Financial Secretary Paul Chan Mo-po presents the Report on Hong Kong Business Environment: A Place with Unique Advantages and Unlimited Opportunities at Central Government Office on Sept 27, 2021. (CALVIN NG / CHINA DAILY)
HONG KONG – Hong Kong has always maintained its institutional strengths which are favorable for doing business under "one country, two systems," according to a report released by the Hong Kong Special Administrative Region government on Monday.
Paul Chan Mo-po, financial secretary of the HKSAR government, released the "Report on Hong Kong's Business Environment: A Place with Unique Advantages and Unlimited Opportunities" at a press conference.
Hong Kong enjoys a sound business environment and a bright future, with a vibrant growth impetus and huge opportunities, Chan said.
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Hong Kong's financial market remains stable and operates smoothly, as the National Security Law has restored peace to the global financial hub, and will continue to thrive thanks to unique advantages under "one country, two systems," according to a report issued by the HKSAR government
"One country, two systems" has been the cornerstone of Hong Kong's economic development since the global financial hub returned to the motherland in 1997, according to the report.
The report stressed Hong Kong's position as an international center for finance, commerce and trade, a home for corporate headquarters, and a major hub for investment, transportation and logistics.
Hong Kong's financial market remains stable and operates smoothly, as the National Security Law has restored peace to the global financial hub, and will continue to thrive thanks to unique advantages under "one country, two systems," according to the report.
The report listed a series of indicators pointing to Hong Kong's financial strengths and resilience.
In the 12-month period ending June 2021, funds raised through initial public offerings increased by more than 50 percent year-on-year, and the turnover of the stock market was up by nearly 70 percent. The assets under management (AUM) of the asset and wealth management business in Hong Kong grew by about 20 percent, and the amount of international bond issuance ranked first in Asia, according to the report.
The robust financial system has also been recognized by international organizations, including the International Monetary Fund (IMF) and the United Nations Conference on Trade and Development (UNCTAD), according to the report.
An IMF report published earlier this year affirmed Hong Kong's position as a major international financial center.
The World Investment Report 2021 of the UNCTAD said that Hong Kong will remain an important financial hub in Asia and a gateway to investment in the Chinese mainland, thanks to a favorable tax regime, simple listing process, absence of capital controls and a good regulatory framework.
The report attributed Hong Kong's stable financial performance in part to a peaceful environment restored by the implementation of the National Security Law
Monday's report attributed Hong Kong's stable financial performance in part to a peaceful environment restored by the implementation of the National Security Law.
The financial sector reckons that the National Security Law, rather than having any impact on the industry, has helped ensure personal safety, restore social order, and recreate a safe and stable business environment after the turmoil in 2019, according to the report.
READ MORE: Chan: Security law created safe HK business environment
Many international financial institutions, including insurance companies, banks and wealth management companies, have continued to expand their business in Hong Kong, according to the report, citing HSBC, Citigroup Manulife Insurance, AIA and Oakwise Capital.
Looking ahead, the report believes Hong Kong's financial industry will be able to explore more opportunities amid the development of the entire country.
Under "one country, two systems," the characteristics of Hong Kong's financial regulatory regime, including the common law, and free flows of capital and talent, are protected, ensuring Hong Kong plays an effective role as a bridge between the mainland market and the international market, according to the report.
Economic freedom, competitiveness internationally renowned
Hong Kong's economic freedom and competitiveness continued to be well recognized by international institutions, according to the report.
The report mentioned Hong Kong's multiple strengths, including the rule of law and judicial independence, the free flows of goods, capital, talent and information, a low and simple tax regime and sound regulatory frameworks.
READ MORE: Commissioner's office: HK's financial hub status 'rock-solid'
Chambers of commerce from the United States, Britain, Australia and Malaysia all agree that Hong Kong remains an ideal place for international business, according to the report
Canada's Fraser Institute ranked Hong Kong as the world's freest economy in the Economic Freedom of the World 2021 Annual Report. The Global Competitiveness Report published by the World Economic Forum in 2019 ranked Hong Kong third globally, while the World Competitiveness Yearbook 2021 published by the International Institute for Management Development ranked Hong Kong seventh globally, the report noted.
Foreign chambers of commerce remain generally confident about Hong Kong's business environment, and overseas companies seeking to expand their business have high hopes for the 14th Five-Year Plan for national socio-economic development and the development of the Guangdong-Hong Kong-Macao Greater Bay Area. Chambers of commerce from the United States, Britain, Australia and Malaysia all agree that Hong Kong remains an ideal place for international business, according to the report.
The StartmeupHK Festival, an annual startup event initiated by InvestHK, was held virtually in May this year and attracted nearly 40,000 participants from 103 economies, reflecting Hong Kong's continued attractiveness to foreign enterprises and investors, according to the report.
Meanwhile, in the recent 2021 Global Financial Centers Index published by the British think tank Z/Yen Group and China Development Institute in Shenzhen, Hong Kong ranked third globally, rising by one place from the March issue of the index this year. Enditem