Hong Kong loses to Singapore as Asia-Pac's hottest investment hub

But economic strengths remain intact.

According to Vriens and Partners' Asia Pacific Investment Climate Index, Hong Kong remains one of the most attractive destinations for foreign investment in the Asia Pacific region. Hong Kong ranked 2nd in Vriens and Partners' investment rankings, a notch lower than Singapore which claimed the top spot for secod year in a row.

Hong Kong’s non-interventionist economic policies, freedom of capital movement, and efficient and consistent regulatory and legal environment have facilitated Hong Kong’s rise as an international finance centre.

Against the backdrop of mainland China’s slowing growth, Hong Kong’s macroeconomic fundamentals remain strong. Resilient domestic consumption help bolster Hong Kong’s economy, and the Hong Kong dollar’s relative strength has preserved export competiveness.

The government has retained a budget surplus due to rising land sales and taxes on corporate profits. Although inflation has moderated, inflationary pressure is likely to return as property prices continue to rise on low interest rates.

Hong Kong maintained strong scores for rule of law and corruption, relative to the rest of the region. With last year’s implementation of the Arbitration Ordinance, Hong Kong adopted a unitary arbitration regime that does not distinguish between domestic and international arbitration, positioning Hong Kong as a regional centre for dispute resolution.