• The Perfect Business Base 
  As an Asia business centre, Hong Kong’s proximity to all major Asian markets offers easy connectivity for the thousands of companies that choose it as their base. With half of the world’s population only five hours away by plane and over 100 airlines offering direct flights to 190 destinations, Hong Kong is not only an ideal location for regional headquarters, R&D centres, and corporate treasury functions – it is a leading choice for foreign investment.

• CEPA: Strengthening Economic Ties
  The Closer Economic Partnership Arrangement (CEPA) between Hong Kong and Mainland China is a cornerstone of economic collaboration. CEPA offers preferential treatment for Hong Kong goods, services, and investments entering Mainland China, bolstering Hong Kong’s status as an international financial centre. Recent amendments to CEPA and further liberalisation measures include:

• The removal of equity shareholding restrictions and relaxed qualification requirements for Hong Kong professionals
• Permission for Hong Kong-invested enterprises to adopt Hong Kong law and choose arbitration seated in Hong Kong
• The addition of commitments in domestic regulation that cut through red tape and lower trade costs when enterprises supply their services
• The removal of the requirement that Hong Kong service suppliers operate substantively in Hong Kong for three years in most services sectors, allows Hong Kong startups and foreign investors to benefit sooner
• Enhanced access for sectors like banking, insurance, construction, tourism, and film production
• These measures not only facilitate trade but also attract foreign investors seeking to benefit from CEPA’s liberalisation policies. Learn more about CEPA HK and its provisions on the CEPA website.

• Future-driven 
  Hong Kong plays a vital role in the Belt and Road Initiative, linking Asia with Europe, Africa, and the Middle East. Its robust legal system, free flow of information and capital, and sound regulatory framework position it as a leading partner for businesses leveraging Belt and Road opportunities. Additionally, the GBA’s integration of expertise across multiple cities creates a globally competitive city cluster in which Hong Kong serves as the economic anchor.

• Free Trade Agreements: Expanding Global Reach
  To secure favourable conditions for exports of goods and services from Hong Kong to the Mainland and international markets, Hong Kong government endeavours to enter into more Hong Kong’s Free Trade Agreements with the trading partners. The Economic and Trade Offices (ETOs) set up by the HKSAR Government in Mainland China and overseas will further promote economic ties and exchanges with Belt and Road countries. 

So far, Hong Kong has forged eight Hong Kong’s Free Trade Agreements, respectively with the Mainland of China, New Zealand, the Member States of the European Free Trade Association  (EFTA), Chile, Macao, the Association of Southeast Asia Nations (ASEAN), Georgia and Australia. FTA negotiation has also begun with other trading partners. FTA negotiation has also begun with other trading partners. Hong Kong has so far signed Investment Promotion and Protection Agreements with 20 economies and has concluded negotiations with Bahrain, Mexico, Myanmar and the United Arab Emirates. Negotiations will commence or continue with other Belt and Road countries.

• A Leading Financial Centre 
  As an international financial centre, Hong Kong offers a transparent regulatory regime for industries such as banking, securities, insurance, and FinTech. It is home to the world’s largest offshore Renminbi settlement hub and innovative financial platforms like Stock Connect and Bond Connect. In addition, the implementation of the Wealth Management Connect allows residents in Hong Kong, Macao and nine cities in Guangdong Province to invest in wealth management products distributed by banks in each other’s markets through a closed-loop funds flow channel established between their respective banking systems.

Moreover, Hong Kong Monetary Authority has issued eight digital bank licences that allow banks to deliver services exclusively or primarily through the internet or other electronic channels. The introduction of digital banks in Hong Kong is a key pillar supporting Hong Kong’s entry into the smart banking era, promoting financial inclusion as they normally target the retail segment, including the small and medium-sized enterprises (SMEs).

Insurance Authority has also issued four virtual insurer authorisations. These initiatives provide seamless access to Mainland China’s markets while reinforcing Hong Kong’s leading financial centre status.

Hong Kong entered a new phase of virtual asset regulation in 2024, with a licensing system and regulatory requirements for Virtual Asset Service Providers (VASP) being issued and regulated by Securities and Futures Commission (SFC).

In conclusion, Hong Kong’s strategic location, integration through CEPA with Mainland China, robust participation in global trade agreements, financial innovation and role in initiatives like Belt and Road make it an unbeatable choice for businesses seeking opportunities in Asia. Whether you are exploring CEPA, planning investments under CEPA HK China, or leveraging its free trade environment, Hong Kong remains at the forefront of global commerce.

Sector-specific

• Financial Services

Hong Kong is a leading global financial centre with deep and liquid capital markets, a fully convertible currency (HK$) and free flows of capital, goods and information. 

• Hong Kong ranks as the world’s freest economy in the Canada-based Fraser Institute’s Economic Freedom of the World 2024 Annual Report.
• Hong Kong ranked World No.3 and Asia-Pacific No.1 in the Global Financial Centres Index issued by UK-based Z/Yen and China Development Institute from Shenzhen in March 2025. 
• Consistently ranked among world leaders in terms of stock market capitalisation, IPO fund-raising, asset management, banking and insurance. 
• Fully plugged into global markets and trading cycles. 
• World’s largest centre for offshore Renminbi business, including RMB trade settlement, banking, bond issuance and product development. 
• Stock Connect links the stock markets of Hong Kong, Shenzhen and Shanghai; Bond Connect further improves financial connectivity between market infrastructures in Hong Kong and the Mainland; Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area enables residents in Hong Kong, Macao and nine cities in Guangdong Province to carry out cross-boundary investment in wealth management products distributed by banks in the area. 
• World’s largest offshore listing venue for Mainland Chinese issuers, with over HK$8 trillion raised since the first H-share listed in 1993. 
• Hong Kong originates and intermediates two-thirds of Mainland China’s inward foreign direct investment (FDI) and outward direct investment (ODI). 
• Low and simple tax system. Profits tax of 8.25% on first HK$2 million of profits of corporations and 16.5% thereafter; salaries tax of 15% on first HK$5 million of net income and 16% thereafter. No inheritance tax, no capital gains tax, no GST or VAT.

