{"total-count": 26, "returned-count": 26, "results": [{"title": "Fast-tracking Development of the Northern Metropolis through Market Forces ", "link": "https://www.fso.gov.hk/eng/blog/blog20260830.htm", "date": "30.8.2026", "description": "The Northern Metropolis is a key new engine for Hong Kong\u2019s future economic growth. We recently announced the tender result for the first \u201clarge-scale land disposal\u201d project in the Northern Metropolis \u2014 a new milestone in its development. For the 11-hectare pilot area in Hung Shui Kiu, we moved away from the traditional cash tender approach of awarding the land to the highest bidder. Instead, we adopted a \u201ctwo-envelope approach\u201d, which places greater weight on how much a tender proposal will contribute, over the long term, to Hong Kong\u2019s industrial development and the wider economy. The successful bidder is a company formed by a consortium of six enterprises from different sectors \u2014 local developers, Mainland state-owned enterprises and a leading e-commerce technology company \u2014 whose combined strengths cover infrastructure development, technological innovation, facility operation, supply chain management, business networks and ecosystem building. Price was not the only consideration in the tender assessment. Greater weight was given to whether the bidder could attract strategic industries, create jobs and drive the development of industry chains. This ensures that the successful bidder is not merely a property developer, but a long-term strategic partner with strong all-round capabilities and a proven track record of delivering concrete results in industrial development. The successful bidder will invest a total of about $16.8 billion in the project, which is expected to generate more than 6,000 jobs in construction, logistics operations, business management and other areas. The innovative large-scale land disposal model enables the Government to mobilise private sector resources and capitalise on the market\u2019s flexibility, responsiveness, professional knowledge and experience. It can accelerate project delivery and ensure that the development better serves the needs of its users at every stage, from design and construction through to future operation. The successful bidder will also be required to provide public facilities and open space, and to undertake site formation works for certain land parcels to be handed back to the Government. By reducing the Government\u2019s upfront cash commitment, the model delivers a win-win outcome. Hong Kong is in fact no stranger to public-private partnership models. Market forces have long played a part in taking forward land development and infrastructure projects \u2014 well-known examples include City One Shatin and the tunnels built under the build-operate-transfer (BOT) model. The successful tender for this large-scale land disposal project establishes a new public-private partnership model, and is a milestone for the development of the Northern Metropolis as a whole. We will keep in close touch with the market, monitor market conditions closely and launch tenders for the other pilot areas at an appropriate time. The development blueprint for the Northern Metropolis is ambitious. Research by a major bank estimates that the Northern Metropolis will create 500,000 new jobs and account for at least 13% of Hong Kong\u2019s GDP, with technology-related activities making up about four percentage points of that \u2014 a significant boost to technology\u2019s contribution to the economy. Realising this blueprint calls for more than innovation in land policy. We must also tap the vast resources of the financial market to provide stable, long-term funding for development on this scale. To this end, the Hong Kong Monetary Authority and the Hong Kong Association of Banks established the Northern Metropolis Financial Advisory Taskforce in April this year. Comprising 23 banks with experience in large-scale project financing, the Taskforce has held two meetings to date. The participating banks will explore financing solutions tailored to the characteristics of individual Northern Metropolis projects, including syndicated loans, bond underwriting, infrastructure financing, securitisation and other ancillary financial services. This matters for projects such as innovation and technology parks, industrial developments and modern logistics facilities, because each has its own construction period, cash flow, risk profile and return profile, and each calls for flexible financial instruments. We are also actively tapping the bond market to fund infrastructure in the Northern Metropolis. In May this year, we successfully issued green bonds and infrastructure bonds totalling $27.6 billion under two bond programmes. Total subscriptions reached almost $240 billion, or some 8.6 times the issue size, with orders received from global investors across more than 30 markets. Notably, against the current geopolitical backdrop, investor demand for Hong Kong dollar bond products has risen markedly. Market data show that Hong Kong dollar bond issuance \u2013 wonton bonds \u2013 from the start of this year to mid-August exceeded $670 billion, up nearly 80% year on year and already ahead of last year\u2019s full-year total of about $620 billion. Several local public bodies have also launched large bond offerings, which were readily absorbed by the market. This is a vote of confidence by international investors in Hong Kong\u2019s public finances, exchange rate stability and development prospects, and it gives us ample scope to continue drawing on market resources to speed up the development of the Northern Metropolis. With funding and land in place, the ultimate test of the Northern Metropolis will be whether it can attract high value-added, high-potential industries and quality enterprises