Editor's notes: 2006 was an eventful year for Hong Kong in terms of economic development. Hong Kong people chose top ten business events of the past year in a competition organized by Hong Kong Commercial Daily and nine Hong Kong commerce chambers.

By Zhang Jin and Teddy Ng

1. Hong Kong is included in the nation's Five-Year Plan

The 11th Five-Year Plan gave a few paragraphs for Hong Kong, for the first time. The SAR government held an economic summit in September to discuss Hong Kong's role in the nation's development, with an "Action Agenda" released a few days ago.

2. IPO in Hong Kong hits record on mainland banks' mega deals

Hong Kong is now the world's second largest IPO market only after London. In 2006, several mega-deals from mainland giants Bank of China, China Merchants Bank and Industrial and Commercial Bank of China helped push up the market.

3. The renminbi continues to appreciate and overtakes Hong Kong dollar

The yuan kept rising since its latest appreciation in July 2005. It is now more valuable than the Hong Kong dollar. Economists generally believe a stronger yuan would do good to Hong Kong's tourism and stock markets amid concerns on rising inflation pressure.

4. Hong Kong proposes tax reform and shelves goods and service tax (GST)

After several months of consultation, the SAR government decided to shelve the GST, which is aimed at widening the city's tax base. Retail and tourism industries as well as many citizens opposed such a tax, forcing the government to withdraw it.

5. Legendary business leader Henry Fok passes away

He was one of the business and political figures in Hong Kong widely respected across the border. Fok passed away on October 27 in Beijing. He was 84.

6. The US ends credit-tightening circle; Hong Kong starts to cut rates

Hong Kong banks decided to cut interest rates in November after the US stopped raising rates and kept them on hold for a few months. It was a rarity because Hong Kong tends to track US rate moves. Market watchers, however, justified the move, citing rich liquidity in Hong Kong.

7. A record number of 12,000 overseas firms set up regional headquarters in Hong Kong

Hong Kong's role as a regional investment center was increasingly consolidated in the past year, with a lot more overseas companies selecting the city as their Asia-Pacific headquarters.

8. Hong Kong stocks hit all-time high and break 20,000 -point mark

It was a really bullish year. Local shares continued their winning streaks and hit an all-time high in 2006. The shares vaulted over the 20,000-point mark on December 28.

9. Tamar project for government headquarters approved

The government planned to relocate the Central Government Offices to the Tamar site, but halted the project development in 2003 because of the economic downturn caused by SAR outbreak.

The HK$4.9 billion project was approved by the Legislative Council. It is expected to start in 2007 and finish by 2010.

10. Improving air quality tops agenda of the ninth Guangdong-Hong Kong Conference

Both sides reconfirmed their determination to achieve the agreed emission reduction targets by 2010. The Special Panel on Pearl River Delta Air Quality Management and Monitoring under the joint conference completed an implementation framework for the Emission Trading Pilot Scheme for Thermal Power Plants in the PRD Region.