Hong Kong's market is the "World's freest"

For the 12th year in succession the Wall Street Journal awarded the city's economy but warns of Beijing proposal.

Hong Kong (AsiaNews/Agencies) – Hong Kong has been named the world's freest economy for the 12th year in succession in an annual report published on Wednesday by the American The Heritage Foundation and the co-sponsor Wall Street Journal Asia. At second place, Singapore.

Describing Hong Kong as the "poster economy for economic freedom around the world" the Wall Street Journal Asia awarded the city a score of 1.28 out of 5, where 0 is equal to total economic freedom. Last year it scored 1.35

The index ranks each economy according to the level of government intervention, public spending and income, trade and monetary policy, property rights and regulations. Danny Gittings, deputy editorial page editor of the Journal, explains that Hong Kong scored well because its economy had grown while its spending had remained steady.

Mr Gittings warned that Beijing proposals to introduce a consumption tax and government plans to draw up anti-monopoly legislation would hurt the city's standing in the index although many support such moves as helping provide a more level playing field.

"The danger is that when you talk about competition policy you are talking about more regulation," he said. "Providing more competition would be a good thing but [whether] you can do that with a competition policy is another matter."

The ranking comes despite criticism that Hong Kong's economy is dominated by a handful of powerful monopolies and cartels which not only control prices of particular goods but also block market access by competitors.

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