Hong Kong's Economic Competitiveness

　　Maximum Support, Minimum Intervention

　　The Government firmly believes in "maximum support and minimum intervention." Its primary role is to provide the most business-friendly conditions possible, including the fundamental "software" of personal liberty, the rule of law, a clean and efficient administration, and a level playing field for all businesses, as well as the land and infrastructural 'hardware' such as schools and roads that Hong Kong needs for growth.

　　In addition, the government has a special responsibility for removing market restrictions and promoting fair competition. It has made considerable strides in liberalizing the securities, futures and banking industries, and in opening up the telecommunications, information technology (IT) and broadcasting markets.

　　The government protects and promotes Hong Kong's commercial interests in the international arena through representation in such international forums as the World Trade Organisation (WTO) and the Asia-Pacific Economic Cooperation, and by negotiating and entering into bilateral arrangements such as those for air services.

　　Prudent Fiscal Practice

　　The government adheres to prudent fiscal practice, while maintaining a simple tax structure with low tax rates that sustain workers' incentive to work and entrepreneurs' incentive to invest. The corporate profits tax rate and salaries tax rate, at 17.5 percent and 16 percent respectively, are low by international standards.

　　Ⅲ. International Financial Centre

　　Hong Kong is an international financial center with an integrated network of financial institutions and markets. The government's policy is to maintain and develop a sound legal, regulatory, infrastructural and administrative framework with the aims of providing a level playing field for all market participants, maintaining the stability of the financial and monetary systems and enabling Hong Kong to compete effectively with other major financial centers.

　　A favorable geographical position, which bridges the time gap between North America and Europe, strong links with the Mainland and other economies in Southeast Asia and excellent communications with the rest of the world have helped Hong Kong to develop into an important international financial centre. The absence of any restrictions on capital flows into and out of Hong Kong is another important factor.