Illustration: Xia Qing/GT

The number of companies in Hong Kong with parent companies based in either the Chinese mainland or overseas rose 11 percent year-on-year to 11,070 in 2025, while the number of start-ups in Hong Kong increased to 5,221, both reaching record highs, Chief Executive of the Hong Kong Special Administrative Region (HKSAR) John Lee Ka-chiu said on Monday.

Speaking at the 19th Asian Financial Forum, he noted that businesses with parent companies in Singapore, France, Australia, the US, and Switzerland all saw growth of more than 11 percent, while companies linked to countries in ASEAN increased by approximately 10 percent, with those connected to the Middle East up by 5 percent. Notably, the number of companies with Chinese mainland parent companies grew by 17 percent, according to wenweipo.com.

The figures show that Hong Kong's distinctive appeal to international businesses continues to strengthen, even amid a complex and volatile global environment. This resilience reflects the city's robust institutional strengths, its alignment with national development strategies, and the sustained efforts of the HKSAR government.

The presence of more than 11,000 registered companies from around the world speaks volumes about the international business community's confidence in Hong Kong's business environment, infrastructure, and professional services system. Even in the face of external challenges, Hong Kong's well-established market rules and international networks remain an irreplaceable platform for expanding business across the Asia-Pacific region and beyond. This market-driven trust forms a solid foundation for Hong Kong's core competitiveness.

A key component of this competitiveness is Hong Kong's distinctive advantage of having strong support from the motherland and close connections with the world. For instance, the 17 percent increase in the number of mainland-based companies in Hong Kong indicates that as the country advances its high-level opening-up, Hong Kong's strategic role as the primary springboard for mainland enterprises "going global" and a key gateway for international capital entering the mainland market has been further reinforced.

At the same time, increased business activity from both developed economies in Europe and the US and emerging markets such as ASEAN and the Middle East highlights Hong Kong's function as a "super-connector." The city is increasingly becoming a strategic nexus linking mature markets with high-growth economies. This distinctive position enriches Hong Kong's economic ecosystem with greater diversity and provides businesses with exceptional networking and growth opportunities.

This phenomenon is also consistent with Hong Kong's strong performances and sustained recognition in various international rankings. According to the World Competitiveness Yearbook 2025, published by the International Institute for Management Development, Hong Kong's global competitiveness has risen by two places to third globally. With regard to sub-factors related to competitiveness, Hong Kong tops the rankings on tax policy and business legislation, ranks second globally in international investment, education and finance, and third globally in international trade and management practices.

Also, Hong Kong remained in third place globally and continued to rank first in the Asia-Pacific in the Global Financial Centres Index 38 Report published in September 2025 by the UK's Z/Yen and the China Development Institute. The rating gaps with No.1 New York and No.2 London narrowed further. In the Economic Freedom of the World 2025 Annual Report released in last September by the Fraser Institute, Hong Kong once again ranked as the world's freest economy. Among the five areas of assessment, Hong Kong retained the top position in "Freedom to trade internationally," while securing the third position in "Sound money" and "Regulation."

Hong Kong's growing appeal also reflects its increasingly crucial strategic position in the country's new development pattern. China offers a vast market, favorable policy environment, and stable development prospects. Hong Kong, leveraging the unique advantages of "one country, two systems," is capable of providing a high-quality platform for global capital to better participate in and share the benefits of China's development. 

At the same time, as the development of the Guangdong-Hong Kong-Macao Greater Bay Area progresses, Hong Kong is poised to further consolidate its role as an international hub through strengthened cooperation with other cities in the region. It is an undeniable trend that the more Hong Kong deepens its integration and collaboration with the mainland, the more it amplifies its own strengths, transforming the opportunities presented by national development into enduring momentum for progress.