Author: MIL-OSI Publisher

Source: Hong Kong Information Services

Financial Secretary Paul Chan said today that the Government will earmark resources to launch a five-year waste reduction and recycling plan from 2026-27.

In his Budget speech, Mr Chan said the plan will form part of the Government’s efforts to accelerate green development, and will involve expanding the recycling network by gradually transforming GREEN@COMMUNITY sites into round-the-clock self-service recycling facilities. 

Through the application of technology, valuable materials will be extracted from waste and turned into raw materials that can be used to make green products. A smart recycling network logistics system will be built to enhance cost-effectiveness and efficiency.

Tax concession

On the promotion of electric vehicle usage, Mr Chan said the first registration tax (FRT) for electric commercial vehicles, electric motorcycles and electric motor tricycles will continue to be waived in full until end-March 2028.

Given the maturity of the technology, levels of supply, the availability of different models, and lower prices, Mr Chan explained, the current FRT concession arrangement for electric private cars will not be extended beyond its expiry at the end of March this year. 

Striving for carbon neutrality

The finance chief said that, to proactively align with the national “dual carbon” targets and green and low carbon development strategies, the Government will strive to promote the development of green industries and the green transformation of enterprises. Green industries and green transformation require the support of capital, technology and talents, thereby offering enormous business opportunities to Hong Kong, he added. 

The Government is implementing Hong Kong’s Climate Action Plan 2050, striving to reduce the city’s carbon emissions by half from 2005 levels before 2035, and achieve carbon neutrality before 2050.

Among the projects approved under the $400-million Green Tech Fund, a university research team has pitched its newly developed industrial wastewater treatment technology to the Greater Bay Area and the Yangtze River Delta Region. Another approved item is a new fuel cell stack technology that is being promoted in collaboration with a hydrogen fuel cell enterprise.

On hydrogen development, Mr Chan said the Government is consulting the trade on the hydrogen certification framework with a view to establishing a certification system that connects with both the Mainland and the world.

It will host Hydrogen Week in May to foster international exchanges, and will organise Mainland tours for overseas experts to learn about the development of hydrogen applications.

Green finance

To consolidate and enhance Hong Kong’s status as an international green finance centre, the Government will take forward the implementation of the Hong Kong Sustainability Disclosure Standards. The Accounting & Financial Reporting Council is consulting the public on the proposed regulatory framework.

The Hong Kong Monetary Authority, meanwhile, will strive to develop green transition planning guidance for banks within this year.

The finance chief said the Government will support exploration, with the Mainland and international multilateral financial institutions, towards the establishment of a Hong Kong-based Green Technology Projects Accelerator.

Such an accelerator will provide incubation, acceleration, and empowerment services for green technology projects in Belt & Road regions, and serve as an innovative demonstration of Hong Kong’s green finance-related services.

The Government will also explore enabling financial institutions to obtain enterprises’ public utility usage data, with their consent, to enhance the efficiency of green financing and risk assessment.

Source: Hong Kong Information Services

Hong Kong will study the establishment of a one-stop multi-asset class post-trade securities platform, covering Mainland and Hong Kong equity and debt securities, and also plans to set up an asset platform for the issuance and settlement of digital bonds.  

In his 2026-27 Budget speech, Financial Secretary Paul Chan remarked that the post-trade platform will enhance cross-product and cross-boundary collateral connectivity. He said the digital asset platform, to be established this year, will enhance asset management efficiency.

The establishment of a post-trade securities platform is to be studied by the Hong Kong Exchanges & Clearing and the Hong Kong Monetary Authority’s CMU OmniClear Holdings Limited (CMU OmniClear), which is also working to establish links with central securities depositories in other regions to facilitate holdings of securities in the Central Moneymarkets Unit.

CMU Omniclear will also establish the digital asset platform. Once up and running, it will be expanded from digital bonds to include other digital assets and linked with other tokenisation platforms in the region.

In addition, Mr Chan explained that the Government is committed to developing non-traditional risk management, and has extended the Pilot Insurance-linked Securities Grant Scheme to 2028.

