Note: This article is for general information only.
Hong Kong is an exceptional location for product and service testing. With a population of around 7.4 million, it offers a diverse demographic profile for an ideal test market. The city's strategic location within the Greater Bay Area provides access to China and Asia.
In this post, we provide information about what makes Hong Kong the ultimate destination for enterprises seeking to test products and services before deciding whether to launch them in a new market. We will cover:
- The demographic profile
- Proximity to mainland China and Asia via modern infrastructure
- The economy
- Efficient public transport system enabling over 11 million daily trips
- Established gaming community and growing esports industry
Where is Hong Kong?
Hong Kong Special Administrative Region (SAR) is on China’s southern coast, approximately 60 kilometres east of Macau, is bordered by the South China Sea and shares a border with Shenzhen in Guangdong province.
Hong Kong operates under the “One Country, Two Systems” principle, which allows it to maintain separate legal and economic systems, and its own currency, the Hong Kong dollar; which is tied to the US$.
The city covers approximately 1,104 square kilometres comprising Hong Kong Island, the Kowloon Peninsula, the New Territories, Lantau Island, and over 200 smaller islands.
As one of the most densely populated territories in the world, with a population density of around 7,062 people per square kilometre, Hong Kong's proximity to China plus modern road, rail, high speed rail, air, and port infrastructure gives unprecedented access to the Mainland and the rest of Asia.
Economy
Hong Kong has a free-market economy and the official currency is the Hong Kong dollar (HKD), which is pegged to the US dollar.
Ranking ninth in exports and eighth in imports, Hong Kong has a significant transshipment role, with around 40% of its cargo throughput coming from mainland China.
With a market capitalisation of approximately HK$31.1 trillion at the end of July 2024, the Hong Kong Stock Exchange is the sixth largest exchange in the world.
Population
As of 2024 estimates, Hong Kong has a population of around 7.4 million with a median age of 45.6 years (2020 estimate), with the population growing at an average annual rate of 0.8% from 2010 to 2014. 66.02% are aged 15-64 years and 20.94% is aged 65 years and over (2023 estimates).
Ethnicity in Hong Kong is predominantly Han Chinese, with 91.6% of the population being ethnically Han Chinese. The official languages in Hong Kong are Cantonese, spoken by 88.9% of the population, English (4.3%), and Mandarin (1.9%).
Cultural Significance of Numbers and Colours in Hong Kong
'4' is regarded as the unluckiest because it sounds similar to the word for death in Cantonese, as is the number '7'. Numbers '8' (wealth and success) and '9' (everlasting) are favoured. '2' and '6' are lucky.
Red symbolises happiness and good fortune, and yellow represents wealth. Green has a double meaning of health and infidelity (don't wear a green hat) but is also widely used for nature and positive meanings.
Hong Kong’s Media Landscape
With a diverse and dynamic media landscape blending local and international outlets, Hong Kong has a large list of newspapers, wire services, TV channels, and digital platforms is impressive.
Local
There are approximately 90 daily newspapers, including 61 Chinese-language dailies and 11 English-language dailies, but when it comes to using Hong Kong as a testbed, there are approximately 30 of these considered as must haves. Most will publish across print, digital and social media.
The television industry features several free-to-air broadcasters, including TVB, which dominates the market with an 80% viewer share and has both Hong Kong and southern China audiences.
The public broadcaster Radio Television Hong Kong (RTHK), operates multiple radio and television channels in English and Chinese and programming for multiple ethnic groups. Commercial radio stations include Commercial Radio and Metro Radio.
The rise of digital platforms has led to an increase in online news outlets and electronic newspapers, catering to the growing demand for immediate news access.
International Media
Hong Kong serves as a regional hub for many international media organizations, including Bloomberg, Reuters, The Economist, Associated Press, Financial Times, and The New York Times, which have established offices in the city to cover news in locally and in Asia.
Many international broadcasters operate in Hong Kong, providing diverse content for local and expatriate audiences. This includes channels like BBC, CNBC, CNN, and more.
