ENG-2010 — Page 111

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. Its stock market ranked seventh globally and third in Asia in terms of market capitalisation in 2010. Hong Kong also led the world in raising funds through initial public offerings (IPOs) in both 2009 and 2010. The financial sector has a 210 200-strong workforce, or 5.8 per cent of the city's total workforce, and contributes 15.2 per cent of the city's GDP.

Hong Kong is a vibrant global financial centre invigorated by a sophisticated financial infrastructure, world-class financial professionals, a regulatory regime as good as any in the world, 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 offshore Renminbi (RMB) centre and an asset management 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 2010. These included:

Chart 1

External Positions of Authorised Institutions (Als)

11,500

11,000

HK$ Billion

€10,500

10,000

9,661

9,500

9,000

9,947

10,021

8,500

2007

2008

2009

2010

Year

11,157

Attaining the rank of the world's 13th and Asia's 3rd largest banking centre in terms of external positions1 and the world's 6th largest centre for foreign exchange trading.

1

Sum of liabilities to banks and non-bank customers outside Hong Kong and claims on banks and non-bank customers outside Hong Kong (such as equities, securities and capital instruments).

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