Hong Kong has once again been rated the world's freest economy, according to the Economic Freedom of the World 2026 Annual Report published on October 6 by the Canada-based Fraser Institute. The city topped 165 jurisdictions worldwide, with Switzerland in second place. The Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, noting that among the five areas of assessment, Hong Kong continued to rank first globally in "Freedom to trade internationally" and second in "Regulation."
This marks another year at the top for Hong Kong, reinforcing its reputation as a bastion of economic freedom and a magnet for global business. The ranking is particularly significant as it comes amid increasing global economic uncertainties and rising trade protectionism. According to a spokesman for the HKSAR Government, "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." The spokesman added that 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 internationalised business and investment environment for investors and entrepreneurs from around the world.
The report's findings carry substantial implications for Hong Kong's role in the global economy. Under the "one country, two systems" framework, Hong Kong enjoys the strong support of the Chinese Mainland while maintaining close connections with the rest of the world. The spokesman highlighted that Hong Kong offers convenient access to both the Chinese Mainland and international markets, practises common law in both Chinese and English, and provides financial, shipping, trading and professional services that align seamlessly with international best standards. These strengths enable Hong Kong to fully leverage its roles 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.
Hong Kong's continued success in attracting investment and talent further underscores the importance of its free-market policies. So far this year, the city has scaled new heights in various international competitiveness rankings covering finance, innovation and technology, education and talent. Last year, the number of companies in Hong Kong with parent companies overseas or in the Mainland exceeded 11,000, an increase of 11 per cent over 2024 and a record high. The Office for Attracting Strategic Enterprises (OASES), established in 2022, has successfully attracted over 120 strategic enterprises to date, including many global industry leaders with a market capitalisation or valuation exceeding $100 billion and possessing cutting-edge technologies. On talent attraction, from end-2022 to August this year, over 670,000 applications were received and over 470,000 were approved under various talent admission schemes, with more than 310,000 individuals having arrived in Hong Kong. Over the past year, Hong Kong recorded considerable growth in funds raised through initial public offerings, bank deposits and assets under management, reflecting international investors' confidence in and recognition of Hong Kong.
Looking ahead, the HKSAR's Chief Executive, John Lee, last month announced the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) and the 2026 Policy Address. The plan states that Hong Kong will remain committed to a free and open economic system and the free flow of capital, goods, people and information, all of which are Hong Kong's core strengths under the "one country, two systems" framework. "These efforts will inject stronger impetus into social and economic development, open up broader development prospects for local enterprises and the public, and provide greater opportunities for enterprises, investors and talent worldwide," the spokesman said. As the global economy faces headwinds, Hong Kong's top ranking serves as a powerful endorsement of its enduring appeal as a free and open economy. For more information, visit https://www.brandhk.gov.hk/.