to establish their presence there, allowing an innovation and technology ecosystem to flourish. That means using capital as a lever and platforms as vehicles to steer market forces towards substantive industrial development. In this regard, the Hong Kong Investment Corporation Limited (HKIC) serves as one of our principal vehicles for developing the industrial ecosystem. HKIC will continue to align its work closely with the National 15th Five-Year Plan, extending its investments into future industries such as embodied artificial intelligence (AI), commercial aerospace and brain-computer interfaces. Tomorrow, an embodied AI company in HKIC\u2019s portfolio will hold a ceremony to launch its fully autonomous robot retail store in Hong Kong. The company is committed to using Hong Kong as a base to deepen scenario-based applications, expand its international business, attract top talent and carry out related research and development. At the same time, the Hong Kong Science and Technology Parks Corporation (HKSTP), one of Hong Kong\u2019s flagship innovation and technology (I&T) institutions, is actively building platforms to speed up investment matching in I&T. Next week, it will host the Co-Development and Investment Conference, which will bring together more than 200 start-ups and over 200 investors, along with a number of major technology companies, to develop more of the solutions that different industries need. The conference will subsequently be held in Dongguan in the Greater Bay Area and in Hangzhou in the Yangtze River Delta, connecting I&T resources across regions to maximise synergy. Whether by unlocking land value through large-scale land disposal, by providing long-term capital through the financial market, or by guiding industries to take root through HKIC and HKSTP, we are building real momentum behind the integrated development of technology, industry and talent. The Government sets the vision, draws up the long-term plans and clears the way; the market invests, brings in the industries and runs the businesses. This chain linking land, capital and industry will reshape Hong Kong\u2019s economic and industrial structure more quickly, enabling us to integrate better into and serve the overall development of the country under the National 15th Five-Year Plan and Hong Kong\u2019s Five-Year Plan. That, in turn, will make our socio-economic development more diversified, resilient and sustainable. For the public, it means a wider range of quality jobs and a better living environment. August 30, 2026"}, {"title": "Promoting the Adoption and Application of AI", "link": "https://www.fso.gov.hk/eng/blog/blog20260823.htm", "date": "23.8.2026", "description": "Every wave of technological innovation brings a fresh cycle of equipment upgrades and unleashes enormous consumer demand. This trend is clearly on display at the Hong Kong Computer & Communications Festival 2026 (HKCCF 2026), now being held at the Hong Kong Convention and Exhibition Centre in Wan Chai. Last week, I officiated at the opening ceremony and toured the exhibition booths. The venue was buzzing with activity. A number of exhibitors told me that the AI boom has sparked strong consumer interest in related electronic products, giving a further boost to their sales. This year\u2019s event is themed \u201cAI Connect: Let\u2019s Link the Future!\u201d. The venue features a number of themed and special zones covering innovation and technology in sports, green technology living and smart campuses, giving members of the public the opportunity to experience AI applications first-hand. For the first time, the organiser has also co-organised an AI and Digital Transformation Zone with the Hong Kong Productivity Council (HKPC), offering interactive workshops for enterprises on topics such as corporate technology transformation, cybersecurity and professional services. AI is advancing rapidly in the physical world, with robots becoming a key vehicle for its development. This theme has become increasingly prominent in various competitions and exhibitions. For example, ABU Robocon 2026, held today at Queen Elizabeth Stadium under the theme \u201cKung Fu Quest\u201d, brought together 16 top university teams from 15 countries and regions. The teams competed by controlling robots to perform highly challenging tasks, including crossing plum-blossom piles and collecting martial arts manuals. Beyond the competition, the young participants will also visit Hong Kong Science Park and Qianhai in Shenzhen to gain first-hand insights into the innovation and technology ecosystem of the Greater Bay Area. This trend is not confined to the competition arena. A Mainland embodied AI enterprise brought in by the Hong Kong Investment Corporation Limited will present its latest robots and product series to Hong Kong at the end of this month for a public showcase, following their debut at the World Robot Conference in Beijing. The showcase will allow members of the public and students to experience close-up interactions with the robots. From university competitions to corporate product showcases, robots are truly becoming within reach in Hong Kong. Greater participation in AI-related competitions, talks and exhibitions can help young people gain a deeper understanding of cutting-edge technological developments and inspire them to think about their future careers. It may even give them the opportunity to meet future start-up partners or investors. All these experiences can be of considerable value in enriching their personal portfolios and helping them explore future career paths. With the rapid development of AI over the past few years, people have become increasingly aware of the need to keep pace with the times, and enhance both their understanding of AI and their ability to apply it. In fact, a research report by a multinational technology company