Hong Kong has been a bastion of international trade and investment since its independence day in July 1997. Since then, Hong Kong has received increasing attention from international investors and business people from different parts of the world. Despite numerous setbacks and recessions during the Asian financial crisis and the global economic downturn in 2008, Hong Kong has become one of the leading global investment and business centers, known for its liberal and low taxes and numerous free trade agreements, making Hong Kong a desirable destination for many Entrepreneur makes.

Hong Kong and the liberal free market economy
Hong Kong is often described as one of the world's greatest experiments in laissez-faire capitalism, but some new regulations have been introduced since the beginning. Despite legal modernizations and the latest requirements, Hong Kong is still classified as one of the most free states in the world according to the Index of Economic Freedom for every year from 1995 - even before it actually became independent. Country is now home to the world's seventh largest stock exchange, the world's largest public offering, and one of the densest concentrations of corporate and corporate headquarters in the Asia Pacific region. Even more surprising is the fact that more than 8% of Hong Kong households have net worth in excess of $ 1 million.

Based on the 2012 Wealth Report by Knight Frank Research and Citi Private Bank, Hong Kong will be the second largest economy in the world in terms of GDP per capita by early 2050, ranking fifth after the four largest Asian economies.

Invest in Hong Kong with ETFs
One of the easiest ways for global investors to get access to Hong Kong's securities is through exchange-traded funds, also known as ETFs, which allow for quick diversification into a security that is traded on various international exchanges.

One of the most widely used Hong Kong ETFs is the iShares MSCI Hong Kong Index Fund (NYSE: EWH) with net assets of $ 2.7 billion and a total of 43 holdings.

Some other well-known Hong Kong ADRs are:

AIA Group Ltd. (OTC: AAGIY)
Sun Hung Kai Properties Limited (OTC: SUHJY)
Hutchison Whampoa Ltd. (OTC: HUWHY)

Benefits and Risks of Investing in Hong Kong
There are numerous advantages to Hong Kong, including some risks directly related to investing that need to be carefully assessed and monitored. While Hong Kong is clearly an attractive business and investment destination, there are various risk factors that could make it a rather risky investment property during the financial crisis.

The benefits of investing in Hong Kong include:

Leading world economy. Hong Kong is one of the freest states in terms of economy and taxes, and perhaps one of the most important global financial centers.
Proximity to Asian growth. Some of the world's largest economies will be based in Asia, giving Hong Kong a strong geographic advantage.
The risks of investing in Hong Kong include:

Geopolitical Risks. Hong Kong's connections and proximity to China make it a possible subject of geopolitical issues and disputes, considering that many business leaders are from China.
Concentration of risk. Hong Kong's economy is heavily reliant on its financial sector, which puts it at great risk during economic recessions.
What to consider when dealing with Hong Kong:

Hong Kong was a bastion of capitalism in one of the fastest growing regions in the world, making it a sought-after travel destination for international business people.
The fastest way to get access to Hong Kong is with ETFs.
Investors should carefully weigh all possible risks associated with Hong Kong, in particular geopolitical risks and a lack of diversification, before tying up capital.