Hong Kong, finance, innovation and onward to Asian markets

If you happen to be walking around central Hong Kong on a Sunday, you are likely to find yourself slaloming between groups of people camped out in every possible spot, playing bingo, singing karaoke, dancing for TikTok, browsing the clothing and food market, and perhaps even watching a show such as the award ceremony for the most beautiful traditional dress. Thousands of people everywhere, mostly of Filipino origin, who work as domestic helpers during the week and occupy every possible urban space on Sundays. The city administration even closes entire streets to allow them more space. For one day a week, the city’s office towers, including the most iconic ones such as the Bank of China Hong Kong and HSBC, cast a shadow over this expression of human community that enlivens the streets, parks and squares, almost as if we were not in the third most important global financial city after New York and London according to the Global Financial Centres Index for 2025.

Hong Kong thrives on contrasts, on the new and the old, on the best of what remains of its colonial past. The only thing that still bears the word ‘royal’ is the yacht club. It thrives on the East and the West, where the concept of a global city is present everywhere in every aspect of daily life. Hong Kong thrives on opportunities created by its uniqueness, not only geographical but also social, political and administrative.

The city has a relatively small population considering the average size of Chinese cities. with a total population of around 7.5 million people. It is governed independently thanks to the model known as ‘one country, two systems’, which defines Hong Kong as an inalienable part of Chinese territory on the one hand, and entrusts a local system governed by the so-called ‘basic law’ with broad freedom to manage a wide range of issues, allowing it to pursue development objectives in an international context that are truly unique. The main differences between the systems of mainland China and Hong Kong concern above all the legal system, which in Hong Kong retains the British-inspired common law model and is administered in both Chinese and English, while mainland China uses the civil law model (the same legal system used in Italy), which is administered solely in Chinese. Another key feature that sets Hong Kong apart is the lack of capital controls, which are applied in China. This obviously makes it easier to conduct business internationally and strengthens the role of the financial centre, including the stock exchange.

Of course, there are many specific features of Hong Kong’s Basic Law, covering all aspects of civil life, but here we will focus on the elements that make Hong Kong a unique destination, rich in opportunities for global companies looking to expand into Asian markets, for start-ups seeking new outlets and opportunities in terms of research and development, and for investors.

To better understand the situation and the actual opportunities, we met with several representatives from various offices and departments of the Hong Kong government, which is currently led by Chief Executive John Lee Ka-chiu.

Office for attracting strategic enterprises

The Hong Kong SAR (special administrative region) government created Oases about three years ago to accelerate the process of attracting companies operating in sectors considered strategic. This is a specific evolution of the work done by InvestHK, which we discuss below, and focuses in particular on five sectors: artificial intelligence and data science, advanced manufacturing and new energy, fintech, cultural creativity industry, life and health. “Our goal,” says Jimmy Chiang, deputy director-general of Oases, “is to bring large companies active in these areas to Hong Kong, but we are also aware that it is appropriate to develop actions on companies that, while not very large, are already leaders in their markets and may be in the process of raising Series B funding or even almost ready for listing on the stock exchange.”

To date, Oases has brought over 100 companies to Hong Kong, most of which (75%) come from mainland China, with the remainder mainly from the United Kingdom, the United States, France, Germany, Canada, Switzerland and Singapore. “These companies,” says David Dai, senior advisor at Oases, “have brought in investments worth HK$60 billion (approximately €6.7 billion) and created around 22,000 jobs.”

“InvestHK and Oases are the Hong Kong government’s two investment promotion agencies, and Oases was created specifically to give greater impetus to strategic sectors,” adds Chiang. . “Our goal is to attract Chinese companies that want to expand into the rest of the world, but also international companies, particularly European ones, that want to expand into Asian markets. We do this by providing a complete set of services that we call Benefits, which stands for business, exposure, networking, easy landing, funding, infrastructure, talent and space, and includes everything we provide to those who choose to come to Hong Kong’. The Benefits support model includes all activities related to the creation of business opportunities, market promotion and public relations, creating connections with the Oases network business community, assisting with establishing a presence in Hong Kong, activating relationships with the world of financiers, supporting the definition of technological infrastructures, accessing the academic world to identify talent to hire, and managing aspects related to physical presence, i.e. land and offices.

InvestHK

“According to the latest data from 2024, there are currently 4,700 start-ups operating in Hong Kong, with data for 2025 available shortly,” says Chin Yung Lu, senior vice president for the start-up sector at InvestHK . “Of these, 72% are founded by local entrepreneurs and 28% come from outside Hong Kong, with 40% from mainland China, 10% from the United Kingdom, 10% from the United States and the remaining 40% from other countries around the world. The main sectors are fintech, information technology, e-commerce, education tech and data analytics.”

