Hong Kong has ranked fourth in the latest Global Financial Centres Index (GFCI) Report, up by one place from the last index, the Government said today.

The GFCI Report was published by the Z/Yen from the UK and the China Development Institute from Shenzhen.

The Government said the overall ratings of financial centres ranked second to fourth in the report were very close, with a marginal difference of only one point among them, adding that Hong Kong ranked in the top five in five areas of competitiveness.

The report pointed out that the overall ratings of financial centres had yet to recover to the levels in 2019 and this reflected the continuing uncertainty brought about by international trade, the impact of the COVID-19 pandemic and the geopolitical environment.

The Government noted that the global financial market became more volatile in the past year or so due to the evolving situation of the COVID-19 pandemic and other uncertainties in the global environment.

Nevertheless, Hong Kong's financial system had been operating smoothly. The Linked Exchange Rate System and various facets of the markets had also been functioning in an orderly manner.

Meanwhile, Hong Kong has the institutional strengths of an international financial centre. Its markets are highly open and internationalised, with robust infrastructure support, internationally aligned regulatory regimes, rule of law, a large pool of financial talents and a full range of financial products as well as free flow of information and capital.

These competitive edges will continue to consolidate Hong Kong's status as a leading international financial centre, the Government said.

It added that the 14th Five-Year Plan approved by the National People's Congress recognised Hong Kong's functions in the country's overall development.

Those related to developments of Hong Kong's financial services sector include supporting the city to enhance its status as an international financial centre, consolidating its function as a global offshore RMB business hub as well as an international asset and risk management centre, and deepening and widening of mutual access between the financial markets of Hong Kong and the Mainland.

The Government said it will continue to enhance Hong Kong's role as the gateway between the Mainland and international markets, and leverage the vast opportunities presented by the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt & Road Initiative while capitalising on the unique advantages under the "one country, two systems" principle.