SouthαIina Moming Post
Monday, July 5, 2010
Providers play the China card
As the serviced office sector in Hong
Kong becomes increasingly competitive,
more innovative business models are
being created to a忧 ract clients.
The oft-heard boast of Hong Kong
being the gateway to China is no longer
enough as a recipe for success for at
least two serviced-office providers: one
of which has been established for seven
years , while the other is a newcomer.
Jumpsta此， which has seven locations
in Hong Kong, is building a presence on
the mainland spearheaded by an 11,000
sq ft premises in Shanghai due to open
in January next year. Managing director
Chapman Leung says the offices at
Wheelock Square in Nanjing Road West
marks the start of a "very aggressive
plan for us in China" which will see the
company targeting Beijing and
Shenzhen , as more companies based in
Hong Kong seek a hinterland presence.
The other provider is using a
different strategy to play the China card.
Asia Business Centre was set up last year
by three colleagues who worked in retail
banking.
Travis Lee, one of the directors, says
theyspo忧ed a niche area for mainland
companies wanting a base in Hong Kong
to drive exports to the United States and
Europe. While other serviced offices are
content to restrict their presence to
Hong Kong and let tenants fend for
themselves when it comes to cross-
border deals, Lee and his partners,
Danny Chan and Raymond Wong,
decided to use guanxi, or connections,
they had built up.
With Beijing being pressed to revalue
the yuan , Lee says more mainland
companies are keen to strengthen their
links to overseas factories and markets
in the event that exports become pricier.
"I 1'Sworking both ways for us - Chinese
companies want an office here and so do
foreign companies,. Lee says. "They are
alllooking to save money while
attracting new customers."
For Jumpstart, the mainland
expansion is driven by Hong Kong and
overseas companies seeking to
penetrate second- and third-tier cities.
"We have clients now in Hong Kong who
want quality offices everywhere in
China: Leung says. "1 definitely see
opportunities as more companies I∞k
for services."
Concerns about whether mainland
regulations would be too restrictive have
been brushed aside. But finding quality
staff and engaging building contractors,
with the shanghai Expo on , have been a
challenge which , Leung says, will also be
overcome.
Asia Business Centre and Jumpstart
also play to their strengths of registering
newly arrived businesses - a service
which many a hard.pressed overseas
companyappreciates.
One serviced-office provider expects to see more business in the wake of the shanghai World Ex po. Photo: Xinhua