Social Media Engagement
Social media engagement in Hong Kong is driven by a tech-savvy population that actively uses various platforms for communication, news consumption, and entertainment.
Facebook, Instagram, WhatsApp, YouTube, and WeChat are the most popular platforms and businesses leverage social media for marketing and advertising, utilizing targeted ads, influencer collaborations, and interactive content to connect with consumers. The integration of e-commerce with social media platforms has been further sped up by consumers shopping online.
Social Listening
Two companies exemplify Hong Kong's thriving ecosystem of digital marketing and analytics firms, and these are Social Power and Tango Digital.
Tango Digital specialises in digital marketing, social media management services, including strategy development, content creation, influencer marketing, and performance tracking. Social Power is another Hong Kong based company that offers advanced social listening tools, analytics, and consultancy services.
Hong Kong Tax
Another reason for using Hong Kong as a test market is the tax system is relatively simple, with low tax rates and minimal tax compliance requirements. Profits tax is subject to 16.5% for corporations, 15% for unincorporated businesses, and salaries tax on a progressive scale from 2% to 17%, with many tax deductibles.
For self-employed individuals or business owners, expenses that are wholly and only incurred in the production of income can be deducted.
This includes costs for office supplies, rent, and utilities and if you are self-employed or running a business from home, you may be able to claim a portion of your home expenses (like utilities and the Internet) as business expenses.
Hong Kong has signed comprehensive double taxation agreements with over 40 countries and territories, which help eliminate double taxation and facilitate cross-border trade and investment.
Please consult with a tax professional to help in navigating the specifics of tax deductions available.
Banking and Insurance
Hong Kong’s insurance and banking sectors are integral to its economy, characterized by a diverse range of products and services.
As of March 2024, there were 160 authorized insurers in Hong Kong, including general and long-term insurers and regulated by The Insurance Authority. The total gross premiums for the insurance industry in 2023 amounted to HK$549.7 billion, reflecting a slight decrease of 1.1% from the previous year.
In the banking sector, with the Hong Kong Monetary Authority (HKMA) as the primary regulator, there are more than 160 licensed banks, including local and international institutions and the rise of FinTech has led to many banks adopting digital platforms for customer engagement and service delivery.
Hong Kong is a “crypto-ready” location, with a significant number of blockchain startups and increasing adoption of cryptocurrency services. This is in parallel with Hong Kong positioning itself as a hub for Web3 technologies.
Law Firms
As of June 2024, there are approximately 921 registered law firms in Hong Kong and includes a mix of sole proprietorships, small firms, and larger partnerships. The legal profession in Hong Kong is diverse, with around 13,195 members, including solicitors and registered foreign lawyers. The landscape features a significant number of small firms, with 46% being sole proprietorships and 42% comprising firms with 2 to 5 partners.
Hong Kong legal practitioners were granted the ability to practice in specific areas of Mainland Chinese law after passing a special examination. This allows them to provide legal services in the nine Mainland municipalities that are part of the Greater Bay Area.
Healthcare In Hong Kong
Hong Kong’s healthcare system comprises both public and private sectors, which provides residents with a range of medical services.
Here are key aspects of healthcare in Hong Kong:
- Public: The public healthcare system is managed primarily by the Hospital Authority (HA) and the Department of Health. The HA operates 43 public hospitals and many outpatient clinics. Public healthcare services are heavily subsidized by the government, making them affordable for residents, especially those holding a valid Hong Kong ID. Recently, the first children’s hospital opened in Kowloon.
Approximately 90% of inpatient treatments occur in public hospitals, while around 32% of outpatient treatments are provided in public facilities. - Private: There are 12 private hospitals and many outpatient facilities.
Hong Kong Manufacturing
Hong Kong’s manufacturing sector primarily comprises light industries, including textiles, electronics, toys, and food products. In recent years, there has been a push towards advanced (smart) manufacturing, incorporating technology and innovation.