found that nearly 70% of respondents in Hong Kong are already proficient in using AI, including the ability to compare different tools. Around 20% are \u201csuper users\u201d who know how to use AI agents to automate daily tasks. The report further estimates that if AI adoption among Hong Kong\u2019s small and medium enterprises (SMEs) catches up with that of large enterprises by 2035, this could generate economic benefits of up to HK$65 billion for Hong Kong. Our country\u2019s rapid development in AI has provided significant impetus to Hong Kong\u2019s economy and financial markets. Hong Kong\u2019s economic growth in the first half of this year exceeded earlier expectations, partly due to the strong global demand for advanced electronics and AI-related products. This demand supported high double-digit growth in Hong Kong\u2019s exports for several consecutive quarters. Between December last year and May this year, AI-related IPO fundraising in Hong Kong amounted to nearly HK$100 billion, accounting for about 55% of total IPO funds raised during the period. Following its latest quarterly review, Hang Seng Indexes Company Limited also included a number of AI-related companies in various indices, properly reflecting the growing importance of AI in the economy. The operations of the HKSAR Government are also becoming more deeply empowered by AI. The AI Efficacy Enhancement Team has facilitated the first batch of 30 efficacy enhancement projects across 13 departments, covering areas such as licence applications, facility bookings, environmental hygiene and complaint handling. The Transport Department will launch \u201cEasy Licence Application Approval\u201d by the end of this year, using AI to automatically recognise documents. It aims to cut the processing time for online vehicle licence renewals from up to 10 working days to just one. In the first quarter of next year, a trial will also be launched to use AI to adjust traffic signals in real time, with a view to shortening pedestrian waiting times. As technology develops rapidly, what is even more critical is enhancing the capabilities of the workforce. The 2026\u201327 Budget allocated HK$50 million to launch the \u201cAI Training for All\u201d programme with precisely this objective in mind. Through Cyberport, the Hong Kong Science and Technology Parks and the HKPC, various activities have been rolled out to provide diversified AI training for working people, students and members of the public. The target is to organise more than 200 activities this year and next year, benefiting around 50,000 participants. Taking HKPC as an example, its efforts mainly target SMEs and working people. During this year\u2019s HKCCF, it brought together nearly 30 partner enterprises to support SMEs in the specification application of AI across various areas, from cybersecurity and online legal arbitration to omnichannel AI chatbots and business messaging solutions. Over the next two years, it will also continue to conduct the AI Readiness in Workplace Survey to provide a reference for formulating more targeted support measures. The Employees Retraining Board will also collaborate with a major technology company to launch AI courses, which are expected to be rolled out to working people in November. Frontier technologies and applications are still evolving and will inevitably bring challenges to the job market. We must step up our response, including enabling young people to acquire new skills early and providing them with opportunities to apply those skills in the workplace. Hong Kong is home to a large number of SMEs. Their flexibility, adaptability and innovative spirit have withstood the tests of past technological changes and economic cycles. In the current period of technological paradigm shift, we will give them our full support in preparing for and responding to change, so that they can continue to move forward. August 23, 2026"}, {"title": "Reinforcing Hong Kong's Status as an International Aviation Hub", "link": "https://www.fso.gov.hk/eng/blog/blog20260816.htm", "date": "16.8.2026", "description": "Following the Book Fair and Ani-Com & Games, the Food Expo is taking place this week at the Hong Kong Convention and Exhibition Centre in Wan Chai. This highly popular large-scale exhibition and four concurrent fairs have drawn more than 1,800 exhibitors from over 30 countries and regions around the world. This year also marks the first time that enterprises and representatives from all 11 ASEAN member states are taking part. In addition to business representatives exploring opportunities, the venue has been bustling with members of the public sampling delicacies and snacks. Hong Kong has long been a preferred destination for major exhibitions and conventions. In the first half of this year, the city's two flagship venues \u2014 the Hong Kong Convention and Exhibition Centre and AsiaWorld-Expo \u2014 hosted more than 170 events, attracting 3.5 million participants. Hong Kong's success as a convention and exhibition capital is underpinned not only by its role as a gateway connecting the Mainland and international markets, and by its vibrant commercial environment, but also by its dynamic city life and efficient, convenient global connectivity. At present, around 140 airlines operate flights connecting Hong Kong with more than 225 destinations worldwide, forming an efficient and convenient network for both point-to-point travel and transit, offering passengers flexible and diverse travel options. In the first half of this year, Hong Kong International Airport handled more than 200,000 aircraft movements, an increase of 4.4% year-on-year, while passenger throughput reached 32.8 million, representing an 11.7% year-on-year growth. Efficient and convenient international connectivity, coupled with a vibrant lineup of mega events, has helped attract