Drivers of Holistic Change: ACII Showcases the Best of Asia’s International Cities
This year, Hong Kong continued to be Asia’s top international city and the region’s premier gateway for regional and global operations. Out of a maximum score of 100, Hong Kong ranked first with 74.6 (up from 73.7 in 2025), followed by Singapore and Seoul. Elsewhere across the region, Tokyo fell to fourth, while Shanghai retained fifth, leading the region in innovation. Bangkok, Kuala Lumpur and Taipei each demonstrated their distinct strengths, as Mumbai rose to ninth place, representing its growing emergence as a globally oriented business hub. Jakarta and Ho Chi Minh City rounded out the list at 10 and 11 respectively.
“By launching the ACII 2026, HKGCC provides a vital, data-driven tool to understand the shifting competitive landscape in Asia”, said HKGCC Chairman Jacob Kam. “Hong Kong’s top ranking proves our fundamental resilience and underscores that global businesses continue to view the city as the ultimate bridge between East and West. The launch of the ACII 2026 is exceptionally timely as the industry submitted its recommendations for the Five-Year Plan. It will provide the critical insights needed to guide our development during this landmark period.”
The ACII evaluates 11 cities across seven core dimensions: Business and Economy, Quality of Life, Infrastructure and Connectivity, Innovation and Ideas, Human Capital Diversity, Cultural Interaction, and Government and Legal System for Business. Through its multifaceted approach, the Index moves beyond traditional metrics, providing policymakers and business leaders with the foundations needed to shape actionable strategies and elevate Asia’s standing in the global economy.
The Power of Economic Openness
While Hong Kong has strengthened its performance across multiple dimensions, its position remains anchored by its deep commitment to economic openness. The city maintained its lead in the Business and Economy dimension, reflecting the city’s fundamental resilience, underpinned by world-class infrastructure, an open business environment, strong connectivity, and the unique “One Country, Two Systems” framework.
Strong IPO market performance, alongside a resurgence in capital market activity and investment flows, reinforced this leadership. According to Hong Kong Exchanges and Clearing (HKEX) data, the city recorded a 75.8% increase in the number of newly listed companies in 2025, while funds raised through initial public offerings surged by 188.4% year on year3.
Combined foreign direct investment (FDI) and outward direct investment (ODI) also exceeded USD 230 billion4, further cementing the city’s prominent standing as a leading platform for both inbound investment and international expansion.
The Chamber believes Hong Kong can further enhance its position as a regional business hub by developing sector-focused strategies linking trade, logistics, green industries and advanced manufacturing, while ensuring finance, infrastructure and regulation work in tandem. Such an effort would allow the city to build on its existing foundations and broaden growth opportunities across emerging industries.
It is Hong Kong’s combination of financial depth and international connectivity that continues to distinguish the city within Asia’s diverse landscape of international cities. As Adrian Lo, Head of Ipsos Strategy3, notes, “Hong Kong’s capital markets do not merely support its economy — they define its international identity. Hong Kong’s financial leadership, anchored by a historic IPO resurgence and its unique position as the primary offshore gateway to the Chinese Mainland, creates an irreplaceable, self-reinforcing advantage that regional competitors cannot easily replicate.”
Innovation as the Next Frontier
Alongside diversifying its economic foundations, Hong Kong continues to innovate, rising to third place in the Innovation & Ideas dimension this year. Its efforts signal a larger change taking place across economies as they are increasingly shaped by their capacity to generate and commercialise new ideas.
Professor Yvette To, Assistant Professor at the Hong Kong Polytechnic University and a member of the Steering Committee, says, “What the ACII 2026 shows quite clearly is that innovation has become one of the main criteria separating top-tier international cities from the rest. For Hong Kong, innovation and knowledge production reinforce our international standing through three channels — talent attraction, economic resilience and contribution to the global agenda.”
The findings suggest Hong Kong’s research ecosystem is gaining momentum. Local universities have reported that more than 14,000 inbound skilled researchers relocated to the city, more than doubling the previous year’s total and the highest among the cities surveyed. It also produced close to 3,400 research publications, around 77% of which involve international co-authorship. Together, these figures reaffirm Hong Kong’s growing reputation as a research and development hub5.