In 2022, the Advanced Manufacturing Centre in East Kowloon opened, offering 1.1 million square feet of advanced manufacturing and testing capabilities, enabling customized, low-volume production for tech innovations. The facility offers dedicated logistics, warehousing, prototyping, assembly, and cleanroom services.
Logistics
The logistics sector in Hong Kong offers a comprehensive range of services that can benefit companies using the city as a test market or pilot scheme.
Key offerings include freight forwarding for timely international shipping, warehousing and distribution for effective inventory management, and supply chain management services that optimize the flow of goods.
Hong Kong’s strategic location and advanced transport networks enable businesses to quickly adapt to market demands and efficiently distribute products.
The rise of smart logistics solutions allows companies to leverage innovative strategies, making Hong Kong an ideal hub for piloting new initiatives and refining their approaches before expanding into broader markets.
Cultural Heritage
The city is known for its blend of Eastern and Western cultures, reflected in its festivals, cuisine, and architecture. Traditional Chinese festivals, such as the Lunar New Year and the Mid-Autumn Festival, are widely celebrated alongside Western holidays.
Hong Kong Holidays 2025
Gaming and eSports
Hong Kong is positioning itself as a strategic hub for the gaming and esports industries, leveraging its unique advantages and government support.
The video games market was estimated at around US$1.1 billion in revenue in 2024, with growth across console, PC, and mobile games. The city offers unrestricted access to foreign-produced hardware and games, making it an ideal launch market for international titles before entering mainland China.
Hong Kong’s bilingual population allow many games to hit the market without localization.
In fact, the Hong Kong government has invested HK$100 million to establish an esports arena at Cyberport, demonstrating support for the esports industry.
This comes at a time when the city is increasingly recognised for hosting a variety of esports events and tournaments, which attract global attention and investment.
Recent events have included large-scale competitions that draw international participants and audiences, further solidifying Hong Kong’s status as a key player in the esports landscape.
With a substantial gamer population that is mobile-savvy and willing to spend, Hong Kong provides a great foundation for the growth of the esports scene. This demographic trend is complemented by a rising interest in competitive gaming among younger audiences, which is expected to drive future growth.
Hong Kong is home to over 160 digitainment companies, including major players such as Tencent Games, Sony Games, and Ubisoft and fosters innovation and collaboration among local developers.
The Hong Kong Gaming Industry Association (HKGIA) actively promotes talent development, technology exchange, and business opportunities for local game companies. Initiatives include partnerships with educational institutions to enhance training programs and internships for aspiring professionals in the gaming sector.
Hong Kong’s strategic location within the Greater Bay Area presents opportunities for collaboration with mainland Chinese markets, allowing local companies to expand their reach and tap into a larger consumer base and is perfect for those seeking to test games on an established gaming community.
[In 1999, I organised Hong Kong’s first ever cross-platform (Nintendo, Sega, and Sony) gaming competition on behalf of a U.S. digital software association for an anti-piracy project. This was when games were on CD-ROMs and there was a significant issue with piracy, which used to cost the gaming software industry billions of dollars annually. The point is, gaming was big then and has never stopped growing.]
Employment Ordinance
If companies are using Hong Kong as a test market for their products or services, it’s important for them to be aware of the key aspects of Hong Kong employment law.
The Employment Ordinance provides a comprehensive framework governing the rights and obligations of employers and employees in areas such as wages, termination, rest days, statutory holidays, annual leave, maternity and paternity leave, and severance pay.
Employers must enroll eligible employees in the Mandatory Provident Fund (MPF) scheme within the first 60 days of employment and provides financial security for employees upon retirement.
Employers must comply with the Personal Data (Privacy) Ordinance, which governs the proper handling of employees’ personal data.
Possibly Useful Information About Hong Kong
Arbitration
In 2023, the Hong Kong International Arbitration Centre (HKIAC) received a total of 500 new cases, including 281 arbitrations, 10 mediations, and 209 domain name disputes. Of the 281 arbitrations, 184 were administered by HKIAC under various rules, such as the HKIAC Administered Arbitration Rules and the UNCITRAL Arbitration Rules.
