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HONG KONG -- A report released by China's Hong Kong Special Administrative Region (HKSAR) government on Wednesday showed that Hong Kong's core competitiveness is solid and new strengths are emerging.

At a press conference, Financial Secretary of the HKSAR government Paul Chan said that Hong Kong's economy is steadily improving, with a 3.1 percent growth recorded in the first quarter and continued momentum expected in the second.

He noted that the implementation of the national security law in Hong Kong has restored a safe and stable environment, not only protecting the rights and freedoms of the residents, but also positioning Hong Kong as a global safe haven for investment.

The Report on Hong Kong's Business Environment: Unique Strengths under "One Country, Two Systems" stated that places around the world are actively seeking external investment opportunities, leading to a reallocation of global capital. Hong Kong is well-positioned to help countries diversify risks and attract capital, enterprises and talent.

It added that the HKSAR government will make proactive efforts to understand, respond to and embrace changes in order to create a better investment and business environment, and to adopt different policies and measures in a timely manner to support the business sector in meeting challenges.

The report also cited various data points, indicating that businesses remain highly confident in Hong Kong. In respect of the number of enterprises, according to the 2024 statistics from the HKSAR government, there were 9,960 companies in Hong Kong with parent companies located outside the region, a year-on-year increase of about 10 percent.

As of the end of 2024, the asset and wealth management business of Hong Kong amounted to about HK$35.1 trillion (about $4.47 trillion). The number of registered funds reached 976 as of March 2025, with overall net inflows exceeding $44 billion, a year-on-year increase of 285 percent.

The report stressed that the HKSAR government will adopt a bottom-line mindset in managing risks and drive economic growth at full speed and yet with stability. While proactively integrating into the overall national development, Hong Kong will remain highly internationalized.

As an important node in the domestic and international dual circulation of China, Hong Kong will continue to enhance regional and international cooperation. The region will actively participate in and promote national strategies, such as the Guangdong-Hong Kong-Macao Greater Bay Area development and the Belt and Road Initiative.

The report is the latest since the HKSAR government released its first business environment report in 2021. It aims to present to the international community the distinct advantages Hong Kong enjoys under "one country, two systems," as well as the city's vast potential for future development.