Singapore, October 7 2026 — Hong Kong has retained its position as the world’s freest economy, ranking first among 165 jurisdictions in the Economic Freedom of the World 2026 Annual Report published by Canada-based Fraser Institute on 6 October. Switzerland placed second.
The Hong Kong Special Administrative Region (HKSAR) Government welcomed the findings, noting that the city ranked first globally in “Freedom to trade internationally” and second in “Regulation”, two of the report’s five assessment areas. “The Fraser Institute’s report once again affirms Hong Kong’s strengths as a free-market economy and its open, efficient and fair business environment,” a spokesman for the HKSAR Government said.
The government also reiterated its commitment to maintaining Hong Kong’s free port status, zero-tariff policy and simple, low-tax regime amid global economic uncertainty and rising trade protectionism. These policies, it said, support a stable, predictable and internationally oriented environment for businesses and investors.
‘One Country, Two Systems’ Framework
The HKSAR Government attributed Hong Kong’s position in part to the advantages of the “one country, two systems” framework, under which the city benefits from the support of the Chinese Mainland while maintaining close connections with international markets.
“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. Its financial, shipping, trading and professional services are also aligned with international standards, supported by what the spokesman described as an efficient government structure and a professional civil service.
These features underpin Hong Kong’s roles as a “super connector” and “super value-adder”, linking Mainland enterprises with international markets and helping overseas businesses access the Mainland, the government said.
Companies and Talent Inflows
Hong Kong has continued to record strong positions in international rankings covering finance, innovation and technology, education and talent, according to the HKSAR Government. It said the city’s business and living environment, alongside government initiatives and participation from the wider community, had continued to attract companies and professionals from overseas.
The number of companies in Hong Kong with parent companies overseas or in the Chinese Mainland exceeded 11,000 last year, an 11 per cent increase from 2024 and a record high. The Office for Attracting Strategic Enterprises (OASES), established by the HKSAR Government in 2022, has attracted more than 120 strategic enterprises to date. These include global industry leaders with market capitalisations or valuations exceeding $100 billion and companies with advanced technologies.
Talent admission schemes have also contributed to the inflow of workers and professionals. From the end of 2022 to August 2026, Hong Kong received more than 670,000 applications under various schemes and approved over 470,000. More than 310,000 individuals had arrived in the city during the period.
The government also reported considerable growth over the past year in funds raised through initial public offerings, bank deposits and assets under management in the asset and wealth management business. It cited these developments as signs of international investors’ confidence in Hong Kong.
Economic and Social Development Plans
Hong Kong’s economic policy direction was further outlined last month, when Chief Executive John Lee announced the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) (Hong Kong’s First Five-Year Plan) and the 2026 Policy Address.
The five-year plan commits Hong Kong to maintaining a free and open economic system and the free flow of capital, goods, people and information. The government described these as core strengths under the “one country, two systems” framework. A government spokesman said the initiatives were intended to support social and economic development, expand opportunities for local businesses and residents, and create further prospects for enterprises, investors and talent internationally.
