Location: Eastern Asia, bordering the South China Sea and China

Population: 6,855,125 (July 2004 est.)

Language : English and Chinese are Hong Kong's two official languages.

Lifestyle & Aspirations
? Horse racing: Hong Kong has two racetracks, both with regular meetings and a huge following.
? Sport: Rugby, cricket and watersports. Hong Kong is the base for rugby's Hong Kong Sevens and has a huge following. Sailing and other watersports are mostly based out of Aberdeen on the southern side of Hong Kong Island.
? Swimming: Hong Kong has 42 officially listed bathing beaches and 13 public pools, to say nothing of the private pools at sports clubs and hotels. Furthermore, swimming is one of the most popular ways to keep cool in the sweltering summer.
? Golf: Although golf is expensive, it is hugely popular, with three courses within easy reach of the city and many more across the border in China.
? Casinos: Hong Kong does not have any casinos; instead they are all a 50-minute jetfoil ride away in Macau, which is famous as a gambler's paradise. Jetfoils run all night just to service the Chinese love of gambling. Macau boasts nine casinos in all and they are packed every day.
? Karaoke: Especially popular among the Chinese community.
? Bars and clubs: Hong Kong has spectacular nightlife and something for every taste, from sophisticated hotel bars (the scene of much after-work drinking in the international community) to theme pubs. Nightlife goes on until the early hours.
? Eating out: There is a huge range of restaurants offering cuisine from around the world, although the best are Chinese. These vary from highly sophisticated establishments to small local restaurants frequented by Chinese families at weekends.
? Shopping: Shopping in Hong Kong never stops and the reputation of an ongoing orgy of consumerism is deserved.
? Going to the beach: Nobody in Hong Kong has much personal space and escaping to the 235 islands of the New Territories at weekends is a popular pastime for a break from the frenetic pace of life in the city.

The Essentials (10 Key Tips)
1. Never assume that Hong Kong Chinese share characteristics with those from the mainland. They do, but are inherently different - more open to risk-taking, more entrepreneurial, and more Western in their business practice.
2. You will encounter both Chinese and Hong Kong Chinese as your business counterparts. While the latter can move to the heart of a matter rather quickly, be ready to build personal relationships, as "guanxi", or mutual obligations between contacts, is the oil that keeps business going.
3. The pace of business can be very fast. Hong Kong Chinese are quick to assure you that they can take care of things. Values like risk-taking and efficiency are important.
4. The Hong Kong Chinese are used to living and working in a cosmopolitan environment so are used to dealing with foreigners.
5. From the influence of Confucianism, the HK Chinese pay respect to hierarchy and the older generation.
6. Understand the concept of 'face'. Face can be earned, given and taken away. Saving face is critical to the Chinese, from Hong Kong as well as the mainland.
7. Being punctual for appointments and smartly dressed is a sign of respect; time is money in Hong Kong.
8. Hong Kong Chinese value the soft sell and the hard buy, and are tough negotiators, employing many tactics to drive a good bargain.
9. Negotiations are carried out in large groups, rarely one-to-one, with representatives of equal rank in each group doing the talking.
10. When working under pressure, try hard to control your temper. Emotional outbursts are seen as signs of weakness and lack of maturity.

Working with the Hong Kongers
Many companies looking to expand into Asia and concerned about intellectual property protection, financing, and of course cultural issues and business etiquette, will start their venture in Hong Kong. The first lesson they must learn is that Hong Kong is not China; the people are more dynamic, independent, entrepreneurial and commercially-minded.
Certain etiquette rules still apply, though, particularly surrounding business entertainment, the importance of business cards, the way a meeting is conducted and the respect for hierarchy. An initial visit to Hong Kong should be to lay the groundwork for future business. Building relationships (guanxi in Chinese, or networking) is essential, like in China. Hong Kong is more of a meritocracy but it's important to remember that it consists of many small and medium-sized firms, often family-run, and old habits die hard.
Decisions are made quicker in Hong Kong than they are in the PRC, although the negotiating process can still be tough and lengthy, with an emphasis on the soft sell and the hard buy.
In the workplace, mentoring and coaching are very important. Hong Kongers are great networkers and there are many professional organisations through which to meet people. Newcomers should embrace these as good contacts are everything.

Making a Good Impression
Be sure to recognise the differences between Hong Kong Chinese and mainland Chinese and don't make assumptions about somebody's background and culture. Be prompt for appointments and calm and polite during meetings; overenthusiastic displays of emotion are frowned upon. Dress smartly and fashionably, taking into account the Chinese superstitions concerning blue and white, and any other colours or symbols which are regarded as inauspicious.
Carry a large supply of business cards and observe the correct etiquette in presenting them. Remember that in Hong Kong, people are more formal than in Britain or the USA and titles should be used until first name terms are encouraged.
Be prepared to work at a relationship before attempting to negotiate; networking and connections are important and Hong Kong Chinese expect to achieve a level of comfort with
somebody before doing business with them. During negotiations, go for the soft sell and the hard bargain, which is what your counterparts will do.
Westerners should always take seriously the Hong Kong interest in feng shui. If the company culture is to consult the feng shui man before signing a deal or moving to a new office, the Western manager must observe this, down to the fine detail of how their own office is arranged.

