ABSTRACT
Since 1997, Hong Kong has become a Special Administrative Region (HKSAR) of China. Facing the challenges of global economic uncertainties, the Hong Kong economy shows resilience and grew by 2.9 percent in 2013. The per capita GDP (PPP) in 2012 was US$50,700, ranking 10th in the world. This is largely attributed to the robust Chinese economy. Ranking top in economic freedom and for the ease of paying taxes in the world, the Hong Kong economy remains competitive. Taken together, the return of Hong Kong to the Chinese sovereignty has confirmed Hong Kong’s position as a commercial hub, a financial center, and an international tourist destination. Financially, the government budget is extremely sound and healthy. On top of the foreign currency reserve assets amounted to US$325.8 billion (September 2014), and accumulated fiscal surpluses in recent years reached HK$745.9 billion (March 2014) (FS, 2014: 7).