“Executive ACII survey respondents were noticeably more confident about R&D financing this year, and with good reason. The HK$10 billion I&T Industry-Oriented Fund and the HK$10 billion earmarked for the Hetao Co-operation Zone, amongst others, are substantial commitments”, To adds.
With mature ecosystems and strong foundations finding it equally challenging to maintain their standing, a shift in how cities approach innovation is becoming necessary. Attention is now on transforming ideas into practical applications with commercial impact. The depth of research, accessible late-stage funding, and a supportive regulatory environment must be complemented by efforts to build executive confidence and organisational openness to risk-taking.
The Human Side of Internationality
This year, high quality of life was recorded as one of the primary motivations to move to and live in international cities. Nearly half of respondents surveyed by the ACII this year and in 2025, continue to place great importance in their city’s lifestyle and accessibility offerings. This year, Hong Kong’s strong performance in the Quality of Life dimension placed it at second place, narrowly edged out by Seoul and followed closely by Tokyo.
Hong Kong continues to rank among the top cities for liveability, supported mainly by its urban green space accessibility and mobility efficiency. Around 47% of its total area is covered with urban green spaces, providing residents easy access to nature. Infrastructure is another area where Hong Kong shines, demonstrating the lowest level of traffic congestion among surveyed cities. However, its cost of living scores rank it in the bottom 2, making day to day affordability an issue to be addressed for 2027.
Patrick Levesque, Executive Director at the Canadian Chamber of Commerce in Hong Kong and a member of the Steering Committee, notes long-term planning for the needs of both residents and international communities is paramount moving forward, “Hong Kong consistently scores near the top globally for personal safety, infrastructure, transit efficiency, tax friendliness, education, and healthcare. To further enhance its appeal, international school capacity, affordable family housing, community facilities and green urban space should be planned alongside new housing, particularly in the Northern Metropolis, and with the needs of an ageing population in view. Families choose cities, and cities that serve families keep talent.”
As quality of life becomes a defining factor for globally adaptable professionals, it can no longer be viewed as a byproduct of economic growth. It is a tangible metric that must be held in equal regard. Hong Kong must develop long-term plans with the needs of its residents and the international community in mind.
Connectivity in the Digital Age
This year, the Infrastructure & Connectivity dimension was led by Seoul, followed closely by Hong Kong.
By seamlessly integrating digital and physical frameworks at Incheon Airport, the South Korean capital has set new benchmarks for how cities can maximise their potential. The opening of Terminal 2 at Hong Kong’s own airport further strengthens the city’s resolve to bolstering its standings as a physical connectivity hub.
However, a regional shift towards “soft connectivity” is reshaping what this dimension represents. Although ports and transport networks remain essential, open, transparent and accessible exchange of information, market intelligence and ideas should be prioritised. Cities that successfully integrate physical infrastructure with advanced digital and knowledge connectivity will be suitably equipped to support cross-border collaboration and the sharing of insights.
According to Alfred Ho, Professor at the City University of Hong Kong’s Department of Public and International Affairs and a member of the Steering Committee, Hong Kong should leverage its ties to the Greater Bay Area (GBA) to further its trade ambitions: “Rather than serving purely as a gateway to the Chinese Mainland, physical links and digital data flows should lower operational friction for foreign enterprises. This allows international capital, talent, and corporations to leverage Hong Kong as their global headquarters while accessing the labour, manufacturing, and consumer market of the broader GBA.”
Building a Global Talent Pool
Talent is fast becoming one of the most valuable assets in the world, with leading cities investing heavily in retaining and developing the people who drive economic growth, innovation and enterprise.
Hong Kong’s international universities, multilingual business environment and talent admission schemes have elevated its profile among global professionals, resulting in a strong performance in the Human Capital Diversity dimension.
Professor To believes that for Hong Kong, the challenge extends beyond attraction. “The harder question now is retention. I see the recommendations addressing three connected gaps. First, the scaling gap — we have seven unicorns, Shanghai has 31, and Singapore has 16, which points to a shortage of late-stage capital and industrial depth to help startups grow here. Second, the commercialisation gap — we produce world-class research, but too little of it becomes a spin-off or a scalable company on Hong Kong soil. Third, the openness gap. Retention of talent depends on inclusive workplaces, family-supportive infrastructure, and a broader culture that is genuinely receptive to disruptive ideas and outside perspectives.”
