Hong Kong has once again been rated the world's freest economy, according to the Economic Freedom of the World 2026 Annual Report, published on October 6 by the Canada-based Fraser Institute. The city topped the rankings among 165 jurisdictions, with Switzerland in second place. The Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, noting that Hong Kong continued to rank first globally in "Freedom to trade internationally" and second in "Regulation" among the five areas of assessment.
"The Fraser Institute's report once again affirms Hong Kong's strengths as a free-market economy and its open, efficient and fair business environment," a spokesman for the HKSAR Government said. "Amid increasing global economic uncertainties and rising trade protectionism, Hong Kong remains firmly committed to maintaining its free port status, zero-tariff policy, and simple and low tax regime, providing a secure, stable, fair, predictable and internationalised business and investment environment for investors and entrepreneurs from around the world."
The HKSAR Government highlighted that, under the "one country, two systems" framework, Hong Kong enjoys the strong support of the Chinese Mainland and maintains close connections with the rest of the world. "While offering convenient access to both the Chinese Mainland and international markets, Hong Kong continues to practise common law in both Chinese and English," the spokesman said. "It also offers financial, shipping, trading and professional services that align seamlessly with international best standards, supported by an efficient government structure and a clean and professional civil service." These strengths enable Hong Kong to fully leverage its roles and functions as a "super connector" and "super value-adder," making it the best gateway for Mainland enterprises to enter international markets and for overseas enterprises to enter the Mainland.
So far this year, Hong Kong has continued to scale new heights in various international competitiveness rankings covering finance, innovation and technology, education and talent, reflecting wide recognition by the international community of Hong Kong's core strengths and the HKSAR Government's efforts to promote high-quality social and economic development. Indeed, Hong Kong's favourable business and living environment, coupled with the proactive and concerted efforts of the HKSAR Government and all sectors of the community, continues to attract enterprises and talent from around the world.
Last year, the number of companies in Hong Kong with parent companies overseas or in the Mainland exceeded 11,000, an increase of 11 per cent over 2024 and a record high. The Office for Attracting Strategic Enterprises (OASES), established by the HKSAR Government in 2022, has successfully attracted over 120 strategic enterprises to date, including many global industry leaders with a market capitalisation or valuation exceeding $100 billion and possessing cutting-edge technologies. On talent attraction, from end-2022 to August this year, over 670,000 applications were received and over 470,000 were approved under various talent admission schemes, with more than 310,000 individuals having arrived in Hong Kong. Over the past year, Hong Kong recorded considerable growth in funds raised through initial public offerings, bank deposits and assets under management in the asset and wealth management business, reflecting international investors' confidence in and recognition of Hong Kong.
Last month, the HKSAR's Chief Executive, John Lee, announced the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) and the 2026 Policy Address. Hong Kong's First Five-Year Plan states that Hong Kong will remain committed to a free and open economic system and the free flow of capital, goods, people and information, all of which are Hong Kong's core strengths under the "one country, two systems" framework. "These efforts will inject stronger impetus into social and economic development, open up broader development prospects for local enterprises and the public, and provide greater opportunities for enterprises, investors and talent worldwide," the spokesman said.
For businesses and investors, Hong Kong's continued top ranking signals a stable and predictable environment for trade and investment. The city's commitment to free-market principles, coupled with its strategic location and robust legal framework, positions it as a key gateway between the Chinese Mainland and global markets. As trade protectionism rises in other regions, Hong Kong's zero-tariff policy and simple tax regime offer a competitive edge for companies seeking to expand internationally. The influx of strategic enterprises and talent further strengthens Hong Kong's innovation ecosystem, potentially driving growth in sectors such as finance, technology and professional services. More information about Hong Kong's advantages can be found at https://www.brandhk.gov.hk/.
