On October 3, 2018, the "Shine · Hong Kong Smart Design in China" launch seminar, organized by the Hong Kong Exporters' Association and co-organized by the Hong Kong Trade and Industry Department, was successfully held at the Hong Kong Innovation Centre. Drawing on its extensive experience in the financial markets, KVB Prime participated in the event as a representative in the corporate foreign exchange field. The seminar aimed to build a platform for Hong Kong designers and startups, helping Hong Kong enterprises enter the Mainland market and giving Hong Kong brands a broader stage for development.

The venue was packed and the atmosphere was lively.

In 2018, Mainland China had grown into the world's second-largest emerging market for the gift industry, and it was also the most active emerging market in the household furniture sector. Mr. Sun Rongcong, Vice President of the Hong Kong Exporters' Association, believes that China's economy is favorable to the growth of Hong Kong's homegrown startup brands, and that this opportunity should be seized to let the Mainland market see Hong Kong design and allow Hong Kong startup brands to showcase their talents in the Mainland—further enhancing the competitiveness of Hong Kong enterprises and promoting mutual integration, connectivity, and joint development between the two regions.

As the financial industry representative at this seminar, Zheng Xiaorong, Global Trading Director of KVB Prime, stated during the session "A 360-Degree Business Strategy for Establishing Operations in the Mainland" that when building trade relationships with the Mainland, Hong Kong startups need to have a strong awareness of capital management, primarily in two areas: "efficient capital flow" and "exchange rate risk management," both of which are crucial to an enterprise's profitability.

Zheng Xiaorong, Global Trading Director of KVB Prime, sharing his expertise.

When Hong Kong brands enter the Mainland market, they will inevitably be involved in fund flows between the RMB and the Hong Kong dollar, and the widening fluctuation range and two-way movement of the RMB can have a significant impact on enterprises. Companies themselves may devote considerable time to patent applications or promotional strategies, leaving little energy to focus on exchange rate risk. KVB Prime can help enterprises closely monitor exchange rate movements and develop hedging strategies to reduce the negative impact of exchange rate fluctuations on corporate profits.

Recently, with the opening of the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the deepening development of the Guangdong-Hong Kong-Macao Greater Bay Area, the city cluster formed by Hong Kong and the Mainland has continued to expand. Under favorable policy conditions, Hong Kong's homegrown brands and startups should seize the opportunity to quickly enter the Mainland market. KVB Prime will play the role of "intermediary," helping enterprises solve foreign exchange management challenges and supporting the flourishing development of Hong Kong enterprises in the Mainland!

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