Source: Xinhuanet
04-26-2007 10:36
Special Report: HK 10 YearsHong Kong's decision to abolish estate duty has seen significant development in both asset management and the financial services industry in the city, Financial Secretary of Hong Kong Henry Tang said here Wednesday.
Tang told legislators on Wednesday that there has been 25 percent growth in Hong Kong's combined fund-management business, from 3.618 trillion HK dollars (about 463.85 billion U.S. dollars) in 2004 to 4.526 trillion HK dollars (about 580.26 billion U.S. dollars) in 2005.
Beginning Feb. 11, 2006, Hong Kong decided to abolish estate duty to facilitate the further development of Hong Kong as an important asset management center.
On authorized funds and authorized hedge funds, the gross sales of mutual funds in Hong Kong amounted to 24.3 billion U.S. dollars last year, up 72 percent from 14.1 billion U.S. dollars in 2005.
Last year the Securities and Futures Commission authorized more than 200 new unit trusts and mutual funds, with the total assets under management of all authorized funds jumping from 66.7 billion U.S. dollars at the end of 2005 to 91 billion U.S. dollars at the end of 2006.
The business of authorized hedge funds also continues to flourish as the positive influence of the abolition of estate duty, Tang said.
The net asset size of the 14 hedge funds the commission authorized in Hong Kong has grown to 1.66 billion U.S. dollars in 2006, up 60 percent compared with 1.04 billion U.S. dollars at the end of 2005.
On bank deposits, while the average growth rate of bank deposits in Hong Kong was only 3 percent from 2001 to 2005, bank deposits grew 17 percent last year to 4.76 trillion HK dollars (about 611 billion U.S. dollars).
Hong Kong's direct foreign investments in 2006 amounted to 333.2 billion HK dollars (42.7 billion U.S. dollars), up more than 27 percent year on year.
Editor:Li Yang
