Hong Kong maintains 3rd place among world's financial centers

HONG KONG - Hong Kong maintained the third place globally in the latest Global Financial Centers Index published by British think tank Z/Yen Group and China Development Institute in Shenzhen on Thursday.

The report reaffirms Hong Kong's status and strengths as a leading global financial center. Hong Kong has remained among the top in various areas of competitiveness, including business environment, human capital, and infrastructure, said a spokesperson for the Hong Kong Special Administrative Region government.

The spokesperson said that Hong Kong's financial markets have been functioning in an orderly manner with no abnormal signs of capital flow observed despite the persistent uncertainties stemming from the COVID-19 pandemic and heightened geopolitical tensions which continue to affect global financial markets.

The robust and effective regulatory regime, a well-established institutional framework for systemic risk monitoring and the well-functioning Linked Exchange Rate System underpinned by large foreign exchange reserves have helped Hong Kong in this regard, the spokesperson said.

The spokesperson said that Hong Kong's unique advantages, including institutional advantages under "one country, two systems," a fine tradition of the rule of law, and a market-oriented and internationalized business environment, coupled with robust infrastructure support, internationally aligned regulatory regimes, a full range of financial products, and free flow of information and capital, have continued to consolidate Hong Kong's status as a leading global financial center.

Also, the national 14th Five-Year Plan expresses staunch support for Hong Kong to strengthen its functions as a global offshore Renminbi business hub, an international asset management center and a risk management center, as well as to deepen and widen mutual access between the financial markets of Hong Kong and the mainland.

The spokesperson said that the HKSAR government will continue to make good use of national policies and Hong Kong's own advantages and take the Guangdong-Hong Kong-Macao Greater Bay Area as an entry point, proactively exploring the mainland market and participating in the domestic circulation of the national economy.

At the same time, Hong Kong will play its bridging and platform role at the intersection of domestic and international circulations, connecting domestic and foreign markets and investors, and assisting mainland enterprises to explore the international market, the spokesperson said.

The GFCI report has been released in March and September every year since 2007. In the latest report, 119 financial centers were assessed and Hong Kong came third with an overall rating of 715.