Prosperity in Hong Kong

Robert Hsu, July 28, 2008

With the opening ceremonies of the Beijing Olympic Games quickly approaching -- it is to start in only eleven days -- all eyes are on the city of Beijing. The city has made a tremendous effort to get ready for the historical event, and the changes that it has made are quite impressive.

But while the world is focusing on Beijing (for good reason!), I think it is interesting to notice the changes in Hong Kong, too. In fact, I just wrapped up a visit to Hong Kong, and I once again got to experience the city's prosperity firsthand.

I like to think of Hong Kong as China's Manhattan. It is booming with tons of wealth and opportunity. But there is one key difference between the cities that has allowed Hong Kong to prosper in recent years -- low taxes.

You see, low taxes in Hong Kong have allowed businessmen and investors to put more money towards building business and profits. And the fact that Hong Kong has adopted the English legal system (it was long under the rule of Great Britain until recently) has allowed for more freedom in commerce and enterprise. Add these two factors to the hard work of ethnic Chinese, and you can see how Hong Kong has become a gateway to profits.

Just look at the facts: In the early 1950s, Hong Kong's average per capita income was only one-fifth that of Great Britain. But by the time the city reverted to Chinese rule in 1997, it had a higher average per capita income than Britain. And in the past five years, the economic development there has performed well, especially because of increased tourism to the city.

To profit from Hong Kong's prosperity, I have a play in my China Strategy portfolio. Subscribers are up about 20% in the investment, and as Hong Kong continues to bounce back from the current world economic slump, I look for more profits to come. For my top recommendations to profit from Hong Kong's prosperity, become a member of China Strategy today!

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