The Fraser Institute’s Economic Freedom of the World 2026 Annual Report, released on October 6, again puts Hong Kong at the top of the global table. The city came first in “Freedom to trade internationally” and second in the world for “Regulation,” two of the report’s five areas of assessment. A year earlier, in the 2025 edition, it placed third in both “Sound money” and “Regulation.”
A spokesman for the Hong Kong Special Administrative Region (HKSAR) Government said the report “once again affirms Hong Kong’s strengths as a free-market economy and its open, efficient and fair business environment.” Against rising protectionism, he said, the city will hold to its free port status, its zero-tariff policy, and a simple and low tax regime.
Companies and talent
Most of the government’s response was about numbers. Last year, more than 11 000 companies in Hong Kong had parent firms overseas or in the Mainland, the spokesman said. That was 11 per cent more than in 2024 and a record.
The Office for Attracting Strategic Enterprises (OASES), set up in 2022, has so far brought in over 120 strategic enterprises. Many are global industry leaders with technology that is at the cutting edge and a market capitalisation or valuation above HK$100 billion. In the first eight months of this year, Invest Hong Kong helped about 520 Mainland and overseas businesses set up or expand locally.
Talent schemes drew over 670 000 applications from end-2022 to August this year. More than 470 000 were approved, and over 310 000 people have arrived in Hong Kong. The spokesman added that initial public offering fundraising, bank deposits and assets under management in asset and wealth management all grew considerably over the past year.
How Hong Kong describes its pitch
The spokesman credited “one country, two systems” and said Hong Kong has the strong support of the motherland while keeping close links with the world. It practises common law in both Chinese and English and has what he called “an efficient government structure and a clean and professional civil service.” He described the city as a “super connector” and “super value-adder,” and as the best gateway for Mainland firms heading abroad and for overseas firms entering the Mainland.
He also said the city has kept rising in international competitiveness rankings covering finance, innovation and technology, and education and talent.
The statement then moved to policy. Last month, the Chief Executive announced Hong Kong’s First Five-Year Plan for Economic and Social Development (2026-2030) along with the 2026 Policy Address. The plan commits to a free and open economic system and to the free flow of capital, goods, people and information. The government will also work to strengthen Hong Kong’s roles as “four centres and one hub” and speed up development of the Northern Metropolis.
Sources
- Hong Kong Maintains Top Ranking as World's Freest Economy in Economic Freedom of the World 2026 Annual Report
- Hong Kong named world’s freest economy
