Hong Kong has long been recognised as a global hub for commerce and innovation, a city in which East meets West and tradition blends seamlessly with modernity. While it still operates as somewhat part of China, its status as a Special Administrative Region (SAR) provides more than enough reason to acknowledge it independently from China in terms of its economic success.
With its robust legal system, low tax rates and strategic location at the very heart of Asia, Hong Kong has historically been a magnet for businesses hoping to establish a foothold in the region. And, over the years, this vibrant economy has undergone a remarkable transformation, ultimately becoming a key player in the global startup ecosystem.
The city’s entrepreneurial spirit is backed by world-class infrastructure, a well-connected financial system and a really diverse pool of talent. This unique combination has fostered a fertile environment for startups to thrive, even amid evolving economic and geopolitical challenges.
These days, Hong Kong isn’t just a destination for established companies – it’s also become somewhat of a launchpad for innovation and growth, boasting a dynamic ecosystem of accelerators, incubators and venture capital firms that support the journey all the way from startup to success.
One of the top indicators of economic success in Hong Kong are the destintion’s unicorns – that is, startups valued at over $1 billion – that have emerged as symbols of entrepreneurial achievement. These companies exemplify the ingenuity and resilience of Hong Kong’s startup community, demonstrating how the city’s unique economic advantages continue to drive groundbreaking innovation.
Hong Kong’s Unique Economic Conditions
Hong Kong is unique for plenty of regions, most poignantly the fact that it’s an SAR rather than a country, and in that, it boasts economic conditions that are specific to its unique status. Indeed, it’s also established a distinctive position as a global financial centre and a gateway to Mainland China.
The city operates under a free-market economy, characterised by low taxation, minimal government intervention and a world-renowned regulatory framework. As an SAR of China, Hong Kong provides businesses access to international markets while benefiting from close ties to the world’s second-largest economy.
This duality has made Hong Kong an attractive base for international corporations and startups alike. Also, its robust infrastructure – ranging from state-of-the-art logistics networks to one of the busiest ports in the world – facilitates seamless trade and connectivity.
Coupled with a highly skilled, multilingual workforce and strong intellectual property protections, Hong Kong continues to offer a competitive edge for businesses navigating the dynamic landscape of Asia.
But, in recent years, the city has also faced economic challenges as a result of both global shifts and local uncertainties, driving the startup ecosystem to adapt with greater resilience and innovation, ultimately paving the way for a new wave of unicorns.
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Top 5 Unicorns in Hong Kong
To be classified as a unicorn, a company needs to be privately owned and valeud at a minimum of $1 billion. Thus, it’s no surprise that many businesses shift in and out of unicorn status, and the exact number of unicorns in a region or country is nowhere near static.
Thus, having said that, Hong Kong is currently home to five unicorns, valued at between $1 billion and $3 billion.
Amber Group: $3 Billion
Founded in 2017, Amber Group is currently valued at $3 billion making it Hong Kong’s highest valued privately owned company. While it was established in Hong Kong about eight years ago, it’s now headquarted in Singapore.
Amber Group is the developer of a digital currency exchange platform that ends to help empower more people to build wealth by means of simplifyig access to digital currency. The platform automaticlly converts the spare change involved in each transaction into different coins.
By means of Amber group, users can store, swap, sell and send digital currency which provides a feasible way to accumulate crypto with spare change adnd, ultaimtely, protect wealth over a long period of time.
Babel Finance: $2 Billion
Formerly known as Babel Bank, Babel Finance is a Hong Kong-based operator of a glboal crypto-financial services platform. Babel is designed for institutional and HNW investors to be able to conduct professional services, covering both crypto lending and trading.
The professional crypto-asset financial services include deposit nd credit facilities for cryptocurrencies, prime brokerage, structured asset management and derivtives strategies which allows clients to receive instant crypto-backed loans as well as to take advantage of new investment opportunities.
Trendy Group International: $2 Billion
While the company is now based in China, Trendy Group International was established in Hong Kong in 1999, and it’s now worth $2 billion.
Producing clothing and apprel, the Trendy Group specialises in both manufacturing and retailing apparel for men and women in China, and the company markets its products by means of its own retail networks as well as wholesale and department stores as well as via relationships with key e-commerce partners.
Klook Travel: $1.35 Billion
Klook Travel is the developer of travel activities and services booking platform established in 2014. The platform is intended to connect travellers with experiences, providing them with a great way to both discover and book attractions, tours, transportation, meals and other unique experiences while travelling the world.
With nearly 1,500 employees and 23-odd different investors, Klook Travel has achieved immense success in recent years, most recently reaching its $1.35 valuation and becoming one of Hong Kong’s five unicorns.
Cider: $1 Billion
Founded by Michael Chen Wang in 2020, Cider is an e-commerce platform that sells products directly to consumers in international markets.
After about four years in the industry, Cider now has about 50 employees, eight investors and has been through eight rounds of investment.
