ENG-2015 — Page 89

Chapter 4

Financial and Monetary Affairs

As Asia's premier international financial centre, Hong Kong ranked third of 80 financial centres in the latest Global Financial Centres Index and its stock market ranked first globally in terms of equity funds raised through initial public offerings in 2015. Hong Kong is the world's largest offshore Renminbi (RMB) market, offering a diversified range of products. The financial sector has a 246,000-strong workforce, accounting for 6.5 per cent of the city's total workforce and 16.6 per cent of the local economy.

Hong Kong as an International Financial Centre

Overview

Hong Kong, located at the heart of Asia, plays a vital part in the 24-hour continuous trading system worldwide together with New York and London. It also holds a unique position in the increasingly integrated global financial system, in particular through its extensive geographical, cultural and linguistic links with the dynamic Mainland economy and financial system.

The robust financial services industry in Hong Kong is built on its excellent communications with the rest of the world; the rule of law; a level playing field for conducting business; a sound regulatory regime; an absence of restrictions on capital flows into and out of Hong Kong; an emphasis on investor protection; and a well-educated workforce and ease of entry for professionals from outside the city. Hong Kong's financial markets offer a high level of liquidity and are governed by effective and transparent regulations that are in line with international standards.

It is therefore not surprising that Hong Kong's competitiveness as an international financial centre is well recognised. The Global Financial Centres Index published by Z/Yen Group in September ranked Hong Kong as the third global centre, behind only New York and London. An International Monetary Fund (IMF) Mission, following the 2015 Article IV Consultation, affirmed that Hong Kong's robust financial system and prudent fiscal management would help deal with near-term challenges while laying the foundations for steady growth and healthy job creation in the medium term.

Vibrant Securities and Derivatives Market

The city's stock market capitalisation, at about $24.7 trillion at the end of 2015, ranked eighth in the world and fourth in Asia. At the end of the year, 1,866 public companies were listed on the

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