AmCham HK’s annual survey of business sentiment is a widely watched indicator of the perceptions of international business in Hong Kong.
Released on January 23, 2025, this year’s report found that positive US-China ties were the top concern of Hong Kong-based businesses in 2025 but that 79% of respondents had no intention of leaving their Hong Kong headquarters in the next three years. 75% viewed Hong Kong as competitive or highly competitive as an international business hub. 35% said they had plans for business expansion, while 51% said they would maintain their current hiring practices.
70% said that the 2020 National Security Law imposed by Beijing and the locally drafted Safeguarding National Security Ordinance had not had a negative impact on operations. Perceptions of Hong Kong’s rule of law were more positive than in previous years. 14% were very confident, versus 12% in 2024 and 10% in 2023 surveys. The share of those were described themselves as confident or very confident increased even more dramatically, from 29% in the 2023 survey to 45% in the 2024 survey and 62% in the 2025 survey.
Most companies reported that foreign business was still largely welcomed in Hong Kong, and 69% saw the Hong Kong Government as effective in responding to business concerns.
Respondents indicated the best course for boosting relations between Hong Kong and the US is better understanding of the legal distinctions between Hong Kong and China. 85% felt that the Hong Kong government should put “more focus on business issues, less focus on national rhetoric” to improve ties with the US.
The survey, which was conducted between November 2024 and January 2025, had a response rate of 18% from the 500 Hong Kong-based companies that were approached. It was published shortly after President Donald J. Trump took office in the US on January 20, 2025. 67% of respondents expected relations between Washington and Beijing to deteriorate in the coming year, and US-China tensions topped the list of concerns. US-China relations, together with China’s slowing economy and overseas perceptions were the top three business challenges for 2025, according to respondents.
On US-China relations, only 8% expected relations will improve and 25% thought they would remain the same. 97%, nearly all the companies, reported that a positive bilateral relationship is important to their business in Hong Kong and China.
Problems remained with the cost of doing business, talent availability, the consultative process for government policies, and the reception of innovation and technology, which respondents said were the top factors damaging Hong Kong’s competitiveness. A decreasing talent pool, rising salary and wage expenses, difficulty in hiring and retaining local talent, and geopolitical tensions were among the human resources challenges faced by companies. 36% of respondents said that the availability of qualified staff had decreased in the past year.
Companies were hesitant to expand their operations to the Greater Bay Area (GBA) due to policy and regulatory uncertainty, local competition, language and cultural barriers, data privacy laws and foreign exchange controls.
Other key findings included:
- US government policies (48%) were the foremost factor influencing the business environment in Hong Kong, followed closely by policies from the Chinese Central Government (43%) and those of the HKSAR Government (40%). Members highlighted that a greater emphasis on business-related issues and a focus on Hong Kong’s unique international characteristics by these governments could significantly enhance U.S.-Hong Kong relations.
- Over the past three years, Hong Kong has strengthened its regional competitiveness in wealth management, family offices, and debt markets. Conversely, members observed a decline in regional competitiveness in transaction banking, venture capital, private equity, and security services. While Hong Kong is recognized as an advantageous environment for innovation in fintech and artificial intelligence, it falls short in sectors such as robotics, new materials, and quantum computing.
- 67% of respondents believe that Hong Kong will continue to be a preferred destination for arbitration and dispute resolution, to a significant or moderate extent. However, some members express concerns about ongoing regional competition, particularly from Singapore, which is perceived to offer a more stable legal and political environment.