Hong Kong, a bastion of free-market policies and low corporate taxes as well as the gateway to the world's most populous nation, is the best place to do business, according to data compiled by Bloomberg.

The city of about 7 million people secured top position in a new index based on six criteria including the degree of economic integration and labor costs. The Netherlands, the U.S., the U.K. and Australia occupied the next four leading slots.

The ranking marks a victory for Hong Kong 15 years after the city's return to Chinese sovereignty stoked concern that its role as an international financial hub would slide. General Electric Co. has established operations there, Gap Inc. is among the retailers drawn by the 28 million Chinese tourists who pass through it and HSBC Holdings Plc is one of the financial titans listed on its stock exchange.