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4.6 HONG KONG
4.6.1 OVERVIEW OF HONG KONG’S CAPITAL MARKETS
Hong Kong has robust capital markets that provide a platform to global investors from Asia,
particularly China, as well as other parts of the world. Notably, Hong Kong is touted as: (i) a
global financial centre, including a vibrant international bond market and as the world’s leader
in equity funding; (ii) an international asset-management centre; and (iii) a global offshore
renminbi (RMB) business hub (Hong Kong: China’s Global Financial Centre).
Hong Kong is one of the world’s leading international financial centres (IFCs), with the highest
Financial Development Index score. It prides itself as the world’s most competitive and freest
economy. Box 4.16 describes the high ranking position held by Hong Kong in various
international reports.
Box 4.16: Hong Kong Ranks among the Top 5 IFCs
Hong Kong ranked third among well-established IFCs in 2017, after London and New York, and first in Asia
ahead of Singapore. In the last 10 years (2007-2017), it has been competing with Singapore for the third and
fourth positions, followed by Tokyo at the fifth position, as reported by various reports in the following table.
Rank
2017
Global
Financial
Centres
Index 22
Financial
Development
Index 2012
2017 Index
of
Economic
Freedom
Economic
Freedom of
the World:
2017
Annual
Report
World Bank
Doing
Business
2017
IMD World
Competitiveness
Yearbook 2017
1 London Hong Kong Hong Kong Hong Kong New Zealand Hong Kong
2 New York United States Singapore Singapore Singapore Switzerland
3 Hong Kong United Kingdom New Zealand New Zealand Denmark Singapore
4 Singapore Singapore Switzerland Switzerland Hong Kong United States
5 Tokyo Australia Australia Ireland Korea Netherlands
Sources: The Global Financial Centres Index 22 (2017), Financial Development Index (2012), Index of Economic
Freedom (2017), Economic Freedom of the World: Annual Report (2017), World Bank Doing Business Report
(2017), World Competitiveness Yearbook (2017)
In the 2017 Global Financial Centres Index, Hong Kong was ranked the third most competitive financial
centre in the world in the areas of business environment, human capital, infrastructure and financial
development, and second in terms of reputation. It also stood among the top 5 IFCs in banking, investment
management, insurance, professional services, and government and regulatory as highlighted in the below
tables.
Area of Competitiveness
Rank Business
Environment
Human Capital Infrastructure Financial Sector
Department
Reputation
1 London London London London London
2 New York New York New York New York Hong Kong
3 Hong Kong Hong Kong Hong Kong Hong Kong Singapore
4 Singapore Singapore Singapore Singapore New York
5 Shanghai Shanghai Shanghai Shanghai Tokyo
Source: The Global Financial Centres Index 22 (2017:8)