HK retains appeal for US multinationals

The Hong Kong Special Administrative Region continues to retain its long-cherished status as a "corporate home", as a large number of United States companies with regional headquarters in the city have indicated that they have no plans to relocate elsewhere in the near future, the American Chamber of Commerce in Hong Kong said on Monday.

According to a two-month survey conducted by AmCham Hong Kong, about 92 percent of US multinational corporations said they have no intention to relocate their businesses away from Hong Kong at least in the next three years, up from 79 percent recorded in 2025.

Experts said the poll shows renewed confidence in Hong Kong's resilience and long-term competitiveness as an international business hub. The survey also challenges the notion that many multinational companies are moving their operations out of the city amid concerns over China-US ties.

The poll shows that such strong commitment is underpinned by a robust belief in Hong Kong's business environment and rule of law.

More than 50 percent of respondents expressed their optimism about the city's business outlook for the next 12 months, up from 33 percent recorded in 2025, while confidence in the HKSAR's rule of law has increased to 94 percent, continuing an upward trend from 83 percent recorded in 2025.

Around 74 percent of respondents said that their operations have not been negatively affected by the National Security Law for the HKSAR.

"The survey findings show that Hong Kong's international reputation is continuing to recover, and that its legal system and advantages all remain intact. The city remains a great place to do business," said Lynn Song, chief economist for Greater China at the European bank ING.

The fundamental strengths of Hong Kong as a competitive international business hub in Asia were endorsed by 86 percent of the surveyed companies, an increase of 11 percentage points compared with 2025.

Song said that he believes "the worst of the cycle for the HKSAR" is over. Conditions have improved in the past two years as the US Federal Reserve has started to reverse its tightening cycle, while China continues to meet its growth targets and external demand has held up despite renewed trade tensions, he said.

"As borders reopened after the COVID-19 pandemic and travel resumed, much of the uncertainty has cleared, allowing a more accurate view of the situation on the ground," Song said, adding that the recovery of Hong Kong's financial and real estate markets over the past year has lifted sentiments, but there's still room for improvement.

According to AmCham Hong Kong, the trade tensions between China and the US — the world's two largest economies — are still viewed as the biggest challenge for business operations, but the level of pessimism has moderated to 59 percent from 70 percent in 2025.

The survey was conducted from Nov 11 to Jan 16, and drew responses from over 450 member companies. The findings echo those recorded recently by AmCham China.

In January, 71 percent of respondents in an AmCham China poll said they have no intention of relocating their businesses away from China, while nearly half of the surveyed companies said they are optimistic about the country's market growth prospects in the next two years.

sophialuo@chinadailyhk.com