Will latest U.S. moves to punish China over disputes on trade, IP, coronavirus origins and recent imposition of national security laws on Hong Kong affect its status as a major regional financial center? Eliminating policy exemptions and treating Hong Kong as part of China is bound to affect existing rules on travel, extradition treaties, investment and export controls as well as trade and financial market regulation.
We studied major financial centers around the world and uncovered some generic critical success factors. People – the availability of good personnel and the flexibility of labor markets: Business Environment – regulation, tax rates, levels of corruption and ease of doing business; Market Access – levels of trading, as well as clustering effects from having many financial services firms together in one center; Infrastructure – the cost and availability of property and transport links; General Competitiveness – to be good at most things.
It is against such and other criteria that Hong Kong’s future competitiveness may be examined.