Business Etiquette
Business Cards
Hong Kong is a place where any visitor's supply of business cards needs to be nearly inexhaustible. Cards are exchanged at every meeting, both business and social, and to find yourself in the position of not being able to present one is bad form - failure to offer your card implies that you don't wish to make that person's acquaintance. Worse still, it suggests that your own status is insignificant. Work out how many you give away on a normal business trip and allow for at least double the number.
Make sure business cards are printed in English on one side and Chinese on the other side. The Chinese side should use "classical" characters, the written form of Chinese used in Hong Kong, and not the "simplified" characters used in the People's Republic of China. Upon introduction, present your business card with both hands and with the Chinese side up.
When you are presented with a card, don't just put it into your pocket. Make a show of examining it. If you have a card case, put it in there - which again implies you attach a degree of importance to it, or if you are seated at a table, place it in front of you. And whatever you do, don't write on it. Business cards are offered and received with both hands.

Body Language
Hong Kong Chinese tend to stand quite close when talking. However, they are reserved and not very comfortable with body contact, so do not hug, kiss or pat people on the back. You'll find a Hong Kong Chinese handshake to be less firm than a Western one. To beckon someone, extend your arm, palm down, and make a scratching motion with your fingers. Never point with your index finger. This is used only for animals. Point with your hand open. Request your bill by making a writing motion with your hand. Winking at someone is considered a very rude gesture. It is common in China to show one's surprise or dismay by sucking air in quickly and loudly through the lips and teeth. If you have been shown this gesture, it would be advisable to modify your request. Your host is obviously displeased.

Communication Style
Hong Kong Chinese are direct communicators, although they also make use of non-verbal communication. While direct questions may be asked, answers will always be given that allow both parties to save face. Face, or mianxi, is the most important part of the Chinese psyche. Having face means having a high status in the eyes of one's peers, and is a mark of personal dignity. Face must be gained and maintained in all aspects of social and business life. It can be given, lost, taken away or earned. Causing someone to lose face by insulting them or belittling them in front of others is a very serious social gaffe, even if it was meant in a teasing way.
A Chinese person will go to great lengths to save face, including withholding information, avoiding commitments and responsibility, or just doing nothing.
Since the Chinese are afraid of losing face, they will often not tell you when they don't understand. They will also tend to hedge their answers if they know the listener won't like the answer. Negative answers are also avoided as they cause loss of face, disharmony and are rude. The Chinese believe politeness is more important than frankness so they will not say 'no' directly. They may say something like "I'll see what I can do" or "I'll do my best", which usually means 'no' but leaves things open so you can reopen the issue at a later time. If they say something 'is not convenient', it means they need to obtain permission and this takes time. They also dislike confronting problems directly and tend to go around the issue which can be frustrating for more direct, explicit communicators. The overall communication style of the Chinese can be described as 'high-context' - that is, the information, setting and relationships which support the messages are just as important as the actual content. You can best size up a situation by paying close attention to facial expressions, gestures and overall body language.
Frankness is not appreciated by the Chinese. Direct questioning is seen as rude. Hong Kong is considerably more westernised than mainland China, but the essentials of mianxi still apply.
Many Westerners find themselves talking too much in Hong Kong; they can't seem to tolerate silence as well as their Chinese counterparts. Do not be afraid of long silences - it is a sign to the Chinese that you are thinking.
If someone sucks air through his/her teeth while you are speaking, it means that they are unhappy with what you have just said. If at all possible, try to re-state your position or modify your request, since you have made the other person extremely unhappy.

Gift Giving
The giving and receiving of gifts is another facet of the Hong Kong Chinese culture involving "face" and respect. Just as with business cards, the exchange of gifts should be done with both hands. But while some countries see it as polite to unwrap the gift there and then, here it implies a degree of impatience and greed. It is also a hedge against any embarrassment in case the gift was not such a good choice.
When it comes to choice, clocks should be avoided as they represent death, likewise blankets, believed to cause a decline in prosperity. Other faux pas waiting to happen include green hats (you are a cuckold or your sister is a prostitute), unwrapped gifts (impolite) and gifts wrapped in blue (the colour of mourning). When in doubt, stick with well-known brand names, as presentation counts for a lot.

