Global experts give HK top rating (hktdc.com)


	Hong Kong is a magnet for overseas investments as the city’s credit rating reaches a record high

Two international ratings agencies have upgraded Hong Kong’s long-term credit rating, reflecting the city’s sound economic fundamentals and improved fiscal position.

Standard & Poor’s Rating Services raised the city’s long-term credit rating to AA from AA-, the highest rating it has ever assigned the city. This upgrade came hot on the heels of another credit lift from Fitch Ratings which upgraded its long-term foreign currency outlook on the city to “positive” from “stable”.

“The upgrades confirm that Hong Kong’s improved fiscal position and sound fundamentals deserve a much higher rating,” said Financial Secretary Henry Tang.

“It is also recognition of the continued strength of China’s economic performance and the overall strengthening of its creditworthiness. Hong Kong will continue to capitalise on the opportunities arising from China’s rapid growth.”

Best place for business

Hong Kong continues to be the best place to do business and overseas investments continue to pour into the city, according to the Director-General of Investment Promotion at Invest Hong Kong, Mike Rowse. As at end June, Invest Hong Kong, a Government agency tasked with attracting inward investors to the city, had assisted 156 companies to invest or expand in Hong Kong, an 8.3 per cent increase from the same period last year.

“Invest Hong Kong is experiencing a substantial year-on-year increase in investment projects so far this year and we are working with many more overseas, mainland and Taiwan companies to establish and build their operations in Hong Kong,” added Mr Rowse.

Among some of the companies which Invest Hong Kong have assisted are global reinsurer Swiss Re which has recently opened the Swiss Insurance Training Centre at Cyberport; French wireless technology provider Wavecom which has selected Hong Kong for its Asia Pacific R&D centre and US-based technology company Kopin Corporation, which set up its Hong Kong subsidiary at the Hong Kong Science Park.

More upbeat news is expected from Hong Kong’s stock market new listings which set a fresh record for the first six months of the year, surging 72 per cent year-on-year to HK$112 billion (US$14b). According to PricewaterhouseCoopers (PwC), the boom in the capital markets was unprecedented with the half yearly figure the highest ever. PWC said it expected a robust full-year figure and was revising its forecast up by 25 per cent on the back of giant IPOs from Chinese mainland companies.