“We want to increase the number of start-ups coming from Europe,” emphasises Alpha Lau, Director General of InvestHK. “We need to work to raise awareness of the opportunities that exist here. Hong Kong is like a window on the world for China, and on Asian markets for the rest of the world. Chinese companies use Hong Kong to strengthen their export strategies. Hong Kong is to China a bit like the DIFC (Dubai International Financial Centre, ed.) is to the United Arab Emirates. It should also be remembered that the Hong Kong dollar is currently pegged to the US dollar and that there are no controls on cash flows in Hong Kong, which makes it an extremely effective platform for business entering China and vice versa. Finally, it should not be forgotten that today the Hong Kong Stock Exchange (HKEX) ranks first in the world in terms of the number of IPOs (initial public offerings, with 67 recorded in the first nine months and 80 expected by the end of the year – various sources including KPMG).

Kinder Chu, senior vice president for start-ups at InvestHK, adds further details to the picture: “In Hong Kong, it is very easy to manage payment flows, even at an international level, and we have a system that makes it extremely simple to set up a company here. You can do everything yourself and directly online. We are always available to provide support, of course, but the procedure is really very simple. It takes a maximum of two hours to complete everything, and we can then step in to provide support in terms of professional services, consulting and public relations.”

Today, there are almost 10,000 international companies in Hong Kong, most of which come from the United States, the United Kingdom, Singapore and Japan. There are also policies to attract international students with scholarships and three-year student visas. We will return to this topic below, exploring strategies to attract international students, which is an excellent way not only to consolidate the city’s cosmopolitan role but also to create a global community that has had various experiences in Hong Kong and therefore tends to consider it, in the course of their career development, as a preferred destination for launching internationalisation initiatives towards Asian markets.

GBA

Before continuing with the information provided by various government departments, it is necessary to examine another element that is useful for fully understanding Hong Kong’s role in the current scenario. We therefore need to explore the concept of the GBA, which stands for Greater Bay Area. The GBA is a sort of context that lies between Hong Kong’s special administrative status and the standard Chinese model. The GBA is an area shaped like a horseshoe, with Hong Kong at its eastern end and Macao at its western end, and includes the cities of Shenzhen, considered China’s most technological city, Dongguan, Huizhou, Guangzhou, Zhaoqing, Foshan, Zhingshan, Jiangmen, Zhuahi and Macao.

An area with a population of 87 million people, a GDP of over US$2 trillion and covering 56,000 square kilometres. A megacity with unique characteristics, combining the financial power of Hong Kong, which acts as Wall Street, and Shenzhen, which is a sort of Silicon Valley, with the difference that they are not five hours apart by plane but are extremely close. To get to Shenzhen from Hong Kong, you take the underground, and in less than an hour you cross the river and find yourself in the heart of China’s tech city.

An area that, with the inauguration of the very long bridge connecting Hong Kong with Macao, a pharaonic work 55 kilometres long, i.e. more than 18 times the length of the bridge over the Strait of Messina (which remains a record for the length of the suspended span), consisting of a 23-kilometre bridge, a 7-kilometre tunnel, two artificial islands, an additional 12-kilometre sea link to Hong Kong and a 13-kilometre link to Zhuhai, a project that has drastically reduced travel times. For example, it used to take four hours to travel from Zhuhai to Hong Kong Airport, but now it takes only 45 minutes. In short, the bridge has transformed the GBA from a horseshoe into a perfect ring, not geometrically but certainly geographically. In the rest of this report, we will understand why the GBA is fundamental to understanding Hong Kong’s potential.

Constitutional and Mainland affair bureau

Franco Kwok is the principal assistant secretary for Constitutional and mainland affairs, and his mission is to emphasise the importance of synergy between Hong Kong’s role, with its specific characteristics in relation to mainland China, and the rest of the world. “Since 1997, when the handover from Britain to China took place, the model we call ‘one country, two systems’ has been in place, allowing Hong Kong to apply common law and avoid capital controls. It should also be noted that there is still a separate currency and passports are issued by different authorities. and there is also a border between mainland China and Hong Kong. Some powers are vested in Beijing, such as defence, while others remain largely independent, such as international affairs, the legal system and the tax system. Even Chinese companies that open offices in Hong Kong must register with a specific legal entity, just as those from other countries do.”

