Hong Kong has edged out Netherlands and the U.S. as the best place to do business, according to a study by Bloomberg. The U.K. and Australia occupied the 4th and 5th slots, respectively.
The new index is based on six criteria, including the degree of economic integration and labour costs.
Bloomberg notes that Hong Kong's reputation for rule of law and a corruption-free administration has helped it secure top spot. Aside from free-market policies, the city also offers low corporate taxes. Hong Kong charges a corporate tax rate of 16.5 percent compared with the U.S.’s 35 percent.
Being the gateway to the world’s fastest-growing major economy, Hong Kong has also become the hub for the international use of the Chinese yuan.
According to Bloomberg, Hong Kong scored 49 percent, beating the Netherlands’ 48.3 percent and the U.S.’s 46.9 percent.
Of the top 50, Germany was the leader on the basis of cost of doing business, moving goods and less tangible costs, while the readiness of the local consumers was deemed best in the United Arab Emirates.
The cost of labour and materials was lowest in Montenegro and the Netherlands was deemed best for setting up a business.
Brazil came in at the bottom of the top 50 with 35.5 percent, falling behind India at 35.9 percent and Russia at 36.1 percent.
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