Hong Kong Named World’s Freest Economy Again
Hong Kong SAR – October 7, 2026 – In a recent report by the Fraser Institute, Hong Kong has once again been recognized as the world’s freest economy. The Economic Freedom of the World 2026 Annual Report, released on October 6, placed Hong Kong at the top among 165 regions globally, with Switzerland trailing in second place.
The Hong Kong Special Administrative Region (HKSAR) Government expressed gratitude for the ranking, highlighting its continued excellence in “Freedom to trade internationally” where it secured the top position, and a commendable second place in the category of “Regulation.”
A spokesperson for the HKSAR Government remarked, “This report reaffirms Hong Kong’s strengths as a vibrant free-market economy with an open and fair business environment.” They emphasized that despite challenges such as increasing economic uncertainties and trade protectionism around the globe, Hong Kong is determined to uphold its status as a free port with zero tariffs and a simple tax structure, ensuring a stable and predictable environment for global investors and entrepreneurs.
Leveraging One Country, Two Systems
Under the “one country, two systems” framework, the HKSAR Government pointed out that Hong Kong receives significant support from Mainland China while maintaining robust international connections. The spokesperson noted, “Hong Kong provides easy access to both the Chinese Mainland and global markets while upholding common law in both Chinese and English.” The city also offers top-notch financial, shipping, trading, and professional services that meet international standards, aided by an efficient government and a dedicated civil service.
These advantages make Hong Kong an exceptional gateway for Mainland businesses aiming to reach international markets, as well as for foreign companies wanting to enter the Mainland.
Attracting Investment and Talent
This year, Hong Kong has made significant strides in various international competitiveness rankings, especially in finance, innovation, education, and talent acquisition. This recognition underscores the HKSAR Government’s efforts toward promoting high-quality economic and social development.
In 2025, the number of companies with their main offices overseas or in the Mainland surpassed 11,000, marking an 11% increase from the previous year. The Office for Attracting Strategic Enterprises (OASES), launched by the HKSAR Government in 2022, has successfully drawn over 120 strategic enterprises, including many industry giants with market values exceeding $100 billion and advanced technologies.
In terms of talent, from the end of 2022 to August this year, over 670,000 applications were received through various talent admission programs, with more than 470,000 approvals, leading to over 310,000 new arrivals in Hong Kong.
Additionally, the city has seen significant growth in funds raised via initial public offerings, bank deposits, and assets in wealth management, reflecting global investors’ confidence in Hong Kong.
Looking Ahead
Last month, HKSAR’s Chief Executive, John Lee, introduced the First Five-Year Plan for Economic and Social Development (2026-2030) and the 2026 Policy Address. The First Five-Year Plan reiterates Hong Kong’s commitment to an open economic system that promotes the free flow of capital, goods, people, and information—fundamental strengths of the city under the “one country, two systems” principle.
The spokesperson added, “These initiatives will bolster social and economic development, creating broader opportunities for local businesses and the public, along with enhanced prospects for enterprises, investors, and talent worldwide.”
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