If Hong Kong plays its cards right, it could become the world’s most developed city, something that could be good news for its exchange traded fund (ETF).

An Lu for Xinhua says it will need to maintain its status as an international financial center and speed up its integration with mainland China in order to be the powerhouse one economist believes it could be.

Justin Lin Yifu, senior vice president and chief economist of the World Bank, also wants to see Taiwan remove its political barriers. Lin feels that the world economy is headed for another period of development after a correction, and the Chinese economy will grow overall about 10% between 2008 and 2009.

Powering the growth, he says, will be domestic demand and consumption while challenges with export uncertainties will be faced.

Any growth in Hong Kong and Taiwan could prove to be beneficial to the iShares MSCI Hong Kong Index (EWH) and the iShares MSCI Taiwan Index (EWT). Year-to-date, EWH is down 15.3%, while EWT is down 11.4%. Could the tide someday turn?

Tags: Asia, China, Emerging Markets, Hong Kong, Taiwan