Business Meeting Culture
Planning a Meeting
The larger the Hong Kong firm, the farther in advance meetings should be scheduled. Prior to your arrival, send a list of all delegates attending, in ranking order with titles next to each name. Most likely, the Hong Kong team will be seated and awaiting your arrival. Enter the room in hierarchical order and sit across from the Hong Kong person who holds the same position of equal status to your own.

During a Meeting
Early interactions should be formal and professional. Hong Kong professionals are more business-orientated and are more conscious of time (theirs and yours) than other Asians.
Although English is a common business language, be sensitive to your counterpart's knowledge of the language and speak clearly and slowly if necessary.
Social conversation will start all meetings and should continue until your Hong Kong Chinese leader moves the talk to business. You will notice that one person, usually a high-ranking officer, will act as the group's spokesperson. Your team should do the same. Negotiations will be a slow, tedious (to Europeans or Americans) process. Because a group consensus is the norm in decision-making, you will probably not get a "reading" at the first meeting. The Hong Kong team will want to discuss the proposal in private.
"No" is rarely heard during a business meeting. "Maybe" or "We'll see what happens" are more likely responses which can mean the same thing. The word "yes" can be used for "give us some time to think about it" or even "I understand what you're saying". Never show temper, irritation, aggravation or anger during any meeting - business or personal. This culture has a low opinion of those who cannot control their own emotions in public.
One of your first impressions of Hong Kong is likely to be that simply everyone seems to have a mobile phone, and sometimes two. Making and receiving calls during a meeting is normal.
Smoking is still widespread in east Asia; if you have a meeting with someone from the Chinese mainland, do not be surprised if they light up halfway through.

Following a Meeting
Follow up in writing but be aware that a contract may not be seen as binding, rather, a starting point for agreement. Decisions may not be made after just one meeting; often, you will be required to meet your Hong Kong counterparts several times.

Motivating Others
Workers in Hong Kong are generally more motivated by career development combined with money than pure monetary reward, although they are also extremely driven by cash in this materialistic society. In China, money and comfort are the main motivators but in Hong Kong, recognition and empowerment also play an important role, particularly in companies with a Western business model.
More and more companies in Hong Kong are recognising the value in motivating employees, but not just with financial reward. Successful companies in Hong Kong also motivate by offering training and self-improvement and increasing accountability and reward through bonus schemes. Typical benefits offered include a five-day week (many companies work a six day week), medical and hospitalisation plan, dental plan, annual leave, marriage leave, volunteer appreciation programme recognition leave, non-contributory provident funds, education sponsorship schemes and long service awards.
On a more basic level, Chinese (and therefore Hong Kong Chinese) are motivated by a sense of belonging and a feeling that the workplace is an extended family. When a company has a traditional Chinese culture, with the boss as a wise father-figure, a team will be motivated by harmony and a sense of comfort.

Effective Presentations
Presentations should be detailed, technical, and factual. When making a presentation to Hong Kong Chinese, it is important to be very knowledgeable about your own products, your competitors, about the market, and about your organisation. Speak often of trust and cooperation between you and your counterpart. Keep your presentations brief if a large group is involved. Expect to make presentations to many different groups at different levels in a large company. Have multiple copies of your proposal available for distribution when you arrive.
Never exaggerate your ability to deliver, because the Chinese believe humility is a virtue - and also because they will investigate your claims. In Hong Kong, time is money and not delivering on time will look very bad. A soft sell is better. Once you are beyond the presenting stage and into hard negotiating, their questions will be endless, repetitive, and detailed; they are checking to see if your answers are consistent.

Audience Expectations
In keeping with the tradition of respecting elders and more senior people, audiences generally within Hong Kong do not question or challenge the presenters. If you require more interaction, it is advisable to tell your audience up front what your expectations are and assure them that their participation will be of mutual benefit.
Do not be surprised, though, if people take calls on their mobile phones during the presentation.

Managing Relationships
Leaders in Hong Kong need to be strong, to have vision, and be able to manage a team while keeping their place within the hierarchy and maintaining the team's respect. Typically, a leader is seen as a 'wise father' figure, stemming from Confucian thinking. This can sometimes be difficult for Western managers, although the culture may be completely different in a more westernised multinational from a small, family-run Chinese firm.
A leader may also be managing a multi-racial team including Filipinos, mainland Chinese and other Westerners, and these sub-groups may not necessarily blend well in Hong Kong culture, which is quite elitist and sometimes racist.
Workers in Hong Kong are often driven and keen to progress. Contrary to the team dynamic on the mainland, outstanding performers are encouraged and groomed for the top, but this must be done without causing other workers to lose face. Maintaining face, and allowing others to maintain it, is a complex business. Mentoring and coaching are important in Hong Kong and there are many opportunities to socialise through business networks.
Managing relationships with customers and suppliers depends on maintaining high standards in an increasingly competitive environment, and on working hard at networking and personal contacts.