Hong Kong has once again been rated the world's freest economy, according to the Economic Freedom of the World 2026 Annual Report released on October 6 by the Canada-based Fraser Institute. The city topped 165 jurisdictions, with Switzerland in second place. The recognition comes at a time of rising trade protectionism and economic uncertainty, highlighting Hong Kong's steadfast commitment to free-market principles and its role as a global business gateway.
The Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, noting that among the five areas of assessment, Hong Kong ranked first globally in "Freedom to trade internationally" and second in "Regulation." A government spokesman emphasized that the ranking affirms Hong Kong's strengths as a free-market economy with an open, efficient, and fair business environment. "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," the spokesman said. This commitment provides a secure, stable, and predictable environment for investors and entrepreneurs worldwide.
The implications of this ranking are significant. For international businesses, it reinforces Hong Kong's position as a reliable entry point to both the Chinese Mainland and global markets. Under the "one country, two systems" framework, Hong Kong enjoys strong support from the Mainland while maintaining close connections with the rest of the world. The spokesman noted that Hong Kong practices common law in both Chinese and English and offers financial, shipping, trading, and professional services that align with international best standards. These attributes enable Hong Kong to serve as a "super connector" and "super value-adder," facilitating trade and investment flows between the Mainland and overseas markets.
Hong Kong's attractiveness is further evidenced by recent data. Last year, the number of companies with parent companies overseas or in the Mainland exceeded 11,000, an 11 percent increase over 2024 and a record high. The Office for Attracting Strategic Enterprises (OASES), established in 2022, has attracted over 120 strategic enterprises, many with market capitalizations exceeding $100 billion. On talent attraction, from end-2022 to August this year, over 670,000 applications were received, with more than 310,000 individuals having arrived in Hong Kong. These figures reflect international confidence in Hong Kong's business environment and its ability to draw global talent and investment.
Looking ahead, the HKSAR Government's First Five-Year Plan for Economic and Social Development (2026-2030) and the 2026 Policy Address reaffirm Hong Kong's dedication to a free and open economic system and the free flow of capital, goods, people, and information. "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 global stakeholders, Hong Kong's continued economic freedom signals stability and opportunity in an increasingly uncertain world.
For more information on Hong Kong's advantages, visit https://www.brandhk.gov.hk/. This announcement was distributed by Media OutReach Newswire.
