Page 126 - 2023 Special Report on the State of Business in South China
P. 126
g Kong
The economy maintains basically no barriers to trade: there
are no customs tariffs on goods imported into
Situated at the southeastern tip or exported from Hong Kong. Import and export
of China, Hong Kong licensing is kept to a minimum. Most products do
is at the center of East Asia. Since its return to not need licenses to enter or leave Hong Kong and
Chinese mainland in 1997, it has followed the “one where licenses or notifications are required, they
country, two systems” policy under the Basic Law. are only intended to fulfill obligations under various
Hong Kong is considered one of the world’s freest international agreements, or to maintain public
economies, and under its laissez-faire system health, safety or security. For 2021 as a whole, the
its financial sector has developed into a regional value of total exports of goods increased by 26.3%
center. In addition, Hong Kong continues to play a YoY. Concurrently, the value of imports of goods
significant role as a portal for Chinese mainland’s increased by 24.3%. The export performance was
merchandise and capital flows. relatively weak in the four months of 2022, but it's
mainly due to the disruption of cross-boundary
GDP expanded 6.3%72 in real terms in 2021, the cargo flows between Chinese mainland and Hong
fastest pace since 2010. However, the economy Kong amid the fifth wave of the local Covid-19.
moderately contracted by 1.3% YoY in the second Hong Kong's exports to other major markets have,
quarter of 2022, after a decrease of 3.9% in the first however, registered strong growth. Exports to the
quarter. Covid-19 restrictions still weighed on the US, for instance, surged by 19.3%, while rising by
city's economy and the curbs are partly blamed for 18.8% in the case of the ASEAN bloc and by 9.2%
a net outflow of 113,200 people from Hong Kong for the European Union75.
between mid-2021 and mid-202273.
Hong Kong is not only an important banking
Market highlights and financial center in Asia Pacific, but also the
fourth leading financial center globally, according
Although Hong Kong's economy is under short- to the Global Financial Centre Index76. According
term pressure, the business sector believes that to SWIFT’s latest report, Hong Kong was the largest
Hong Kong's future development is limitless due to offshore RMB clearing center in 2021, handling
the unique advantages given by “one country, two 76% of the world's RMB payments. Meanwhile,
systems” and the vast mainland market. In 2021, the stock market in Hong Kong ranked the fourth
FDI inflows to Hong Kong reached US$141 billion, largest in Asia and the seventh largest in the world.
4% higher than 2020, mostly accounted for by Total market capitalization reached US$5.4 trillion,
reinvested earnings (US$108 billion)74. which increased by nearly 13 times compared with
1997. In 2021, Hong Kong was also the fourth-
Hong Kong is the world’s freest economy, largest initial public offering (IPO) fundraising
which follows a free trade policy and hence market in the world, with US$42.3 billion raised
72 Hong Kong 2021 Year Book, https://www. through initial public offerings77.
yearbook.gov.hk/2021/en/pdf/E03.pdf
73 Reuters, https://www.reuters.com/markets/ 75 The government of Hong Kong, https://www.
asia/hong-kongs-q2-gdp-shrinks-13-yy-govt-cuts-2022- info.gov.hk/gia/general/202201/27/P2022012700207.
forecast-2022-08-12/ htm
74 UNCTAD, https://unctad.org/system/files/ 76 https://www.longfinance.net/publications/pro-
official-document/wir2022_en.pdf fessional-articles/the-global-financial-centres-index-32/
77 China Daily, https://www.chinadaily.com.
126 cn/a/202209/15/WS6322969ca310fd2b29e77ceb.html
The economy maintains basically no barriers to trade: there
are no customs tariffs on goods imported into
Situated at the southeastern tip or exported from Hong Kong. Import and export
of China, Hong Kong licensing is kept to a minimum. Most products do
is at the center of East Asia. Since its return to not need licenses to enter or leave Hong Kong and
Chinese mainland in 1997, it has followed the “one where licenses or notifications are required, they
country, two systems” policy under the Basic Law. are only intended to fulfill obligations under various
Hong Kong is considered one of the world’s freest international agreements, or to maintain public
economies, and under its laissez-faire system health, safety or security. For 2021 as a whole, the
its financial sector has developed into a regional value of total exports of goods increased by 26.3%
center. In addition, Hong Kong continues to play a YoY. Concurrently, the value of imports of goods
significant role as a portal for Chinese mainland’s increased by 24.3%. The export performance was
merchandise and capital flows. relatively weak in the four months of 2022, but it's
mainly due to the disruption of cross-boundary
GDP expanded 6.3%72 in real terms in 2021, the cargo flows between Chinese mainland and Hong
fastest pace since 2010. However, the economy Kong amid the fifth wave of the local Covid-19.
moderately contracted by 1.3% YoY in the second Hong Kong's exports to other major markets have,
quarter of 2022, after a decrease of 3.9% in the first however, registered strong growth. Exports to the
quarter. Covid-19 restrictions still weighed on the US, for instance, surged by 19.3%, while rising by
city's economy and the curbs are partly blamed for 18.8% in the case of the ASEAN bloc and by 9.2%
a net outflow of 113,200 people from Hong Kong for the European Union75.
between mid-2021 and mid-202273.
Hong Kong is not only an important banking
Market highlights and financial center in Asia Pacific, but also the
fourth leading financial center globally, according
Although Hong Kong's economy is under short- to the Global Financial Centre Index76. According
term pressure, the business sector believes that to SWIFT’s latest report, Hong Kong was the largest
Hong Kong's future development is limitless due to offshore RMB clearing center in 2021, handling
the unique advantages given by “one country, two 76% of the world's RMB payments. Meanwhile,
systems” and the vast mainland market. In 2021, the stock market in Hong Kong ranked the fourth
FDI inflows to Hong Kong reached US$141 billion, largest in Asia and the seventh largest in the world.
4% higher than 2020, mostly accounted for by Total market capitalization reached US$5.4 trillion,
reinvested earnings (US$108 billion)74. which increased by nearly 13 times compared with
1997. In 2021, Hong Kong was also the fourth-
Hong Kong is the world’s freest economy, largest initial public offering (IPO) fundraising
which follows a free trade policy and hence market in the world, with US$42.3 billion raised
72 Hong Kong 2021 Year Book, https://www. through initial public offerings77.
yearbook.gov.hk/2021/en/pdf/E03.pdf
73 Reuters, https://www.reuters.com/markets/ 75 The government of Hong Kong, https://www.
asia/hong-kongs-q2-gdp-shrinks-13-yy-govt-cuts-2022- info.gov.hk/gia/general/202201/27/P2022012700207.
forecast-2022-08-12/ htm
74 UNCTAD, https://unctad.org/system/files/ 76 https://www.longfinance.net/publications/pro-
official-document/wir2022_en.pdf fessional-articles/the-global-financial-centres-index-32/
77 China Daily, https://www.chinadaily.com.
126 cn/a/202209/15/WS6322969ca310fd2b29e77ceb.html
