Chart 8
HK$ Billion
400
Total NAV of MPF Assets
300
265
200
209
100
365
356
309
0+
2007
2008
2009
Year
2010
2011
Chart 9
230
215-
HK$ Billion
Annual Gross Premiums of Insurance Market
200
197
205
Financial and Monetary Affairs 75
Net asset values (NAV) of Mandatory Provident Fund (MPF) schemes stood at $356 billion at the end of 2011 with an annualised internal rate of return of 2.5 per cent since the inception of the MPF System in 2000.
226*
As one of the world's most open insurance markets, Hong Kong's insurance market recorded $225.8* billion in total gross premiums in 2011, representing an increase of 10.2 per cent over 2010.
185
189
185
170
2007
2008
2009
2010
2011
Year
Hong Kong as China's Global Financial Centre
Overview
Hong Kong's role as China's global financial centre is based on the 'One Country, Two Systems' principle, enshrined in the Basic Law, which has been governing Hong Kong since its reunification with China in July 1997. This gives Hong Kong a unique status as the only place in the world where a strong connection with the Mainland market meets a world-class business environment. On one hand, Hong Kong enjoys extensive geographical, cultural and linguistic links with the Mainland, and has long served the financial needs of the Mainland as its markets continue to open. On the other hand, Hong Kong has a favourable geographical location, bridging the time gap between New York and London; strong links with the entire Asia-Pacific region and excellent communication with the rest of the world. The rule of law, a level playing field for conducting business, a sound regulatory regime, and the absence of restrictions on capital flows into and out of Hong Kong are other advantages.
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.
Hong Kong's increasing competitiveness as an international financial centre is well recognised: Hong Kong topped the WEF's Financial Development Index in its 2011 issue, overtaking the United States, the United Kingdom and Singapore to become the first Asian economy to receive the honour.
With a total market capitalisation of about $17,537 billion at the end of 2011, the Hong Kong stock market ranked seventh in the world and third in Asia. The
Provisional Statistics