The education system also remains different, and Hong Kong’s universities continue to achieve excellence and appear at the top of rankings that reward universities around the world.

According to the agreements between Britain and China that led to the handover of the territory in 1997, Hong Kong’s autonomy is guaranteed for 50 years, i.e. until 2047, but according to Kwok, an opinion shared by almost everyone in the city, the Beijing government has no interest in changing things even after 2047 because, on the one hand, this balance is working well in terms of generating business and economic and social value, and on the other, because Beijing needs to have a window open to the world that can guarantee a favourable environment for development and credibility in the long term, well beyond 2047. If this were not the case, it would already be difficult today to attract foreign investment and businesses.

“It is true that, from a formal point of view, the border between Hong Kong and mainland China still exists, but it is also true,” adds Kwok, “that Hong Kong residents are increasingly travelling to Shenzhen, which is very close and offers a range of high-quality services at much more competitive prices than those found here. On the one hand, this phenomenon has repercussions on the local economy, but on the other, it increases mutual exchange between the two cities,” which appears important in light of the Northern Metropolis project and the new science and technology park that will be built on the border between the northern part of Hong Kong, called New Territories, and the city of Shenzhen, which you will read about later.

Policy Unit

Fundamental to understanding the system not only from a technical point of view but also from an operational point of view is what Stephen Wong, head chief executive of the Policy Unit, together with Nicholas Kwan, deputy head of the same division, says: “I take as a prime example of strategic development the Northern Metropolis project, which has a unique physical and conceptual characteristic. It represents the future both because it is a place designed for the development of research, innovation and technology, and because it is a hinge that strengthens the relationship between Hong Kong and Shenzhen, focusing precisely on the vision of technological and social innovation. Shenzhen is now the most technological city in China and is considered the place where innovation finds its most fertile ground. Its proximity to Hong Kong brings value to both sides of the river of the same name (the Chinese city, also known as Sham Chun, ed.). These synergies are already in place. For example, there are healthcare companies that develop in Hong Kong and then conduct clinical trials in China because there are more patients and because the costs are lower. These are always high-quality products and treatments that benefit the entire GBA area.

Innovation, technology and industry bureau

The science park project on the border with Shenzhen is at the heart of the strategies of the department responsible for innovation, technology and industry, as emphasised by Vicky Cheung, principal assistant secretary, and Molly Hui, assistant secretary, of the Innovation, Technology and Industry Bureau. The former, in particular, is responsible for the development of the project. “We are talking about a project worth HK$22 billion in public investment, to which private investment will be added, and which will be completed in the first phase by 2030 and in the second phase by 2035.” The HSITP, which stands for Hong Kong Shenzhen Innovation Technology Park, will be the new pillar of the system of development, innovation and support for start-ups located in Hong Kong, with the HKSTP, Hong Kong Scientific Technology Park and Cyberport, the technology park dedicated to digital technologies, which we will discuss later, at the forefront.

“We are very focused on this project. We are thinking of it as a new structure, both physically and conceptually, as a place capable of providing effective support to innovative businesses by providing M&M support, i.e. money and market. the two elements that innovative companies and start-ups need in order to grow and develop. It is a project strongly supported by the government, which, under John Lee’s leadership, is showing great operational momentum and is aiming to achieve concrete results.”

HKSTP

The Hong Kong Science and Technology Park is a large, complex facility, a veritable mini-city located in the Shatin area, roughly halfway between central Hong Kong and the border with Shenzhen. Michael Leung, associate director of portfolio development for the start-up ecosystem, highlights a few key points: first, he emphasises that HKSTP already has a branch in Shenzhen, which can be reached from the Shatin headquarters in about 30 minutes and is an outpost in the Chinese capital of technology and a precursor to what will be the conceptual basis of the HSITP. He then focuses his attention on what we might call a showroom of startups based in the park with projects related to physical artificial intelligence, renewable energy, medical devices and support for the disabled, with even innovations that look to the world of entertainment with a robotic mixer capable of preparing the main cocktails autonomously.

The park covers an area of 31,000 square metres and is at the heart of the Health@InnoHK and AIR@ InnoHK programmes, which focus on life sciences and artificial intelligence and robotics respectively. These programmes are supported by the government with a total investment of HK$10 billion and aim to bring together research activities, talent and resources in order to develop synergies and create value in terms of technology, science, business and impact on the local area. Over the years, the park has generated 13 unicorns and boasts numerous industrial partnerships with companies such as HSBC and Cathay Pacific, the Hong Kong airline, which is also a sponsor of EPIC, the Elevator Pitch International Competition, which took place in early November at the new maritime station that stands on the strip of land that was once the runway of the old Kai Tak airport, among a hundred start-ups from around the world, including the Italian companies Insilicontrials, Insimili and Nano-tech.

