Hong Kong is characterized by its high degree of internationalisation, business-friendly environment, rule of law, free trade and free flow of information, open and fair competition, well-established and comprehensive financial networks. Added to these are substantial foreign exchange reserves, a fully convertible and stable currency, and a simple tax system with low tax rates.

Hong Kong has for the 11th consecutive year retained its rating as the freest economy in the world in the 2005 Index of Economic Freedom released by The Heritage Foundation. Over the past two decades, the Hong Kong economy has more than doubled in size, with GDP growing at an average annual rate of 4.8 per cent in real terms.

Hong Kong is an international financial centre with an integrated network of financial institutions and markets.A favourable geographical position, which bridges the time gap between North America and Europe, strong links with the Mainland and other economies in Southeast Asia and excellent communications with the rest of the world have helped Hong Kong to develop into an important international financial centre. The absence of any restrictions on capital flows into and out of Hong Kong is another important factor.