Hong Kong prides itself on punching above its weight, and so it should if it is to remain unrivalled as a bridge between China and the world. It is therefore good that the city’s rankings for competitiveness and higher education have surged, with two universities among the world’s top 20 for the first time. Competitiveness and education go hand in hand in driving innovation.

Hong Kong’s economy ranked first for global competitiveness in 2017, before sliding to seventh in 2023, partly as a result of pandemic-related factors. It has finally regained second place, behind regional rival Singapore, a position it last achieved in 2019. This puts it ahead of 68 other economies in the latest ranking by Switzerland-based International Institute for Management Development (IMD). The IMD noted Hong Kong’s rise was built on three consecutive years of improvement and “reinforced the dominance of Asian economies at the top of the ranking”.

Hong Kong ranked third last year. The IMD said its rise reflected sustained performance across four factors: government efficiency, infrastructure, economic performance and business efficiency.

Hong Kong cannot afford complacency. Years of persistence and hard work went into achieving this result. This included measures to rebuild market confidence such as promoting mega-events, luring capital and talent, and reforming stock market rules to allow trading during severe weather, as well as unwavering support from Beijing.

Farsighted planning such as the Northern Metropolis and aligning the city with the country’s 15th five-year plan and its goal of building a leading nation in education, technology and talent will sustain the momentum in the medium to longer term. However, significant challenges remain. The IMD says they include navigating shifting global trade and investment flows, harnessing innovation to accelerate industrial transformation and increasing integration with the Greater Bay Area.

Two of the city’s universities – the University of Hong Kong and Chinese University of Hong Kong – are ranked among the top 20 in the global league table of UK-based education information firm Quacquarelli Symonds (QS). QS also pointed out that Hong Kong had Asia’s most improved higher education system for the second consecutive year, with seven universities improving and two holding their positions. It said Hong Kong universities were among the most improved in the world after gains in research performance and reputation among employers. In the latest QS world ranking, HKU retained 11th place while Chinese University rose from 32nd to 18th.