While China still has extensive capital controls and often intervenes in its financial markets and banking system, Hong Kong is one of the most open economies in the world and one of the biggest markets for equity and debt financing. The size of Hong Kong’s economy may only be equivalent to 2.7% of mainland China’s now, down from 18.4% in 1997 when it reverted to Chinese rule, but the territory punches above its weight due to its world-class financial and legal systems. All that is possible due to its unique system of governance.
