Hong Kong sees broad-based economic resilience under "One Country, Two Systems"

Hong Kong sees broad-based economic resilience under “One Country, Two Systems”

Events
The Buzz Nepal
August 8 , 2025

HONG KONG SAR – 8 August 2025:

The Hong Kong Special Administrative Region (HKSAR) Government has released its latest report on the city’s business environment, coinciding with the announcement of the city’s advance estimates on economic performance in the second quarter of 2025. Positive economic indicators and the report’s analysis correctly depict Hong Kong’s robust business-friendly climate, which attracts people and enterprises from all over the world.

According to the report, Hong Kong’s economy grew by 3.1% year-on-year from April to June 2025, marking the 10th consecutive quarter of expansion. The growth was driven by an 11.5% increase in total exports of goods and a 1.9% rise in private consumption expenditure.

The city also saw a strong influx of visitors during the first half of 2025, welcoming about 24 million people – a 12% year-on-year increase. Visitors from Mainland China rose by 10%, while arrivals from other parts of the world grew by 17%. The diverse range of events, from trade fairs to cultural festivals and sports, contributed to the boost in tourism.

One highlight was the first Hong Kong Football Festival at the new Kai Tak Sports Park, which drew nearly 100,000 spectators over two match days featuring Liverpool vs. AC Milan and Arsenal vs. Tottenham Hotspur. The event also marked the one-millionth visitor to the stadium since its opening five months ago.

The Government report emphasized Hong Kong’s strengths under the “One Country, Two Systems” framework, including its robust legal and financial systems, low tax regime, strategic location, advanced infrastructure, and pool of professional talent. These factors, combined with close connections to global business hubs, continue to make the city a preferred choice for corporate investment.

In the first half of 2025, Hong Kong’s stock market also showed improvement, with the Hang Seng Index climbing by over 4,000 points, or around 20%. IPO fundraising reached over US$13.6 billion, placing Hong Kong among the leading global exchanges. July alone saw nine IPOs raise more than US$2.3 billion.

Investment momentum has continued, with the Office for Attracting Strategic Enterprises (OASES) bringing in 84 enterprises expected to invest about US$6.4 billion and create more than 20,000 jobs in the coming years. Since January 2023, Invest Hong Kong has assisted over 1,300 overseas and Mainland companies in establishing or expanding their operations in the city, generating more than US$20.3 billion in foreign direct investment.

Talent attraction programs have also seen significant uptake, with nearly 500,000 applications received. Of these, almost 330,000 have been approved, and about 220,000 individuals have already arrived in Hong Kong.

The HKSAR Government stated it will continue efforts to promote growth across different sectors and leverage the city’s unique advantages to sustain its position as a competitive and open economy.