Global and Regional Centre for Businesses and Finance
Enterprises in Hong Kong enjoy the freedom to set up and run their businesses without constant interference from the Government. Hong Kong’s economy is characterized by its high degree of internationalization and business-friendly environment. In addition to these benefits, Hong Kong has a substantial amount of foreign exchange reserves, a fully convertible and stable currency, prudently-managed fiscal reserves, and most importantly, a simple tax system with low tax rates.
Hong Kong was ranked seventh globally and second in Asia in the World Competitiveness Yearbook 2021 published by the International Institute for Management Development. Hong Kong has also been ranked consistently by the Fraser Institute as the world’s freest economy. Hong Kong was also the world’s sixth-largest banking centre in terms of external positions as at end-2021.
Hong Kong’s stock market capitalization totaled about $42.4 trillion as at end-2021, seventh in the world and fourth in Asia, and equivalent to around 15 times the city’s GDP. At the year end, 2,572 companies were listed on the SEHK, representing industries from finance and property to consumer goods, information technology, biotechnology and telecommunications. The Hong Kong Stock Exchange has ranked first for even out of the past thirteen years in terms of equity funds raised via initial public offerings (IPOs). IPOs in 2021 raised about $331 billion, fourth in the world and second in Asia. (For the most update figures, please visit: https://www.hkex.com.hk)
The principal aims of the Hong Kong Monetary Authority are to maintain the stability of the Hong Kong dollar, manage the Exchange Fund and enhance the efficiency, integrity and development of the financial system. Under the Authority’s management, Hong Kong’s Exchange Fund has seen satisfactory performances over the years. At the end of 2021, the Exchange Fund had total assets of $4,577.8 billion and an accumulated surplus of $788.9 billion. (For the most update figures, please visit: https://www.hkma.gov.hk/)
Since the establishment of the Independent Commission Against Corruption (ICAC) in the 1970s, Hong Kong’s determination to fight corruption has never wavered. The outstanding efforts of the ICAC have enabled Hong Kong to continue to be rated by international and regional surveys as one of the “cleanest” city in Asia and the world.
The HKSAR Government has also pledged to protect intellectual property rights. With its comprehensive legislation, convenient registration, vigorous enforcement and active public education, Hong Kong is widely known for its effectiveness in protecting intellectual property rights.