With regard to financial inclusivity, the Mandatory Provident Fund Schemes Authority (MPFA) will this year provide MPF “Full Portability” to employees whose employment commenced on or after 1 May 2025. Legislation will be introduced next year to extend the coverage to anyone whose employment began before that date.

To better protect employees’ MPF benefits, the MPFA proposes to enhance the process of recovering default contributions from employers. The Insurance Authority will also enhance the risk-based capital regime for insurance companies, and the industry will be required to adopt a standardised checklist for capital adequacy disclosure.

Moreover, to strengthen regulation of money lenders, the Government will next month announce measures to address excessive borrowing.

In terms of international co-operation, the Government is working closely with the Asian Infrastructure Investment Bank after it announced plans at the end of last year to set up an office in Hong Kong. In addition, Hong Kong will host the Asia-Pacific Economic Cooperation Finance Ministers’ Meeting for the first time this year, and will continue to stage financial mega events such as the Global Financial Leaders’ Investment Summit, the Wealth for Good in Hong Kong Summit, and the Hong Kong Fintech Week x StartmeupHK Festival.

Source: Hong Kong Information Services

Chief Executive John Lee today commented that the measures in the 2026-27 Budget are innovative and practical, adding that he is confident that Hong Kong’s economic momentum will continue its positive trend.

In a statement, Mr Lee said the Budget announced today put forward a series of measures that build on the direction of the Policy Address and actively dovetail with the national 15th Five-Year Plan. He outlined that the measures empower Hong Kong’s diversified development through innovation, technology and finance, cater to people’s needs improve livelihoods.

Mr Lee said that in pursuing two major aspects – namely “Artificial Intelligence+” and “Finance+”, the Budget will vigorously foster sectoral development, build Hong Kong into an international hub for high-calibre talent, strengthen the city’s core competitiveness, boost economic momentum, and both speed up and scale up the economy’s sustainable development.

He stressed that Hong Kong’s public finances had improved faster than expected, benefiting from a booming economy and increased tax revenue, coupled with the Government’s implementation of fiscal consolidation measures.

Taking full account of the Government’s financial situation, Mr Lee said, the Budget contains a range of practical measures, including increasing support for the public and small and medium-sized enterprises, enhancing medical services, addressing the needs of different social groups, and improving people’s livelihoods.

He also highlighted that the Budget maintains efforts to consolidate and optimise financial resources, and support infrastructure development, particularly in accelerating the development of the Northern Metropolis.

It also proposes a scaling up of bond issuances and the issuing of more bonds with longer terms, with a view to supporting infrastructure projects and driving diversified development of the local bond market.

The statement also emphasised that the Budget implements measures outlined in the Policy Address and is in accordance with the Government’s overall governance directions. Mr Lee said it leverages Hong Kong’s unique advantages of being connected to both the Mainland and the world under the “one country, two systems” principle in actively pursuing economic growth, advancing development, improving livelihoods, seizing new development opportunities, and better integrating into and serving the nation’s overall development.

“The Financial Secretary and I are confident that Hong Kong’s economic momentum will continue its positive trend.”

The Chief Executive called on all sectors of the community to support the Budget and work together to promote Hong Kong’s high-quality development.

Source: Hong Kong Information Services

Financial Secretary Paul Chan today unveiled measures to accelerate artificial intelligence (AI) industrialisation in his 2026-27 Budget that include the establishment of a committee on AI+ and industry development strategy to foster an environment where AI can drive industrial transformation.

Chaired by Mr Chan, the committee will comprise experts, academics and industry representatives, focusing initially on life and health technology and embodied AI. 

The Financial Secretary noted that the Government is deepening AI integration across sectors to encourage wider adoption and achieve “utilisation by all”. 

The Hong Kong Artificial Intelligence Research & Development Institute Company will come into operation in the second half of this year, aiming to promote AI+ development and advise on matters such as the governance framework and regulatory regime for AI development.

Computing Infrastructure

In this morning’s Budget, themed “Driving High-quality, Inclusive Growth with Innovation and Finance”, Mr Chan said Hong Kong’s overall computing power has now reached 5,000 petaFLOPS, laying an important foundation for supporting AI development and bringing new employment opportunities. 