Greater emphasis should be placed on inclusive programmes to help overseas workers establish deeper roots in Hong Kong. Expanding opportunities for international exposure and cross-cultural exchange would also support retention, ensuring Hong Kong continues to be one of Asia’s foremost talent hubs. The city’s long-term talent pipeline will thrive when supported by agile, skill-based immigration and education policies.
Strengthening Connections Through Culture
A vibrant cultural environment is an important component of internationality, helping to nurture social connections and create a sense of belonging.
In Asia, no city exemplifies this better than Bangkok, which was the world’s most visited metropolitan destination in 2025. Seoul ranked second, with the enduring influence of K-pop and Korean dramas enhancing its international influence and cultural reach. For Hong Kong, new developments like the West Kowloon Cultural District, alongside a growing calendar of events, continue to enrich its unique blend of Eastern and Western cultural offerings for residents and visitors alike. Charles Chia, CEO of Hong Kong-ASEAN Foundation and a member of the Steering Committee, believes the city’s exceptional foundation provides a platform for further progress, “The ‘nurturing’ aspect of arts and culture, coupled with an amazing culinary scene and great outdoors come together to contribute towards Hong Kong’s standing as a top Quality of Life city.”
Building a distinctive and resonant cultural identity, supported by authentic local experiences can create purposeful and lasting connections with residents and visitors. Home to some of the world’s oldest cultures and richest traditions, Asian cities possess the attributes needed to draw on their heritage while weaving in contemporary creativity, reinforcing their appeal to audiences worldwide.
Trust Remains a Strategic Asset
Alongside a robust local culture, strong institutions, effective governance and durable legal frameworks are critical building blocks of long-term success for Asia’s cities. Home to approximately 174 consulates and embassies, Tokyo continues to play a prominent role in facilitating dialogue across political, economic and cultural spheres.
Hong Kong’s own common law system, widely regarded legal standards and bilingual business environment continue to set it apart from its peers. These attributes have helped Hong Kong retain third place in the Government & Legal System dimension, behind Tokyo and Singapore.
Christine Loh, Chief Development Strategist at the Hong Kong University of Science and Technology’s Institute of Environment and a member of the Steering Committee, says institutional trust, legal certainty and policy consistency are critical economic assets that cannot be overlooked. “They reduce the invisible cost of doing business because people can make long-term decisions without having to price in excessive uncertainty. This does not mean policies can never change. Cities must adapt. What matters is that change is intelligible: decisions follow known processes, responsibilities are clear, contracts are respected, data is credible and affected parties have opportunities to understand and respond. Consistency means coherence and predictability, not rigidity”, she adds.
As companies seek increased collaboration with government services, preserving trust requires continual adaptation. Combining dispute-resolution mechanisms with seamless digital government services and regional connectivity can reduce operational risks and administrative burdens, leading to confidence among businesses and investors. The adoption of digital tools should also be effectively utilised to enhance procedural speed and clarity within government frameworks.
Ultimately, the ACII 2026 serves as far more than a scoreboard — it is a strategic tool for Asian cities to identify their unique strengths, address capability gaps, and actively increase their global competitiveness. By encouraging cross-border collaboration rather than mere rivalry, the Index provides a blueprint for fostering a formidable, highly integrated Asian economic cluster.
As the world’s primary engine for growth, Asia’s dynamic urban hubs stand to gain immense collective strength by complementing one another. As the region navigates a rapidly evolving global landscape, Hong Kong is perfectly poised to champion this collaborative future. By leveraging its robust fundamentals and deepening its integration within this broader Asian cluster, Hong Kong will not only secure its status as the premier international gateway but also lead the region toward shared prosperity during the upcoming Five-Year Plan and for decades to come.
1. The Hong Kong General Chamber of Commerce, Ipsos. The Asian Cities Internationality Index 2026. August 2026.
2. The Organisation for Economic Co-operation and Development (OECD)
3. The Hong Kong Exchanges and Clearing. Market Statistics 2025. December 2025.
4. Census and Statistics Department of Hong Kong. External Direct Investment Statistics of Hong Kong. 9 December 2025.
5. The Hong Kong General Chamber of Commerce, Ipsos. The Asian Cities Internationality Index 2026. August 2026.
