Hong Kong is a major international financial centre.  It is also a leading international trading and services hub as well as a high value-added manufacturing control centre.  Government economic policies are stable and are based upon a philosophy of minimum interference.  Free enterprise and free trade are consistently and faithfully adhered to.

Hong Kong is widely recognised as one of the freest economics in the world.  Its attractiveness as a place to do business is reflected by the continuing inflow of foreign direct investment and the increasing number of foreign-owned regional headquarters and regional offices. 

Hong Kong has grown to be one of the most service-oriented economies in the world as a result of the demand for producer services by its globalised production network and the trend to source goods and services globally.  In addition to trading in goods, Hong Kong also serves as an important services centre for Mainland China generally and South China in particular, including the provision of infrastructural facilities such as the container port and the airport, and institutional support such as financial and business services. 

Besides visible and invisible trade, Hong Kong is also the most important source or conduit of external investment in Mainland China.  Hong Kong's direct investments in Mainland China concentrate mainly in light manufacturing industries, hotels and tourist-related facilities, property, infrastructure and the growing information technology and communication businesses.

Concurrently, Mainland China has also invested heavily in Hong Kong.  Its investment ranges from traditional activities such as banking, importing and exporting, wholesaling and retailing, and transportation and warehousing, to other areas such as property development, financial services, manufacturing and infrastructural projects.

Hong Kong always welcomes overseas industrial investment; not as a source of capital but for the inflow of technology, expertise and established markets that overseas investors bring. Apart from ensuring the provision of the infrastructure, either through direct service or by co-operating with public utility companies and autonomous bodies, the Government's principal role is to provide a stable framework in which industry can function efficiently and profitably with minimum interference.

The favourable geographical position of Hong Kong, which provides a bridge in the time gap between North America and Europe, together with strong links with Mainland China and other economies in the South-east Asian region and excellent communications with the rest of the world, have helped Hong Kong develop into an important international financial centre.  The absence of any restrictions on capital flows in and out of the territory is also an important factor.

Hong Kong's financial markets are operated under effective and transparent regulations which meet international standards. Its three-tier system of authorised financial institutions, licensed banks, restricted licence banks and deposit-taking companies, is regulated by the Hong Kong Monetary Authority, while prudential supervision over the securities, financial investment and commodities futures industry is exercised by the Securities and Futures Commission.

Hong Kong is among the world's largest banking centres in terms of the value of external banking transactions, and also one of the largest foreign exchange markets in terms of turnover.  Its stock market is the seventh largest in the world in terms of market capitalisation and its derivatives market is also among Asia's largest, reflecting the increased sophistication of its financial markets.

Hong Kong has a very strong presence of international financial institutions and most of the top 100 banks in the world have operations in the territory.  In addition, many merchant banks or investment banks of world standing operate in Hong Kong.  The financial markets, particularly in foreign exchange and gold, form an integral part of the corresponding global markets.  Moreover, Hong Kong serves as an important centre for the intermediation of international flows of savings and investments, particularly through the syndication of loans and international fund management.