The Autonomous Region scores 8.97 out of 10, according to the Fraser Institute. Mainland China places 111th out of 157. As long as there is democracy in Hong Kong, the market will be free, analyst says. Surprisingly, Chengdu economically outperforms Shanghai.

Hong Kong (AsiaNews/Agencies) – Hong Kong has again held on to its ranking as the most economically free market in the world, this according to the Vancouver-based Fraser Institute.

The Canadian think tank has ranked the city at the top since 1970. In its latest report, which is based on 2013 data, it placed Hong Kong first out of 157 countries and territories, with a score of 8.97 out of 10. Singapore comes in second again, with a score of 8.52.

The other nations in the top ten are New Zealand, Switzerland, the United Arab Emirates, Mauritius, Jordan, Ireland, Canada, and the United Kingdom. The United States comes in 16th place. Mainland China placed 111th with a score of 6.44.

Hong Kong authorities welcomed the results. “Our steadfast commitment to free market principles has once again received international acclaim,” a government spokesman said in a press release.

The Autonomous Region he added, “attaches great importance to Hong Kong's economic freedom, and will strive to uphold our fine tradition of the rule of law and an independent judiciary, a small and efficient public sector, and a free and open business and trade environment".

The Fraser institute’s resident fellow Fred McMahon said, "Hon Kong is still number one but because democracy is the best safeguard of freedom, if China, which ranks low in economic freedom, encroaches on Hong Kong, we can expect Hong Kong's ranking to fall."

Another study by the Milken Institute found that the Sichuan provincial capital of Chengdu has the best economy of any city in mainland China. Shanghai and Tianjin came second and third respectively.  

The US-based think tank reached its conclusion after looking at such factors as job growth, foreign investment and high-value-added industries. The Sichuan capital was singled out for its “human capital, central government support, established industries in high-end aerospace and aircraft design, and a more recently developed electronics manufacturing sector”, according to the institute.

The Milken Institute study pointed to two ways cities were developing on the mainland. In the case of Tianjin and Shanghai, the institute saw urbanisation, industrial clustering and infrastructure investment bolstering larger regional economies.

However, the recent slowdown in economic growth “suggests that a new approach centring on technology, private investment, and consumption” would replace the previous strategy.

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