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Hong Kong still most competitive city: study

Updated: 2008-12-31 07:43

By Louise Ho(HK Edition)

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An annual year-end study has again found Hong Kong to be the most competitive city in China, but its growth potential has waned.

Among 289 Chinese cities, Hong Kong led the way in overall competitiveness in 2008, according to a study conducted by the China Institute of City Competitiveness, which also includes Taiwan cities.

Beijing overtook Shanghai this year to claim No 2 on the list.

But being such a developed region hurt Hong Kong on the list of growth competitiveness, where it fell from sixth to seventh. Shenzhen topped that category.

"Although Hong Kong has seen some growth for the past few years, the development in other mainland cities is much faster than in Hong Kong," noted Gui Qiangfang, president of the institute.

He said massive projects pushed the growth of mainland cities, such as Beijing with the Olympics and Shanghai with the upcoming Shanghai Expo in 2010.

He said gross domestic product (GDP) is the benchmark when considering a city's overall competitiveness.

Hong Kong (5,576) scored much higher than Beijing (3,827), Shanghai (3,714) and Shenzhen (3,001).

However, Gui noted that it will be hard for Hong Kong to maintain its economic advantages in the long run.

"Economically, Hong Kong can still lead Chinese cities in the next few years, but the big cities can close the gap next year," he said.

There are many unforeseen factors that can affect Hong Kong's score next year, he said.

He forecasted that Shenzhen and Shanghai could see a 9 to 10 percent growth next year, but Hong Kong may only grow by 1 or 2 percent.

Aside from the overall competitiveness, Hong Kong was also picked as the Chinese city best equipped to fight the financial tsunami.

That ability to handle economic adversity was a new addition to the competitiveness study this year.

Hong Kong's neighbors, Guangzhou and Shenzhen, are listed as second and third in ability to stave off the financial downturn.

The institute's vice president, Liu Yansong, said that as the only Chinese city with a foreign exchange, Hong Kong should be hardest hit by the financial tsunami.

But they ranked Hong Kong as being the most capable of dealing with the downturn, given that support has been offered by the central government. The SAR government has also implemented plenty of measures to help guide the region out of the crisis, Liu added.

"For example, the setting up of the Task Force on Economic Challenges by Chief Executive Donald Tsang shows his mindset to turn the crisis into opportunity," Liu said.

(HK Edition 12/31/2008 page1)

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