Hong Kong has once again been rated as 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 165 jurisdictions worldwide, with Switzerland in second place. The ranking, which measures the degree to which policies and institutions support economic freedom, underscores Hong Kong's enduring appeal as a global business and financial center. The Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, noting that among the five areas of assessment, the city continued to rank first globally in "Freedom to trade internationally" and second in "Regulation."
This achievement matters because it reaffirms Hong Kong's competitive edge at a time of rising global economic uncertainties and trade protectionism. According to a spokesman for the HKSAR Government, the report "once again affirms Hong Kong's strengths as a free-market economy and its open, efficient and fair business environment." The spokesman added that 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. Such commitments are crucial for sustaining international confidence and attracting foreign direct investment.
The city's unique advantages under the "one country, two systems" framework play a pivotal role in its economic freedom. The HKSAR Government highlighted that Hong Kong enjoys the strong support of the Chinese Mainland while maintaining 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 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.
Hong Kong's attractiveness is further evidenced by record-breaking investment and talent inflows. 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 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 also recorded considerable growth in funds raised through initial public offerings, bank deposits and assets under management, reflecting international investors' confidence in and recognition of Hong Kong.
Looking ahead, 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. The 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 core strengths under "one country, two systems." "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 more information on Hong Kong's advantages, visit https://www.brandhk.gov.hk/. This announcement was originally distributed via Media OutReach Newswire.