The data facility cluster at Sandy Ridge will further enhance Hong Kong’s overall computing power and the tender result of the site will be announced shortly.  

The Government will allocate $50 million to boost AI literacy through collaborations between public organisations, tech enterprises and universities. This initiative includes courses and competitions designed to promote the responsible use of AI among students and the public. 

On the education front, University Grants Committee-funded universities will introduce 27 STEAM-related undergraduate programmes – including AI and data science – during the 2025-26 to 2027-28 triennium.

Mr Chan also noted that AI-related courses at self-financing institutions will be prioritised under the Study Subsidy Scheme for Designated Professions/Sectors starting from the 2027-28 academic year.

Complementing these efforts, the Vocational Training Council has integrated AI modules into all Higher Diploma programmes, while the Employees Retraining Board will be rebranded as Upskill Hong Kong to provide AI-focused training aimed at enhancing workforce competitiveness.

AI-empowered services

Government departments are leveraging AI and big data to enhance public services and digital intelligence. The Government will allocate $100 million for introducing leading technologies from the industry to accelerate the digital intelligence transformation of the Government.

Life and Health tech

The Financial Secretary said the Government is advancing the integrated development of life and health technology through the “One plus Three” model. This includes a headquarters for the Life and Health Technology Research Institutes to be set up at the Hetao Hong Kong Park and three university-led branches. 

To further establish Hong Kong as an international health innovation hub, an international clinical trial academy will be set up next year to attract foreign investment and help Mainland biomedicine technology go global.

Mr Chan added that the Government will inject $500 million into the Chinese Medicine Development Fund for undertaking research, training and international publicity on strategic themes.

New Industrialisation

The Government will launch the New Industrialisation Elite Enterprise Nurturing Scheme this year to support high-growth companies and foster emerging industries. To deepen industrial collaboration with the Mainland, $220 million will be earmarked to establish Hong Kong’s first national manufacturing innovation centre.

Mr Chan said the Government is also conducting a study on the city’s development of new industrialisation to align with national planning and accelerate the growth of new quality productive forces.

Source: Hong Kong Information Services

Financial Secretary Paul Chan today pledged to enhance Hong Kong’s role as an international financial centre, while contributing to “accelerating China’s development as a financial powerhouse.”

Delivering his 2026-27 Budget, the finance chief said the Government will aim to consolidate Hong Kong’s existing strengths, tap into emerging fields, strengthen market systems and risk control, and deepen financial co-operation across the Greater Bay Area.

With regard to advancing renminbi (RMB) internationalisation, Mr Chan highlighted that Hong Kong doubled the size of the RMB Business Facility to RMB200 billion earlier this month to support the wider use of RMB by enterprises and customers.

He said the Government will promote more convenient exchange quotations and transactions to reduce transaction costs, seek to attract more high-quality RMB issuers, and explore the formation of an offshore RMB yield curve.It will also strive to expedite the issuance of Mainland government bond futures in Hong Kong, the inclusion of real estate investment trusts (REITs) under mutual access arrangements and the provision of an RMB trading counter under the Southbound Stock Connect. 

In terms of securities, Mr Chan said Hong Kong Exchanges & Clearing will consult the market on revisions to listing requirements for enterprises with weighted voting right structures, facilitating secondary listing of overseas issuers, and greater listing flexibility for biotechnology and specialist technology companies. It will also put forward proposals for T+1 settlement cycles and launch the uncertificated securities market regime in collaboration with the industry and the Securities & Futures Commission (SFC).

Moreover, the Government will introduce an enhanced regulatory regime for listed companies, providing specific guidelines for overseas companies seeking secondary listings in Hong Kong.

The financial secretary also mentioned that the SFC and the Hong Kong Monetary Authority are in the process of implementing the Roadmap for the Development of Fixed Income and Currency Markets and that an electronic bond-trading platform will be launched in the second half of this year.

In the area of asset and wealth management, Mr Chan said the Government will introduce legislation to enhance the tax regime with a view to attracting more family offices and funds. It will also enable the privatisation or restructuring of REITs, and amend the law to provide a stamp duty waiver for the transfer of non-residential properties into REITs seeking to list. 

