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Last updated at: (Beijing Time) Tuesday, December 04, 2001

HK to Remain as Int'l Financial Hub After China's WTO Entry: Official

Hong Kong will continue to stand as an international financial center despite keen competition from counterparts in other countries. After China's entry to the WTO, Hong Kong will keep on playing its role as a bridge between the mainland and the world in the aspects of trade, investment, stock market, etc, as well as the significant role of the growth of the mainland market.


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Hong Kong will continue to stand as an international financial center despite keen competition from counterparts in other countries, Hong Kong Financial Secretary Antony Leung said Monday.

WTO Entry Positive to Hong Kong

Hong Kong stands ready to face the challenges as a marketplace where the East truly meets the West, Leung told the 2001 Conference of the Asian Securities Analysts Federation (ASAF).

"The unparalleled growth of the Chinese mainland's economy, especially after its imminent accession to the WTO, will have a positive impact on Hong Kong and the whole of Asia in general," he said.

Other favorable conditions for Hong Kong include being the regional headquarters of most, if not all, big players including top tier international financial institutions, and a large pool of vibrant local companies.

A Bridge Between Mainland & World

Leung highlighted the role of Hong Kong as a bridge between the mainland and the world.

  • Trade & Investment


    • "Since the 1980s, Hong Kong has prospered in its role as the gateway and bridge between mainland and the world for trade and investment flows," he said.

  • Stock Market


    • Hong Kong has the 10th largest stock market in the world. It is also the third largest stock market in Asia after Japan and Chinese mainland. The combined market capitalization of Hong Kong and the mainland totaled 992 billion U.S. dollars, ranking 5th in the world just behind the United States, Japan, the United Kingdom and Euro next.

    Significant Role in Growth of Mainland Market

    Leung said that with ever-closer cooperation and stronger ties with the mainland, Hong Kong will play an ever more significant role in the growth of the mainland market.

    "China will continue to need substantial amount of capital for its sustained economic restructuring and reforms. Hong Kong can continue to serve as its premier fund-raising center," the Hong Kong official said.

  • Capitalization of China-related Companies


    • In recent years, the majority of the funds raised through Initial Public Offerings in Hong Kong have been for China-related companies. By the end of the third quarter of 2001, China-related enterprises accounted for 27 percent of the main board market capitalization in Hong Kong.



    HK's Role in Mainland's Financial Dev.

    Hong Kong is the main external arranger for the mainland's loan syndication, bond issues and stock listings.

  • Syndicated Loans in HK Surges


    • Over the past 11 years, the amount of total syndicated loans arranged in Hong Kong amounted to 21 billion U.S. dollars, representing 45 percent of total syndicated loans arranged for mainland enterprises.

  • Favorable Location for Listing, Regional Distribution


    • Hong Kong has been the favored location for listing and regional distribution of the mainland's global sovereign and non- sovereign bond issues. Mainland enterprises have also raised 15.3 billion U.S. dollars through listing of 54 H shares here since 1993.

  • Investment in HK Witness Rapid Growth


    • Playing a key role in intermediating capital into and out of the mainland, Hong Kong is the Mainland's largest investor accounting for about half, or 171 billion U.S. dollars, of all realized direct investment in the mainland.

    The mainland also accounted for 104 billion U.S. dollars or roughly 26 percent of total inward investment into Hong Kong as of end 1999.

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