more business and leisure visitors to Hong Kong. In the first seven months of this year, Hong Kong recorded 31.22 million visitor arrivals, up 12% year-on-year. This continuous flow of people has injected greater vitality into the city and created more business opportunities. Hong Kong's status as an international aviation hub is not only the lifeblood of its aviation industry; it is also a critical piece of infrastructure that enables Hong Kong to perform its role as a \"super value-adder\" and \"super connector\". It supports the continued growth of trade, logistics, conventions and exhibitions, tourism as well as broader cultural and people-to-people exchanges. As geopolitics and regional trade patterns continue to evolve, we are taking a more proactive approach to expanding Hong Kong's aviation network, concluding more bilateral air services arrangements, and continuously upgrading our airport infrastructure. The Three-runway System, commissioned two years ago, will gradually increase aircraft movement capacity. The departure facilities at Terminal 2, which came into operation in May this year, are now used by 15 airlines and are expected to divert around 8 million passengers in their first year of operation, thereby strengthening the airport's capacity to handle outbound passenger flows. Many local, Chinese Mainland and overseas travellers who have used Hong Kong International Airport have spoken highly of their experience. The Airport Authority Hong Kong (AAHK) is also actively advancing the development of a \"smart airport\", comprehensively upgrading airport operations through biometrics, artificial intelligence and the Internet of Things. These initiatives enhance the efficiency of passenger and flight operations while providing travellers with a smoother and more pleasant journey. For example, the facial-recognition-based Flight Token system has accelerated the entire check-in and boarding process; mobile express baggage drop-off services have been introduced; and the Smartlane system has been adopted to improve security screening efficiency. As at June this year, the Flight Token service covered around 80% of departing passengers at the airport. Around the world, many international hub airports are no longer merely immigration and transport facilities; they have become major integrated tourism and service landmarks, attracting more high value-added and high-spending international visitors. Hong Kong International Airport has enormous development potential in this regard. The SKYTOPIA project will develop a new landmark integrating high-end commerce, art, tourism, leisure and wellness activities. Among them, construction of AsiaWorld-Expo Phase 2 has commenced and is expected to be completed in 2028, which will significantly expand capacity for conventions, exhibitions and mega-events. The strategic location and attractive waterfront setting of SKYTOPIA offer new opportunities for developing yacht tourism. AAHK will make use of the waters adjacent to the Airport Island and the Hong Kong Port Island to provide more than 500 berths, including berths for superyachts over 100 metres in length, together with supporting facilities and a water recreation area. AAHK has extensively engaged local, Mainland and overseas investors and operators on the development, and has received a very positive response. The project is expected to be completed in phases from 2028 onwards. At the same time, we will establish an arts ecosystem within SKYTOPIA, bringing together art creation, appreciation, trading and storage. This will include a storage facility for artworks and valuables, supported by related professional services. The facility is expected to commence operation in early 2027, generating greater synergy with the high-end passenger flows served by airport lounges and the business aviation centre. We will continue to adopt a multi-pronged strategy to fully leverage Hong Kong's strengths as an aviation hub and attract more passenger and cargo flows on all fronts. This includes developing integrated multimodal transport to make it easier for passengers to reach Hong Kong International Airport by sea and land for their flights; strengthening co-operation between the Hong Kong and Zhuhai airports; working with travel companies to attract more transit passengers; and collaborating with Dongguan to promote the innovative sea-land-air cargo intermodal transport model. When travellers from around the world arrive at, depart from or transit through Hong Kong International Airport, every detail of the services they experience shapes their impression of Hong Kong. These experiences can open up more opportunities for tourism, exchanges and business. We will continue to make every effort to further reinforce Hong Kong's status as an international aviation hub, while injecting new vitality into the interconnected development of related economic sectors. August 16, 2026"}, {"title": "Arts, Cultural Creativity and Mega Events", "link": "https://www.fso.gov.hk/eng/blog/blog20260809.htm", "date": "9.8.2026", "description": "Last week, I visited the Hong Kong Palace Museum in the West Kowloon Cultural District to see the recently launched exhibition, The Forbidden City and the World. The rare and valuable works on display drew crowds of visitors, many of whom stopped to admire them. One piece that especially caught my attention was a Qing-dynasty hanging screen depicting a landscape. Set against a black lacquer ground, its mountains were embellished with kingfisher-feather inlay, while the pavilions, trees and rocks glow in blue-green hues against the darkness. The composition feels lively and intricate, with a striking sense of depth and layering. The superb craftsmanship of our country at the time \u2013 combined with the distinctive kingfisher feathers sourced from Southeast Asia \u2013 makes