Chart 8
300
Chart 9
HK$ Billion
HK$ Billlon
4
Financial and Monetary Affairs
Annual Gross Premiums of Insurance Market
255*
200
234
205
189
185
100
0
2008
2009
2010
2011
2012
Year
Total NAV of MPF Assets
500
400
300
365
356
309
200
209
100
0
2008
2009
2010
2011
2012
Year
As one of the world's most open insurance markets, Hong Kong's insurance market recorded $255.2* billion in total gross. premiums in 2012, representing an increase of 9 per cent over 2011.
440
Net asset values (NAV) of Mandatory Provident Fund (MPF) schemes stood at $440 billion at the end of 2012 with an annualised internal rate of return of 4 per cent for the period from December 2000 (the inception of the MPF System) to December 2012.
Hong Kong as an International Financial Centre
Overview
Hong Kong's position as a leading international financial centre is based on its unique status as the only place in the world where a strong connection with the Mainland market coincides with a world-class financial infrastructure. On one hand, Hong Kong enjoys extensive geographical, cultural and linguistic links with the Mainland, and has long served the Mainland's financial needs 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 Asia-Pacific region and excellent communications 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. Hong Kong's increasing competitiveness as an international financial centre is well recognised: Hong Kong topped the World Economic Forum (WEF)'s Financial Development Index for the second time in 2012; the Global Financial Centre Index published by Z/Yen Group in September 2012 ranked Hong Kong as the third global centre, behind only London and New York.
With a total market capitalisation of about $22 trillion at the end of 2012, the stock market of Hong Kong ranked sixth in the world and second in Asia. The daily turnover averaged $53.9 billion in 2012. At the end of the year, 1,547 public companies were listed on the SEHK,
*
Provisional statistics.
61