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Hong Kong sustains ranking as world’s freest economy; third in global finance

Hong Kong continues its top position as the world’s freest economy, according to Fraser Institute’s Economic Freedom of the World 2025 Annual Report (Sep 25). Among the five areas of assessment, Hong Kong maintained the top position in “Freedom to trade internationally”, while securing the third position in “Sound money” and “Regulation”. The report reaffirmed Hong Kong’s strengths as a free-market economy, as well as its open and efficient business environment with a level-playing field. 

In another ranking report, Hong Kong maintained third place globally and continued to rank first in the Asia-Pacific in the latest Global Financial Centres Index 38 Report (Sep 25). Hong Kong’s overall rating in the report rose four points to 764, narrowing the gap with New York (766) and London (765), ranked first and second respectively. The city’s rankings in fintech offerings leapt from fourth place to first in the world, and those in the areas of business environment, infrastructure, and reputational and general also rose further to first globally, while ranking second and third globally in human capital and financial sector development respectively. The Hong Kong Special Administrative Region (HKSAR) Government said the report fully recognises Hong Kong’s leading status and strengths and competitiveness as an international financial centre, with the city maintaining the unique advantages of the “one country, two systems” principle, and providing a stable and predictable policy and investment environment for global investors.

Rise in innovation index highlights Hong Kong’s progress

Hong Kong rose three places to 15th globally and remained 5th in Asia in the Global Innovation Index 2025 published by the World Intellectual Property Organization (Sep 16). Hong Kong’s ranking in the “Innovation Input” rose to 8th globally while its ranking in the “Innovation Output” leapt by nine places to 22nd. The HKSAR Government welcomed the progress, noting that innovation and technology (I&T) is a major policy priority. Recent efforts included optimising the local I&T landscape, with a development framework supported by three major I&T parks and five key research and development (R&D) institutions. The Government has also launched a series of policy initiatives to consolidate the city’s strengths in basic research, accelerate technology transfer and commercialisation of R&D outcomes. Hong Kong’s strong performance in the “Credit”, “Investment”, “Tertiary Education” and “Knowledge Absorption” sub-pillars in the index reflects its strong foundation for innovation. Hong Kong will continue to enhance its I&T ecosystem and attract global resources and talent to develop the city into an international I&T centre.

Asia-Connect luncheon showcases Hong Kong’s green finance potential

King Leung, Global Head of Financial Services, Fintech & Sustainability at Invest Hong Kong (InvestHK), shared valuable insights into Hong Kong’s evolving sustainable finance landscape at the Asia-Connect Round Table Luncheon, hosted by InvestHK and supported by the Hong Kong Economic and Trade Office New York (New York ETO) on Sep 24. Joined by leading impact investors and fintech innovators in New York, the event explored Hong Kong’s pivotal role in shaping the future of sustainable finance. In her welcome remarks, Director of New York ETO Maisie Ho reaffirmed Hong Kong’s strong commitment to climate action and spotlighted the city’s position as a global green finance hub. She emphasised the city’s world-class financial infrastructure, dynamic fintech ecosystem, and unparalleled access to global networks – key ingredients for bridging sustainable finance opportunities between Asia and the world.  The discussion was moderated by Deputy Head of Investment Promotions at InvestHK in New York Charles Lorum.

Mid-Autumn gathering connects Hong Kong students in US with public service opportunities back home

Hong Kong students from universities in the US East gathered (Sep 22) at the New York ETO for a Mid-Autumn Festival celebration in conjunction with an Administrative Officer (AO) Recruitment Information Talk. The event provided a unique opportunity for the students to learn and explore careers in public service within the HKSAR Government. Director of New York ETO Maisie Ho shared her personal career journey and offered first-hand insights into the role of an AO, highlighting how AOs contribute to shaping public policy and driving innovation, playing a key role in building Hong Kong’s future. The evening wrapped up with mooncakes, light refreshments, and networking.

