Hong Kong's Business Vitality and Innovation Thrive Under Rule of Law

Hong Kong's vibrant business landscape is flourishing under a solid legal framework that not only ranks high in business legislation but also fosters a dynamic startup ecosystem. This environment has proven to be a significant draw for global innovators seeking stability and growth.

On January 26, the Hong Kong Special Administrative Region (HKSAR) Government published findings from the 2025 Annual Survey of Companies and Startups. The survey disclosed that the number of companies with parent firms outside Hong Kong rose to an impressive 11,070, while startups increased to 5,221, both marking double-digit growth year-on-year and setting new records.

Among these emerging startups, the fintech and information and computer technology sectors continued to lead, with frontier technology fields like biotechnology also showing consistent growth. Hong Kong maintained its top position in the global IPO fundraising arena, showcasing four listings among the world's top ten for the year. Additionally, 560 overseas and mainland Chinese companies established or expanded in the region, with a notable concentration in finance and technology.

This surge in business activity amidst global economic uncertainty underscores Hong Kong's appeal and reflects robust confidence from international investors, entrepreneurs, and tech professionals in the region's future growth prospects.

Key factors underpinning Hong Kong's business vibrancy include the social stability fostered by the rule of law and the certainty provided by its legal frameworks. The enhancement of the business environment is closely tied to these attributes, creating optimal conditions for operations.

In light of rising international geopolitical tensions and global supply chain risks, Hong Kong's adherence to the rule of law has been pivotal in nurturing a secure environment for innovation and entrepreneurship to thrive.

The region's stable legal framework, in addition to its efficiency and transportation networks, has established Hong Kong as a 'safe haven' for global investment. The World Competitiveness Ranking for 2025 acknowledged Hong Kong as the leading destination worldwide for business legislation.

Further validating this reputation, the World Bank's Global Business Environment Report 2025 highlighted Hong Kong's position among the top three globally in critical areas such as Business Entry, International Trade, and Contract Enforcement.

In 2025, the establishment of the International Organization for Mediation in Hong Kong marked a significant milestone, enhancing the region's appeal in global capital attraction and talent acquisition.

Technological advancement in Hong Kong is significantly supported by robust intellectual property (IP) rights. The region provides transparent and efficient IP protection systems, which are crucial for innovation, especially as companies approach technological frontiers.

Additionally, Hong Kong's IP protection is well-integrated internationally, further solidifying its stature as a center for IP trading and protection. The ongoing cooperation with global entities enriches Hong Kong's legal infrastructure, thereby sustaining its momentum in innovation.

Looking forward, the recommendations for the nation's 15th Five-Year Plan (2026-30) underscore the importance of enhancing Hong Kong's role as an international financial, shipping, and trade center. A stable and comprehensive legal environment is pivotal for bolstering innovation and entrepreneurship, helping Hong Kong to embrace new opportunities under the 'one country, two systems' framework.