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Chapter 4

Financial and Monetary Affairs

Hong Kong's status as the world's premier international financial centre is well recognised. The city is ranked third in the Global Financial Centres Index and is also commended by the International Monetary Fund. The financial sector had a workforce of over 250,000 and contributed to 17.7 per cent of the local economy.

Hong Kong as International Financial Centre

Located at the heart of Asia, Hong Kong as a leading international financial centre forms a 24- hour continuous trading system with other global financial centres, including New York and London. At the southern part of China, the city's extensive geographical, cultural and linguistic links with the Mainland, and the distinctive advantage of 'one country, two systems, bestow on Hong Kong a unique position in the increasingly integrated global financial system.

The city's financial markets operate under effective and transparent regulations that are in line with international standards. It also thrives on excellent communications with the rest of the world, the rule of law, a level playing field for conducting business, free capital inflows and outflows, an emphasis on investor protection, and a well-educated workforce and ease of entry for non-local professionals.

Hong Kong's competitiveness as an international financial centre is also well recognised: the Global Financial Centres Index published by the Z/Yen Group in September ranked Hong Kong the third global centre, behind London and New York. Following the 2017 Article IV Consultation, the International Monetary Fund Staff Mission commended Hong Kong, saying the city was well placed to navigate challenges given its strong buffers, ample fiscal reserves and robust financial regulatory and supervisory frameworks.

The Financial Leaders Forum was established in August, chaired by the Financial Secretary, to discuss and provide a policy steer on strategic and forward-looking proposals to develop and strengthen Hong Kong's position as an international financial centre, having regard to the need to maintain monetary stability, financial safety and market quality.

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