Financial Markets

Only a few years ago, Hong Kong was gripped by panic that the rapidly ascending Chinese city of Shanghai was set to usurp its coveted position as China's premier financial hub. Shanghai's budding stock market and burgeoning financial community were supposed to be the future; Hong Kong, the fusty remnant of a colonial past.

But that switch hasn't happened. China's financial sector has been held back by the slow pace of reform, allowing Hong Kong's modern capital market plenty of room to grow. Not only has Hong Kong strengthened its position at the financial heart of Asia, but...