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Hong Kong

(Special Administrative Region)

An open free-market economy with extremely low taxes, Hong Kong enjoys an almost unrivalled reputation as one of the world’s favourite investment destinations.

Situated around a deep natural harbour on China’s south coast, Hong Kong is one of two special administrative regions (SARs) of the People’s Republic of China (PRC), the other being Macau.

With a land mass of just 1,104 km2 (426 sq mi) and a population of seven million people, Hong Kong is one of the most densely populated areas in the world.

As one of the world’s leading international financial centres, Hong Kong has a major capitalist service economy characterised by free trade, low taxation and one of the highest per capita incomes in the world. Its currency, the Hong Kong dollar, is the eighth most traded currency in the world.

The territory is well established as the most important launch pad for the China / Asia operations of many international businesses, who are attracted by its open investment environment (including an almost total absence of corporate taxes) as much as by its proximity to China. While it has lost some ground to Shanghai and Singapore in recent years, Hong Kong continues to be the most popular destination for the regional offices of international companies and organisations in Asia.

In addition to this, Hong Kong is a very important centre for the retail trade, that is more dependent on visitors than its own population, e.g. in 2011, the territory attracted over 41 Million tourists, who spent a collective HK$253 billion during their stay.

In international comparisons, Hong Kong is rated highly from social as well as economic a perspectives, enjoying high ratings in a wide range of studies, such as quality of life (UN Human Development Index) and low corruption (Corruption Perception Index). The high density of the population has constrained car ownership, and resulted in the development of a highly developed transportation network, with public transport usage rate exceeding 90 percent, the highest in the world.

Population: c. 7,122,500  
Capital City: Hong Kong Government
Government: Administrative Region of China, Partial Democracy
State Languages: Cantonese, English, Mandarin
GDP per capita (PPP): $45,900
Growth Rate: 5%-8% per annum

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