benefits of a dynamic and vibrant metropolis. Hong Kong however still captures the romance and mystery of days gone by in the markets and lanes where East meets West. In addition to its impressive modernity, Hong Kong has many accessible beaches and natural sights for outdoor lovers. Lantua Island for example, provides a relaxing atmosphere for a holiday break.

#One: Hong Kong Park

Hong Kong Park is a small public city park on Hong Kong Island in Central. It is surrounded on one side by the skyscrapers and on the other side by Victoria Peak. But in the small 8 hectare (20 square acres) space between Cotton Tree Drive and Kennedy Road, the Hong Kong Provisional Urban Council and the Hong Kong Jockey Club opened this park in 1991. It is free and attracts a million visits a year. In the big garden is a pond that covers a former tennis court, waterfalls or rapids and several important facilities including a sports facility, a big aviary, museums, a plant conservatory and a children's playground. 

The park has won several awards including one from the United State Urban Services Department for its excellent design and facilities in the crowded urban area. The aviary is a walk through aviary. This means that you can walk on a walkway through the tree canopy so that you can see the birds flying around inside up close. The little Hong Kong Park has a lot of interesting attractions crammed into it and is a major highlight of a visit to Hong Kong Island.

#Two: Avenue of Stars


The Avenue of Stars is basically a sidewalk on the shore of Hong Kong's Victoria Bay that is modeled after the Hollywood Walk of Fame. The sidewalk and pedestrian area has the handprints and signatures of famous Hong Kong actors such as Jackie Chan and metal sculptures of Hong Kong actors or film industry figures such as Bruce Lee. It stretches for about 440 meters along the shoreline, and there are benches and decorative plants. 

To keep people from falling into the ocean below, there is a metal handrail along the sidewalk. Some local people go there to enjoy the sight of the bay and the passing ships, jog, and enjoy the harbor air, and tourists go to see the light show at night and to take photographs. This sidewalk attracts a lot of mainland Chinese. You can see most of the tall buildings on Hong Kong Island here, and at night as part of the light show, music and dialogue are played.

#Three: Man Mo Temple

It is the oldest temple in Hong Kong in the Mid-levels area of Hong Kong Island. It is half the way up Victoria Peak. In the temple, two idols are worshiped, the God of Literature and the God of War. It was built in 1847. People go to the Man Mo temples in China to pray for success in examinations or in their academic or literary endeavors. They also go to Man Mo temples to settle disputes. A bronze bell there was also made in 1847. Though it has been often renovated, the original appearance is preserved, and it is visited by lots of people.

It is said that the ceremony for settling disputes between people of cutting off a chicken's head and burning yellow paper originated during the Qing dynasty. In this ceremony, in order to avoid going to court, people invoke the gods to punish people who don't perform the vows that they publicly make in the ceremony.

#Four: Hong Kong Aberdeen

Aberdeen Harbor is on the southern side of Hong Kong Island. It is on the other side of Victoria Peak from the main Hong Kong urban area. Aberdeen is the largest town on Hong Kong Island outside the main urban area, and the harbor was famous as the place where the Hong Kong boat people lived in the 1960s and 1970s. Movies such as a James Bond movie and a Bruce Lee movie were filmed there, so the harbor is recognized world wide. 

Now, the harbor area is mainly an anchorage for the yachts and pleasure boats of the Hong Kong suburban dwellers in the area. But there are still some famous floating restaurants and local fisherman using the bay, so it is a place to go for seafood on a boat and to see the scenery and the area tourist destinations like Hong Kong Ocean Park.

#Five: Victoria Peak

Victoria Peak is the highest peak in Hong Kong Island with an altitude of 554 meters and has been considered as a landmark of the island. It is the best spot to have a bird's eye view of the Victoria Harbor and the whole thriving island. Viewed from the peak, the scenes are different between day time and night. At day time, you can see high and crowded buildings and the busy Victoria Harbor. 

