Hong Kong ranks first place in the Index of Economic Freedom

Hong Kong remains the world's most free economy for the 17th consecutive year, according to Heritage Foundation.

Singapore and Australia remain second and third, matching last year’s index. Of the other Greater-China economies, the Mainland ranked 135th, up five places, Macau moved up one notch to 19th and Taiwan ranked 25th, up two places, Hong Kong Information Services Department said.

Welcoming the foundation’s high regard for Hong Kong, the Government said it is determined to uphold economic freedom in the city, which is the cornerstone of sustained economic stability, growth and prosperity.

It said it sees its role as that of a market facilitator to provide a business-friendly environment where all firms can compete on a level-playing field. It has an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market. It said its strategy is to remove impediments to industries tapping into new markets, and will adhere to the 'Big market, small government' principle.

Hong Kong scored a rating of 89.7 in the 2011 Index of Economic Freedom, well above the world average of 59.7. Of the 10 economic freedom factors assessed, Hong Kong ranked first in financial and trade freedom, second in investment freedom and property rights, and third in business and monetary freedom.

The foundation recognised Hong Kong’s sound fiscal management, which helped the city weather the global economic downturn. It further complimented Hong Kong for its effective legal and regulatory frameworks and openness to global commerce, qualities that strongly support entrepreneurial dynamism, while the city’s overall macroeconomic stability minimised uncertainty.

It said Hong Kong has maintained its status as Asia’s second-largest destination for foreign direct investment, trailing only Mainland China. It also noted Hong Kong’s economic interaction with the Mainland has become more intense and sophisticated, chiefly through strengthened financial linkages.