Academics and business leaders have given Hong Kong’s prospects a resounding vote of confidence, as the city retained its position as the world’s freest economy in a recent ranking by the Canadian public policy think tank Fraser Institute.
According to the Economic Freedom of the World 2026 Annual Report, released on Tuesday, Hong Kong ranked first in economic freedom among the 165 jurisdictions assessed, followed by Switzerland and Singapore.
The special administrative region maintained its top position in “freedom to trade internationally” and secured second place in “regulation” among the five areas of assessment, the report said.
The Hong Kong SAR government said the report affirmed the city’s strengths as a free-market economy, alongside its 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, providing a secure, stable, fair, predictable and internationalized business and investment environment for investors and entrepreneurs from around the world,” a government spokesman said.
Under the “one country, two systems” framework, the city enjoys the strong support of the motherland while maintaining close connections with the rest of the world, the spokesman said.
While offering convenient access to both the Chinese mainland and international markets, the city continues to practice common law in both the Chinese and English languages. It also provides financial, shipping, trading and professional services that align seamlessly with international best standards, supported by an efficient government structure and a clean, professional civil service, according to the spokesman.
“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,” he added.
The Chinese General Chamber of Commerce in Hong Kong welcomed the news, saying such recognition is especially significant for the local business community. It not only affirms Hong Kong’s long-standing commitment to maintaining a free and open market, but also serves to boost confidence among enterprises and investors both at home and overseas, it said.
RELATED ARTICLES
- Chan: Hong Kong remains a free port despite global turbulence
- IMD: Hong Kong is the world’s second-most competitive economy
- HK retains spot as freest economy, 3rd-ranking financial center
- HK firmly supports free trade, multilateralism, says finance chief
Looking ahead, the chamber said it will continue to help align the SAR’s first five-year plan with the nation’s strategies, and seize opportunities arising from initiatives such as the Northern Metropolis, creating greater development prospects for companies and residents.
Billy Mak Sui-choi, an associate professor at Hong Kong Baptist University’s Department of Accountancy, Economics and Finance, said Hong Kong’s regulations and tax regimes have remained consistent over time, creating a stable environment for business development.
He said he believes Hong Kong can continue to be the world’s freest economy. “As a free port, the city conducts no customs tariffs and allows for free currency exchange. … All of these characteristics make it ideal for trade,” Mak added. “From this perspective, Hong Kong’s position should not be replaced by other places any time soon.”
Edward Chen Kwan-yiu, an honorary professor at the University of Hong Kong’s Business School, said Hong Kong thoroughly deserved the ranking.
Chen said the city can be “a very good intermediary” that helps bridge different stakeholders, bypassing possible policy constraints across global markets, given its free-flowing channels for capital, and information, as well as expertise.
“Hong Kong could be a broker in compromising different restrictions. It’s free in terms of trade and investment, foreign exchange, with no capital control. And also it (allows) free flow of information, free flow of capital, and free flow of talents coming to Hong Kong,” he added.
In the first eight months of this year, Invest Hong Kong — the government’s investment promotion agency — aided 520 mainland and overseas enterprises with setting up or expanding their presence in Hong Kong.
Between the end of 2022 and August, more than 310,000 individuals arrived in Hong Kong under various talent admission programs.
Li Xiaoyun contributed to this story.
Contact the writer at gabylin@chinadailyhk.com
