Sustained economic growth in Asia has laid the foundations for flourishing capital market activity - captured in heavy fund flows into the region, mergers and acquisitions (M&A), and initial public offerings as expanding privately-owned companies tap into the savings of eager investors seeking solid returns.
All of this activity, in turn, has helped fuel a sustained demand for banking and finance personnel in Hong Kong - where top-dollar salaries are commanded by those with skills that are increasingly in short supply.
The Hong Kong Venture Capital and Private Equity Association noted, in a commentary on private equity in search of investments, that in the midst of Asia's buoyant economic picture, Hong Kong was enhancing its status as the preferred base for private equity operating across Asia, outside Japan.
In 2002, the association pointed out, just US$1.1billion was committed to new Asian (ex-Japan) private equity funds. But by 2005 the amount committed was US$14.7billion - a compound annual growth rate of 137 per cent.
The outlook now is for more of the same, it added, with the two main markets in Asia (ex-Japan) - China and India - still growing strongly. The Hong Kong stock market is a clear favourite for Chinese companies seeking to go public, while Hong Kong's finance industry also had a strong connection with India in terms of a common colonial history and legal system.
'Hong Kong has a competitive advantage in Asia for servicing private equity firms with its excellent infrastructure and skilled finance manpower. This, combined with the strong government support, clarity in terms of legal and fiscal operating environment, ensures that Hong Kong will continue to play a leading role in Asian private equity,' it said.