Business confidence in Hong Kong has reached its highest point in two years, according to the latest survey by the American Chamber of Commerce (AmCham) in the city. The results show that more than half the companies polled are optimistic about their prospects for 2026.
The poll of around 110 respondents, which was reported in local media, found that 53 percent were either “optimistic” or “very optimistic” about their business outlook over the next 12 months. This represents a notable increase from the previous year, when that figure stood at just 33 percent. AmCham, which counts over 450 corporate members, credits this shift to the perceived stabilisation of Sino-US relations.
While geopolitical tensions remain a concern for 59 percent of firms, only 11 percent anticipate a further deterioration in 2026, marking a 56 percent decrease from the previous year. Furthermore, 57 percent expect the relationship to remain steady, offering a more predictable environment for corporate planning.
However, the findings also highlight significant challenges. A substantial 62 percent of respondents cited the “perceived lack of differentiation” between Hong Kong and mainland China as having a major impact on their operations. Additionally, 43 percent ranked “overseas public perception” of the city among their top business challenges, while 44 percent identified the slowing Chinese economy as another major obstacle.
Despite these hurdles, the survey showed a strong commitment to the city, with approximately 92 percent of multinational corporations planning to keep their headquarters in Hong Kong over the next three years. However, a trend of “function relocation” is evident, with 68 percent of firms having moved certain operations elsewhere.
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Confidence in the city’s legal system also showed an upward trend. A large majority of respondents, 94 percent, expressed trust in Hong Kong’s rule of law, and 76 percent confirmed their confidence had remained stable over the past year. In terms of recent legislative changes, 74 percent of firms reported that the domestic national security law, or Article 23 legislation, enacted in March 2024, had no negative impact on their business operations.
Regionally, business activity in the Greater Bay Area (GBA) has reached a new peak, with 67 percent of surveyed companies now operating there. Of these, 37 percent intend to expand operations within the next three years, and for the first time in the survey’s history, no company intends to reduce its GBA footprint. Companies view regulatory and policy coordination (63 percent) and financial incentives (51 percent) as the most critical elements for capitalising on future GBA opportunities.
Investment and hiring strategies remain steady but cautious. Over half of firms (57 percent) plan to maintain their current investment levels in Hong Kong, and 33 percent intend to expand them. Regarding staffing, 55 percent of companies expect to maintain their current headcount.
Recruitment continues to be a difficulty, primarily because of the high cost of living, which 79 percent of respondents identified as the city’s biggest competitive disadvantage. Technology, however, is being increasingly used to manage operational costs, with 91 percent of respondents now viewing the integration of artificial intelligence (AI) as essential to their business strategy. Adoption is highest in information-focused roles such as data analysis and reporting (76 percent), as well as customer service (52 percent).
The report concludes that while traditional strengths like international connectivity and the free flow of capital continue to underpin Hong Kong’s status as a business hub, companies are now focusing more on internal optimisation and regional integration to navigate ongoing external pressures.
