15/12/2011

Hong Kong has claimed the top spot in a major ranking of the world's best countries in which to do business, beating the US, the UK and fellow South-East Asian jurisdiction, Singapore.

The Chinese territory leapfrogged some of the world's most advanced financial systems to top the World Economic Forum's (WEF) Financial Development Index, rising from its fourth place position from last year.

Hong Kong is the first Asian financial centre to top the rankings and is thought to have achieved its position through strong initial public offering (IPO) and insurance activity.

The chief operating officer of WEF, Kevin Steinberg said Hong Kong's rise to the top of the listing was a "major milestone" and an important matter of note for people carrying out international business.

"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.

The index assessed 60 major world finance centres on factors including the liberalisation of their financial systems, business costs, listing activity, financial stability and bond market development.

The development of Hong Kong's non-banking activities - such as IPO activity - boosted its position in the rankings. Its average IPO proceeds beat those of all other economies in the period between 2008 and 2010.