Friday, August 22, 2008

Ultimate Hongkong

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Hong Kong is one of the world's leading financial centers.Its highly capitalist economy, built on a policy of low taxation ,free markets and government non-intervention,has been ranked as the most free economy in the world in the Index of Economic Freedom for 14 consecutive years.It is an important center for international finance and trade, with the greatest concentration of corporate headquarters in the Asia-Pacific region, and is known as one of the Four Asian Tigers for its high growth rates and rapid industrialization between the 1960s and 1990s.
The Hong Kong Stock Exchange is the sixth largest in the world, with a market capitalization of US$2.97 trillion as of October 2007, and the second highest value of initial public offerings, after London.Continuing the practice established under the British administration, the Government of Hong Kong generally plays a passive role in the financial industry, mostly leaving the direction of the economy to market forces and the private sector. Under the official policy of positive non-interventionism, Hong Kong has often been cited as a prime example of laissez-faire capitalism.

Hong Kong has little arable land and few natural resources within its borders, and must therefore import most of its food and raw materials. Hong Kong is the world's eleventh largest trading entity, with the total value of imports and exports exceeding its gross domestic product. Much of Hong Kong's exports consist of re-exports, which are products made outside of the territory, especially in mainland China, and distributed via Hong Kong. Even before the transfer of sovereignty to the People's Republic of China, Hong Kong had established extensive trade and investment ties with mainland China. The territory's autonomous status enables it to serve as a point of entry for investments and resources flowing into the mainland. It is also a connecting point for flights from Taiwan destined for the mainland.