At night, lit up by colorful lights, the whole scene is dazzling as a fairly-tale world. The best spot to enjoy the scene is the Peak Tower and the Lion Kiosk beside the peak tram terminal. To reach the Victoria Peak, you can take the peak tram which was put into service in 1888. Its steepest point has an angle of 27 degree which definitely can give you an unforgettable experience. Recommended Hong Kong Travel, Hong Kong attractions and Tours to Hong Kong.

Immigration to Hong kong

Immigration to Hong Kong or Hong Kong for work permits is fundamentally skilled workers and work permits of stay popular nowadays. The reason behind this is that the process if only 7-8 months and you do not need sencondly IELTS test report form for that. The Hong Kong Quality Migrant Admission Scheme QMAS say is entering a regime for foreigners wishing to come to Hong Kong to explore opportunities for employment or business. The scheme is quota-based and works on a points system. 

Young companies must take steps to settle in Hong Kong in getting a job or starting a business during the period of validity of the visa. In addition, you do not have to pay heavy charges for processing the visa office or immigration authorities. It is possible to obtain a work permit and residence / immigration from Hong Kong, if you are able to fulfill the following donated items. Hong Kong offers two different types of immigration that is

1. Hong Kong Quality Migrant skilled (QMS) professionals work permit.

2. Based on the achievements of Hong Kong immigration.

Hong Kong Quality Migrant qualified for work permits is a program based on quotas which aims to attract highly qualified people to settle in Hong Kong. The plaintiff need not obtain a job offer in advance before entering Hong Kong on a "skilled immigrants" transfer. Two sets of points system used to assess candidates.

Conditions:

To obtain a residence permit under the Hong Kong Quality Migrant skilled professionals work permit, you must obtain at least 80 points from 165.

Age Requirment:

The applicant must be aged 18 or above when filing a claim under the Plan.

Financial need The candidate must be able to demonstrate his ability to support and accommodate / herself and her dependents, if any, on its own financial resources without relying on public aid During his stay in Hong Kong. a good reputation and the applicant should not have a criminal record or adverse immigration record Hong Kong or elsewhere.

Hong Kong Immigration Language proficiency:

The applicant must be fluent oral and written Chinese (Putonghua or Cantonese) or English.

Basis of educational qualification Requirement:

The applicant must fulfill the basic education requirement, generally a first degree from a standard university or tertiary institution. In special conditions, excellent technical experience, extra professional skills and / or experience and accomplishments supported by documentary evidence may be considered. If the applicant does not provide satisfactory evidence that he meets all prerequisites above, the application will not be processed further and will be rejected immediately.

Candidates who are in a quota selection exercise will be issued with a letter of approval in principle by which they are invited to come to Hong Kong to attend an interview in person and present an original certificate of no -criminal conviction, or the equivalent, for each country or territory where he / she has lived for 12 months or more during the 10 years immediately preceding the date of issue of "approval in principle" letter, and produce original all documents presented when applying the Immigration Department for verification.

Dependents of an applicant are not necessary to arrive to Hong Kong to attend the interview. Approval in principle is not a proper approval of an entry visa under the scheme. Hopefully,all the above information regarding hong kong immigration laws will be helpful for you.Once proper approval is granted to the candidate and his dependents, if any, will be issued with a visa entry for residence in Hong Kong under the scheme. The visa or permit sticker should be pasted to a blank visa page of the passport for presentation to an immigration officer on arrival in Hong Kong.

Why choose Hong Kong to invest in?

In the 2009 Index of Economic Freedom, Hong Kong has once again been placed first, the fifteenth consecutive year it has held this position. The index is an annual survey conducted by The Heritage Foundation and The Wall Street Journal that compares 183 countries in relation to 10 ‘freedom’ variables including business freedom, investment freedom, property rights, freedom from corruption and more. 

