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HK crowned world freest economy for 16th consecutive year

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Hong Kong welcomed a report released Wednesday jointly by the U.S. Heritage Foundation and the Wall Street Journal, which ranked the Asian city as the world's freest economy for the 16th consecutive year.

The report, titled "2010 Index of Economic Freedom", measured the degree of economic freedom of 179 economies worldwide by assessing 10 factors: business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labor freedom.

Hong Kong scores 89.7 this year, well above the world average of 59.4, said the report. Singapore and Australia come as the second and third with 86.1 and 82.6 points respectively.

The Heritage Foundation recognized that Hong Kong's competitive tax regime, respect for property rights and flexible labor market, coupled with an educated and highly motivated work-force, have stimulated an innovative and prosperous economy.

The Heritage Foundation further complimented Hong Kong as one of the world's leading financial and business centers, saying its legal and regulatory framework for the financial sector is transparent and efficient. Meanwhile, the city's business regulation is straightforward and Hong Kong has maintained its status as Asia's second-largest destination for foreign direct investment.

A spokesperson of the HKSAR government vowed the government will uphold economic freedom, which is considered the cornerstone of sustained economic stability, growth and prosperity.

"We see the role of the government as that of a facilitator. We provide a business-friendly environment where all firms can compete on a level playing field, and establish an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market," the spokesman said.

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