68 | Financial and Monetary Affairs
Chart 7
HK$ Billion
Total NAV of MPF Assets
500
400
300
265
200
209
100
0
2007
2008
Year
2009
Chart &
300
HK$ Billion
309
Net asset values (NAV) of Mandatory Provident Fund (MPFs) schemes topped $309 billion at the end of 2009 with an annualised internal rate of return of 5 per cent since its inception in 2000.
Annual Gross Premiums of Insurance Market
200
197
189
100
186*
0
2007
2008
2009
Year
Staying the course as one of the most open insurance markets in the world, achieving an annual premium growth of 6 per cent during the past three years. The total gross premiums of Hong Kong's insurance market remained steady at $185.7 billion in 2009.
Hong Kong as an International Financial Centre
Overview
Hong Kong as a leading international financial centre in the region is helped by a favourable geographical location, bridging the time gap between New York and London; strong links with the Mainland and economies in Southeast Asia and excellent communication with the rest of the world; the rule of law; a level playing field for conducting business and a sound regulatory regime. The absence of restrictions on capital flows into and out of Hong Kong is another advantage.
Hong Kong's financial markets are highly liquid. They operate under effective and transparent regulations, which are in line with international standards. A highly educated workforce and ease of entry for professionals from outside Hong Kong also contribute to the development of its financial markets.
International financial institutions maintain a strong presence in the city. Of the world's top 100 banks, 69 have operations in Hong Kong. At the end of the year, 135 of the 145 licensed banks in Hong Kong were foreign-owned.
The interbank money market is well established. Wholesale deposits are traded actively among local Authorised Institutions (Als), and between local and overseas institutions, with an average daily turnover of $226.7 billion in 2009.
The last triennial survey co-ordinated by the Bank for International Settlements in 2007 shows the daily average foreign exchange turnover in Hong Kong at US$174.6 billion, making Hong Kong the world's sixth largest foreign exchange market.
*
Provisional statistics