Hong Kong is uniquely positioned as China's financial gateway.  (part 2 of my series on this)

It is the door for fund raising by China enterprises and also a conduit for China funds investing out of China. Its attractive to fo foreign investors, due to the double tax agreement between China and Hong Kong.

Hong Kong remains the foreigner investors’ jurisdiction of choice as a gateway to investing into China, Asia and the world.  The crucial difference being that Hong Kong, under the "one country, two systems" retains its monetary, fiscal, and legal autonomy. Therefore foreign investors there are not subject to government policy, currency or capital restrictions.   Stated in another way, Hong Kong's uniqueness is that it has separate financial and judicial systems that allow the government to maintain independent monetary and fiscal policy along with separate rule of law from that of mainland China. Currency controls are out of question and so another key attraction.

These factors clearly safeguards Hong Kong's role as the international financial center in Asia.  As well the key -and likely to stay dominant as role as a foreign gateway to capital inflows/outflows to mainland China.

Recently Shanghai has tried to emerge as a rival financial center and even has surpassed Hong Kong is some areas.  However its limitations are also Hong Kong's advantages...like the lack of technical and human resources and infrastructure. Shanghai simply does not have the history, depth, know-how and talent that Hong Kong commands.

Hong Kong still ranks as "the worlds' freest economy" by the American Heritage Foundation fo the 13th consecutive year.  Its boosts 133 fully licensed banks and 153 financial institutions, it is the third largest international banking center in the world in terms of external transactions.  I remain a fan and it would be my location of choice as a progressive financial center -for years to come. And this regardless if you invest in China, Hong Kong or Taiwan or other regional shares, as there are all kinds of ways to invest globally right out of this prominent financial center.

Another key attration is overall lower financial transaction costs; this as compared to stagnant & heavy commission and fee loaded overrated alternatives, like Switzerland and Luxembourg.

Best Regards,

Paul A. Renaud.

www.thaistocks.com

 PS. Members which have an interest in this and are larger investors can contact me directly for more help/guidance/ideas and introductions, yes for a small fee as this goes beyond Thai stocks and the service here provided.   paularen@gmail.com