World Bank Group named Hong Kong among world’s best-performing economies

(China Daily) HONG KONG — Hong Kong has been winning global acclaim for its ever-improving business and investment climate underpinned by its status as a global financial hub and relentless efforts to nurture industries and firms.

A pilot Business Ready 2024 Report published by the World Bank Group has named Hong Kong one of the best-performing economies in business environment out of the 50 economies it surveyed worldwide, according to a spokesperson for the Hong Kong Special Administrative Region (HKSAR) government.

The report gauges business and investment climate from 10 topics with three pillars under each topic. Hong Kong ranks fifth in the pillar of “Operational Efficiency” with a score of 78.52 points out of 100 points. Among the 10 topics, Hong Kong scored 90.77 points for “International Trade,” 85.49 points for “Business Entry,” and 77.71 points for “Utility Services.”

The report also highlighted that Hong Kong has few restrictions on international trade in services and implements good practices in terms of information provision and regulations relating to company registration, the spokesperson said.

The pilot report is the latest in a string of nods to the ease of doing business in Hong Kong. The World Competitiveness Yearbook 2024 published by the International Institute for Management Development in June put Hong Kong first in terms of “International trade” and “Business legislation.” Hong Kong ranks among the top five globally in “business environment,” “human capital” and “infrastructure” according to the latest Global Financial Centers Index.

“Apart from London and New York, I think there’s no other international regulatory environment that is more valuable than Hong Kong’s. I’m absolutely confident that I’m in the right place,” said French entrepreneur Julien Martin, dubbing Hong Kong one of the most attractive destination for businesses to grow and thrive.

Having worked in the financial industry in Hong Kong for more than 10 years, Martin founded a green finance startup, as he has every confidence that Hong Kong’s strong regulatory regime, free flow of capital, as well as abundant sources of technological innovation will help his company thrive.

Many foreign firms share Martin’s upbeat sentiment for growth. According to a latest business confidence survey conducted by the German Industry and Commerce Ltd. and the German Chamber of Commerce in Hong Kong, 86 percent of respondents stated their company was not considering a relocation in the immediate future, while one in four indicated further investments in Hong Kong in the next two years, suggesting a commitment to maintaining stable operations in Hong Kong.

Adding to Hong Kong’s long-standing allures including a transparent regulatory environment, a competitive tax regime and top-notch professional services and talents, Hong Kong is nurturing its sci-tech innovation sector as a cradle of startups as well as offices of leading firms.

“Aside from enjoying a long legacy as one of the most important international business centers and logistics hubs in the world, Hong Kong is also committed to becoming a leader in the innovation and technology industry and is well-placed to achieve such a status,” said Yang Ming, global strategic affairs vice-president of WestWell, an autonomous-driving developer founded in Shanghai.

Hong Kong’s strategic location at the center of Asia enables innovation and technology companies to establish extensive connections with the regional market and achieve deep insights, Yang added.

Entrepreneurs also say that Hong Kong’s supportive ecosystem for startups can come in handy, with government-backed initiatives, incubators, accelerators, and funding schemes in place to help startups navigate regulatory frameworks, access capital, and connect with potential partners or clients.

Heartened by Hong Kong’s efforts to make its business environment more appealing, leading firms are pivoting increasingly to Hong Kong. Artificial intelligence (AI) and intelligent speech giant iFLYTEK and its subsidiary iFLYHEALTH announced plans in July to set up their international headquarters in Hong Kong’s flagship incubator Cyberport.

Hong Kong will maintain its international, open and friendly business environment, said Financial Secretary of the HKSAR government Paul Chan during his visit to Spain in late September. Chan had vowed to deepen cooperation with both developed and emerging markets for fresh impetus into Hong Kong’s capital market.