Digital policy office

Cari Wu is assistant commissioner of the Digital Policy Office, responsible for collaboration with both industry and mainland China. She explains how the use of technology in public administration and by citizens is now widespread, enabling new levels of efficiency in service delivery: “For example, the I Am Smart app, which we launched in 2022, now has 3.8 million users, which is basically the majority of Hong Kong’s adult population. The app also integrates a payment system that allows users to directly manage all types of transactions and integrate banking, insurance and energy bill management services.” But digital policies look further ahead, and work is underway, for example, on digital corporate identity, which is expected to be active by 2026, and on policies to ensure cybersecurity, to ensure that sensitive data resides in Hong Kong, and to define an interoperability strategy for the flow of information through collaboration agreements with mainland China and internationally.

“Relationships with academia and collaboration with private companies are also very important in our strategy,” adds Wu, “which is why we have launched programmes such as AIR@ InnoHK, a veritable ecosystem of initiatives related to artificial intelligence that also includes a proprietary LLM presented in February 2025, HKGAIV1, an institute for AI-related research and development funded with HK$1 billion, a supercomputer centre, and an economic support programme for AI-related initiatives with a budget of HK$3 billion.”

Digital policies serve to support the sector and make Hong Kong a hub for digital innovation, including through international events such as InnoEX and the World Internet Conference Asia Pacific Summit, which take place in the city, as well as the start-up and fintech festivals hosted by the Hong Kong Convention and Exhibition Centre, which is part of the Hong Kong Trade Development Council (HKTDC), which we will discuss below. But before we get there, there are two other aspects to explore, namely the legal and educational aspects, which complete the picture of how international companies can find Hong Kong to be a highly favourable landing point for developing Asian markets, conducting research, finding investors and accessing the dynamic financial market. For example, on 6 November 2025 saw the listing of two companies involved in autonomous driving called Pony AI and WeRide, two highly technological companies, the former more focused on the robotaxi service to be developed throughout mainland China, the latter on the development of technologies and the creation of fleets of autonomous vehicles, both already listed in the US and capable of attracting interest and capital from investors operating on the highly dynamic Hong Kong Stock Exchange, which in October 2025 capitalised approximately HK$48 trillion, equivalent to approximately €5.3 trillion (by comparison, the Shanghai Stock Exchange is worth 64.5 trillion Chinese renminbi, equivalent to €7.8 trillion).

Cyberport

Rebecca So, head of marketing at Cyberport, begins by illustrating the design of the new building, the fifth on the campus, which will be located a stone’s throw from the sea and is almost ready. It will be inaugurated in January 2026 and will provide an additional 66,000 square metres of space. “Cyberport is the incubator for Hong Kong’s digital industry. We have relationships with large companies that come here to seek innovations that are useful to them. We also provide financial support, with HK$500,000, to all the start-ups we incubate and that follow our two-year programme, which number around 160 and are part of the more than 2,300 companies based here. Ours is a holistic ecosystem with financial resources that include a HK$400 million co-investment fund, the Cyberport investor network and the Cyberport venture capital forum, which allows us to have ongoing relationships with investors. This generates excellent results, as our start-ups have raised a total of HK$46.2 billion to date.”

Cyberport is the cradle of digital innovation in Hong Kong. For example, 40% of fintech companies and start-ups originate here. There are 280 companies working on blockchain and web3, over 400 working on artificial intelligence, robotics, big data, 30 on cybersecurity, 170 on digital entertainment, and 900 on smart living. The campus also houses Hong Kong’s most powerful supercomputing centre. “We also have companies that are listed on the Hong Kong Stock Exchange. We help companies go international by working with chambers of commerce in different countries around the world. We have also recently invited several consuls general here and have active alliances with Dubai, Saudi Arabia, Thailand, Korea, Malaysia, Japan and the United States.”

The legal system

Helen Kung, Deputy Principal Government Counsel of the Legal Enhancement and Development Office at the Office of the Secretary for Justice of the Hong Kong Government, illustrates the peculiarities of the legal system in its relationship with Chinese Mainland and, therefore, in its role as an effective “super-connector” supporting both international companies wishing to expand into China and mainland Chinese companies aiming to enter international markets.

