 |
 | |||||||||
| |||||||||
|
| |||||||||
| |||||||||
| Sound fundamentals stoke widespread confidence ( 01/08/2005 ) | |||||||||
Global rating agency Standard & Poor's has recently upgraded Hong Kong's foreign currency credit ratings by one notch, casting a new vote of confidence in the city's sound economic fundamentals and growth prospects. Financial Secretary Henry Tang said that the upgrade to AA- from A+ reflected "Hong Kong's fiscal prospects driven by steady economic growth, continued recovery in asset markets, return to inflation and tighter spending control". S&P noted that Hong Kong's risk of economic integration was reduced as a result of the improving economic and financial structures in China. The city's buoyant outlook is also reflected in a July poll by Mastercard International which showed that Hong Kong consumers are among the most confident in the Asia-Pacific region. Hong Kong scored a near record high on Mastercard's consumer confidence index - the second highest of 13 economies in the region after Vietnam. Mastercard's Asia-Pacific economic adviser Yuwa Hedrick-Wong said strong income and employment growth were key factors behind the confidence. "Hong Kong's economy is benefiting from both the outbound travel and the continued rise in household consumption of the mainland. It is well positioned to become China's service hub once the mainland is opened up for trade." Overseas investment on the rise Hong Kong remains highly attractive to overseas and mainland investors, judging from the 13.4 per cent increase in the number of foreign companies setting up or expanding their operations in the city in the first six months of 2005. Invest Hong Kong, a government agency tasked with attracting foreign investment to the city, said it assisted 144 companies to set up or expand in Hong Kong during that period. "Our department sees a continuing trend in investors using Hong Kong's many advantages as a business hub and two-way platform to and from the mainland," said InvestHK's director-general of investment promotion, Mike Rowse. Mainland enterprises have increasingly recognised Hong Kong's strategic role as the springboard to expand regionally and globally. Small wonder then that Hong Kong stocks powered to their best finish in more than four years on July 14, fuelled by strong local fundamentals and renewed optimism among foreign investors. The Hang Seng Index rose to almost 15,000 points, its highest finish since February 2001. Related links | |||||||||
| |||||||||
|
|
