Hong Kong’s startup surge: record growth in non-local companies and entrepreneurial activity in 2025

Hong Kong’s startup ecosystem continued its upward trajectory in 2025, reaching 5,221 startups, an 11% increase compared with 2024, according to official survey data released on 26 January. These startups were active across sectors, including financial technology, information and communications technology, biotechnology, education and learning, and health and medical services.

The number of companies in Hong Kong with overseas or Mainland parent companies also grew strongly, rising to 11,070, another 11% increase from 2024. Collectively, these firms employ approximately 509,000 people, highlighting Hong Kong’s continued role as a regional hub for international business.

Mainland China accounted for the largest share of non-local parent companies (3,090), followed by the United States and Japan (both at 1,550), the United Kingdom (770), and Singapore (590).

Hong Kong SAR Chief Executive John Lee linked the growth in both startups and non-local companies to the city’s resilience and competitiveness. He also noted increasing geographic diversity among new entrants, with companies from Singapore, France, Australia, the United States, and Switzerland each expanding their presence by more than 11. 

Firms from ASEAN markets and the Middle East grew by around 10% and 5% respectively, while Mainland Chinese companies saw a notable 17% rise.

“We do more than bringing in companies – we are also good at nurturing them,” Lee said, highlighting Hong Kong’s dual role as a magnet for investment and an incubator for innovation.

The 2025 Annual Survey of Companies in Hong Kong with Parent Companies Located Outside Hong Kong and the 2025 Startup Survey also reveal shifts in business composition. Among non-local companies, the import/export trade, wholesale and retail sector recorded the largest presence (around 5,100 firms), followed by financing and banking (approximately 2,390) and professional, business and education services (about 1,770).

These upward trends build on strong momentum from 2024, when Hong Kong recorded then historic highs of 4,694 startups and 9,960 non-local parent companies. Government data also shows that many startup founders originate from the United Kingdom, United States, France, various Asian markets, and Mainland China—reinforcing Hong Kong’s position as a global crossroads for entrepreneurial talent.

Lee underscored that the sustained inflow of companies reflects confidence in Hong Kong’s long term prospects. He cited the city’s robust legal system, deep capital markets, and stable regulatory environment as key factors attracting both multinational corporations and high growth early-stage ventures.

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