Hong Kong Government and Economy
Government in Hong Kong has created a system in which there is a distinct legislature and
representative government. The Hong Kong economy is one of the primary trading and
financial centers in the world.
Government – The People’s Republic of China is best described by their motto: “One
Country, Two Systems.” While the Central Government of the People’s Republic of China
considers itself communist, though it has been more economically lax since the 1980s. Hong
Kong, on the other hand is a Special Administrative Region of China which manages its own
economic, legal, and cultural affairs. This autonomy was instituted with the Basic Law
signed in 1990 and the formal establishment of the SAR of Hong Kong in 1997.
The Basic Law has created a system in which there is a distinct legislature and
representative government, the head of which is the Chief Executive. This person may
appoint judges, grant pardons, and alter or decide various government policies. One of his
most important functions, however, is enforcing and implementing the Basic Law.
One benefit to doing business in such a region is the tight banking secrecy. The Hong Kong
government does not maintain good relations with some countries in the world such as the
United States of America, the United Kingdom, Germany, France, Italy, Australia, and other
nations. These poor relations combined with the statutory bank secrecy laws, guarantee
that your information is safe within the bank walls. There is also strict attorney-client
privilege laws and so you can rest easy knowing that your attorney will be looking out for
you and his records cannot be easily subpoenaed in a court.
The Hong Kong government is even stable enough to insure all of their bank deposits. How
many other countries can say that? Since one of the two official languages in Hong Kong is
English, bank and most government employees will be able to communicate with you.
Economy - Hong Kong is one of the primary trading and financial centers in the world
today with a GDP of almost $294 billion in the SAR alone. It has its own currency, the Hong
Kong Dollar, separate from mainland China which uses the Renminbi, or the Chinese Yuan,
though in most of the local banks you can bank in the Renminbi. This is a large advantage
over other popular banking jurisdictions such as Panama because it gives you access to one
of the best investment opportunities today. Forget the Iraqi Dinar, the Chinese Yuan is
already used all around mainland China with hundreds of thousands of merchants and is
quickly spreading all over the Orient. Plus, you will not have to deal with any correspondent
banks in the USA or the European Union if you do not use their respective currencies.
The work force as a whole is highly educated, with education being very competitive and on
a world-class level. There is no tax on offshore-derived income, capital gains tax, or
inheritance tax. Further, the Hong Kong Stock Exchange is one of the best markets
available; it has the second largest amount of offerings after London.
And so, we think that Hong Kong is an excellent region, not only for banking and corporate
formations, but for general business purposes. In fact, many people go to Hong Kong on
business trips and end up moving there. It truly is the Pearl of the Orient.