The total amount in dispute across all arbitration cases reached HK$92.8 billion (approximately US$12.5 billion), with HK$86 billion (about US$11.1 billion) in administered cases. The average amount in dispute for administered arbitrations was HK$467.6 million (approximately US$60.1 million), a record high for HKIAC.
Chambers of Commerce
New market entrants often gravitate towards chambers of commerce to integrate themselves within the city’s business leaders and for exploring partnerships, business opportunities, matching, development, and the free flow of information. Many countries have their own chamber of commerce and trade association representation.
The chambers play an important role in promoting their members’ interests, facilitating connections, and advocating for policies that support business growth in the city.
Countryside
For enterprises involved in the outdoors such as clothing, accessories, footwear, and more, Hong Kong’s countryside and trails are significant aspects of its geography and recreational offerings.
Approximately 75% of Hong Kong’s total land area is classified as countryside, featuring diverse landscapes including beaches, woodlands, and mountain ranges. The highest peaks, such as Tai Mo Shan, Lantau Peak, and Sunset Peak, offer sensational views and attract around 10 to 13 million visitors to the country parks each year.
About 40% of Hong Kong’s land is designated as country parks, totalling 435 square kilometres across 24 parks providing habitats for various wildlife, including monkey and wild boars.
Hiking Trails
There are many hiking trails, with some of the most well-known being:
- MacLehose Trail: A 100-kilometer trail stretching from Sai Kung to Tuen Mun it is one of the most famous long-distance hiking routes.
- Dragon’s Back: A popular hike in Shek O Country Park, known for its scenic views.
- Lantau Trail: Circling Lantau Island, this trail showcases the island’s natural beauty.
Hong Kong hosts several hiking races and trail running events throughout the year, attracting both local and international participants.
Some notable events include:
- The Hong Kong Trail Running Festival featuring various distances and challenges across different trails, showcasing the diverse terrain of Hong Kong.
- MacLehose Trail Race is a popular and the most famous long distance trails in Hong Kong, and spans 100 kilometres to be completed in teams of four within 48 hours,
- Lantau 2 Peaks: This race involves climbing two of Lantau Island’s highest peaks and is known for its challenging terrain and stunning views.
- GreenPower: This hike race covers 50 kilometres and starts from Peak Galleria and ends at Big Wave Bay. A mix of concrete path, steps, and trail, this is a race for individuals and teams. There is a 10km, 25km and 50km race on the same day.
Customs & Excise
The Customs and Excise Department (C&ED) oversees customs laws, duty collection, and trade facilitation in Hong Kong. Importers and exporters must provide essential documentation, such as invoices and certificates of origin, while most goods are duty-free, though some may incur customs duties.
The Closer Economic Partnership Arrangement (CEPA) strengthens trade ties between Hong Kong and mainland China, offering preferential market access for Hong Kong-based companies.
Education
Compulsory education in Hong Kong lasts from ages 6 to 15, encompassing primary and junior secondary education.
The education system is divided into several levels: kindergarten (ages 3-6), primary education (6 years, ages 6-12), junior secondary education (3 years, ages 13-15), and senior secondary education (3 years, ages 16-18).
There are several types of schools in Hong Kong, including government schools which are fully funded and managed by the government; aided schools operated by charitable or religious organizations but funded by the government; Direct Subsidy Scheme (DSS) schools. These are private schools that receive government subsidies but charge fees; private schools operated independently, often with higher tuition fees; international schools cater to primarily to expatriates and offering non-local curricula, typically in English.
Fiduciary Services
In Hong Kong, fiduciary services encompass a range of professional services that involve managing assets, providing trust-related services for individuals, families, and businesses, investment management, estate planning, and tax advisory services. Corporate services, including formation, secretarial services, and compliance management, are also offered.
