With a world-class financial system, forward-looking fintech policies, and unrivaled connectivity to Mainland China and the rest of the world, Hong Kong offers fintech companies a fertile environment to grow and scale, according to a new report by the government.

This favorable environment has positioned Hong Kong as one of the world’s leading fintech hubs, particularly in blockchain, digital assets, and wealth management.

The report, released in July, highlights Hong Kong’s latest developments and competitive advantages, presenting a comprehensive view of the city’s open, safe, stable, efficient, and internationalized business ecosystem.

It underscores Hong Kong’s institutional strengths and outlines the government’s policy priorities and achievements in promoting high-quality economic development, emphasizing the city’s latest developments in sectors including banking, innovation and technology, and fintech.

A fintech hub

Hong Kong boasts a vibrant fintech ecosystem with over 1,000 fintech companies spanning mobile payments, cross-border wealth management, artificial intelligence (AI)-driven financial services, regtech, and more. Among them are eight digital banks, four virtual insurers and 11 licensed virtual asset (VA) trading platforms.

This ecosystem is supported by world-class infrastructure, sound regulation, and strong government backing. The dedicated fintech team under InvestHK, the investment promotion agency of Hong Kong, provides one-stop service for Mainland and overseas fintech enterprises looking to establish a foothold in Hong Kong, and organizes an array of activities to promote fintech. Furthermore, initiatives such as the Commercial Data Interchange (CDI) are enhancing small and medium-sized enterprise (SME) access to financing by allowing secure data sharing between businesses and banks, while the the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme, launched in June 2024, provides early-stage funding for solutions that advance sustainable finance.

Hong Kong is also emerging as a Web3 hub, with Cyberport hosting around 280 blockchain and Web3 enterprises, including unicorns and licensed VA trading platforms, with founders coming from around 20 countries and regions. These enterprises actively apply blockchain-related technologies across different aspects of life and business, such as payment systems, blockchain cybersecurity, digital entertainment, smart living, fintech, and art technology.

This ecosystem is backed by a conducive regulatory landscape. The Securities and Exchange Commission (SFC) has established a licensing regime for VA trading platforms. Also, the Stablecoins Ordinance, which came into effect in August 2025, establishes a licensing regime for fiat-referenced stablecoins issuers in Hong Kong, further enhancing the city’s regulatory framework on VA activities.

A top business destination

Hong Kong is also one of the most competitive economies in the world, benefiting from a robust financial system, a simple and low tax regime, a strategic location at the heart of Asia, advanced infrastructure, pool of top-notch talent, and high-quality professional services.

According to the Business Ready 2024 Report recently published by the World Bank Group, Hong Kong is one of the top business environments in the world among the 50 economies covered, scoring highest in International Trade. Hong Kong also scores the second highest in Taxation and Utility Services, and the fourth highest in Dispute Resolution.

The Central Government continues to uphold the “One Country, Two Systems” principle, preserving Hong Kong’s distinctive status and ensuring the city’s advantages as an international business hub. This strategy is the cornerstone of Hong Kong’s long-term prosperity and stability, but is a pillar underpinning the further development of the city.

Hong Kong also has a simple tax regime with low tax rates, only levying taxes on business profits under profits tax, property rental income under property tax, and employment income under salaries tax.

For profits tax, the rate for the first HKD 2 million of profits of corporations is 8.25%, whereas the remaining part of the profits is subject to a rate of 16.5%. Salaries tax payable is calculated at progressive rates from 2% to 17% or at standard rates, whichever is lower. There is no estate duty, capital gains tax, goods and services tax, or tax on dividends in Hong Kong, and tax incentives are provided with respect to the strategic areas committed for development.

Hong Kong also offers strong international connectivity. Situated at the heart of Asia, Hong Kong is within a four-hour flight of major Asian cities and a five hour flight of half the world’s population, making it an ideal place for multinational enterprises to set up their regional headquarters or distribution centers in Asia.

The Hong Kong International Airport (HKIA) is one of the world’s busiest cargo and passenger airports, while the Hong Kong port is among the most efficient ports, ranking fourth in the International Shipping Centre Development Index (ISCDI).

A top talent pool

Hong Kong is a service-based economy with service industries accounting for over 90% of the city’s gross domestic product (GDP). The city offers a wide spectrum of world-class professional and business services, covering finance, insurance, asset management, tourism, trade and logistics.

Hong Kong is also actively attracting talent through policies, having implemented a series of measures to enrich the talent pool in sectors such as finance, trade and technology.

In particular, the Technology Talent Admission Scheme provides a fast-track arrangement for eligible companies to admit overseas and Mainland technology talent to undertake research and development (R&D) work in 14 specified technology areas in Hong Kong. These areas include fintech, AI, biotechnology, cybersecurity, robotics, data analytics, green technology and quantum technology.

Hong Kong is also a leading education hub in the region that’s renowned for its excellence in higher education. In the Quacquarelli Symonds World University Rankings 2026, five of the city’s universities are ranked among the global top 100, marking the highest concentration of top-ranked universities in the world.

A global financial center

Hong Kong is one of the world’s leading international financial centers, offering a full spectrum of financial services under a regulatory regime aligned with global standards.

Hong Kong hosts 70 of the world’s top 100 banks operate in Hong Kong; it’s the top bond issuance hub in Asia, ranking first for arranging international bonds by Asian entities; and it has one of the largest stock markets in Asia, and the sixth largest in the world.

Hong Kong also has 158 authorized insurers, with the highest and second highest insurance density in Asia and the world, respectively; and the city is projected to become the world’s largest wealth management center in the coming years.

Hong Kong’s trading system plugs fully into the round-the-clock global financial trading cycle and provides stable and seamless connectivity with major financial hubs. Acting as a “super-connector,” Hong Kong channels capital flows between Mainland China and international markets, a role which role enables domestic investors to diversify assets while giving overseas investors secure access to Mainland opportunities.

According to the Global Financial Centres Index (GFCI), Hong Kong ranks third among 119 financial centers worldwide. The city scores among the highest globally in human capital, infrastructure, and financial sector development. By sector, Hong Kong ranks first in investment management, insurance, and finance, and third in banking. Its fintech sector ranks fourth worldwide, reflecting its growing strength as a fintech hub.

A hub connecting the Mainland and the world

The Hong Kong government is actively promoting the city’s strengths and opportunities through overseas outreach. The Chief Executive and senior officials have led delegations to Mainland cities, ASEAN, the Middle East, Europe, and beyond, strengthening ties with traditional partners while fostering new economic and trade relationships with emerging markets.

Hong Kong and the Mainland are each other’s major trading partner. Over 2,600 Mainland enterprises have established a presence in Hong Kong, and more than 1,500 Mainland companies are listed on the Hong Kong Stock Exchange, representing more than half of all listed firms. This underscores Hong Kong’s role as an important platform for Mainland enterprises.

Hong Kong is also strengthening its ties with Shanghai, signing in June 2025 the Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centres. The strategy covers six areas with a total of 38 measures, including deepening mutual access between Mainland and Hong Kong financial markets, enhancing the connectivity and co-operation of the two places’ capital markets, and strengthening collaboration in areas such as commodity trading, reinsurance, green finance and fintech.

Hong Kong is also the gateway to the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). With a total population of over 87 million, the GBA is one of the most open and economically vibrant regions in the country, outperforming many developed economies in terms of its GDP and anticipated to rise to the top among the four major bay areas in the world.

Featured image: Edited by Fintech News Hong Kong, based on images by bloodua and K illustrator Photo via Freepik