Hong Kong tops WEF's financial stability index

[beijingwalker]

Hong Kong tops WEF's financial stability index
11:33 PM Dec 13, 2011

ZURICH - Hong Kong has muscled its way to the top of the World Economic Forum's Financial Stability Index, overtaking the United States and the United Kingdom for the first time, according to a report published on Tuesday.

The United States slipped to second place in the ranking of the world's leading financial systems and capital markets, although its overall score was unchanged from last year.

The United Kingdom fell to third place due to lower scores on securitisation and IPO activity, the Financial Development Report said.

The report, launched in 2008, analyses financial development including the efficiency and size of banking and other financial services, the business environment, financial stability, and the extent of financial disclosure and market liberalisation in each centre.

Hong Kong, which jumped from fourth place last year, has capitalised on a regulatory crackdown on the finance sector in the United States and Europe and on its proximity to China to lure more financial services to its shores.

"Hong Kong's ascent to the top of our index marks a major milestone, the first time in the report's history that the United Kingdom or the US didn't come out on top," said Kevin Steinberg, chief operating officer of the World Economic Forum (WEF) USA.

"While Western financial centres are understandably focused on short-term challenges, this report should serve as a wake-up call that their long-term leadership may be in jeopardy," he said.

Singapore was ranked fourth, followed by Australia, Canada, the Netherlands and Japan respectively. Nigeria was bottom of the list with Venezuela not far behind.

China rose three places from last year to 19th whereas euro zone countries slipped in the rankings as they struggled to contain their debt crisis, including Germany which dropped one place to 14th.

More than 90 per cent of countries have not returned to pre-crisis levels in terms of ease of access to credit and loans, venture capital availability and financing through local equity markets, according to the latest report.

The Financial Development Report ranks 60 countries, analysing drivers of financial system and capital market development that support economic growth.

The World Economic Forum said the index aimed to serve as a tool for advanced and emerging economies to benchmark themselves and identify areas for reform. REUTERS

Beautiful HongKong

---------- Post added at 10:50 AM ---------- Previous post was at 10:47 AM ----------

Beautiful HongKong

 

[Chinese-Dragon]

Awesome!!!

Congratulations to all my fellow Chinese citizens, both in Hong Kong and in Mainland China!

 

[beijingwalker]

Mainland China only ranks 19th,China is always biased and stereotyped by the west but anyway we can do better in the future.

 

[Chinese-Dragon]

Posting pictures of Hong Kong is not complete without one of our famous "laser shows".

 

[Roybot]

Hong Kong was first in overall Financial Devlopment Index as well, up from 4th position.

---------- Post added at 02:07 PM ---------- Previous post was at 02:06 PM ----------

Mainland China only ranks 19th,China is always biased and stereotyped by the west but anyway we can do better in the future.

Mainland China is Ranked 10th in Financial stability index.

 

[Roybot]

Hong Kong SAR places 1st in the Index this year,thus becoming the first Asian economy to achieve the top standing. Jumping three spots from last year, HongKong finishes in the top 10 across all seven pillars. In terms of factors, policies, and institutions, Hong Kong shows considerable strength in the business environment (3rd) and financial stability (4th) pillars. Specifically, business environment performance is driven by a strong tax regime (2nd) and highly developed infrastructure

China moves up three spots to place 19th overall in the Index. The improvement this year is supported by an increase in scores within the financial stability (10th) and non-banking financial services (3rd) pillars. However, China’s business environment (46th) remains an area of considerable weakness. The decline in the pillar is caused by poor results in taxes (51st), infrastructure (46th), and cost of doing business (41st). Despite these weaknesses, China remains strong in terms of financial intermediation. Non-banking financial services are particularly robust, with the country’s share of world IPOs (1st), its share of total M&A deals (2nd), and its real growth of direct insurance premiums (1st) being the primary drivers. Although China’s financial system is quite secure (10th), the stability of the country’s banking system (52nd) continues to be an area of great concern.

India, at 36th place overall, improves by one rank for the second year in a row. Particular strengths lie in India’s non-banking financial services (5th), with IPO activity (5th), insurance (7th), and securitization (4th) being the primary drivers of the pillar’s high score. India’s strong financial intermediation is further bolstered by robust results in its foreign exchange (15th)and derivatives markets (20th). However, a low level of financial sector liberalization (56th), an inability to enforce contracts (57th), an underdeveloped infrastructure (56th), and a high cost of doing business (55th) all contribute to a weak institutional and business environment (both ranked 54th). Weakness in financial access (47th) is a reflection of India’s lack of retail access to capital (41st).

Pakistan (55th), India’s neighbor to the north, shows similar weaknesses in their factors, policies,and institutions. However, unlike India, Pakistan also shows a lack of financial intermediation. Specifically, IPO activity (51st), M&A activity (57th), and insurance (53rd) weigh down Pakistan’s score in this pillar. Nevertheless, bright spots are evident in currency stability (25th), securitization (27th), and bond market development (30th).

Dismal results for India. Me no Gusta This government is bogging India down. They need to bring in economic reforms.

 

[beijingwalker]

seems you have more detailed report,just know I was wondering how come you guys say that China ranks 10th?

 

[Roybot]

seems you have more detailed report,just know I was wondering how come you guys say that China ranks 10th?

For Financial Stability, China is ranked tenth. Over Economic Development Index its ranked 19th.

Here's the complete report, check page 12 and 13.

http://www3.weforum.org/docs/WEF_FinancialDevelopmentReport_2011.pdf

 

[Zizou]

There are just 2 things on the minds of people in Hong Kong, "Sik faan & Wan Cheehn" .... "Eat and Make Money" ... Its crazy how much freedom Hong Kong people enjoy in all business sectors ... Most probably the most relaxed economy ... Taxes are low compared to other developed places but at the end of the year, it always ends up in surplus .. .often more than expected ... If you can't make money in Hong Kong than you can't make it anywhere ...

 

[Chinese-Dragon]

If you can't make money in Hong Kong than you can't make it anywhere ...

So true.

We have one of the lowest tax rates on the planet, and have been ranked as the "freest economy in the world" by the Wall Street Journal for every single year that the index has been released.

 

[CardSharp]

I wonder what the US financial system was ranked during 2007-2008.

 

[Don Jaguar]

Congratulations.

Where is gambit?

 

[beijingwalker]

Taiwan people should look at this,see how well Hongkong developed after 1997's handover to China.being part of China is not a bad idea at all.

 

[Chinese-Dragon]

Taiwan people should look at this,see how well Hongkong developed after 1997's handover to China.being part of China is not a bad idea at all.

Exactly right.

Anyway, as a Hong Konger, I have always considered Hong Kong to be a part of China. Even when we were stolen by the colonial powers.

 

[Sin Pateh]

Exactly right.

Anyway, as a Hong Konger, I have always considered Hong Kong to be a part of China. Even when we were stolen by the colonial powers.

The more of your loyalty to your mainland, the more freedom you will earn in return!

obviously a brilliant present! so why confront with China, separatists?