The system is highly structured and, above all, constantly updated. “To understand the current model,” says Kung, “it is important to note that, under the “one country, two systems” principle, Hong Kong is the only common law jurisdiction in China. In fact, the common law system in Hong Kong has a strong heritage and an excellent reputation in the global community. Since July until 1997, Hong Kong has its own Court of Final Appeal as the highest appellate court. Both Chinese and English are official languages in court proceedings and a significant number of bilingual judgements and other legal materials are uploaded regularly to the Hong Kong Judiciary’s website for greater transparency and accessibility. We have a system that guarantees the judges exercise their adjudicative power independently through legal protection, and everyone is equal before the law. It is also possible, for example, for a citizen to sue the Hong Kong government itself if the circumstances warrant it.”

In Hong Kong, there are approximately 11,800 solicitors, i.e. lawyers who work with clients, and approximately 1,780 barristers, i.e. lawyers who specialize in advocacy. The Department of Justice has also been actively promoting the use of legal technology and artificial intelligence in the legal sector.

However, what is particularly interesting is the relationship between the legal systems of Hong Kong and the Chinese Mainland, especially when it comes to businesses. As mentioned, Hong Kong has a common law system which is distinct from the civil law system adopted in the Chinese Mainland. What is important to know here, however, is how businesses that choose to establish themselves in Hong Kong in order to open up to the Chinese Mainland market can operate as effectively as possible by choosing to apply Hong Kong law in their contracts.

A framework has been developed and recently expanded which supports Hong Kong-invested enterprises registered in Shenzhen and Zhuhai to adopt Hong Kong law in their contracts. It also supports Hong Kong- invested enterprises established and registered in any of the nine Mainland municipalities in the GBA to agree to choose Hong Kong as the seat of arbitration in their contracts.
This rule was officially in force since 14 February 2025 and was further explained in a press release issued by the Department of Justice (DoJ) in October 2025. Details have been published on the DoJ website. “Hong Kong invested enterprise” broadly means enterprises which are wholly or partially invested by natural persons, enterprises or other organizations from Hong Kong and are established and registered in the Chinese Mainland according to its laws. There are no restrictions on industry or case type.

These types of initiatives, which are legal in this specific case but whose approach encompasses every area, highlight how Hong Kong acts as a connecting platform that is not merely a ‘transit point’ but adds value in every aspect, and, in this way, it makes a difference with its political, social, geographical and economic uniqueness.

Anti-corruption

Also in the legal sphere, the role of the ICAC (Independent Commission Against Corruption) is fundamental. Karis Chan Ka-yu and Kate Cheuk Chi-yan, respectively senior corruption prevention officer and assistant director of corruption prevention, describe it starting with an anecdote: “Here in Hong Kong, the ICAC coffee is famous, so famous that we even have a coffee shop on the ground floor of our building that is open to the public. This fame stems from the fact that in the past, potential cases of corruption were followed up by inviting possible suspects or people with knowledge of the facts to have a coffee with us. so being invited for coffee at the ICAC implicitly implied that the guest was an informed or active party in a case. Furthermore, coffee and its ritual carry with them characteristics of integrity and confidentiality that give a measure of the importance of the way we handle cases.”

ICAC was established in 1974 following a corruption scandal that received widespread media coverage and had a significant impact on public opinion. The scandal involved a senior police officer and triggered a series of reactions, including the establishment of an entity independent of the police force to be responsible for the prevention and prosecution of corruption-related crimes.

Today, ICAC has achieved high-profile results by working on investigation, prevention and, above all, education, thus working to prevent corruption at a cultural level rather than through prevention and prosecution tools: “Corruption is a hidden, almost secret crime, and only comes to light if there is cooperation from witnesses or those who are unwittingly involved. Today, ICAC participates in international forums to share practices and methods in order to increase our effectiveness as much as possible, and the results are clear to see. Today, we record very few cases in Hong Kong, but our goal is, of course, to have zero corruption.”

Talents

The Hong Kong Talent Exchange, which is part of the Labour and Welfare Bureau, is headed by Felix Chan, who explains that the goal of his work and that of his 37-person staff, only seven of whom are government officials, is not only to attract international talent but also to ensure that they choose to stay in Hong Kong for as long as possible. “We take a proactive approach and actively engage with talent from around the world. We do this through two main actions,” he explains. “The first is to promote Hong Kong as a place to live, study and work, and we do this by offering various forms of support. We have seven different programmes, which since 2022 have enabled us to attract 240,000 talented individuals, 90% of whom are from mainland China and 10% from the rest of the world. I would like to point out here that a large proportion of Chinese talent comes from international experience, so it is true that they fall within the 90% category as they have Chinese passports, but in many cases they are people who have gained experience in Europe, America or other Asian countries. All of these people choose Hong Kong as a base for developing their careers, often growing to levels of responsibility or business expansion with a reach across the Asia-Pacific region. The second action is to actively support the talents who have chosen Hong Kong in integrating and doing things, from the most practical necessities of daily life to the most challenging ones, such as creating a start-up and finding investors. We hold workshops on various topics and activities not only with the talents but also with their families. Our community now has 220,000 people, including talents and their family members’.

