World Bank report ranks Hong Kong among top 10 global business hubs

Hong Kong has been ranked among the top 10 economies to do business in by the World Bank Group on Thursday, a vote of confidence in the city's regulations for business entry and utility infrastructure.

In the inaugural Business Ready 2024 Report covering 50 economies, the Hong Kong Special Administrative Region logged high scores in international trade, business entry and utility services.

The ratings came after the United States in September alleged that businesses faced escalating risks associated with operations in Hong Kong, claiming that routine activities could be violated by the city's national security law.

A spokesman for the Hong Kong SAR government said the latest report recognizes the city's role as an international trading center.

"The report highlights that Hong Kong has few restrictions on international trade in services and implements good practices in terms of information provision and regulations relating to company registration," he said.

However, the government spokesman noted that the report, on the other hand, has not reflected some of Hong Kong's elements "conducive to a friendly business environment", such as implementing common law, robust rule of law and safeguarding gender equality.

The administration said it will maintain close communication with the World Bank Group to explain comprehensively about the city's situation, and its policies and measures that facilitate the business environment.

Recent reports from multiple international organizations have validated Hong Kong's robustness and competitiveness. For example, according to the latest Global Financial Centers Index issued in September, Hong Kong reclaimed its position as Asia's top financial center and the third globally.

Ratings showed that the city was among the top places in various competitive areas such as business environment, human capital and infrastructure. The report also ranked the SAR as one of the top 10 financial technology hubs worldwide.

Billy Mak Sui-choi, an associate professor at Hong Kong Baptist University's Department of Accountancy, Economics and Finance, said Hong Kong should embark on market diversification and talent cultivation to consolidate its international trade hub status.

"Hong Kong should reach out to more ASEAN (Association of Southeast Asian Nations) and Belt and Road countries as much as possible to strengthen its superconnector role in regional trade and investment flows," Mak told China Daily.

The professor added that Hong Kong should nurture more overseas students from ASEAN, Africa and Central Asia to become international trade talents that can act as the bridge for fostering trade between Hong Kong and those three regions.

Simon Lee Siu-por, adjunct faculty at Shenzhen Finance Institute of CUHK (Shenzhen), said the report has reaffirmed Hong Kong's previous efforts to consolidate its international trade center status, adding that the common law system, rule of law and freedom of information flow are very important to cement Hong Kong's reputation as a business-friendly place.

"Hong Kong should maintain the attribute of internationalization by welcoming and boosting the confidence of overseas enterprises to operate their businesses here," Lee told China Daily.

Contact the writers at evanliu@chinadailyhk.com