Chapter 4

Financial and Monetary Affairs

Hong Kong ranks among the world's top financial centres, thanks to its well established and regulated banking, securities and insurance industries. It was ranked first among 60 of the world's leading financial systems and capital markets in the World Economic Forum (WEF)'s Financial Development Report 2011. Hong Kong's stock market also led the world in raising funds through initial public offerings (IPOs) for the third consecutive year. The financial sector has a 225 000-strong workforce, or 6.1 per cent of the city's total workforce, and contributes 15.4 per cent of the city's Gross Domestic Product.

Hong Kong is a vibrant global financial centre invigorated by a sophisticated financial infrastructure, world-class financial professionals, a robust regulatory regime, high liquidity and efficiency. The Government's aim is to reinforce Hong Kong's position as China's Global Financial Centre in general and as a capital formation centre, an asset management centre and an offshore Renminbi (RMB) centre in particular by making continuous improvements to the regulatory system, promoting corporate governance, strengthening investor protection, fostering market development and enhancing links and co-operation with the Mainland.

Hong Kong recorded a number of major achievements in 2011. These included:

Chart 1

600

HK$ Billion

450

292

300

150

Equity Funds Raised Through IPOs

248

449

66

0

2007

2008

2009

Year

2010

260

2011

Raising $260 billion through IPOS in 2011, the Hong Kong Exchanges and Clearing Limited (HKEx) finished 1st worldwide in IPO funds raised for the third consecutive year. Hong Kong has been among the top five global listing markets for the past 10 years.

Chart 2

1,000

750

591

HK$ Billion

500

250

Total Equity Funds Raised in Hong Kong

642

427

859

490

0

2007

2008

2009

Year

2010

2011

The HKEX was ranked 3rd in the world and 2nd in Asia in terms of total equity funds raised, totaling $490 billion in 2011.

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