Hong Kong’s economy traced a remarkable upward curve in 2025. At the beginning of the year, the Hong Kong Special Administrative Region government forecast an annual GDP growth of 2 to 3 percent. Defying conservative estimates, the city recorded year-on-year real growth of 3.1 percent, 3.1 percent, and 3.8 percent in the first three quarters respectively, with full-year growth projected to reach 3.2 percent, marking an economic expansion for the third year.
Hong Kong’s resilience stands in stark contrast to the sluggish performance of major developed economies. Various institutions project an annual growth of 1.9 to 2.0 percent for the United States as growth is weighed down by various factors, including tariffs, consumption slowdown, and debt burden. The eurozone, grappling with weak external demand and trade uncertainties, is expected to grow by 1.3 percent, while Japan’s growth is forecast at 1.1 percent.
How has Hong Kong managed to soar against all the headwinds ravaging the global landscape?
First, the city’s financial sector remained robust over the year. In 2025, Hong Kong Exchanges and Clearing Ltd (HKEX) hosted 119 new listings, with funds raised through initial public offerings surging by more than 2.2 times to reach HK$285 billion (US$36.5 billion), seeing Hong Kong reclaim its position as the world’s top IPO venue. The surge was driven by the various measures outlined in Chief Executive John Lee Ka-chiu’s 2024 Policy Address, including reforms to the listing regime to attract quality issuers, the reduction of the stamp duty on stock transactions to boost liquidity, and the promotion of renminbi-denominated stock trading under the Stock Connect arrangement to attract capital from the Chinese mainland and internationally.
In 2025, Hong Kong’s economy demonstrated resilience amid gathering external uncertainties and pressures. The core secret to Hong Kong’s robustness lies in the combination of two factors — fully leveraging the nation’s firm support and the city’s strong global connectivity, while better integrating an efficient market with a capable government
Parallel to financial market reforms, the government’s aggressive drive to attract enterprises and talent has also borne fruit. As of Oct 9, the number of strategic enterprises recruited by the Office for Attracting Strategic Enterprises had surpassed 100, which are expected to bring in approximately HK$60 billion in investment and create about 22,000 jobs. Simultaneously, the New Capital Investment Entrant Scheme had attracted over 2,600 applications from high-net-worth individuals by late November, and they are expected to inject an estimated HK$78 billion into the economy.
Moreover, the government’s goal and strategies for stabilizing the property market have come to fruition. In 2025, Hong Kong’s real estate sector saw a rise in both the transaction volume and prices. Private residential prices bottomed out in March and rebounded by 3.3 percent by October, reaching a 15-month high. Transactions were equally robust, with primary market sales in the first 10 months exceeding the total volume of 2024, while secondary-market transactions hit a four-year high.
External trade also outperformed expectations. In the first three quarters, Hong Kong’s merchandise exports grew by 11.3 percent in real terms. The sector witnessed increasing diversification in destinations and product structure. The Chinese mainland continued to be the largest export destination.
Despite being a small, open economy, Hong Kong has weathered the storm thanks to the strong backing of the mainland, with the tourism sector providing a good example. According to the Culture, Sports, and Tourism Bureau, Hong Kong recorded approximately 49.9 million visitor arrivals last year, surpassing the estimated annual figure of 49 million, with 74 percent from the mainland and 26 percent from overseas. The strong rebound was catalyzed by a series of supportive measures from the central government, including the expansion of the Individual Visit Scheme (IVS) to cover more cities, the resumption of the multiple-entry IVS for Shenzhen residents, and increased duty-free allowances for mainland visitors.
Crucially, the HKSAR government has not merely relied on central government support but has proactively sought change to promote growth and development. For instance, the “mega events economy” cultivated over several years is yielding significant dividends. The 15th National Games, co-hosted by Guangdong province, Hong Kong, and Macao, saw visitors traveling to the events, giving a boost to sectors such as hospitality, catering, and retail. The Kai Tak Sports Park, which opened in March, is a good benchmark for measuring this endeavor. According to Pollstar, the venue has hosted over 90 events, sold 1.25 million tickets, and generated over HK$1.49 billion in revenue, leading Asia in both metrics.
Hong Kong’s impressive economic showing in 2025 is not accidental; it stems from years of strategic groundwork. Furthermore, the city has also laid the groundwork and been gathering strong momentum to fuel future development in numerous areas.
Recognizing the global trend toward de-dollarization and the optimization of foreign reserves through gold, the government has positioned the city as an international gold trading center, thereby reinforcing its strengths as an international financial center. Following the Shanghai Gold Exchange’s launch of an International Board designated warehouse in Hong Kong in June, a memorandum for cooperation in gold-related businesses was signed between Hong Kong and Shenzhen in November.
Innovation continues to open new economic frontiers. Legislative amendments on low-altitude economy development, which took effect on July 18, have paved the way for this emerging sector. Meanwhile, the official launch of the Hong Kong Professional Services GoGlobal Platform on Dec 13 heralded a new stage in supporting mainland enterprises going global. Additionally, the official opening of the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone on Dec 22 marked a critical step in the city’s integration into the Guangdong-Hong Kong-Macao Greater Bay Area.
In 2025, Hong Kong’s economy demonstrated resilience amid gathering external uncertainties and pressures. The core secret to Hong Kong’s robustness lies in the combination of two factors — fully leveraging the nation’s firm support and the city’s strong global connectivity, while better integrating an efficient market with a capable government.
The author is vice-chairman of the Committee on Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the National Committee of the Chinese People’s Political Consultative Conference, and chairman of the Hong Kong New Era Development Thinktank.
The views do not necessarily reflect those of China Daily.
