When we talk about places and countries that are going financially well even now, the place of Hong Kong definitely comes into our minds. There is a lot of trade and commerce to the city and the place also gives an opportunity to utilize the financial resources and other natural resources.
Hong Kong has been successful when it comes to the financial side. It has a record of being the largest market in the world and this was achieved when there was a 22% initial public offering also known as IPO.
Hong Kong deals with a lot of transactions with various countries. And when there are these transactions taking place, Balance of Payments is an account that definitely helps the world to infer the credibility of the city’s financial position and also helps the transactions to be recorded in a proper manner. As an entrepreneur and business person, company formation is easy and more importantly, business registration in Hong Kong takes only a few days.
The current account balance in the fourth quarter of 2012 was HK$17,077 million but the first quarter of this year, that is 2013 witnessed a deficit of HK$1,323 million. This is just the current account balance but to study the overall situation we need to see the overall Balance of Payments which in the final quarter of 2012 was HK$94,343 million which is 16.9 percent of the overall GDP. This year’s first quarter reports revealed that the Balance of Payment was HK$16,404 million which is a part of GDP contributing towards it to the extent of 3.2 percent 香港開公司.
Hong Kong is a city with a lot of Foreign Direct Investments. The valuation of the position of these investments in the current year was positive in nature. The assets seemed to be around HK$26,671,140 million and the liabilities HK$20,951,601. From this information we definitely understand that there is a surplus of HK$5,719,539 million which is more than the Net International Investment Position of the fourth quarter of the year 2012 where the surplus amount was HK$5,674,762.
Since it is still the middle of the year 2013, the figures of the first quarter of the current year are not revised. But these figures definitely show an increase in the financial position of the financial capital of the world. There has also been a decrease in the external debt in the banking and investment sector which has combined effects on the financial position. As of today, there is definitely no doubt that Hong Kong is still growing rapidly in terms of the world’s financial capital.