Gambling
Gambling in Hong Kong is regulated tightly under the Gambling Ordinance 1977, which restricts organised gambling. The Hong Kong Jockey Club (HKJC) holds a government-granted monopoly on horse racing, football betting, and lotteries, including the popular Mark Six lottery. The HKJC is the largest taxpayer in Hong Kong, contributing significantly to government revenue.
Hong Kong Weather
Deciding when to test products in Hong Kong can depend on the weather and the city has a subtropical climate with four distinct seasons.
Spring (March to May) in Hong Kong is warm and humid, with occasional fog and drizzle. Temperatures range from 18°C to 25°C (64°F to 77°F). Light overcoats, sweaters, and rainwear.
Summer (June to August) is humid, with frequent thunderstorms and occasional typhoons. The average temperature is 28°C (82°F), with July and August being the hottest months. Lightweight cotton clothing and an umbrella are advised.
Autumn (September to November) in Hong Kong is pleasant and sunny. Temperatures range from 23°C to 29°C (73°F to 84°F). Light clothing with a light jacket for cooler evenings.
Winter (December to February) is cool and dry. Temperatures range from 15°C to 22°C (59°F to 72°F). This season is known as “North Face’ season because everybody seems to wear this brand of outdoor clothing. Bring sweaters, coats, and jackets.
Long-Stay and Short-Stay Accommodations
There are various options for both long-stay and short-stay accommodations, catering to different needs and preferences. These hotels provide a range of options for both short and long stays, catering to different budgets and preferences, from luxury accommodations to more budget-friendly choices.
Plug Type in Hong Kong
In Hong Kong, the standard power plugs and sockets are of type G; a three-pin rectangular plug, commonly used in the United Kingdom, Ireland, Malta, Malaysia, and Singapore. This is the most common type in Hong Kong and operate on the standard voltage of 220V.
Popular Residential Areas
Each area caters to different lifestyles and budgets, providing residents with a range of housing options in Hong Kong. In general, there are three areas to consider: Hong Kong Island, Kowloon, and New Territories.
Hong Kong Island
- Mid-Levels: A convenient area for accessing Central, Wan Chai, and Admiralty and attracts high income professionals with its proximity to the city, high quality apartments, and spectacular views of the harbour.
- Pokfulam & Cyberport: Offers a mix of old and new apartments and close Cyberport, which is a modern business park with upscale residences.
- The Peak: This is the main affluent neighbourhoods, with low-rise apartments, and standalone houses.
Kowloon
- Tsim Sha Tsui, Yau Ma Tei, and Mong Kok, with a mix of small shops, hotels, and apartments. Known as the ‘Dark Side’ if you live on Hong Kong Island.
- West Kowloon: Known for the West Kowloon Cultural District and has high end residential buildings.
- Kowloon Tong: A residential area offering parks and amenities. Many private kindergartens are here as are City University and Baptist University.
New Territories
- Sha Tin: A new town with public housing estates, retail developments, luxury apartments, and good transport links. There’s a wonderful bike path from Sha Tin to Tai Mei Tuk, and you can rent a bike and pedal a good proportion of the way without worrying about cars.
- Sai Kung is a rural area of the New Territories, with country parks, quaint villages, and low-density residential properties appealing to expats. The town itself is filled with bars, cafes, coffee shops, restaurants, and a promenade. Hong Kong’s only public golf course is accessible via ferry from Sai Kung pier.
- Tai Po & Hong Lok Yuen: Low-rise and townhouse properties in a rural setting near Tolo Harbour and with security.
Public Transport
The public transport network is world renowned for being clean, efficient, affordable, and varied, with light mini buses, MTR (subway, underground), buses, trams and light trains transporting millions of people daily.
The MTR is the backbone of Hong Kong’s public transport system, operating 240.6 km of rail with 167 stations and has 8 major lines providing metro services and the Airport Express line connecting the airport to the city centre. All signs and announcements are in Chinese and English.
Hong Kong has extensive bus service from 6-7am to midnight, including overnight routes. Minibuses provide direct service to underserved areas, with fixed-route green buses and more flexible red buses. Passengers can pay by Octopus or cash, with little change given.
