This enclave is a small but open economy with a relatively simple economic structure and a developing financial sector. It is governed under the principle of “One Country, Two Systems” in the context of our Basic Law. It is a free port, an independent tariff area; there is free flow of merchandize, financial assets and capital.
Profitability remained low in 2012 as well. 4  BIS central bankers’ speeches  The current levels of profitability are insufficient to remunerate capital adequately. In the absence of incisive action, they threaten to weaken banks’ capitalization, their capacity to finance the recovery of the real economy.