With the Mainland integrating into global trade, investment and finance, Hong Kong is positioning itself well to make the best of the opportunities that will arise from it.

This was the message from Principal Economist Elley Mao at the 2005 Economic Outlook-Policy Forum in Kingston, Canada, today.

Addressing 50 forum participants, Ms Mao said Hong Kong is an important fundraising centre for the Mainland, with more than 300 of its enterprises listed in the Hong Kong Stock Exchange together accounting for 30% of the total market capitalisation value.

Listing in Hong Kong put them under the supervision of the local authorities, and indirectly helps improve governance and elevate management standards.

Noting the stock exchange ranked first in Asia and fourth in the world in terms of capital raised, and about 36% of Hong Kong's stock market turnover is generated by international investors, Ms Mao said it reflects a significant presence of foreign savings in the Hong Kong stock market.

Unrivalled market

As a financial market, she said Hong Kong offered an unrivalled competitive edge in liquidity, talent, knowledge, international experience, corporate governance, transparency and property rights in Asia.

More than 3,600 multinational companies have chosen Hong Kong for their regional headquarters and offices.

Hong Kong's free flow of funds and information, freely convertible currency, and cross-cultural lifestyle are the major attractions to foreign companies and expatriates, she said.

The two-day forum, entitled Coming Down the Track - International Financial Influences on Canada's Outlook, examined the key issues relevant to economists involved in forward-looking analysis.