Hong Kong takes the lead in Asia in most factors which are
considered as important to a financial center, said the Securities
and Futures Commission (SFC) of Hong Kong Thursday.
"Hong Kong has a critical mass of expertise in the financial
services and related professional sectors," said the agency in a
study conducted for the Corporation of London.
"Its regulatory framework is sound and of international
standards, and it also has a responsive government," it said.
As the freest economy in the world, Hong Kong has ready access
to international financial markets and customers, the study said,
adding that the business infrastructure is advanced and
sophisticated, and the business environment open and
competitive.
In addition, tax rates in Hong Kong are very low and the tax
system is simple and efficient. Moreover, these factors ensure that
market forces work well, according to the study.
"Nevertheless, there is no room for complacency. Globalization
is leveling the playing field," said the study, noting that other
markets in the region are striving to become more significant
players in the region.
Therefore, Hong Kong should continue to further strengthen its
competitive advantages and to improve other areas such as enhancing
competition, ensuring ease of doing business, improving quality of
life, and addressing environmental issues in order to stay ahead in
the competition, said the study.
According to the study, 14 competitive factors were identified
as most important to a financial center. The SFC research
categorized them into six groups and examined the competitiveness
of Hong Kong with the 12 selected economies in Asia.
The competitive factors include availability of skilled
personnel and access to suppliers of professional services,
regulatory environment and government responsiveness as well as
access to international financial markets and access to
customers.
The 12 selected Asian economies include Australia, the Chinese
mainland, China's Taiwan, India, Indonesia, Japan, South Korea,
Malaysia, New Zealand, the Philippines, Singapore and Thailand.
(Xinhua News Agency September 1, 2006)