• Innovation & Technology

With opportunities brought by the National 14th Five-Year Plan and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), Hong Kong can capitalise on its advantages in research and development (R&D) capabilities, technology infrastructure, legal system and intellectual property to act as a strategic bridge for innovative companies looking to access the Mainland market, thereby developing into an international innovation and technology (I&T) centre.

• Hong Kong Science and Technology Parks Corporation (HKSTPC) provides infrastructural and one-stop support services to over 1,600 technology companies. 
• Cyberport is Hong Kong’s digital technology flagship and incubator for entrepreneurship with over 2,100 members. 
• Hong Kong-Shenzhen Innovation and Technology Park (HSITP) is being developed in the Lok Ma Chau Loop (the Loop) to provide about 1 million square metres gross floor area under phase 1 development. The first three buildings will be completed in phases starting from end-2024. 
• Six research centres established by the Government, namely the Automotive Platforms and Application Systems R&D Centre, Hong Kong Applied Science and Technology Research Institute, Hong Kong Microelectronics Research and Development Institute, Hong Kong Research Institute of Textiles and Apparel, Logistics and Supply Chain MultiTech R&D Centre, and Nano and Advanced Materials Institute, drive applied R&D in selected focus areas and foster commercialisation of R&D outcomes and technology transfer.
• The planning of the Northern Metropolis, particularly the San Tin Technopole, will align with the development positioning of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, and fully integrate with the strategy on enhancing Hong Kong’s I&T competitiveness to pave way for the future development of the Hetao Co-operation Zone in a forwardlooking manner.

• Transport & Logistics

The development of transport infrastructure and logistics industry complement each other. Hong Kong’s progress not only hinges on its traffic and transport system but also on the efficient flow of people and goods both domestically and internationally. The city will continue to consolidate and enhance its position as an international maritime centre, international aviation hub and regional logistics hub.

• As at October 2024, around 130 airlines offered more than 750 flights daily to nearly 200 destinations worldwide, including over 30 destinations in the Mainland. 
• Hong Kong has Air Services Agreements or International Air Services Transit Agreements with about 50 countries involved in the Belt and Road Initiative.
• With the full resumption of normal travel since early 2023, Hong Kong’s air traffic has been steadily recovering. In 2024, HKIA handled 44 million passengers in the first 10 months, exceeding the annual passenger throughput in 2023. On the cargo front, cargo throughput in 2023 amounted to 4.3 million tonnes, and that in the first ten months of 2024 recorded an increase over the same period in 2023, maintaining HKIA’s edge in cargo handling as the Asia’s Leading Airport and China’s Leading Airport in 2024 (World Travel Awards), the World’s Busiest Cargo Airport in 2023 (Airports Council International), the Airport of the Year 2022 (Air Cargo Week: World Air Cargo Awards 2022), Asia Pacific’s Cargo Airport and Air Cargo Technology Provider of the Year 2024 (11th Payload Asia Awards). 
• The Three-Runway System of HKIA came into operation in November 2024, signifying an important milestone for the development of HKIA.
• Hong Kong is one of the world’s busiest and most efficient ports with competitive advantages, including free port status, efficient customs and well-established port infrastructure. Water transport accounted for over 90% of freight volume to and from Hong Kong in 2023. 
• Hong Kong Port, an important regional hub port, handled 14.4 million TEUs in 2023. Every week, Hong Kong Port provides over 300 international container vessel sailings to nearly 500 destinations worldwide, of which over 220 shipping services connect different ports in Asia. Such extensive liner services coverage underpins Hong Kong’s position as an international maritime centre. 
• Ranked No.4 globally in the Xinhua-Baltic International Shipping Centre Development Index in 2022, 2023 and 2024, which rates international maritime centres in terms of port factors, shipping services and business environment. 
• Hong Kong Port maintains marine cargo movements with around 100 countries along the Belt and Road Initiative. 

• Legal Services

Hong Kong’s commitment to the rule of law and independent judicial power is key to the city’s prosperity and stability as an international financial centre. The common law system continues to be practised as constitutionally guaranteed, making the city the only common law jurisdiction within China.

• The Hong Kong Special Administrative Region (HKSAR) enjoys a high degree of autonomy under the principle of “one country, two systems”. To implement this, the Basic Law is enacted by the National People’s Congress of the People’s Republic of China (PRC) in accordance with the Constitution of the PRC.
• Hong Kong ranks No.3 in Asia in respect of the rule of law and regulatory quality and ranks No. 2 in Asia in respect of control of corruption in the Worldwide Governance Indicators of the World Bank Group (2024 updates). Besides, Hong Kong ranks No.5 globally in the World Competitiveness Yearbook 2024 (International Institute for Management Development), in which Hong Kong ranks No.1 globally in business legislation
• Hong Kong’s robust and transparent legal system is bolstered by the support of a community of quality, independent and international legal practitioners in different areas of law. As of November 2024, there were: 

• About 11,700 practising solicitors and 1,700 practising barristers 
• About 1,500 registered foreign lawyers from 31 jurisdictions 
• About 80 registered foreign law firms