Seventy per cent of the talent Chan refers to is under 40 years of age, which is another important factor given that Hong Kong currently has a relatively low birth rate and therefore a generally ageing population. However, age alone is not enough; the talent must be the right kind and must enjoy living in Hong Kong, which seems to be the case according to the IMD World Talent Report 2025 compiled by the IMD Business School, which assesses the competitiveness of countries in terms of the human talent needed to sustain long-term economic growth, Switzerland ranks first, followed by Luxembourg and Iceland, with Hong Kong in fourth place, making it the top destination in Asia. ‘ In Hong Kong, we have no natural resources; our resource is brains,’ adds Chan, ‘and they too are part of the city’s strategy to be a super connector that adds value. It does so with business, it does so with capital flows, it does so with people, knowing that here, aspects related to production, technology, finance, the market and talent are all close by and work synergistically’.

Fintech

Fintech is one of Hong Kong’s strategic sectors, both because the financial industry plays a key role in the city’s economy and because it is an innovation that makes Hong Kong’s role as a superconductor between mainland China and the rest of the world even more efficient, as we have seen.

For this reason, Kelvin Lo, principal assistant secretary of the Financial Services Branch, which is part of the Financial Services and Treasury Bureau, recalls that this year marks the tenth anniversary of the Fintech Festival, part of the Startmeup HK Festival, which attracts major technology players as well as start-ups operating in the sector. He explains how digital assets are part of the strategy: “For example, as early as June 2025, we defined a legal framework for stablecoins, which is of great interest to investors and payment system operators.” Payment systems are an interesting aspect because not only is the use of cash significantly reduced, but most payments, especially in mainland China, are made through apps such as Alibaba’s Alipay and Tencent’s WeChat, which are the two main ones.

Fintech is thriving in Hong Kong, partly thanks to reduced restrictions on cash flow controls, which is also an important aspect for Chinese companies wishing to do business internationally. On this front, says Lo, a series of operational agreements are being finalised to make everything very transparent and effective.

Fintech means talent, it means training, it means collaboration with the entire GBA, it means international agreements such as those already in place with Thailand, Japan and Korea. All these aspects are part of the strategy that the government supports in order to make Hong Kong a benchmark for the global fintech industry and innovation.

“Fintech serves individuals and businesses, making life easier and investments more fluid. Here in Hong Kong, we have over three thousand family offices that allocate significant resources to investments. we have financial instruments linked to the green economy, such as green bonds, which are used to finance innovation in support of the environment. We have a favourable tax regime for those who invest in venture capital funds, a sector that is very active and has a long history. In addition, there is a rule, 18C of the Hong Kong Stock Exchange listing rules, which allows companies that would otherwise not have the economic and financial characteristics to list themselves to do so. This rule considers companies operating in technology and green sectors, which can apply and request to be evaluated even if, for example, their financial statements show a loss. This instrument allows, on the one hand, deserving companies to raise money from the market and, on the other, brings further dynamism to the activities of the Hong Kong Stock Exchange, which to date in 2025 has recorded IPOs worth a total of over HK$200 billion and moves between HK$200 and HK$300 billion every day in transactions.

Further economic considerations

Sensitivity to companies’ capital raising needs is also reflected in another measure outlined by Bernard Chan, Under Secretary for Commerce and Economic Development: “We have created a financial sandbox that aims to help businesses and start-ups raise money by leveraging their intellectual property. In practice, we ensure that the value of IP is considered a monetisable asset by credit institutions, for example.” This scheme enables companies that may already have a patent but have not yet found the resources to develop the subject of that patent to access financing, including in the form of debt, with the support of this tool.

“Today in Hong Kong,” Chan continues, “there are 1.46 million companies, and we have the task of ensuring that they decide every day to stay in Hong Kong because they find everything they need here. That is why we, as a government, are now present in 68 countries, with offices all over the world. the next opening will be in Riyadh, Saudi Arabia, we have free trade agreements with countries in the Asian region such as Indonesia and Malaysia, and we have the Economic and Trade Express programme, which serves to bring Hong Kong-based companies to the world.”