Economic freedom is still largely regarded as an important key to growth and prosperity. As free trade is the life-blood of Hong Kong, Hong Kong embraces globalisation of trade and services. There are no barriers to trade – such as tariffs and quotas – being put in place, and there is no foreign exchange controls or restrictions on both inward and outward investments. Additionally, the Hong Kong Government also does not place any nationality restrictions on corporate or sectoral ownership. This makes company formation in Hong Kong an attractive and relatively fuss-free option.

It has been proven that investing in Hong Kong is a very attractive and popular proposition for investors. According to the latest World Investment Report released by the United Nations Conference on Trade and Development (UNCTAD) in 2008, Hong Kong was the world's seventh and Asia's second largest Foreign Direct Investment (FDI) recipient, attracting US$54.4 billion worth of inward investment in 2007. Taking into consideration the small size of Hong Kong, it comes as no surprise that it was also ranked first globally in the report's Inward FDI Performance Index – which measures the amount of FDI relative to the size of the economy.

Gateway to Mainland China

Situated at the mouth of the Pearl River Delta (PRD), Hong Kong is strategically located for trade with Mainland China. China's rapid economic development of increasingly competitive industries has created more opportunities for even greater economic expansion. With the Closer Economic Partnership Arrangement (CEPA) that took effect in 2004, Hong Kong can now benefit from additional and exclusive Mainland market access. Company incorporation in Hong Kong would mean that the vast market of Mainland China is readily accessible.

Mainland China is now Hong Kong's largest trading partner and they are both key to one another's economic success. Hong Kong is the largest source of overseas direct investment in Mainland China. Mainland China’s direct investment in Hong Kong is also a very significant – accounting for 40.7% of the total stock of inward direct investment in 2007. This shows that there is great interdependence between Hong Kong and Mainland China’s economies, and that by incorporating a company in Hong Kong, it serves as a great springboard for expansion into Mainland China.

Low Taxes

At 16.5%, Hong Kong’s corporate tax rate is among the lowest in the world. Hong Kong adopts a territorial basis principle of taxation, where only profits which have been sourced in Hong Kong are taxable.

The effective tax rate is even lower after taking into consideration tax exemptions and deductions such as Industrial Buildings Allowances on Industrial Buildings and Structure, Commercial Buildings Allowances on Commercial Buildings and Structures, Plant and Machinery Allowances, approved Donations and other allowable Deductible Expenses in accordance to Hong Kong’s Inland Revenue Ordinance.

In addition, there is no capital gains tax in Hong Kong and no withholding tax on dividends and interest or collection of social security benefits. There is no Value-Added Tax (VAT) in Hong Kong. The limited tax base, coupled with very low tax rates, makes Hong Kong's tax incidence one of the lowest, if not the lowest, among developed economies, and therefore, Hong Kong company formation makes for a very tax efficient business entity. 

A Hong Kong company is also not perceived to be an offshore company in an international tax haven because Hong Kong is a reputable, regulated international trading jurisdiction. Annual audited financial statements must be submitted to the Hong Kong Inland Revenue Department. Also, Hong Kong company incorporation requires the appointment of a Hong Kong-resident company secretary.

In conclusion, with proper planning, company formation in Hong Kong serves as a highly effective and efficient tool for investors and entrepreneurs alike. With its free and open economy, low taxes, and strategic position as a gateway to Mainland China, Hong Kong is abundant with vast opportunities for investment and growth.

Short History Of Hong Kong

Hong Kong is one of the successful islands in the world. Over the last century and today, it has blossomed as a financial center. Its future appears to be bright as ever. It was a dependant territory of the UK in 1842. Since 1997, it once again came back under China's fold. Now Hong Kong continues to enjoy economic development under the policy of China's one country, two systems.

Hong Kong is situated in the southern part of China and is found in the South China Sea. It is officially known as Hong Kong Special Administrative Region. The island of Hong Kong is small having a land mass of nearly 427 square miles. Hong Kong has one of the highest population densities in the world. The population of its inhabitants reaches over 7 million. Hong Kong is one of the most important and successful financial, cultural and communications hubs in the world. While the vast majority of the inhabitants are Chinese, there are also few expatriates from many nations living in Hong Kong and it known for its international atmosphere.