New York forum showcases Hong Kong’s strengths as international education hub

Leaders from academia and public sector gathered at a roundtable dialogue of the Education for Global Diplomacy and Peace Conference 2025, organised by the Forum for World Education in New York (Sep 25) and learned more about Hong Kong’s status as an international education hub. Director of New York ETO Maisie Ho briefed the attendees the global outreach efforts of Hong Kong through the “Hong Kong: Your World-class Campus” and “Study in Hong Kong” campaigns. She also highlighted Hong Kong’s unique strengths in providing high-quality education in a cosmopolitan and open environment, underpinned by academic freedom and international connectivity. She added Hong Kong welcomes talent from around the world and is committed to collaboration with overseas institutions across areas such as student exchange.

Roadmap to boost Hong Kong as global FIC hub

The Securities and Futures Commission and the Hong Kong Monetary Authority jointly announced (Sep 25) Hong Kong’s Roadmap for the Development of Fixed Income and Currency (FIC) Markets (Roadmap) to position the city as a global FIC hub by fostering demand, liquidity and innovation. The Roadmap outlines 10 key initiatives under four pillars: primary market issuance, secondary market liquidity, offshore renminbi (RMB) business, and next-generation infrastructure. Key measures include attracting more issuers to raise funds in Hong Kong, providing enhanced risk and liquidity management tools, boosting offshore RMB usage and liquidity, and developing infrastructure to facilitate market innovation.

Separately, Hong Kong welcomed (Sep 25) new measures by the People’s Bank of China (PBoC) to deepen mutual access between Mainland and Hong Kong financial markets. These include supporting more offshore institutional investors to conduct repurchase (repo) business in the Mainland bond market, expanding the list of Swap Connect dealers and enhancing relevant management mechanisms, increasing the daily quota of Northbound trading of Swap Connect to RMB45 billion. The PBoC also plans to provide more renminbi assets in Hong Kong, and accelerate the launch of RMB treasury bond futures in the city.

London Metal Exchange approves 3 warehouses in Hong Kong

Secretary for Financial Services & the Treasury Christopher Hui welcomed the approval (Sep 22) by the London Metal Exchange (LME), a wholly-owned subsidiary of the Hong Kong Exchanges & Clearing (HKEX), of the applications to designate three warehouses in Yuen Long as approved warehouses, bringing Hong Kong’s total to 11 LME-approved facilities within nine months. The move demonstrates the strong industry support for the government’s policy to promote commodity trading, further enhancing Hong Kong’s commodity trading ecosystem and consolidating its status as an international financial, shipping and trading centre.

InvestHK promotes Hong Kong in South America

Associate Director-General of Investment Promotion at InvestHK Arnold Lau visited (Sep 22 – 26) Buenos Aires, Argentina, and Lima, Peru, to strengthen trade ties and promote Hong Kong’s role as a “super connector” and “super value-adder” between the Chinese Mainland and Asian markets. He met with government officials, leading enterprises, and industry organisations, attended the Expoalimentaria 2025 international food trade fair, and engaged with local exporters. He highlighted Hong Kong’s strengths in finance, regulations, innovation and technology, and as a preferred base for international headquarters. Hong Kong has close economic ties with Argentina and Peru, with bilateral trade reaching US$385 million (HK$3 billion) and US$769 million (HK$6 billion), respectively, in 2024. Peru, a participant in the Belt and Road Initiative, signed a Free Trade Agreement with Hong Kong in 2024 to enhance bilateral investment flows and support continued trade growth.

100 global innovators to compete in EPIC 2025

The top 100 semi-finalists, selected from over 1,200 applications from more than 70 economies, of EPIC (Elevator Pitch International Competition) 2025 are set to converge in Hong Kong at the Kai Tak Cruise Terminal in November, vying for the title and up to US$105 million of targeted investment funding and US$240,000 cash prizes across Digital Health Tech, FinTech and GreenTech tracks. Organised by Hong Kong Science and Technology Parks Corporation, this ninth edition is its most globally diverse yet, with 85% of semi-finalists from overseas. The 100 global innovators will be in Hong Kong for an EPIC Week (Nov 3 - 7) that comprises a Tech Spotlight showcase, a Greater Bay Area Exploration tour, before culminating in the Grand Finale at Kai Tak Cruise Terminal.