this cultural relic truly unforgettable. This exhibit is just one of more than 130 treasures on display. The exhibition also features 18 grade-one national treasures spanning paintings and calligraphy, jewellery, clocks and watches, and furniture. Tracing over 600 years of history across the Yuan, Ming and Qing dynasties, the show highlights China\u2019s exchanges with the wider world in diplomacy, trade, ideas, religion and craftsmanship, inviting visitors to explore how these encounters shaped art and sparked innovation. Complementing The Forbidden City and the World is Ancient Egypt Unveiled in the neighbouring gallery. Since opening at the end of last year, it has attracted more than 570,000 visits. The cultural and creative products area at the exit was packed, with visitors lingering to browse and choose souvenirs \u2013 an example of how exhibit-inspired creativity can be translated into real economic value. In this sense, cultural content provides the foundation of value; industry platforms determine its scale; and major events help unlock it. These three elements are tightly connected, together forming a dynamic, self-reinforcing ecosystem. Cultural Content From artworks to cultural and creative products, creations that speak to the soul resonate with audiences and generate value. The combined revenue of the Hong Kong Palace Museum and M+ rose by 22% compared with the previous financial year, with venue hire and sales of cultural and creative products becoming important income streams. Take Ancient Egypt Unveiled as an example: the museum launched around 200 related cultural and creative items, and total sales have already exceeded $30 million. Hong Kong is one of the world\u2019s top three art trading centres, and we are committed to building a richer ecosystem that brings together more high-end art services and transactions. This includes developing art storage facilities at the airport and creating an integrated operating model that spans collecting, appraisal and trading. The Artist Square Towers in the West Kowloon Cultural District, scheduled for completion this year, aim to attract galleries, insurers, auction houses, family offices and other businesses across the art-industry value chain. We have also signed a five-year collaboration agreement with Art Basel, under which Hong Kong will remain the exclusive host city in the region. Industry Platforms At the same time, intellectual property (IP) trading platforms in the cultural and creative sphere play a vital role in unlocking value. They generate wider economic benefits for creative and innovation-driven industries, while also encouraging further creativity and innovation. For example, with support from the Cultural and Creative Industries Development Agency, the Hong Kong Trade Development Council has strengthened the Asia IP Exchange, which began operations in March this year. The newly added arts and creative IP database features information on more than 10,000 cultural and creative IP assets, along with market transaction data and related professional services. This makes it easier for potential buyers to identify relevant IP, thereby facilitating deals and enabling cross-sector collaboration. Mega Events Mega events drive both local and inbound visitor flows, while creating multi-dimensional links across consumption. Following the recently concluded World Cup matches, the Hong Kong Football Festival 2026 and the Audi Football Summit 2026 \u2013 held at Kai Tak Sports Park \u2013 drew a combined audience of more than 120,000 across three matches. Ticket revenue is expected to exceed $180 million. Beyond ticket sales, these events generated broader positive spillovers. For instance, some restaurants near Kai Tak reported business growth of around 20% during the period. Many merchants also rolled out ticket-stub promotions, dining discounts and free parking, using creative offers to capture new opportunities. The Hong Kong Tourism Board worked with industry partners to launch joint promotions across different districts during major events, further stimulating visitor spending. In summary, in the first half of this year, around 1.75 million visitors attended more than 130 mega events, generating approximately $5.8 billion in spending and contributing about $3.3 billion in value added to Hong Kong\u2019s economy. From arts and cultural creativity to major events, these initiatives have helped create a positive social atmosphere and stimulate consumer demand in the city. The broader figures point to the same momentum: Hong Kong\u2019s total retail sales value has risen year on year for 14 consecutive months, with a growth of 9.6% in the first half of this year. Looking ahead to the second half of the year, we will host more than 100 mega events, including the HKTDC Food Expo, the National Day Fireworks Display, the Hong Kong Cyclothon, the Hong Kong Wine & Dine Festival, and much more. These events are expected to attract over 1.85 million visitors, generate around $5.9 billion in spending, and contribute about $3.3 billion in value added to Hong Kong\u2019s economy. Notably, Hong Kong will host its first-ever APEC Finance Ministers\u2019 Meeting this October, bringing together key political and business leaders from across the Asia-Pacific region. We will seize this opportunity to showcase Hong Kong not only as a premier international financial centre, but also as a world-class events capital \u2013 rich in cultural, creative, arts, sports and lifestyle experiences, and an ideal place to live, work and visit. August 9, 2026"}, {"title": "A New Milestone for Offshore Renminbi Business", "link": "https://www.fso.gov.hk/eng/blog/blog20260802.htm", "date": "2.8.2026", "description": "With the strong support of relevant central ministries and authorities, the long-awaited offshore RMB China Government Bond Futures