The word Hong Kong is derived from the Cantonese word Hakka which means fragrant harbor. Hong Kong's original harbor is now known as Aberdeen Harbor. In Europe, Hong Kong's first mention was recorded by the Portuguese explorer Jorge Alvares who arrived in 1513. When China and Britain signed the treaty of Nanking in 1842, the name Hong Kong was officially used for the first time.

Kong was used by the British for trading opium among other commodities in the mid 1800's. Because of the immense social and financial affects on China's population, the Qing Dynasty refused to no longer import Opium in 1839, this resulted in the First Opium War between China and Britain. Hong Kong was occupied by Britain in 1842 and the British established a Crown Colony under the Treaty of Nanking. During the Second Opium War, Stonecutters Island and Kowloon Peninsula also ceded to Britain. In 1898, Britain obtained a 99 year lease of Hong Kong. For this long period leading till 1997, Hong Kong was under the control of UK.

Hong Kong played a major role in Asia as a center of trade during the early 20th century. It progressed financially and culturally. However during the Second World War, Japanese Empire drove off the British from the island in the Battle of Hong Kong and took control of Hong Kong till the end of 1941.

The civilians of the island suffered extremely during the initial invasion and occupation of Hong Kong. There was wide spread food shortage and hyper inflation was experienced. From 1945 to 1971, the conditions were extremely bad when the control of Hong Kong returned back to the British after Japan surrendered. Nearly half of the civilians had died.

Hong Kong quickly recovered after World War II because of the arrival of migrants from the mainland of China. Additionally, many companies also shifted their operations to Hong Kong due to the communist takeover of the mainland China. Textiles and manufacturing Industries grew over the years. The labor was cheap and businesses and entrepreneurs were easy to operate because of the capitalist philosophy of Hong Kong. The economic development of Hong Kong left China more isolated. Today, Hong Kong is specifically known more for its finance and banking sectors.

On the midnight of 1st July 1997, the changeover from British to China's control took place. UK and China were planning the transition close to 20 years before then. The Sino-British Joint Declaration was agreed in 1984. The document specified that Hong Kong would be governed as a special administrative region for at least the next 50 years beginning in 1997. This was helpful in making sure that Hong Kong would continue to succeed and will not face disturbance at the time of transition.

Hong Kong is ruled today under the principle of one country, two systems. It still enjoys a vast range of autonomy except in matters of defense and foreign affairs. Hong Kong is ruled under the basic law and its people enjoy an economic system based on capitalism, human rights and freedom. The future of Hong Kong is bright as ever and it continues to be an economic and cultural powerhouse in Asia.

Recreation While on Your Shopping Trip to Hong Kong

Hong Kong is one of the world's most famous tourist cities, but it is also a good place to go for recreation in East and Southeast Asia. It is has had a worldwide reputation as one of the world's best places to shop. This makes sense since there are no sales taxes and almost no taxes at all, and it is one of China's busiest ports, right next to the ShenZhen Special Economic Zone and the many factories in GuangDong Province. Products from around the world may be bought there at competitive prices. Business people from all over the world come to conduct business with people in Hong Kong and mainland Chinese.

It is known as the "gateway to China," and the Chinese made products that are sold are cheaper than comparable goods that you would find in your local malls back in your home countries. With all this hustle and bustle and money exchanging hands, is there another way to have fun other than by strolling in the malls and bargaining with shop owners? There are plenty of recreational opportunities in Hong Kong.There are plenty of fun places to go, interesting things to see, and fun things to do in Hong Kong and much of this fun is free or inexpensive. 

Hong Kong has some of the best natural recreation areas in the region, good museums, zoos and parks that are free or inexpensive, amusement parks, an inexpensive transportation system including a cheap ferry system, lots of English language churches, and there is the fun and adventure of seeing and mixing with people from all over the world. So though Hong Kong is known as a good place to shop, to me the recreational activities is what makes Hong Kong enjoyable.