Air passenger departure tax exemption expanded

Starting Oct 1, the HKSAR Government will expand the exemption from the air passenger departure tax (APDT) to encourage visitors to extend their stay and explore Hong Kong. Under the new arrangement, the exemption will include passengers arriving at Hong Kong by air and departing by air on the following day; and passengers arriving at Hong Kong by land or sea and departing by air on the same day or on the following day, provided they have not left Hong Kong by land or sea on the day or the preceding day of their departure flights. Eligible passengers who have already paid the APDT at the time of the air ticket purchase may apply for refund. To streamline the process, the Airport Authority Hong Kong will launch a new Refund Application Platform on Oct 1. Eligible passengers who have paid the APDT at the time of purchasing the air tickets may apply for tax refunds by simply uploading supporting documents to the platform to claim their refunds.

Major aviation event “Routes World” held in Hong Kong

The 30th edition of Routes World 2025 was held in Hong Kong (Sep 24 - 26), marking the first time the global aviation event was held in the city, welcoming 2,000 delegates from over 115 countries. Speaking at the event (Sep 25), Financial Secretary Paul Chan highlighted that Hong Kong International Airport (HKIA) handled 53 million passengers in 2024, up 34% year-on-year, and remains the world’s busiest cargo airport for 14 of the past 15 years. He also pointed out that the Three-Runway System will boost capacity to 120 million passengers and 10 million tonnes of cargo annually by 2035, adding that the “SKYTOPIA” development plan would transform HKIA into a hub for commerce, tourism, arts and leisure.

Investment climate report opposed

The HKSAR Government strongly opposed (Sep 28) the US Department of State’s 2025 Investment Climate Statements: Hong Kong, pointing out that the report contains biased assertions regarding Hong Kong’s business environment. The Government highlighted the city’s strong economic performance in capital market, bank deposits and assets under management and foreign direct investments.  It also highlighted Hong Kong's international status as the world’s freest economy, one of the top three global financial centres, and third in global competitiveness. Amid the intensifying geopolitical tensions, and rising unilateralism and protectionism that disrupt the international trade system and global economic order, the Government affirmed that Hong Kong will continue to uphold its status as a free port under the “one country, two systems” principle; maintain free trade policies and a simple, low tax regime, while ensuring the free flow of capital, information, goods and talent.

CE unveils bold reforms to power Northern Metropolis

Delivering his fourth Policy Address (Sep 17), entitled “Deepening Reforms for Our People and Leveraging Our Strengths for a Brighter Future”, Chief Executive John Lee prioritises accelerating Northern Metropolis development as Hong Kong’s new economic engine, with the Chief Executive leading the effort to raise the level of decision-making, remove barriers, ease restrictions and streamline administrative procedures. To reinforce the city’s role as a global business and financial hub, Hong Kong will deepen the equity, bond and currency markets, advance the insurance, asset and wealth management and gold trading sectors, develop fintech and promote green finance. Global trade ties will be enhanced through new investment agreements, expanding the network of Economic and Trade Offices and digital trade promotion. Other highlights of the Policy Address include deepening reform and developing industries, supporting small and medium enterprises, and promoting integrated development of education, technology and talents along with enhancing culture, sports and tourism.

The Basic Law (BL) is the constitutional document of the HKSAR. It provides the guarantees to maintain our existing way of life, including socio-economic development, the rights and duties of Hong Kong people, the rule of law and other areas. The Basic Law was put into effect on July 1, 1997.

Q: What does the Basic Law prescribe regarding Hong Kong’s status as a free port and a separate customs territory?

A: According to Articles 114-116 of the Basic Law, the HKSAR shall maintain the status of a free port and shall not impose any tariff unless otherwise prescribed by law. The HKSAR shall pursue the policy of free trade and safeguard the free movement of goods, intangible assets and capital. In addition, it shall be a separate customs territory. It may, using the name “Hong Kong, China”, participate in relevant international organisations and international trade agreements (including preferential trade arrangements). Export quotas, tariff preferences and other similar arrangements, which are obtained or made by the HKSAR or which were obtained or made and remain valid, shall be enjoyed exclusively by the HKSAR.