will be listed in Hong Kong tomorrow. The debut contract to be listed will be a five-year product, currently the only product of its kind in the offshore market. It will allow international investors to trade and settle the relevant contracts in the offshore market using their existing trading accounts, practices and procedures in Hong Kong. This marks a new milestone in Hong Kong's development as an offshore RMB business hub. It not only enriches the range of RMB risk management tools available in our market, but also signifies the deepening development of China Government Bonds in the offshore market and the orderly advancement of RMB internationalisation. Bond Connect was launched in 2017, facilitating overseas investors to participate in the Mainland bond market through Northbound Bond Connect. Southbound Bond Connect was subsequently launched, enabling two-way trading. Three years ago, Swap Connect was introduced, allowing investors to hedge interest rate risks for their onshore bond holdings. The launch of China Government Bond Futures this time provides a standardised, exchange-traded and liquid offshore hedging tool for Chinese Government Bonds. In other words, Bond Connect, Swap Connect and now the launch of China Government Bond Futures have completed the loop for risk management between the cash bond and futures markets. This allows overseas investors to participate in RMB Chinese Government Bond trading in the offshore market more efficiently and conveniently, with the Hong Kong market playing a key role. This development is underpinned by the continued expansion of investors' demand for northbound asset allocation. Bond Connect has long been the main channel for overseas investors to access the Mainland's onshore bond market, accounting for about two-thirds of overall trading. The Chinese bonds held through this channel exceeded RMB 3 trillion as at the end of June this year, representing nearly a threefold increase from about RMB 800 billion at the end of 2017. The expansion in holdings reflects not only stronger investment appetite, but also leads to greater demand for risk management. In fact, the development of Hong Kong's offshore RMB market has continued to deepen. Issuance of dim sum bonds exceeded RMB 1 trillion in each of the past two years, with outstanding volume surpassing RMB 1.6 trillion. The monthly settlement amount through the interbank settlement system is approaching RMB48 trillion. At the same time, we are accelerating the development of an international gold trading centre and a commodities trading ecosystem, supporting the launch of more RMB-denominated products. The development of the offshore RMB market is built on the country's growing economic strength, as well as its sound economic and monetary policies. In the first half of this year, China's total imports and exports of goods exceeded RMB 25 trillion, representing year-on-year growth of 16.9% and reaching a record high. Globally leading industrial clusters are also taking shape at an accelerating pace in areas such as new energy, electric vehicles, artificial intelligence, embodied intelligence and storage chips. The continued deepening of international economic, trade and industrial cooperation will inevitably create more use cases for the RMB \u2014 from trade settlement to investment, and from asset allocation to central bank reserves. The further development of RMB internationalisation requires the support of a comprehensive and highly efficient offshore market. From northbound bond allocation and interest rate hedging, to offshore financing and clearing, and on to RMB-denominated trade settlement, these functions are converging in Hong Kong. This makes Hong Kong a hub for two-way allocation and two-way risk management. We will continue to play our role as a bridge connecting the Mainland and global markets, and actively promote the sound, steady and deeper development of the offshore RMB market. In doing so, we will reinforce and enhance Hong Kong's function and status as the world's largest offshore RMB business hub. Hong Kong's own economic and financial performance has also provided a favourable environment for this upgraded development. In July, the Hang Seng Index rose by about 3,000 points, or 13%. This was the largest monthly gain in nearly two years in terms of increase in points. Average daily turnover remained above HK$300 billion for the second consecutive month. A number of high-quality technology companies have continued to apply for listing in Hong Kong. In the first seven months of this year, total funds raised through Hong Kong IPOs had already exceeded the full-year total for last year by 13%. Post-listing fundraising by listed companies also increased by more than 20% year on year. Apart from the financial markets, Hong Kong's overall economy has also continued to grow steadily. Supported by buoyant external trade and resilient domestic demand, the Hong Kong economy has recorded growth for 14 consecutive quarters. Real Gross Domestic Product grew by 4.3% year-on-year in the second quarter of this year. Within which, exports of goods remained particularly strong, with growth accelerating further to 28.8% in real terms in the second quarter. Private consumption expenditure also grew steadily by 2.9% in real terms. Hong Kong's economy grew by 5.1% in the first half of this year, stronger than expected. In the second half of the year, merchandise exports should continue to benefit from strong global demand for AI products. Continued external demand for Hong Kong's financial and business services, together with an increase in visitor arrivals, would support growth in exports of services, and is conducive towards local consumption and investment sentiments. Taking into account the overall economic situation, the revised full-year economic growth forecast to be released