Looking at the market situation from an economic standpoint, from the many luxurious malls and stores, from all the thousands of small shops and boutiques, and from all the people hawking merchandise at tourists on the streets, there is plenty of competition to keep prices down. Labor costs in Hong Kong are still much lower than in the most of the world's developed economies. It sits on one of the world's busiest shipping lanes, and products from all over the world are sold by merchants who have come to live there from all over the world. People from around the world go there to shop, have holidays, and enjoy the clean environment, scenery, resorts, hotels and restaurants. 

But if you are tired of business and shopping, people in the region looking for a place to get away from people, enjoy natural activities like hiking and swimming in a clean ocean, enjoy real Western food and enjoy some English language films or English friendly cultural activities, Hong Kong is sort of unique. This is what I found about Hong Kong. It is also interesting to watch all the world cultures merge, and see the people from all over the world.
Natural Recreation

The Chinese SAR (Special Administrative Region) of Hong Kong is covered with hills and mountains. It is wonderful to take a train or bus from the border and see green tree covered hills that seem empty. These mountains and hills are fairly steep, and until recently people have left much of the region of Hong Kong undeveloped. Especially, the region of the New Territories is still largely undeveloped. About 40% of Hong Kong is protected in 23 parks, including three marine parks and one marine reserve. Hiking trails, waterfalls, clean swimming spots and places to fish, lakes, rivers and some of Asia's best beaches are within walking distance from the modern rapid transit train stations, and are often empty or have few visitors each day. 

As one person reported, "We hardly met a soul on our hikes." Some of Asia's best beaches and natural ocean areas are empty, but easily accessible. The 10 tallest mountain peaks all have hiking trails. Books and trail guides are easy to find in book stores and information kiosks. So for those who want to stroll or to go swimming or hiking, these still empty places in Hong Kong may be among the best places to go in East Asia.

As an example of a quick natural excursion from a ritzy mall, when I am on Hong Kong Island I like to take a 20 or 30 minute walk through the new IFC Mall that is one of Hong Kong's most deluxe and arrive at a narrow road that climbs through a wooded park up Victoria Peak, rise above the high rises, and once reaching the top, see the great views on both the city side and the seaward side of the peak. If you really want to shop, there are two more malls to shop in on the top of Victoria Peak! Along the way, near this road is one of the coolest zoos I have ever seen, partly because it is free. I accidently walked in, trying to find my way up the hill one day, and found myself facing strange animals in cages. I thought I was in a small park, such as Chinese like to build to sit in, but found myself in one of the coolest zoos I've ever seen because it was clean, quiet and contained mainly primates, some of which I have never seen.

If you want to take this walk to the zoo or up Victoria Peak, the IFC Mall can be reached from Tsim Sha Tsui area of Kowloon aboard the Star Ferry. After a 12 minute walk on the covered walkway from the ferry terminal, you'll be in the IFC Mall. But you may have to ask directions. One thing I've found strange about both China and Hong Kong is how there are few signs giving directions. The mall is large and spread out over several huge buildings. From the side of the IFC that faces the mountain, you can follow more covered walkways, escalators and stairs that lead up to the road that ascends up the hill. It is difficult to find the road because there are no clear signs, but people may give directions. Next to this park is the free small zoo called the Zoological and Botanical Gardens. It is worth seeing. I describe it more below.

The hike though the park to the top of Victoria Peak takes about 35 or 40 minutes. It passes through woods, and there are places to sit along the way if you are tired. It is fairly quiet in the park, and usually only a few people, mainly foreigners, may be found walking along the road. At the top there is a mall called the Peak Tower. There are coffee shops including a Starbucks for refreshments, and there are many restaurants with views from the top of the peak. There actually are two peaks at the top of Victoria Peak with good views. The other peak is about a 15 minute walk away. From the first peak next to the malls, you can see the ocean and the shoreline from the ocean side of the island. From the second peak, there is a good view of the bay and city below. At night, the city lights are a spectacle (see my picture, taken during the day). The mall area is served by a tram, and there are buses and taxis available if you want a ride.

