1. Free market economic -Laissez- faire policy It promotes a free trade and market. Except some industries, such as the provision of public transport, everyone c
…an start a business in Hong Kong, as well as exchange goods and services freely. -"Big market, small government" Hong Kong government believes the principle of "Market leads, and government facilitates". It acts as a proactive market enabler, and play active role in enabling market allocate resources efficiently and facilitating functioning of market.It minimises its intervention in market. -Role of Hong kong government The Hong Kong government maintains laws and order, a fair and open competition, fiscal prudence and a low and simple tax system. It provides infrastructures, such as airport and transportation, as well as job and training opportunity to increase Hong Kong people's productivity and competitiveness. 2. Externally- oriented and open market - No trade barriers and free flow of capital Hong Kong doesn't impose any trade barriers, such as tariffs and quotas for imported goods. There's no foreign exchange control. It also allows inflow and outflow of capital freely. It encourages talents from Mainland and overseas to study and work in Hong Kong too. - Free flow of information Media in Hong Kong enjoys a high degree of freedom.Firms can obtain changes of business more quickly and able to change their business decisions timely.Free flow of information makes Hong Kong become and remain a global centre for trade, business, financial and communication. 3. Productive manpower Hong Kong has hard- working and skilled labour which can adapt to changes. Labour relations are generally good and there is rare labour disputes.Businessmen are responsive to market changes and dare to take risks to introduce new products and explore new market. 4. Upholding the rule of law Since Hong Kong is holdover in 1997, it still keeps it law and judicial independence. Under the system of One country, two system, Hong Kong's law is not followed as Mainland's but based on common law. The basic law can promote Hong Kong prosperity and stability.Business contracts are protected and enforced by legal system. This enhance confidence to businessmen and investors in Hong Kong. 5. Protecting private property rights Private property right refers to the exclusive right of use, earn income from, and transfer the private property. It provides incentives for owners of private properties to make best use of their property and make the highest income. In Hong Kong, people can sell and buy private property freely. The private property right is protected and respected by law and this facilitates a business environment and promotes economic development in Hong Kong. Hong Kong's highly favorable geographical position and entrepot trading opportunities are wealth-generating assets. It has a superb sheltered natural harbor. Prior to mid 19th century, this had made Hong Kong a major haven for pirates before it became a British colony in 1841. Under British administration, it soon developed into a thriving legitimate international port. By the late 20th century, Hong Kong was the seventh largest port in the world and second only to New York and Rotterdam in terms of container throughput. The Kwai Chung container complex was the largest in Asia; while Hong Kong shipping owners were second only to those of Greece in terms of total tonnage holdings. (MORE) 