New horizons

Mr Chan highlighted work in various emerging sectors, including efforts to strengthen Hong Kong as a base for the establishment of Corporate Treasury Centres (CTCs). The Government will announce measure providing additional tax incentives and flexibility for CTCs. It also proposes to relax the criteria for stamp duty relief in relation to the intra group transfer of assets, and will introduce legislation whereby the new arrangements will apply retrospectively to instruments signed from today onwards.

The finance chief also outlined that the Government will introduce a bill this year to establish licensing regimes for digital asset dealing and custodianship service providers, while the first batch of licences under the licensing regime for fiat-referenced stablecoin issuers will be issued next month. The SFC will set up an accelerator to expedite market innovation in the digital asset market.

In the coming two years, the Government will amend the Inland Revenue Ordinance to implement the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework and its amended Common Reporting Standard.

Mr Chan outlined that the Government will continue to develop Hong Kong as an international gold trading market by exploring tax incentives for eligible institutions conducting gold trading and settlement in the city, and facilitating the establishment of an industry-led trade association.

Source: Hong Kong Information Services

Financial Secretary Paul Chan announced today that the Chief Executive will lead a cross-bureau, cross-departmental task force for Hong Kong to align with the National 15th Five-Year Plan and formulate Hong Kong’s own five-year plan.  

Delivering his 2026-27 Budget, Mr Chan said that Hong Kong will integrate more actively into overall national development by aiming to drive high-quality, high value-added and diversified economic growth.

Recommendations for Formulating the 15th Five-Year Plan outline China’s economic and social development goals for the next five years.

Mr Chan said the recommendations provide support for Hong Kong to better integrate with national development, consolidating and enhancing the city’s status as an international financial, shipping and trade centre, while developing into an international innovation and technology centre and an international hub for high‑calibre talent.

The Financial Secretary said that Hong Kong will drive “Finance+”, leveraging its financial sector to support the real economy and competitive industries. The move aims to foster mutual growth between the financial and innovation and technology sectors, while utilising the city’s strengths to meet national needs.

He added that Hong Kong will continue to nurture local talent to align with the country’s development while attracting top global talent in various sectors, particularly leading experts in the fields of scientific research. 

Source: Hong Kong Information Services

Announcing the 2026-27 Budget this morning, Financial Secretary Paul Chan said Hong Kong’s economy grew 3.5% over the past year, allowing the Government to reinforce support for people and enterprises, backed by stable and high-quality development at a national level.

Introducing the Budget’s theme – “Driving High-quality, Inclusive Growth with Innovation and Finance” – Mr Chan said 2025 marked a third consecutive year of growth, with further expansion of 2.5% to 3.5% forecast for 2026.

Describing the city’s economy in 2025 as buoyant, he said external trade remained strong, with private consumption rebounding, and fixed investment accelerating. 

Total exports of goods from Hong Kong grew by 12% in real terms, while exports of services rose by 6.3%. Visitor arrivals surged by 12%, with cross-boundary financial services and traffic recording sustained growth.

In terms of domestic demand, private consumption expenditure rose by 1.7%, reversing a downward trend from the second quarter of 2025. Overall investment expenditure grew 4.3%.

The residential property market saw increases in both prices and transaction volumes. Total transactions reached a four-year high of nearly 63,000 for the year, while property prices rose by 3.3% for the year, ending a three-year decline, and rental prices rose by 4.3%. Non-residential property transactions also rebounded, with declines in rentals and prices narrowing.

In the second half of the year, the labour market stabilised. In the fourth quarter, the median monthly employment earnings of full-time employees increased by 4.2% year on year, and the seasonally adjusted unemployment rate stood at 3.8%.

Meanwhile, inflation remained mild. Netting out the effects of the Government’s one-off measures, the underlying inflation rate was 1.1%last year.

Mr Chan also remarked that the stock market delivered a “stellar” performance. The Hang Seng Index rose by 28% over the year, while daily turnover surged by 90% to an historic high of close to $250 billion.

Bright prospects 

Looking ahead, Mr Chan observed that global trade tensions have moderated and stated that the Chinese Mainland will be the key driver of economic momentum, providing firm support for Hong Kong, with a strong foundation being laid for the period of the 15th Five Year Plan.

