A quick analysis of Hong Kong’s rankings in the 11 pillars indicates that the economy’s strengths lie in its trade freedom, taxes, investor protection and monetary freedom. It also scored high on technology and lack of corruption.

While Hong Kong climbed up the ranks from its previously held ninth position to the second spot, the US was displaced from its secure second rank to the ninth spot. In contrast to Hong Kong, the US scored low on trade freedom, tax burden, market performance, and monetary freedom.

It is evident that it no longer makes sense for businesses to expand in the West, given that the western economies are imposing higher taxes, tightening their credit standards and enforcing stricter regulations for doing business. On the other hand, Asia has proved to be more resilient to the crisis and is roaring ahead on the path to economic recovery. Asia’s stronger than expected economic recovery fueled by a resurgence in its exports and a large domestic consumer market has ramped up its GDP. For instance, Hong Kong’s GDP alone grew by 7.2% in the first half of 2010 over a year earlier. Furthermore, business confidence has been rising since the beginning of this year. As a result, an increasing number of foreign businesses, entrepreneurs and investors are now turning to Asia, more specifically Hong Kong to invest, establish, and expand their business.

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The Hong Kong Special Administrative Region (HKSAR) of the People’s Republic of China (PRC) was established on July 1, 1997. Under the principle of “One Country, Two Systems”, Hong Kong’s previous capitalist system and way of life shall remain unchanged for 50 years and the HKSAR will be run by Hong Kong people. The HKSAR enjoys a high degree of autonomy except for the foreign and defence affairs.

The Chief Executive (CE) is the head of the HKSAR. According to the Basic Law, the CE shall be selected by election or through consultations held in Hong Kong, and be appointed by the Central People’s Government. At present, the Election Committee which is responsible for selecting the CE is composed of 800 members. Most members of the Election Committee are returned by election.

The success of Hong Kong as a leading trade, finance and business centre stems from a policy of free enterprise and trade, industrious workforce, well-developed infrastructure and excellent telecommunications. Over the past 20 years, the Hong Kong’s GDP has grown by an average annual rate of 3.8 per cent per annum in real terms. In 2009, GDP at current
market prices amounted to $1,633.5 billion, while per capita GDP has reached $233,239.

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It is important to learn the Hong Kong business culture before doing any business in the country because it will definitely affect your relations with them. Know that Chinese culture is the dominant business and social influence in the environment. The pace of life in the country is hectic and its residents are highly entrepreneurial with strong commercial instincts. Chinese are also hardworking and very competitive. They are also very conscious of their face or image that is why they highly value their education which according to them will ensure one’s social and economic mobility. Families are hierarchical and members are committed to upholding the family’s honor through loyalty, respect and obligations. Introductions and connections are not essential in Hong Kong although they help in establishing credibility for business. Hiring a local representative to initially develop the business is advisable.

It is good to learn how to do the proper Chinese way of greeting so as to show respect for the culture and establish a good impression on them. Bowing is their way of greeting and when a handshake is made be gentle because they are not used to close and intimate interactions with foreigners or strangers for that matter. Because they recognize seniority, be conscious of greeting the most senior member first.

Hong Kong Business Culture may also be described as results or role-oriented rather than that of the Western values of personal and social growth. Avoid confrontation and aggression. Remember to use language diplomatically. Refrain from directly refusing anyone by saying “I will try” or “I will see.” Be modest in all you behavior and also keep you calm.

Gift giving is also a part of doing business in Hong Kong. It helps establish or maintain relationships. Avoid giving clocks, books, green hats and anything covered or wrapped in blue. Gift money in a red envelope is known as hong boa. Accept gifts with both hands and remember that gifts are to be reciprocated. A meal could also be a form of gift for the Chinese.

There are three categories of banks in H. Kong namely the License Banks, Deposit Taking Companies and Restricted License Banks. However, what you have to know about the Hong Kong banking industry is that the license banks are the only ones that are allowed to operate current or saving accounts. Retail banks are task at providing selections of different accounts tiers and services. The savings accounts can be in H. Kong dollars, US dollars or renminbi. Most of the banks in H. Kong allow their customers to link debit card, credit card, cheque, and savings to a master account. What the customers do in most cases is to exchange the minimum deposit to the savings accounts in order to avoid bank serves charges.

When you want to open an account in Hong Kong, there are some retail banks that offer their customers opening forms which you can get easily by downloading from their websites. Different banks have different requirements and criteria when opening a bank account. However, to open a saving or current account in H. Kong banking sector, you require an identification card or passport, application form and you have to provide a proof of H. Kong address. One thing that you have to know is that it is not necessary that you are a resident of H. Kong to open a bank account.

All makes of cars are available, with some models possibly differing from your home country. The most common vehicles on Hong Kong roads would be BMW, Mercedes and Toyota. Most of these vehicles can be found, as used cars, for reasonable prices, although not many dealers offer any kind of warranty.

One thing many expats find confronting when dealing with local used car salesmen, is that many of them who are not used to dealing with us will require you to negotiate and decide on a price for the car before you test drive it. This is standard practice for many used car dealers here as to them it shows that you are serious about buying the car. Of course it should be understood that you are free to change your mind or renegotiate should the used car’s test drive not be up to expectation.

If you’re thinking of buying a used car in Hong Kong you must have somewhere to park it. May sound obvious but many apartments will not have a parking space included, or even available. There is a healthy market for car parking spaces as many people who are not using theirs often lease or sell it.