Hong Kong Gets Thumbs Up

by Mary Swire, Tax-News.com, Hong Kong

18 March 2002

Two leading finance experts gave the SAR a vote of confidence last week, delivering a much needed boost to morale in the beleaguered jurisdiction, which is currently staggering under the combined burdens of a soaring budget deficit and a battle against deflation.

Speaking to the South China Morning Post on Friday, Robert Hormats, Vice Chairman of Goldman Sachs (International) said that the jurisdiction was well positioned for growth, and expressed the belief that it can retain its strategic importance.

'I think Hong Kong's financial and economic environment remains quite attractive,' he explained, adding that: 'Among all the regions in the world it is likely to come out of this [global downturn] considerably stronger in the years ahead.'

Explaining the reasoning behind this prediction, Mr Hormats told the SCMP that the expected economic upturn in the US economy would likely lift commodity prices, which would provide a boost for trade-oriented Hong Kong.

Also speaking last week, the Chief Executive of business advisory group The Conference Board, said that with interest in new WTO member China increasing, the SAR is likely to attract investment from companies looking for a solid stepping stone into the mainland.

'You have got some people going to Shanghai, you have got some people going to Singapore, you have got some people going to Hong Kong. But I think the market of people who are trying to learn about and get into China is so large that there is more than enough to go round,' Richard Cavanagh observed. He also singled out Hong Kong's infrastructure and business services for praise, dubbing them 'extraordinary'.

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