HONG KONG, March 27 (Xinhua) -- The Hong Kong Special Administrative Region (HKSAR) government said Friday that Hong Kong's competitive edges were unaffected by the social unrest in the second half of 2019, responding to the region's slip in a private ranking of global financial centers.
In a report published by Z/Yen, a British think tank and the Shenzhen-based China Development Institute, Hong Kong was ranked number six in the Global Financial Index, dropping three places from the last ranking released in September 2019.
According to a government spokesman, the report noted a high level of volatility in the ranking when compared with previous reports, probably reflecting the uncertainty around international trade and the impact of geopolitical and local unrest.
However, the report still shows Hong Kong remains competitive in multiple areas including business environment and human capital, the spokesman said.
"Hong Kong's institutional strengths and underlying fundamentals remain intact and strong," he noted.
"Despite the challenging socio-economic situation in the latter half of 2019, financial system remains resilient," he said. "Different facets of the financial services sector continue to function in an orderly manner. The Linked Exchange Rate System has been operating smoothly. There have been no notable outflows of funds."
Hong Kong has a fine tradition of rule of law and judicial independence, a business-friendly environment, a simple and low tax regime, and free flow of capital and information, among others, he said.
Hong Kong is the world's largest initial public offering center for 2019 and the largest offshore renminbi business center. By the end of 2019, the total capital under management in private equity in Hong Kong ranked second in Asia, he said.
The spokesman said Hong Kong is the gateway for access to the vast Chinese mainland market with an extensive network with the rest of the world.
Leveraging the opportunities presented by the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative, Hong Kong will further enhance its position as a center for offshore renminbi business, asset and wealth management, insurance and risk management as well as green finance, with a view to promoting the diversified development of the financial markets, he added.
