HONG KONG'S STATUS as China's financial gateway was cemented by the end of 2005, when H-share companies raised a total of HK$159 billion from domestic and foreign investors.
These capital-raising exercises by the Hong Kong-listed units of companies incorporated on the mainland helped boost the total amount of funds raised locally in 2005 to HK$302 billion, making Hong Kong the top market in Asia and fifth-largest in the world for such activities.
The question is whether Hong Kong can maintain its position as a pre-eminent international financial centre, or whether the status and the associated job opportunities will pass to Shanghai.
'There are a million different theories, but I can't see why both wouldn't flourish,' said Anthony Thompson, managing director, Hong Kong and southern China, at recruitment company Michael Page International. 'Many global companies have located their regional headquarters in Shanghai, while others prefer Hong Kong as it is closer to Southeast Asia.'
Late last year, Hong Kong's Securities and Futures Commission (SFC) drew on a study conducted for the Corporation of London, which identified 14 key factors important for financial centres. The objective was to measure how Hong Kong stacked up against its rivals.
The SFC put the factors into six main categories: availability of skilled personnel and access to professional services; regulatory environment and government responsiveness; access to international financial markets and customers; availability of business infrastructure plus a fair and just business environment; corporate and personal tax regime; and operational costs and quality of life.