Blog

Hong Kong's Business Environment

Last week, the Government released the Report on Hong Kong's Business Environment: Unique Strengths under “One Country, Two Systems”, which systematically explains Hong Kong's latest developments and advantages to all sectors of the community, as well as domestic, Mainland and overseas investors, through a series of facts and figures. The report comprehensively illustrates Hong Kong's open, safe, stable, efficient and internationalised business environment. Following its release, the Report has gathered widespread recognition and support from the business community, chambers of commerce, political circles and academics. This is particularly meaningful amidst the current complex geopolitical landscape, especially as a reference for foreign enterprises and investment institutions to gain a more objective and comprehensive understanding of Hong Kong, including our unparalleled advantages of being closely connected with the Mainland and the world, as well as being an international city.

Last week, I hosted a press conference to release the Report on Hong Kong's Business Environment: Unique Strengths under "One Country, Two Systems".

The latest economic data released last week also shows that Hong Kong's economy continues to maintain growth momentum. The overall economy grew by 3.1% year-on-year in the second quarter, driven by positive growth in all three major engines—exports, domestic consumption and fixed investment, and marked the tenth consecutive quarter of positive growth. The value of retail sales recorded mild year-on-year increases in May and June, and rose modestly by 0.3% in the second quarter. Total restaurant receipts also showed slight year-on-year growth in the second quarter. The above figures indicate signs of stabilisation in sectors including retail and catering, but it is undeniable that they are still under greater pressure. We hope that the industry will continuously strive to explore new ideas and bring forth new growth through innovation.

It is worth noting that residential property prices have continued to stabilise, while rental performance is resilient and trading has turned significantly more active. The monthly average number of transactions increased to about 5 600 cases in the second quarter, rising by around 37% quarter-to-quarter. As property prices stabilise, the number of negative equity cases fell by 7% quarter-to-quarter to around 37 000 cases last quarter. The Government's active efforts to attract investments and talent have increased the overall demand for properties. For example, the 84 strategic enterprises attracted by the Office for Attracting Strategic Enterprises have collectively occupied 1.68 million square feet of office space.

We can say that the stabilising residential property market, the thriving financial market, along with the steady growth of the economy and real income growth of workers, will render support to local consumption. At the same time, while the economy is undergoing transformation, we must continue to support affected groups, including enhancing employment support and retraining services.

Various recent mega events in Hong Kong have enlivened the community's atmosphere. The two much-anticipated matches of the Hong Kong Football Festival at the Kai Tak Sports Park attracted nearly 100,000 fans, with one match setting a new attendance record for the stadium.

In fact, since its opening, the Kai Tak Sports Park has become a key venue for both local and international events. The Kai Tak Stadium has attracted over 1 million attendees to date. Among the events, over 20 major concerts by internationally renowned artists and bands have drawn around 750,000 attendees, with more than 50% of them being visitors. The large number of participants, both locals and visitors, has not only boosted consumption but also showcased Hong Kong's image as a vibrant city and mega events capital to the world, thereby injecting new energy to the tourism sector.

Local tourism, retail and catering sectors are actively seeking changes and innovations, while the Government, public institutions and businesses are working together to capitalise on the advantages brought by increased participation in events and activities, thereby transforming them into economic benefits. For example, a popular cultural IP has recently collaborated with local enterprises and the MTR to promote Hong Kong's tourism highlights, offering fresh experiences for fans of the IP. Additionally, some local hotels have teamed up with Hong Kong Tramways to launch onboard dining services, leveraging the city's unique features to explore new business opportunities.

The upcoming National Games and the Wine & Dine Festival at the end of this year are key opportunities for the industry. The HKSAR Government will continue its efforts in organising a variety of mega events across different domains to attract more visitors from the Mainland and overseas. We look forward to providing visitors with refreshing and enjoyable experiences with our quality services and innovative products, and creating a wonderful scene for their happy moments and memories.

In addition to the pleasure in travelling, we are also actively promoting the pleasure in shopping. The Hong Kong Trade Development Council (HKTDC) has again launched the Hong Kong Shopping Festival, a month-long campaign on popular Mainland e-commerce platforms including Xiaohongshu, Douyin, Taobao and JD.com, to promote Hong Kong products. The Festival has attracted the participation of 260 brands, featuring over 500 great products. HKTDC has also organised a series of thematic seminars, with a view to enhancing the knowledge of Hong Kong enterprises in cross-boundary e-commerce operations and marketing.

We hope to further showcase Hong Kong's strengths and unique characteristics, such as adding a romantic touch to the vibrant and dynamic atmosphere of Victoria Harbour. Many locals also hope to enjoy the harbour's beauty in air-conditioned comfort during the hot summer, or stroll along the waterfront with a coffee as autumn approaches. This not only provides residents and tourists with a relaxing and leisurely space for enjoyment but also stimulates nearby economic activities, creating a synergy effect. The Government will actively explore more facilitating measures to unleash greater economic vitality for local communities.

The Government will continue to work hand-in-hand with the industry and the public to create more opportunities and occasions to boost consumption in Hong Kong. We hope to leave visitors with delightful memories through more innovative and enjoyable experiences, offer enterprises with greater business opportunities, and provide residents with an array of exciting major events and consumption choices.

August 3, 2025