Hong Kong's Financial Secretary defended the financial hub’s ranking drop in a recently published index specifically highlighting advantages over rival Singapore.

Over the weekend, Hong Kong Financial Secretary Paul Chan defended Hong Kong’s drop in a recent index ranking international financial centers globally. According to a blog post on Sunday, he specifically underlined worries about Singapore surpassing Hong Kong as the world’s third leading financial hub.

«Many friends are concerned about how the financial industry between Hong Kong and Singapore compares, but in the discussion they rely more on vague impressions,» Chan said. «The following objective data explains the current situation and development of the financial market in Hong Kong, and I believe it will help to better understand the current situation.»

X Times More Than Singapore

Within the post, Chan named a number of advantages across Hong Kong’s economy and capital markets, repeatedly underlining advantages in size over Singapore. 

This includes the size of Hong Kong's financial sector economic contributions, stock market value, US dollar trading market, bond market, green financing market as well as asset and wealth management market.

One Country, Two Systems

While Chan noted that there were more risks on the horizon including a potential global recession, intensifying market competition and de-globalization, there was still reason to be optimistic about opportunities.  

In addition to state support and Asia’s long-term outlook, Chan said Hong Kong also benefited from the «insitutional advantages» of the «one country, two systems» framework. 

«[Hong Kong] has the role of a super-connector under the 'One Country, Two Systems' that is difficult to replicate and replace, which is also the fundamental starting point for us to plan for the long-term development of Hong Kong,» Chan said. «As we gradually return to normal, Hong Kong's […] characteristics will continue to attract top financial and other talents and companies from all over the world to settle here and embrace opportunities.»