Financial sector output and employment in Hong Kong and New York City

He, Dong and Yong, Ivy and Lim, Peter (2006): Financial sector output and employment in Hong Kong and New York City. Published in: Hong Kong Monetary Authority Quarterly Bulletin No. March 2006

Abstract

What is the future role for Hong Kong as an international financial centre in China? A few pointers can be found by analysing the role of New York as a national and global financial hub. The financial sector in New York currently employs twice as many people and generates four times as much output as in Hong Kong. The contrast between the two cities is greatest in the securities industry. New York employs double the number of workers and produces 10 times more output than Hong Kong.

With New York as the reference point, Hong Kong has significant growth potential if it can be positioned successfully as an international financial centre intermediating fund flows both within China and between the Mainland and the rest of the world. And the securities industry provides the biggest catch-up and the greatest potential, by serving the needs of fund raisers and investors from the Mainland, because capital market services do not need to be provided on location – an observation demonstrated by the role of New York’s securities industry in the US economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Hong Kong; financial services industry
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; G - Financial Economics > G2 - Financial Institutions and Services > G20 - General

References

"Composite Employment Estimate", Census & Statistics Department, Government of Hong Kong

"Quarterly Survey of Employment and Vacancies", Census & Statistics Department, Government of Hong Kong

Annual reports, New York State Department of Labor

Annual reports, New York City Department of Finance