Hong Kong Recaptures Top Spot in Milken Institute Capital Access Index; Canada Surges to Top Five
DATELINE: LOS ANGELES
If access to capital is the key to a thriving business sector, then the strongest region in the world is Hong Kong, the leader on the 2006 Milken Institute Capital Access Index.
Hong Kong, first on the 2004 index, moved back to the No. 1 slot from second last year. The United Kingdom, ranking first in 2005, slipped to third, while the United States dropped from fourth to fifth because of an increase in the lending rate.
The big story is Canada, which rose from 10th place in 2005 to fourth on the latest index, and shows the most improvement in scores for alternative sources of capital and access to international capital.
The top 10 markets (with 2005 ranking):
1. Hong Kong (2)
2. Singapore (3)
3. United Kingdom (1)
4. Canada (10)
5. United States (4)
6. Australia (7)
7. Switzerland (12)
8. Netherlands (13)
9. Ireland (10)
10. Sweden (5)
"Remaining competitive requires open, efficient capital markets, well-functioning financial institutions, and few impediments to trading of goods and services," said Glenn Yago, Director of Capital Studies.
First developed in 1998, the Milken Institute Capital Access Index ranks countries in terms of the financial infrastructures that support entrepreneurial activity by providing access to capital.
The Milken Institute also releases an annual report on one aspect of entrepreneurial finance. This year, Hedge Funds and Global Financial Markets examines a data set assembled by HedgeFund.net.
The analysis shows that management fees and performance incentives are positively associated with the likelihood of a fund being alive. Also, funds domiciled outside the United States and funds with assets invested outside the United States are associated with higher survival probability, even after controlling for different fund strategies.
The 2006 Capital Access Index and Hedge Funds and Global Financial Markets are available on the Milken Institute web site, www.milkeninstitute.org.
CONTACT: Milken Institute
Jennifer Manfre, Associate Director of Communications
310-570-4623
jmanfre@milkeninstitute.org