Oriol Caudevilla says the city is not living on its past achievements; it is actively shaping the foundations for its next chapter

Every few months, a familiar narrative resurfaces suggesting that Hong Kong's best days are behind it. According to such assertions, the city has somehow lost the qualities that made it one of the world’s leading international financial centers. Such claims often generate headlines and lively debate, yet they also invite a more fundamental question: Are they borne out by evidence, or are they increasingly disconnected from the city’s evolving economic reality?

Judging Hong Kong solely through the lens of nostalgia risks overlooking the profound transformation that has taken place over the past decade. The city is certainly not the same as it was 20 or even 10 years ago, but neither is the global economy. Financial centers that endure are those capable of adapting to structural change rather than preserving the status quo. In that respect, Hong Kong’s story is not one of decline, but of reinvention. From its growing role in wealth and asset management to its leadership in offshore renminbi business, digital finance, artificial intelligence, and its deepening integration with the Guangdong-Hong Kong-Macao Greater Bay Area, the city is steadily building new engines of growth while reinforcing many of the strengths that have long distinguished it.

The Chinese idiom, “practice is the sole criterion for testing truth”, is particularly apt. Rather than relying on perceptions or outdated assumptions, the most meaningful way to assess Hong Kong’s trajectory is to examine the facts when viewed through the lenses of international capital flows, wealth management, financial innovation, talent attraction, and economic integration, a very different narrative begins to emerge, one that speaks not of a city in decline, but of one continuing to adapt to a rapidly changing global landscape.

Having spent many years living and working in Hong Kong, one thing has always struck me about the city: Every time the regional or global economy has changed, Hong Kong has shown a remarkable ability to evolve while preserving the characteristics that have made it not only “Asia’s world city” but one of the world’s most important financial centers.

In that sense, far from losing ground, Hong Kong has continued to strengthen its international standing. The latest Global Financial Centres Index once again ranked the city third globally, indicating that its resilience, competitiveness, and global appeal remain as strong as ever. In the fintech ranking, Hong Kong placed in top position, followed by Shenzhen, New York, Singapore, and London.

The city is not only a financial hub but also an innovation hub, as was demonstrated by the Global Innovation Index 2025 top 100 innovations in which the Shenzhen-Hong Kong-Guangzhou cluster ranked first globally. And a few weeks ago, Hong Kong climbed to second place globally in the IMD World Competitiveness Ranking, its highest position in seven years

This also follows the news from a few weeks ago regarding a growing number of hedge fund firms and asset managers who are looking to shift staff and offices from Singapore to Hong Kong, drawn by lower taxes and a more compelling overall proposition for global alternative asset managers.

And just to cite one more example, according to the latest Global Wealth Report 2026 released by Boston Consulting Group a few months ago, Hong Kong has officially surpassed Switzerland as the world’s largest booking center for offshore wealth, managing approximately $2.95 trillion in cross-border assets. While the difference with Switzerland remains narrow, the symbolic significance is enormous: It reflects a broader shift in the center of gravity of global wealth toward Asia and, increasingly, toward China.

In addition to this, Hong Kong’s robust rule of law and sound legal system are widely recognized in the international community. The city was ranked 24th out of 143 jurisdictions surveyed in the 2025 World Justice Project Rule of Law Index, which is higher than many Western jurisdictions.

Focusing on more visible projects, the Northern Metropolis illustrates how Hong Kong is attempting to position itself for the future. The mega project’s significance extends far beyond urban development to a major shift in growth model. It aims to create an ecosystem where universities, technology companies, research institutions, and businesses can collaborate more closely to promote high-quality growth. In many ways, competitiveness in the 21st century will depend less on geography and more on ecosystems.

The city’s first five-year blueprint, currently under public consultation and aligned with the national 15th Five-Year Plan (2026-30), also reflects a longer-term perspective. Innovation, talent development, economic diversification, and closer integration with national development strategies are expected to occupy a central place on that road map. Long-term planning may not always generate headlines, but it often provides the foundation for sustainable competitiveness and growth.

One of the most interesting aspects of Hong Kong’s rise is how closely it aligns with broader national development strategies. The Greater Bay Area, for example, is steadily evolving into one of the world’s largest economic and innovation clusters. Hong Kong contributes international finance, wealth management expertise, and global legal infrastructure, while partner cities contribute technological innovation, industrial scale, manufacturing power, and entrepreneurial dynamism. This integration and collaboration are helping create a broader regional ecosystem capable of supporting long-term wealth creation across multiple industries.

In that regard, Hong Kong’s unique role under the “one country, two systems” principle is basic. The city combines deep integration with the mainland economy with international standards, common law traditions, free capital flows, and extensive global connections. This combination remains one of Hong Kong's most distinctive advantages and continues to differentiate it from other financial centers.

To sum up, international financial centers have never remained successful by standing still; they have endured by adapting to changing economic realities while preserving the qualities that first made them competitive. Hong Kong is no exception. Its economy continues to evolve, with wealth management, digital finance, offshore renminbi business, artificial intelligence, and closer integration with the Greater Bay Area gradually complementing its traditional strengths as a global financial center.

Time will always be the ultimate judge of competing narratives. Yet if recent developments are any indication, international investors, businesses, and professionals appear to be making their decisions based on opportunity rather than perception. The question, therefore, is perhaps not whether Hong Kong is the same city it was 20 years ago but whether it continues to offer compelling reasons for capital, talent, and innovation to choose it. On that measure, the evidence increasingly points in one direction: Hong Kong is not living on its past achievements; it is actively shaping the foundations of its next chapter.

The Hong Kong of today is undoubtedly different from the one of two decades ago. Yet evolution should not be mistaken for “decline”. The city’s competitive advantages have expanded rather than disappeared, positioning it to play an even more important role in global finance, innovation and international connectivity over the years ahead.

The author is a fintech adviser, a researcher and a former business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.