Hong Kong's financial market remains stable, eyes greater opportunities, says report

Aerial photo taken on June 27, 2017 shows the scenery on the both sides of the Victoria Harbour in Hong Kong, south China. [Xinhua/Lui Siu Wai]

The "Report on Hong Kong's Business Environment: A Place with Unique Advantages and Unlimited Opportunities" was released on Monday. It listed a series of indicators pointing to Hong Kong's financial strengths and resilience.

HONG KONG, Sept. 27 (Xinhua) -- Hong Kong's financial market remains stable and operates smoothly, as the national security law has restored peace to the global financial hub, and will continue to thrive thanks to unique advantages under "one country, two systems," an official report said Monday.

The "Report on Hong Kong's Business Environment: A Place with Unique Advantages and Unlimited Opportunities" was released by China's Hong Kong Special Administrative Region (HKSAR) government, at a press conference.

The report listed a series of indicators pointing to Hong Kong's financial strengths and resilience.

In the 12-month period ending June 2021, funds raised through initial public offerings increased by more than 50 percent year on year, and the turnover of the stock market was up by nearly 70 percent. The assets under management (AUM) of the asset and wealth management business in Hong Kong grew by about 20 percent, and the amount of international bond issuance ranked first in Asia, said the report.

Photo taken on July 8, 2021 shows a view of Tamar Park in south China's Hong Kong. [Xinhua/Wu Xiaochu]

The robust financial system has also been recognized by international organizations, including the International Monetary Fund (IMF) and the United Nations Conference on Trade and Development (UNCTAD), the report said.

An IMF report published earlier this year affirmed Hong Kong's position as a major international financial center.

The World Investment Report 2021 of the UNCTAD said that Hong Kong will remain an important financial hub in Asia and a gateway to investment in the Chinese mainland, thanks to a favorable tax regime, simple listing process, absence of capital controls and a good regulatory framework.

Monday's report attributed Hong Kong's stable financial performance in part to a peaceful environment restored by the implementation of the national security law.

The financial sector reckons that the national security law, rather than having any impact on the industry, has helped ensure personal safety, restore social order, and recreate a safe and stable business environment after the turmoil in 2019, the report said.

Photo taken on June 29, 2020 shows a billboard about the Law of the People's Republic of China on Safeguarding National Security in Hong Kong Special Administrative Region in Central area in Hong Kong, south China. [Xinhua/Wang Shen]

Many international financial institutions, including insurance companies, banks and wealth management companies, have continued to expand their business in Hong Kong, the report said, citing HSBC, Citigroup Manulife Insurance, AIA and Oakwise Capital.

Looking ahead, the report believes Hong Kong's financial industry will be able to explore more opportunities amid the development of the entire country.

Under "one country, two systems," the characteristics of Hong Kong's financial regulatory regime, including the common law, and free flows of capital and talent, are protected, ensuring Hong Kong plays an effective role as a bridge between the mainland market and the international market, the report said.