According to Thomson Reuters data, Hong Kong replaced New York in 2015 as the world's biggest initial public offering market by the amount of funds raised. The funds raised in Hong Kong accounted for more than a third of the total amount for the entire Asia Pacific region.
(a) Why Hong Kong has been able to attract foreign firms to raise funds here? Critically discuss four main attractions possessed by Hong Kong.
(b) Though Hong Kong is currently the biggest initial public offering market, its leading position is not secure. Critically evaluate four key challenges faced by Hong Kong.