This article will be permanently flagged as inappropriate and made unaccessible to everyone. Are you certain this article is inappropriate? Excessive Violence Sexual Content Political / Social
Email Address:
Article Id: WHEBN0000013409 Reproduction Date:
As one of the world's leading international financial centers, Hong Kong's service-oriented economy is characterised by its low taxation, almost free port trade and well established international financial market.[13] Its currency, called the Hong Kong dollar, is legally issued by three major international commercial banks,[14] and pegged to the US Dollar.[15][16] Interest rates are determined by the individual banks in Hong Kong to ensure it is fully market-driven.[17] There is no central banking system in Hong Kong.[18][19] When destabilising factors are hitting the financial market of Hong Kong, they will be monitored and inspected by the Hong Kong Monetary Authority. Electronic finance trading[20][21] is evolutionarily impacting the financial market of Hong Kong.[22]
According to Index of Economic Freedom,[23] Hong Kong has had the highest degree of economic freedom in the world since the inception of the Index in 1995. Its economy is governed under positive non-interventionism, and is highly dependent on international trade and finance. In 2009, Hong Kong's real economic growth fell by 2.8% as a result of the global financial turmoil.
Hong Kong's economic strengths include a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures and close ties with the mainland China. Despite the downturn, these strengths enable it to quickly respond to changing circumstances.[24] It has the most efficient and a corruption-free application procedure, the lowest income tax, the lowest corporate tax as well as an abundant and sustainable government finance. The government of Hong Kong consistently upheld the policy of encouraging and supporting activities of private businesses. Examples include the Cyberport and the Hong Kong Disneyland. This has a positive impact on the overall economic performance by removing unnecessary barriers for the private enterprises in the Special Administrative Region. The Hong Kong Stock Exchange is a favourable destination for international firms and firms from the mainland China to be listed on due to Hong Kong's highly internationalised and modernised financial industry along with its capital market in Asia, its size, regulations and available financial tools, which are comparable to London and New York.[25][26]
Hong Kong's gross domestic product has grown 180 times between 1961 and 1997. Also, the GDP per capita rose by 87 times within the same time frame.[27] Its economy size is slightly bigger than Israel and Ireland[28][29][30] and its GDP per capita at purchasing power parity is the sixth highest globally in 2011, higher than the United States and the Netherlands and slightly lower than the Brunei.
By the late 20th century, Hong Kong was the seventh largest port in the world and second only to New York and
1. All twenty-eight member states of the European Union are also members of the WTO in their own right:
2. Special administrative region of the People's Republic of China, participates as "Hong Kong, China" and "Macao China". 3. Officially the Republic of China, participates as "Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu"
Hong Kong has been ranked as the world's freest economy in the Index of Economic Freedom of Heritage Foundation for 20 consecutive years, since its inception in 1995.[23][42] The index measures restrictions on business, trade, investment, finance, property rights and labour, and considers the impact of corruption, government size and monetary controls in 183 economies. Hong Kong is the only one to have ever scored 90 points or above on the 100-point scale in 2014 Index.[43]
Hong Kong's economic policy has often been cited by economists such as Milton Friedman and the Cato Institute as an example of the benefits of laissez-faire capitalism. However, others have argued that the economic strategy was inadequately characterised by the term laissez-faire.[40] They point out that there are still many ways in which the government is involved in the economy. The government has intervened to create economic institutions such as the Hong Kong Stock Market and has been involved in public works projects and social welfare spending. All land in Hong Kong is owned by the government and leased to private users. By restricting the sale of land leases, the Hong Kong government keeps the price of land at what some consider as artificially high prices and this allows the government to support public spending with a low tax rate.[41]
Since the 1997 handover, Hong Kong's economic future became far more exposed to the challenges of economic globalisation and the direct competition from cities in the mainland China. In particular, Shanghai claimed to have a geographical advantage. The Shanghai municipal government dreamt of turning the city into China's main economic centre by as early as 2010. The target is to allow Shanghai to catch up to New York by 2040–2050.[39] Hong Kong, on the other hand, continues to have a more positive and realistic approach, and remains the principal international financial centre in China. Until then, Hong Kong is expected to have higher overall economic figures yearly. Hong Kong's main trading partners are China, the United States, Japan, Taiwan, Germany, Singapore, and South Korea.
The Hong Kong Stock Exchange is the sixth largest in the world, with a market capitalisation of about US$2.97 trillion. In 2006, the value of initial public offerings (IPO) conducted in Hong Kong was second highest in the world after London.[37] In 2009, Hong Kong raised 22 percent of IPO capital, becoming the largest centre of IPOs in the world.[38] The rival stock exchange of the future is expected to be the Shanghai Stock Exchange. As of 2006, Hong Kong Exchanges and Clearing (HKEX) has an average daily turnover of 33.4 billion dollars, which is 12 times that of Shanghai.[37]
Acting as a government, Hong Kong is the second highest ranked Asian government in the World Economic Forum's Network Readiness Index (NRI) – an indicator for determining the development level of a government’s information and communication technologies. Hong Kong ranked eighth overall in the 2014 NRI ranking, up from 14 in 2013.[36]
Though not conventionally regarded as a tax haven, Hong Kong ranked fourth on the Tax Justice Network's 2011 Financial Secrecy Index.[35]
Hong Kong raises revenues from the sale and taxation of land and through attracting international businesses to provide capital for its public finance, due to its low tax policy. According to Healy Consultants, Hong Kong has most attractive business environment within East Asia, in terms of attracting foreign direct investment (FDI).[33] This has led to Hong Kong being the third largest recipient of FDI in the world.[34] From its revenues, the government has built roads, schools, hospitals, and other public infrastructure facilities and services. Low levels of spending relative to GDP by having no spending on armed forces, minimal outlays for foreign affairs and modest recurrent social welfare spending have allowed the accumulation of very large fiscal reserves with minimal foreign debt.
Hong Kong has also had an abundant supply of labour from the regions nearby. A skilled labour force coupled with the adoption of modern British/Western business methods and technology ensured that opportunities for external trade, investment, and recruitment were maximised. Prices and wages in Hong Kong are relatively flexible, depending on the performance and stability of the economy of Hong Kong.[32]
of about US$2.63 trillion. market capitalisation in the world, with a fifth largest is the Hong Kong Stock Exchange in terms of total tonnage holdings in the world. The Greece The Kwai Chung container complex was the largest in Asia; while Hong Kong shipping owners were second only to those of [31]
Hong Kong, Beijing, Macau, Shanghai, Taiwan
China, Shanghai, Hong Kong, The New York Times, Liaoning
Hang Seng Index, Hong Kong, Economy of Hong Kong, Chinese language, India
New York City, United States, American Civil War, Hawaii, Western United States
South Korea, Tokyo, Hokkaido, Australia, China
Transport in Hong Kong, Hong Kong, Economy of Hong Kong, Mtr, Pearl River Delta
History of China, Hong Kong, Qing dynasty, Economy of Hong Kong, Education in Hong Kong
Thailand, Japan, Bangkok, United States, Economy of China
Tajikistan, Russia, Turkey, Cotton, European Union
Indonesia, South Korea, Food, Singapore, Malaysia