Hong Kong remains the world's freest economy, according to the "Economic Freedom of the World: 2005 Annual Report" jointly released by the Fraser Institute of Canada and the Cato Institute of the United States today (September 8).

Welcoming the report, Financial Secretary Mr Henry Tang said in South Korea today he is pleased the international community has again reaffirmed the virtues the Government has been upholding to keep Hong Kong flourishing as a free market economy.

"With free competition and open market being our entrenched policy, Hong Kong will continue to practise the 'Market Leads, Government Facilitates' principle," he said.

"We will also strive to maintain our institutional strengths, including rule of law, free flow of capital and information, a level playing field, an efficient and corruption-free Government as well as a simple and low tax regime, which are the keys to our economic success," he added.

The report compared the level of economic freedom in 127 economies. Apart from the overall top ranking, Hong Kong also ranks first in "freedom to trade internationally" and "regulation of credit, labour and business" and second in "size of government".