Hong Kong is the most favourable location for international firms aiming to enter the Mainland China market. Similarly, it is the perfect gateway for Chinese firms with an ambition to cater to the global market. The free flow of information, efficient regulatory and legal administration and world-class financial infrastructure makes it the ideal location for financial services firm and professional talent with rich financial expertise. Additionally, the favourable tax policies, corruption-free legal system and a business friendly environment has helped Hong Kong in being the most trusted location for asset management, banking & investment, capital formation among other financial services.

According to the annual Financial Development Report published by World Economic Forum in 2012, Hong Kong has secured a better ranking than most developed economies like United States and the United Kingdom. In fact, Hong Kong secured the first rank for a second year in a row. The consistent growth and strong position of Hong Kong was achieved through several achievements in the non-financial services sector such as IPO and insurance activities.

One of the main building blocks of Hong Kong’s industrial stronghold, the financial services sector currently employs over 226,400 professionals, which is about 6.2 per cent of Hong Kong’s overall workforce. Moreover, 70 of the world’s best 100 banks have established a branch office in Hong Kong, which makes the city one of the busiest and important banking hub across the world.

Another emerging chapter in the success story of Hong Kong’s financial services industry is the burgeoning renminbu (RMB) business. In a few years, Hong Kong has established itself as the most competitive platform for all organizations running an offshore RMB venture. The trade settlement for RMB that was handled by banks operating out of Hong Kong was RMB 2,633 billion Yuan, which is about 90 per cent of the total amount of the external trade settled during the same period by banks in Mainland China. This statistics is testimony to the fact that Hong Kong has emerged as a major hub for RMB trade settlement. Currently, Hong Kong serves local as well as foreign banking entities with an offshore RMB business in Hong Kong.

Hong Kong provides a complete range of RMB banking activities. This includes settlement of trade and financing, and the city currently has the largest amount of offshore renminbu liquidity – thus making Hong Kong the international hub for RMB dim-sum bonds with an issuance amounting to a total of RMB 237 billion in 2012.