Hong Kong ranks fourth in new global financial centers index

PRLog (Press Release) - Jul 09, 2010 -
CFC Holding Company, Ltd., a subsidiary of Xinhua News Agency, and CME Group Index Services LLC (Dow Jones Indexes) have launched a new Xinhua-Dow Jones International Financial Centers Development Index (IFCD Index). The IFCD Index ranks the competitiveness of 45 major financial centers around the world on the following parameters: Financial market growth and development; industrial support and infrastucture; service; and the general business environment. New York was ranked as the top financial center in the world, while London was placed in the second spot followed by Tokyo and Hong Kong. Hong Kong was also recently ranked #3 in the Global Financial Centers Index compiled by Z/Yen Group and published by the City of London Corporation.

Hong Kong’s high rankings in the financial centers indexes proves that it is one of the fastest growing international finance centers in the world. Its strength as a financial hub lies in its strong domestic banking market, light regulatory approach, and a robust private banking sector. The Hong Kong Monetary Authority has been liberalizing Hong Kong’s banking sector with timely measures such as lifting market entry criteria for foreign banks and easing the restrictions on the number of branches foreign banks can open in Hong Kong. Furthermore, Hong Kong’s banking legislation has kept pace with developments in the global financial markets. Today, Hong Kong boasts of strict anti-money laundering laws and generous tax incentives. For instance, Hong Kong’s tax system (http://www.guidemehongkong.com/tax/c753-hong-kong-tax-sys...) does not tax capital gains and overseas dividend income. Hong Kong has also developed strong financial co-operation with the mainland under various CEPA liberalization measures. The Hong Kong stock market’s high liquidity and robust fund-raising capability has made it the preferred capital formation center for enterprises on the Mainland and worldwide.

It is evident that financial services is one of Hong Kong’s most important and promising sectors. With the rise of mainland China, there is a strong demand for Hong Kong’s financial services. As the West faces a major public debt crisis, investment banks, insurance companies, hedge funds, and other investors are heading towards business friendly Hong Kong. According to Mr. Paul Chow, Ex-Chief Exective of HKEx, “You have to put it into a perspective that Hong Kong is only a city, but its market capitalisation is already larger than that of Germany, Canada, and Australia. I am sure that in a few years’ time, our market will be bigger than the London market.”

Hong Kong’s strength as an international finance center also complements its position as a popular offshore jurisdiction. Businesses that choose to incorporate an offshore company in Hong Kong (http://www.guidemehongkong.com/company/c811-hong-kong-off...) can benefit from the territory’s sophisticated financial system. Hong Kong’s top rankings as one of the leading global financial centers proves that it is a truly genuine global financial heavyweight.