in the middle of this month will be adjusted upwards from the original forecast range. Nonetheless, the outlook would still be affected by geopolitical developments, US interest rates and other uncertainties. We will remain highly vigilant, and step up efforts to accelerate economic development while safeguarding economic and financial security. August 2, 2026"}, {"title": "Building a World-class City for Living, Working, Studying and Visiting", "link": "https://www.fso.gov.hk/eng/blog/blog20260726.htm", "date": "26.7.2026", "description": "We are now formulating the first five-year plan for the Hong Kong Special Administrative Region. At the same time, public consultation is under way for the Chief Executive's new Policy Address. Last week, a consultation session on the theme of sustainable and liveable city was attended by more than 80 representatives from the planning, environmental, social welfare, and think tank sectors, as well as professional bodies and organisations. They offered views from different perspectives and contributed ideas for the further development of Hong Kong as a liveable city. Participants expressed great enthusiasm for the development of the Northern Metropolis. They agreed that its beautiful natural ecology, sound spatial planning, convenient transport links and quality tertiary education would be organically combined with the incoming technology enterprises, talent and industries. This will facilitate the development of the Northern Metropolis into a hub ideal for living, working, studying and visiting, while serving as a new engine for Hong Kong's future economic growth. At present, works have commenced in four new development areas in the Northern Metropolis. More than 520 hectares of land have been resumed, and about 120 hectares have been formed. In the next five years, the Northern Metropolis will provide more than 70,000 housing units and 1 million square metres of economic floor area. Looking ahead, over the next decade, about 240,000 housing units and over 10 million square metres of economic floor area will be completed in the Northern Metropolis. Communities in the Northern Metropolis are being planned under the concept of a \"15-minute living circle\". Community facilities will be distributed in a balanced and reasonable manner, so that residents can meet most of their daily needs within a walk or bicycle ride of no more than 15 minutes. We also hope to take the opportunity of developing the Northern Metropolis to gradually improve the living space and quality of life of our residents. For residential units built there, the living space per person for public housing is being enhanced, while the size requirements for private housing units are also being raised. As for public space, the standard adopted in the Northern Metropolis will be about 30% higher than the current territory-wide level, reaching 3.5 square metres per person. We believe the development of the Northern Metropolis will also create more favourable conditions for the renewal of old districts. \"Infrastructure-led and industry-driven\" is the core principle of the Northern Metropolis development. It will also bring more convenient transport and more employment opportunities for residents in the area. Kwu Tung Station, located between Sheung Shui Station and Lok Ma Chau Station on the East Rail Line, will open next year and become Hong Kong's 100th heavy rail station. Hung Shui Kiu Station on the Tuen Ma Line is expected to come into operation in 2030. The Northern Link Main Line and Spur line are being taken forward together as one project. This will not only save costs, but also advance the programme of the Spur Line by two years to commission together with the Main Line by 2034 or earlier. In future, travelling from Hung Shui Kiu to Qianhai on the Hong Kong-Shenzhen Western Rail Link will take only about 15 minutes. On the industry front, the Northern Metropolis will be where the development of innovation and technology as well as diversified industries will be promoted. It is expected to create about 500,000 new jobs. At the Hong Kong-Shenzhen Innovation and Technology Park in the Hetao area, more than 90 innovation and technology enterprises have already moved in, and five more buildings will be completed within this year. Park companies for San Tin Technopole and the Hung Shui Kiu Industry Park have also been established, and they are expediting work. Together with the large-scale Northern Metropolis University Town, these developments will realise integrated development among the Government, industry, academia, research and investment, while creating more employment opportunities. Another distinctive feature of the Northern Metropolis is its beautiful countryside and bays. Robin's Nest Country Park, covering 530 hectares, was established the year before last as Hong Kong's 25th country park. We are also taking forward the Sam Po Shue Wetland Conservation Park, which will cover more than 300 hectares. The park will not only protect wildlife, but also preserve more than 250 hectares of ecologically enhanced fishponds. It will promote local biodiversity, provide quality local aquatic products for the public, and offer a pleasant leisure destination. The first phase of works for the park will begin as early as the end of this year, with completion targeted for 2031. Efficient city management with high accessibility is essential to a city ideal for living, working and visiting, as it is linked to residents' direct experience of everyday life. Smart management is a key development direction for urban management. Taking immigration clearance as an example, Hong Kong handles a massive volume of passenger and cargo flows on a daily basis, giving rise to a substantial need for smart clearance. In 2026, an average of approximately 500,000 passenger trips are made daily by Hong