Financial Services

Hong Kong is a major international financial centre, comprising an integrated network of institutions and markets which provide a wide range of products and services to local and international customers and investors. Hong Kong's financial markets are characterised by a high degree of liquidity and operate under effective and transparent regulations, which meet international standards.

The financial services sector is one of the key pillars of Hong Kong's economy. The average annual growth for the sector from 2000 to 2004 was 8.6%. In 2004, the financial services sector contributed well over 12% of Hong Kong's GDP. 

With 133 licensed banks, of which 109 are foreign-owned, Hong Kong is also home to 68 of the world's top 100 banks. Increasing interest and optimism in Hong Kong's banking sector associated with China's accession to the WTO and the Closer Economic Partnership Arrangement's (CEPA's) "first mover" advantages will only further strengthen Hong Kong's strategic position as a springboard into Mainland China. It is also the first economy outside mainland China that is allowed to conduct renminbi banking services. To make the most of Asia, Hong Kong is the place to bank on.

Hong Kong Monetary Authority

Capital Market

Hong Kong stands as a leading player in the global capital market.

It has Asia's second largest stock market in terms of market capitalisation, reaching US$1,055 billion as at the end of 2005. Hong Kong is the largest international capital raising centre for mainland enterprises, with over US$125 billion being raised through Hong Kong since 1993. Hong Kong was Asia's largest fund raising centre in two consecutive years from 2004.

Hong Kong is also the world's largest derivative warrant market.

Hong Kong Monetary Authority

Securities and Futures Commission

Hong Kong Exchanges and Clearing Ltd

Asia's Asset Management Centre

Hong Kong has been recognised as the top fund management centre in Asia with more than 200 fund management firms based in the city, the largest concentration of international fund managers in the region. The total fund management business in Hong Kong amounted to US$464 billion as at end 2004. The growth of Hong Kong's fund management industry is boosted by a large and growing population of high net worth and mass affluent investors.

The successful launch of the Mandatory Provident Fund (MPF) in Hong Kong has also helped propel the medium-to long-term growth of the fund management industry in Hong Kong. MPF contributions are now accumulating at a rate of US$280 million per month.

Securities and Futures Commission

Hong Kong Investment Funds Association

Expanding Insurance Market

Insurance is becoming an increasingly important market within the financial services sector. Hong Kong now has 175 authorised insurers in operation, 86 of which are overseas-incorporated. Growing popularity of investment-linked products and increasing demand for niche insurance products have all enhanced prospects for Hong Kong's insurance industry. The Hong Kong insurance industry continued its robust performance in 2004 with total gross premiums reaching US$16 billion, a remarkable growth rate of 19.5% over 2003.

The benefits of Hong Kong have established the city as the leading financial services centre for Asia and Greater China and its development is creating exciting potential growth for global players.

Office of the Commissioner of Insurance

The Hong Kong Federation of Insurers