Chapter 4
Financial and Monetary Affairs
Well-established as the world's premier international financial centre, Hong Kong is ranked third in the Global Financial Centres Index and has been commended by the International Monetary Fund. The vibrant financial sector has a workforce of about 260,000, contributing to 18.9 per cent of the local economy.
Hong Kong as International Financial Centre
Hong Kong, with its strategic location in the heart of Asia, is firmly anchored in the increasingly integrated global financial system. The city's trading system interacts 24 hours a day with other global financial centres, such as New York and London. Key markets in Asia and half the world's population can be reached within a five-hour flight time. As part of China under the 'one country, two systems' principle, Hong Kong enjoys extensive geographical, cultural and linguistic links with the Mainland and yet retains the uniqueness that sets it apart from Mainland cities.
Hong Kong's financial markets are characterised by effective and transparent regulations that are in line with international standards. The rule of law, open market, free flow of capital and information, deep liquidity, strong emphasis on investor protection, well-educated and very efficient workforce and ease of entry for non-local professionals are all cornerstones of the city's competitive financial services. These strengths contribute to Hong Kong's unique position in bridging opportunities in the Mainland of China with the rest of the world, particularly in leveraging opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative.
The city's status as a leading international financial centre is widely acknowledged: the Global Financial Centres Index, published by the Z/Yen Group in September, ranked New York, London and Hong Kong as the world's top three financial centres. The International Monetary Fund Staff Mission, following its 2018 Article IV Consultation, also commended Hong Kong for having robust policy frameworks and strong buffers to ensure continued financial stability.
To strengthen its competitiveness, Hong Kong improves the regulatory framework, promotes market development and encourages the use of technology to raise operational efficiency and foster the development of innovative services in the financial services industry. The city will also
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