By Dr. Kevin Lau
In the swirling vortex of a complex and ever-changing world, the underlying trends remain discernible through meticulous examination. Misjudging the situation due to clouded perception often leads to dire consequences. In 1812, Napoleon confidently led his Grand Armée into Russia, convinced of victory. Yet, ravaged by typhus, starvation, and brutal winter, he returned in defeat. In the business realm, misjudgment exacts a similar toll. In 1962, Decca Records had the chance to sign the Beatles but dismissed them, believing guitar bands were fading. This error meant missing out on the "juiciest slice" of music history's pie.
When it comes to Hong Kong, certain individuals abroad, with ulterior motives, incessantly "talk down" the city. Yet, assessing Hong Kong's current state and future prospects demands reliance on concrete, objective data and factors, not unsubstantiated conjecture. First, Hong Kong's institutional and business environment advantages shine brightly as an international metropolis and financial hub. It ranks among the world's freest economies and is recognized as one of the most open and business-friendly cities globally. Upholding the common law system, Hong Kong placed 23rd in the World Justice Project's 2024 Rule of Law Index, scoring 10th globally in the "absence of corruption" category—attributes that investors hold in high regard.
In the business landscape, Hong Kong steadfastly maintains its "zero-tariff" free port status, championing a rules-based multilateral trade system while implementing free trade policies. Renowned for its low and simple tax regime, it imposes no cumbersome inheritance tax, capital gains tax, goods and services tax, or dividend tax, with the government offering tax incentives for strategic development sectors.
Even more unassailable is Hong Kong's geographical advantage. Situated at Asia's heart, half the world's population lies within a five-hour flight radius. Moreover, Hong Kong serves as the nation's gateway to the international arena, the world's only city fusing China's strengths with global advantages. As a gateway, Hong Kong is the optimal bridge connecting the mainland to the world, functioning as a dual platform for "bringing in" and "going out." Mainland enterprises can leverage Hong Kong to expand internationally, while numerous overseas firms view it as the premier springboard into China's vast market.
Data speaks volumes, with the Hang Seng Index rising 18% last year and surging another 27% in 2025, while daily trading volume climbed 120% to HK$240 billion in the first half. As of mid-July 2025, 52 new stocks listed on the Hong Kong Stock Exchange, raising nearly HK$130 billion—a sixfold increase year-on-year. This capital inflow is a resounding "vote with their feet" from international investors, affirming their optimistic outlook for Hong Kong's future.
International sentiment echoes this positivity. The 2025 World Competitiveness Yearbook by Switzerland's International Institute for Management Development ranks Hong Kong third globally. Credit rating agencies like Fitch, S&P, and Moody's maintain a "stable" outlook for Hong Kong. According to the United Nations Conference on Trade and Development's World Investment Report 2025, Hong Kong's inward foreign direct investment flows rank third worldwide.
To analyze matters objectively is to avoid the pitfalls of misjudgment and reap the rewards of clarity. Hong Kong's enduring advantages—its legal framework, business environment, geography, and economic vitality—paint a picture of resilience and promise. Let us embrace this reality, forging ahead with confidence in our city's boundless potential.
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:
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