Macau Fastest Growing City In China

Written on January 16, 2007 by a2zMacau

A survey on the competitiveness of Chinese cities ranked Hong Kong on top, above Shanghai, Beijing and Shenzhen for the fifth consecutive year.

However, the growth potential rating of Hong Kong dropped significantly, with its rank dipping from second last year to fourth in 2006. Shenzhen, Macau and Beijing ran above Hong Kong.

The China Institute of City Competitiveness, which conducted the survey, said overall competitiveness of 289 cities is based on the development of economy, society, environment and culture. Growth competitiveness is based more on growth rate and sustainability.

It attributed Hong Kong’s success in maintaining its top spot to its better infrastructure, legal system, quality of citizens and a well-developed financial market.

Though it believes Shanghai, one of Hong Kong’s top competitors in the
region, will probably not overtake the territory for another 20 years, and that Shenzhen will trail for the next 10 years, the race will become tougher.

The institute said high land prices, high labor costs and pollution will threaten the growth of Hong Kong.
The improving financial infrastructure in the mainland, including share reform, will ultimately attract more capital. It suggests Hong Kong should look for alternatives in the logistics sector, rather than depend solely on its advantages in the financial sector.
In the ranking of growth competitiveness, Hong Kong was overtaken by Macau and Beijing, slipping from second last year to fourth.

The institute believes this is due to the rapid growth of the Macau economy backed by the booming gaming sector and, in Beijing, by the stimulation of preparations for the 2008 Olympics, and does not represent a deterioration in Hong Kong’s competitiveness.

Source | The Standard

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