By Dr. Kevin Lau
In the vibrant tapestry of global commerce, Hong Kong shines as a beacon of resilience, its economic sails catching the winds of opportunity. The Special Administrative Region (SAR) government's recent release of the Hong Kong Business Environment Report 2025, alongside fresh economic data, paints a compelling picture of a city reclaiming its stature as an Asian international metropolis. From revitalized tourism to bolstered exports, from retail growth to effective talent policies, the proactive governance under Chief Executive John Lee is steering Hong Kong toward a radiant future, weaving a narrative of steady recovery and boundless potential.
In Q2 2025, Hong Kong's Gross Domestic Product (GDP) achieved a real year-on-year growth of 3.1%, surpassing the first quarter's gains and signaling a robust economic trajectory. Exports and tourism have driven significant service sector expansion, while private consumption has stabilized, reflecting the success of government policies to stimulate domestic demand and invigorate the economy. This steady resurgence, like a river finding its course, is not merely a cyclical upturn but the fruit of strategic policy guidance and institutional safeguards.
The tourism sector has flourished under the government's "event-driven economy" strategy. In the first half of 2025, visitor arrivals soared to 24 million, a 12% year-on-year increase, with 17.8 million mainland visitors and a 17% surge in non-mainland arrivals, particularly from short-haul Asian markets like Japan, Korea, and the Philippines. The Culture, Sports, and Tourism Bureau, in collaboration with the Hong Kong Tourism Board, has orchestrated major exhibitions, arts festivals, and sporting events, reigniting global fascination with Hong Kong, like a spark rekindling a vibrant flame.
Retail has reaped parallel benefits, with June 2025 sales reaching HK$30.1 billion, a 0.7% year-on-year rise, and online sales surging by 8.4%, signaling a shift toward digitalization. Food and beverage revenues have also climbed, reflecting renewed consumer confidence—a direct reward for the government's efforts to stabilize employment, support small and medium-sized enterprises (SMEs), and implement economic stimulus measures.
From a macroeconomic perspective, the central government's unwavering commitment to Hong Kong's long-term prosperity and stability, through the steadfast implementation of "One Country, Two Systems," ensures the city's high degree of autonomy, common law system, independent tariff status, and free capital flows. The Hong Kong Business Environment Report 2025 underscores that this framework is the bedrock of Hong Kong's enduring competitiveness. I wholeheartedly endorse this view, commending the SAR government's reforms to uphold the rule of law, ensure fairness, and optimize the business environment, creating a secure and transparent ecosystem for enterprises and citizens to thrive.
In financial markets, the Hang Seng Index has risen by 27% since the start of 2025, with initial public offering (IPO) fundraising nearing HK$130 billion—a sixfold increase—and daily trading volumes rebounding to HK$240 billion. Total asset management has surpassed HK$3.5 trillion, growing by 13%. These achievements reflect the SAR government's prudent financial oversight, clear policy signals, and success in attracting global capital. The synergy between the Investment Promotion Agency and the Office for Attracting Strategic Enterprises has been pivotal, drawing 84 high-potential technology firms to Hong Kong, showcasing the precision and strength of policy execution.
In innovation and investment, the SAR government's resolve to diversify the economy is evident. Hong Kong now hosts approximately 4,700 startups, a record high, and 9,960 foreign enterprises, a 10% year-on-year increase. These milestones validate the government's forward-looking approach, leveraging tax incentives, talent support, R&D funding, and infrastructure to foster innovation and cement Hong Kong's role as a regional innovation hub.
Talent policies are particularly commendable. Over the past year, enhancements to schemes like the High-End Talent Admission Scheme, Quality Migrant Admission Scheme, and Technology Talent Admission Scheme have attracted significant expertise. By June 2025, nearly 330,000 applications were approved, with 220,000 individuals arriving in Hong Kong. This strategic foresight addresses the challenges of an aging population and global talent competition, and I fully support expanding this talent attraction toolkit.
The SAR government's new economic blueprint, centered on developing eight major centers—international finance, trade, shipping, legal arbitration, innovation and technology, intellectual property trading, cultural exchange, and aviation—aligns with national strategies like the 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. This vision combines strategic ambition with practical execution, positioning Hong Kong for sustained growth.
Looking ahead, I am confident that the government will prioritize emerging industries such as the low-altitude economy, biotechnology, green finance, digital trade, and smart city development, injecting continuous momentum into Hong Kong's economic system and enhancing its global competitiveness.
While global uncertainties and external risks persist, Hong Kong's steady progress from "chaos to governance, from governance to prosperity" under the SAR government's resolute leadership inspires confidence. I will continue to support policy implementation, urging all sectors to unite in driving high-quality economic development and creating quality employment, entrepreneurial, and life opportunities for citizens.
In conclusion, Hong Kong's institutional foundations remain unshakable, its business environment is steadily advancing, and its policies are clear and proactive. With the central government's steadfast support and the SAR government's effective governance, I am convinced that Hong Kong will solidify its core position as a global city, shining brightly in the next wave of international competition, like a radiant beacon guiding the way to prosperity.
The author is a specialist in radiology, Master of Public Health of the University of Hong Kong, Founding Convenor of the Hong Kong Global Youth Professional Advocacy Action, and an adviser of the Our Hong Kong Foundation.
The views do not necessarily reflect those of DotDotNews.
Read more articles by Kevin Lau:
Opinion | Building a Zhejiang-Hong Kong Technology Industry Chain
Opinion | Creating a Zhejiang-HK cultural tourism line
Opinion | Learning from Hangzhou: Advancing HK's digital health and smart elderly care communities
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