He predicted that investments in artificial intelligence and other new technologies will continue to underpin trade expansion in Asia, and that market expectations of further interest rate cuts in the US will bolster confidence.

The finance chief said exports of Hong Kong goods and services are expected to sustain decent growth, while a stable labour market and rising household incomes will drive private consumption. He said improving business sentiment will boost asset markets and investments, but cautioned that the international environment remains complex and uncertain.

Forecasting growth of 2.5% to 3.5% in Hong Kong this year, Mr Chan said the Government anticipates further real terms growth of 3% on average per annum from 2027 to 2030. He added that inflation is expected to be moderately higher than last year, with the underlying inflation rate and the headline inflation rate reaching 1.7% and 1.8% respectively.

The financial secretary also outlined that Hong Kong intends to proactively align with the 15th Five Year Plan, better integrate with and serve national development, and continue to participate in developing the Greater Bay Area.

He said the current-term Government is committed to expanding economic capacity and enhancing competitiveness, expediting the development of the Northern Metropolis, driving growth through innovation and technology (I&T) and a focus on talent, and developing new quality productive forces tailored to local circumstances.

Source: Hong Kong Government special administrative region

Following is the speech by the Chief Executive, Mr John Lee, at the 13th Spirit of Hong Kong Awards 2025 today (February 24):

Mr Joe Tsai (Chairman of the South China Morning Post (SCMP)), Ms Nikki Ng (Non-Executive Director of the Sino Group), Mr Paulo Pong (Chairperson of the Spirit of Hong Kong Awards Judging Panel), Ms Tammy Tam (Publisher of the SCMP), Spirit of Hong Kong Awards judges and nominators, awardees and finalists, distinguished guests, ladies and gentlemen.

Good evening. We are gathered here, once again, for the Spirit of Hong Kong Awards, now in its 13th edition.

On this evening, we honour remarkable individuals who live among us. They are ordinary people who, through their selfless and sometimes painstaking efforts, their optimism and firm determination, and their innovation and compassionate leadership, make an extraordinary difference for Hong Kong, our home. For all of us.

We call them “unsung heroes”. But tonight, we are here to sing their praises, to thank them for their beautiful and boundless spirit – the guiding spirit of Hong Kong.

The Spirit of Hong Kong winners and finalists will be announced this evening, and from 10 categories. They range from the spirit of community and culture, to that of innovation and entrepreneurship; from perseverance to teamwork, youth and the Lion Rock People’s Choice Award, chosen by the people of Hong Kong.

Our nominees and winners tonight are role models for Hong Kong – for each and every one of us, young and old. I am very grateful for your dedication to our community. We are immensely proud of you, as we are of Hong Kong. Our city. Our home.

And, as we put a deserving spotlight, tonight, on this inspiring group of Hong Kong people, it is also heartening to know that the Hong Kong community, as a whole, is united and committed to helping their fellow citizens in need, to contributing to the collective good of Hong Kong.

The spirit of mutual support, I’m glad to note, can be seen everywhere in Hong Kong. When our elderly feel lonely, scores of volunteers would deliver warm meals to them and offer companionship. When our young feel fragile, different NGOs would take them under their wing and nurse them to recovery. When our athletes compete on the world stage, the people of Hong Kong would stay up late just to cheer them on, supporting them no matter what the results will be.

Such is the quiet, persistent strength of Hong Kong – a community that uplifts one another not because it is asked, but because it is who we are. This is important to note because, after all, heroism takes many forms. And central to it, central to the spirit of Hong Kong, is dedication, resilience, empathy and, above all, unity.

My thanks to the organisers of the Spirit of Hong Kong Awards, the South China Morning Post and the Sino Group. My thanks, too, to the Awards’ panel of judges, who come from a variety of professions and backgrounds.

Ladies and gentlemen, this special evening is about more than celebration. It is also about gratitude and renewal. It is about drawing strength from those who have given so much to society, and committing ourselves to carry forward the spirit they embody.

And I wish to join you here to welcome the Year of the Horse, let’s stride along with renewed purpose, and the enduring spirit of Hong Kong.

Enjoy the evening. Thank you very much.