Hong Kong’s SWOTs

Being the most open and international city in the Greater Bay Area, Hong Kong is known for its status as international financial, transportation, trade centres and aviation hub as well as its renowned professional services. Enjoying the dual advantages of “one country, two systems”, Hong Kong plays an important role in the Greater Bay Area Development. On one hand, Hong Kong will facilitate and support the economic development of the region, with a view to enhancing the role and functions of the Greater Bay Area in the country’s two-way opening up; on the other hand, we will facilitate the development of industries in which Hong Kong’s strengths lie in the Greater Bay Area, capitalizing on Hong Kong’s strengths to serve the country’s needs.

Hong Kong does have its own strengths and opportunities, but it also has weaknesses and threats. Some of the Strengths, Opportunities, Weakness and Threats of Hong Kong are listed as below:

Strengths

• Talent pool with expertise and unique links with Mainland China
• Solid legal and regulatory systems, with world-class, efficient market infrastructure
• Attractive to expatriate staff
• Liquid, well-developed stock market, international banking centre
• Low and simple tax system
• No foreign exchange control and no restriction on fund flows

Opportunities

• Develop debt and equity markets as Chinese corporate seek capital in Hong Kong
• Build a safe and efficient multi-currency, multi-dimensional financial infrastructure platform
• Act as gateway for funds to come out of the Mainland
• Adopt higher levels of corporate governance, promote competition and governance

Weaknesses

• Relatively volatile stock exchange for a market of its size
• Widespread proficiency in English may deteriorate
• Ceases to be a SAR in 2047

Threats

• Macro-economic liberalization on the Mainland could marginalize Hong Kong’s position as an intermediary
• Appreciation of RMB could feed into higher import prices
• Local economy vulnerable to global economic changes
• Competitions from Shanghai and mainland niche centres
• Needs to maintain legal certainty and enforcement