Although, as mentioned above, Shenzhen is currently competing mainly in certain services, such as catering, Hong Kong has 20,000 restaurants, and the drive to make the city’s economy increasingly strong and dynamic is certainly not losing momentum: “The value generated by US companies has plummeted from 15% a few years ago to 5% today, which is why, among other reasons, Europe and the European Union are now our focus. We are also seeing European companies arriving in Hong Kong that may have already had headquarters elsewhere in Asia, and above all, it is the strategic sectors that make the difference for us: artificial intelligence, biotechnology, energy, fintech, and advanced manufacturing.”

The EU presence

Sami Al Daghistani is the trade affairs officer at the European Union office with jurisdiction over Hong Kong and Macao: ” Our office reports to DG Trade and we are part of the European International Service. Currently, the value of trade between the EU and Hong Kong is around €70 billion (it was just under €60 billion in 2024, ed.), of which €30 billion is goods and €40 billion is financial, transport, legal, insurance and logistics services. Today, the EU is Hong Kong’s fourth largest trading partner after mainland China, the United States and Taiwan, and is the fifth largest investor in Hong Kong.” There are 1,640 European companies in Hong Kong, a number that was higher before COVID-19, when there was a real exodus, but now there is a significant, continuous and determined return, even if the numbers are still lower than in 2019: ‘for example, considering only the French presence, we are seeing a 20% decline compared to pre-COVID-19 levels’.

“Europe should view Hong Kong as an excellent place to do highly competitive business. The tax system is simple and advantageous, access to the large mainland Chinese market is a given, the currency is easily convertible and therefore there is room for manoeuvre for European banks. I believe that Hong Kong is an excellent place to do business, even if at the moment there is some suffering in the retail and luxury goods sectors because the general global context of economic uncertainty is also felt here and even the Chinese are spending less. and then there is competition from Shenzhen, which is still able to offer more competitive costs, but I believe it is only a matter of time because I see that the luxury, services and accommodation sectors are returning to growth and, although the post-COVID rebound is not yet complete, the indicators are positive’.

Today, even from Al Daghistani’s point of view, the financial sector is the one that is growing the most: “This is due to many factors. Certainly, the Hong Kong government’s policies facilitate and are geared towards supporting business and finance, but the presence of Chinese capital passing through Hong Kong and then going out into the world is also very important. the Hong Kong and Shanghai stock exchanges are extremely dynamic and collaborate with each other, and then there is Beijing’s clear position in supporting Hong Kong as an innovation hub by backing projects such as Northern Metropolis, but also through numerous cooperation programmes, by facilitating the flow of people, data and information.”

Trade development council

The aforementioned Hong Kong Conference and Exhibition Centre, which is reflected in the waters of Victoria Harbour with its distinctive shape, is owned by the Hong Kong Trade Development Council, which does not manage it directly, as the various fairs and events are managed by their respective organisers, some of which involve the HKTDC itself. Byron Lee is Associate Director of Service Promotion and begins by emphasising that his organisation has chosen the city of Milan this year to host the Think Business Think Hong Kong event, which takes place on 27 November.

HKTDC was founded in 1966 and has always focused on traditional sectors such as jewellery, toys and watches. In the 1990s, its focus shifted to services: finance, logistics, information technology, legal, administrative and tourism. This was both because technological developments were pushing in that direction and because the bulk of manufacturing was moving to mainland China. This brings us to the present day, when the main areas of focus are finance, professional services, innovation and technology, design and the creative industry. ‘Every year, we choose two locations for our international event, one in an emerging market and one in a mature market. This year, Italy is the mature market we have chosen, and the aim of this event is not only to promote Hong Kong but also, and above all, to create partnerships. We do this with a very business-like approach because, although our organisation was created by government order, it is independent’, so much so that even from an economic sustainability point of view, HKTDC lives off revenue generated by the market, partly from the conference centre and partly from events such as conferences, trade fairs and other activities. Although HKTDC is not strictly a government entity, its mission is public in nature because through its activities it promotes Hong Kong, its economy and its capacity for innovation.

