Page 26 - HK-Connect-2020-21-EN-Nov2020-edition (4)

Leading capital markets Premier international banking centre
v 2 nd largest international
banking hub in Asia in terms of
external positions (end 2020).
v 78 of the world's 100 top banks
operate in Hong Kong (end-June 2021).
v Robust and well-capitalised banking sector
- Free flow of capital underpinned
by a rule-based, transparent regulatory
environment. #DYNAMIC
- World-class banking regulation
and supervision in line with
international standards.
- Well-capitalised banking system
with a total capital ratio of about 20%
(end-March 2021) and liquidity
v World No.2 for Initial Public Offering (IPO) funds raised in 2020, coverage ratio of about 150%
ranked 1 st seven times in the past 12 years. (end-March 2021) – well above
international standards.
v World No.1 environment for IPO and M&A (mergers and acquisitions)
activity (Global Transactions Forecast 2020 compiled by Baker McKenzie v State-of-the-art financial infrastructure
and Oxford Economics). - Real-time gross settlement
th
v World's 5 largest and Asia's 2 nd largest stock market systems enabling safe and efficient
by market capitalisation (US$6,871 billion end-May 2021). settlement of interbank transfers in
Hong Kong dollar, US dollar, Euro and
v Asia's largest hedge fund hub and Asia's second largest private Renminbi.
equity fund centre (mid 2021). - Faster Payment System
v World's leading investment hub: the amount of foreign direct enabling round-the-clock real-time
investment (FDI) inflows and outflows ranked 3rd and 4th globally, respectively, fund transfer and payment services
in 2020 (UNCTAD: World Investment Report 2021). across different banks and stored
v World's second-largest hub for biotech companies – value facilities.
55 companies listed under the new listing regime in Hong Kong since its
introduction in 2018, 36 of which are biotech companies. These 55 companies
account for about 40% of total IPO funds raised in the period,
with a total market capitalisation of over US$1.5 trillion.

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