It was really cool and fun visiting 3 museums and seeing an "Imax" movie called "The Alps" at the Space Museum this summer with some friends – all in one day. We went on the day the museums are free, so the Science Museum was crowded with kids. The museums in Hong Kong are inexpensive and interesting. Ticket prices range from 10 to 25 HKD which is only about 1.2 to about 3 US dollars. On Wednesdays, entry is free. If you are in Kowloon or Tsim Sha Tsui, the best museums are within walking distance. For busy shoppers, within easy travel distance of the busy shopping districts of Central on Hong Kong Island and of Tsim Sha Tsui are four of Hong Kong's best museums and the Hong Kong Cultural Center.

The Museum of Art houses about 15,000 exhibits. Its focus is to preserve Chinese artistic heritage. The collection includes an impressive display of antiques, and it includes many works of art from ancient China. It also has an extensive calligraphy section.

The Hong Kong Space Museum is next door to the Museum of Art. It is a distinctive white dome shaped building. There are two collections and a large and sophisticated "Omnimax" or "Imax" style movie theater. The theater projects movies on the very large screen which is actually the roof of the building, and the audio is broadcast simultaneously via headphones in English, Cantonese, Mandarin and Japanese. The Hall of Space Science collection is on the first floor, and the Hall of Astronomy is on the second floor. 

The space science collection features mainly Chinese astronomical instruments and charts, early Chinese rockets that were used as weapons, and rockets that were invented in the West during the last two centuries. It also includes a mockup of the American Space Shuttle cockpit that is very interesting because it is realistic and huge. The Hall of Astronomy collection instructs visitors on the solar system, stars and universe. There is also a small collection of meteorites. Some of the exhibits in the museum are interactive. It is a place to go if you like science or want to learn about the history of astronomy or space flight, or if you simply want to see an exciting super screen movie.

Like I said, I visited this Space Museum this summer. The recreations of Chinese rocket weapons were interesting. And I was amazed at the size of the Space Shuttle cockpit. It is like a jetliner, but it doesn't look very big on TV. The dome-screened "Imax" movie threatre was really a wonderful place to be. It was clean and quiet, and I was tired. But to view the movies, people have to lie down on the chairs that are more like beds. It was really cool. I was impressed by the scenery of the Alps, and the great music. The movie touched me. It was about a climber whose father had died climbing this same peak when he was a kid. It was really moving. He accomplished his life-long dream and burden to get to the top of it.

The Science Museum is about a 25 minute walk away. It is another place to go to learn about science. It is especially a fun place for kids and for adults who like to play because most of the exhibits are interactive. There is a hall of mirrors and a sports fitness test area for example. The hall of mirrors is fun to walk through. The fitness test area was the most fun part of the museum for me. But I suggest go when there aren't so many kids. The lines were quite long on the "free day" when I visited.

The Hong Kong Museum of History is next to the Science Museum. It has interesting "real-life" displays of Hong Kong at various times, including the British Colonial era and the Japanese invasion. There is an interesting walk-through geology and natural history exhibit. The Museum has collected about 2,800 rock and mineral specimens from the around the territory, and there are over 750 specimens of shells from local beaches. The Museum has also acquired over 1,600 animal specimens, including mammals, birds and butterflies. I liked the historical displays about Hong Kong's recent history, but I thought that the first part of the museum with the displays of Neolithic people on a beach and the recreations of prehistoric animals and etc. was kind of hokey.

The Hong Kong Cultural Center is a large building next to the Space Museum. When I walked inside, I was struck by the huge unused space. There is a concert hall that seats about 2000 people, a theatre that seats about 1700, and a small studio theatre than can seat almost 500 people. World famous orchestras and musicians perform there. At the entrance, is a model of the whole center.