Sky Shek, section head of business development exhibitions and digital business department, emphasises the importance of trade fairs that have become regular events throughout Asia and beyond, such as InnoEX, which will be held between 13 and 16 April 2026: “InnoEX is an important event because it epitomises Hong Kong’s role as a superconductor. InnoEX is the time and place where, for example, many Chinese companies looking to expand internationally present themselves to the world. This is where they come, and considering that HKTDC now has 51 offices around the world, including 11 in Europe, we are their preferred channel.” The music doesn’t change when it comes to start-ups, as Michelle Sze, manager of the start-up and innovation merchandise trade and innovation department, says: “We organise E-day, entrepreneurial day, the next one is scheduled for 4 and 5 December 2025, while for 2026 the dates are still to be confirmed but it will always be in December. It is a meeting day designed for early-stage start-ups in the pre-seed to series A round phase. During the event, there is also an international competition, and in the 2024 edition, we had 347 exhibitors from 45 countries and almost 12,000 visitors who came to learn about the start-ups to help them scale up, invest in them, and learn about their products and services.”

At the end of the Fintech Festival, where we met, among many others, the managers of OSL, a Hong Kong-based giant operating in the field of payments, crypto, and digital financial instruments, which is also expanding in Italy and Europe, the exhibition centre also hosted another event, less technological and less financial, the Hong Kong International Wine and Spirits Fair, a sector that is popular but is suffering from a global crisis, mainly because the younger generations seem to be less interested in wine. However, it is a sector that retains all its charm and cultural importance, and one that continues to believe in the potential of the Asian market and has chosen Hong Kong as its gateway to conquer it, as explained by Giovanni Bonati, who distributes wine worldwide from Milan and is in Hong Kong to meet potential business partners, including for mainland China, as does Riccardo Razzaboni, who has come here to promote his very young winery, VentiVenti Winery, founded, as the name suggests, five years ago, and Adrian Henshall, founder of Bondi Liquor, which takes its name from the famous Bondi Beach located very close to the city of Sydney: “We are a very young company, a start-up in the sector, but we are here because Hong Kong offers us a privileged perspective on all the markets that we believe represent our natural opportunities for expansion today.”

Not just business

Doing business in Hong Kong is a concrete and real opportunity, and now is the time to explore how interesting the city is because it is a time of acceleration and a time to prepare for the next phase of growth with investments in physical, regulatory, legal, academic and institutional infrastructure to support the innovation we have written about. However, there is also cultural and social life. The city is extremely safe at all hours of the day and night in every area, the public transport system is efficient with the underground, buses and typical double-decker trams, and its cosmopolitanism can be felt at every crossroads and in every aspect of daily life. There are curious pieces of history, such as the central market, which was supposed to be demolished because space is highly sought after in Hong Kong. The cost of space is one of the main reasons why, for example, the retail and catering sectors are struggling to keep up with Shenzhen in terms of competitiveness, as mentioned above. However, it has been preserved and renovated and is now one of the centres of social life in the area, from which the public escalator system leading to Mid-Levels departs, bordering the nightlife area of Lan Kwai Fong and what is considered one of the main historical attractions, the old colonial-era police station of Tai Kwun, which has become an area of social and cultural activity as well as a historical reminder of the darker times of British colonisation. Then there is the brand new West Kowloon Cultural District, home to the Palace Museum dedicated to Chinese history and traditions, currently hosting a fascinating exhibition on the relationship between the great Asian dynasties of the 16th and 17th centuries (Ottomans, Safavids, Mughals and Ming) and working in synergy with the Palace Museum in Beijing and other museums, such as the Museum of Modern Art, parks and venues for activities such as concerts and shows, as explained by Wingki Ho, public engagement manager at the West Kowloon Cultural District Authority, who emphasises that this area of the Kowloon Peninsula is rapidly becoming one of the hubs of the city’s cultural life. Then there is the new stadium and the new Kai Tak maritime station, the old airport area that is also bringing new life to the eastern part of Kowloon.

This in-depth analysis of Hong Kong’s interconnected economic, structural, governmental and legal systems was made possible thanks to the support and collaboration of all those who shared information and insights with me and who are mentioned in the article, as well as others who supported the project, including Apollonia Liu, Director of Information Services at the Information Services Department, Grace Ng, Deputy Director of Information Services, Eva Wong, Assistant Representative of the Hong Kong Economic and Trade Office in Brussels, Mark Neirynck, Public Relations Officer of the Hong Kong Economic and Trade Office in Brussels, and Anna Tsoi, Executive Officer (Visits) of the Information Services Department. Thanks also to Antonietta Cornacchia and Marila Velardi, respectively Deputy Consul General of Italy in Hong Kong and Commercial Attaché of the Italian Consulate in Hong Kong, for showing me how much Italian products are appreciated, even when it comes to innovation and technology. (The opening photo shows a view of Hong Kong from The Peak, one of the city’s main tourist attractions, which can be reached by the distinctive funicular railway capable of climbing steep gradients.)

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