Who doesn’t love Hong Kong’s iconic trams? These are hugely popular with advertisers and run on Hong Kong island only from around 5:30-6am to midnight. Fares are a flat HK$3 per trip, paid when alighting.
Ferries provide scenic and convenient transport across Victoria Harbour. Major routes include Hong Kong-Macau, Central-Tsim Sha Tsui, and outlying islands.
Overall, Hong Kong’s public transport system is one of the most efficient and comprehensive in the world, enabling over 11 million daily passenger trips.
Taxis are red (go almost everywhere), green (New Territories only) and blue (only on certain roads on Lantau). The majority accept cash only.
Tourism
Famous for its skyline, shopping, and culinary scene, Hong Kong has many tourist attractions including Ocean Park, Victoria Peak, Disneyland, West Kowloon Culture Centre and many temples and parks.
Wine Storage & Cigars in Hong Kong
Hong Kong’s wine storage facilities in Hong Kong provide secure and climate-controlled environments to ensure the longevity and quality of wine collections. With varying features, services, and pricing, there are many to choose from. Crown Wine Cellars are on Hong Kong Island and renovated old WWII ammunition bunkers for use as wine storage.
In Hong Kong, there are several notable establishments and services dedicated to cigar.
Artisan Ice Cream Shops in Hong Kong
If you are new to Hong Kong, or the heat is getting to you, here are a few places to get ice cream with quality rizz.
1. Gelato Messina
This Aussie brand can be found at 37-43 Pottinger Street, Central, from 12 noon until 10PM. www.gelatomessina.com.hk
2. XTC Gelato
While you wonder if they're making plans for Nigel, choose your ice cream in a cup, cone or shake at 45B Cochrane Street, Central. www.xtc.com.hk
3. Dood Bottega Gelateria
Dude. Trot over to K11 Musea, 18 Salisbury Road, Tsim Sha Tsui, and pick a classic or seasonal flavour. Check in at facebook.com/DoodBottegaGelateria
4. Hello Molly Gelato
30 unique flavours await at Shop 241, 2/F, Central Market, 93 Queen’s Road Central, Central, including Beancurd Soup and Milo Dinosaur. http://www.hellomollygelato.com.
5. Gelato-Go
An American brand at 174 Nathan Road, Tsim Sha Tsui, Gelato-Go serves Italian gelato from all natural ingredients. https://www.gelatogohongkong.com
About Eight Insights
Eight Insights is a dedicated blog site and is owned by Eight Public Relations, a power PR agency in Hong Kong working with startups and multinationals. Being separate to the company blog page means we can write about areas of interest outside of public relations, enabling better curation and organisation.
About Ivan Theodoulou
Ivan Theodoulou is founder of Eight PR, a PR agency in Hong Kong that specializes in tech, law, and corporate PR. He first visited China in 1987 by train from Hong Kong to Guangzhou and has since traveled extensively on the mainland and in the Greater Bay Area (GBA). Ivan passed his China driving test in March 2024 and now drives regularly in the GBA.
Places visited in China (by car, plane, train, high speed train, ferry, coach, bus) include: Beijing, Beijou, Chengdu, Dali, Daya Bay, Dongguan, Foshan, Ganzhou, Gaoming, Guangzhou, Hainan, Hailing Island, Heishan, Huizhou, Junan, Kunming, Lijang, Longjiang, Nanhai, Shanghai, Shenzhen, Shilin Yi, Shunde, Wuzhou, Xiamen, Yingde, Yinghe, Zhuhai, Zhaoqing.
Sources
https://en.wikipedia.org, https://expatliving.hk, https://hkex.com, https://hktdc.com, https://kpmg.com, https://webb-site.com, https://www.cathaypacific.com, https://www.chinadailyhk.com, https://www.gov.hk, https://www.hk-lawyer.org, https://www.hklawsoc.org.hk, https://www.hko.gov.hk, https://www.investopedia.com, https://www.legco.gov.hk, https://www.scmp.com, https://www.tnc.org.hk