Kong residents using the e-Channel service. The relevant services have in fact been continuously enhanced. Examples include the launch of the \"Contactless e-Channel\" in 2021, the \"Face Easy e-Channel\" at the Hong Kong International Airport in September last year, and the \"Seamless e-Channel\" at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port in June this year. At present, about 380,000 passenger trips are made daily using the aforementioned upgraded e-Channel services across various control points. In addition, the airport's smart security screening system has been upgraded. Computed tomography X-ray machines, or CTX, generate 360-degree three-dimensional images, allowing security officers to inspect the inside of baggage clearly from different angles. As a result, items such as computers, power banks and liquids no longer need to be removed from carry-on baggage during security screening. Building a smart city and providing more efficient and convenient public services require more comprehensive support from a digital foundation. We are committed to providing digital identity authentication for citizens and businesses. As a personal digital identity and a one-stop personalised digital services platform, \"iAM Smart\" has more than 4.6 million registered users, with average daily usage exceeding 220,000 times. Within this year, we will provide an AI Assistant for \"iAM Smart\" users to answer enquiries and offer more personalised services, further enhancing the user experience. The \"Digital Corporate Identity Platform\" is also under development and is expected to be launched within this year, with services to be expanded gradually thereafter. Over the past few decades, we have continued to invest resources, accelerate infrastructure development, and make steady progress towards becoming a more liveable and business-friendly city. This is also a key theme in the ongoing public consultations for Hong Kong's five-year plan and the Chief Executive's Policy Address. I look forward to your active participation, so that together we can build greater momentum for a beautiful home that is smarter, more efficient, more convenient, and greener. July 26, 2026"}, {"title": "AI for Good and for the People", "link": "https://www.fso.gov.hk/eng/blog/blog20260719.htm", "date": "19.7.2026", "description": "The Hong Kong Book Fair is currently underway at the Convention and Exhibition Centre in Wan Chai. In recent years, I have made a point of visiting the fair with young people and picking out a book as a gift for them. The year before last, it was One Hundred Thousand Whys . Last year, it was Physics in Graphics . This year, I chose a book on the applications of artificial intelligence (AI) and human-AI collaboration. Taken together, the books from these three years trace a clear trajectory: from exploring principles and understanding science to applying cutting-edge technologies. At this year\u2019s Book Fair, innovation and technology (I&T) \u2013 AI in particular \u2013 feature far more prominently, whether in the books, the exhibitions or the seminars. The popularity of the AI theme shows that it is no longer merely an imagined future confined to the pages of books; it is becoming part of everyday life. Indeed, technological innovation and AI have quickly become indispensable parts of our lives. At the Book Fair, the \u201cWorld of Art & Culture\u201d zone features an interactive installation that instantly generates a personalised reading list based on visitors\u2019 personalities and reading preferences. Government booths also showcase how AI can improve public services \u2013 for instance, by enhancing landslide warning systems. It is fair to say that this generation of young people is growing up with AI. Whether for supporting learning or gathering information for their projects, AI has become a partner in their daily work and thinking process. In the age of AI, rather than passively adapting to change, we should take the initiative to deepen our understanding of its underlying principles and put it to good use. AI may gradually take over highly repetitive and mechanical tasks, but in doing so it frees up time and space for us to focus on work that calls for analytical thinking and creativity. In other words, AI can serve as an amplifier of human intelligence and decision-making. AI is being applied at many different levels, including a shift from chat-based interaction to embodied intelligence in the physical world. This shows that AI is moving out of the digital realm and into the real world, reaching into every aspect of daily life. Like computers and the Internet before it, AI will become a cornerstone of economic and social development. Today, everyone needs to know how to use a computer, even if not everyone needs to be an engineer. The far-reaching changes brought by AI will affect not just individual industries; they will transform the very ways we learn, live, work, do business, and create. Hong Kong has been an active participant in the broader wave of technological innovation and application, while at the same time moving full speed ahead to deepen support for local adoption. Last month, the Committee on AI+ and Industry Development Strategy held its first meeting, discussing key areas ranging from research and innovation, data flow and security, and computing power to application scenarios, talent development and funding. This marked a new stage in Hong Kong\u2019s AI development \u2013 a shift from advancing individual initiatives to adopting a more systematic approach, with the aim of empowering industries across the board through AI. In its initial phase, the Committee will focus on life and health technology and embodied intelligence: the former is where Hong Kong holds considerable strengths in research, while the latter can draw on the industrial hinterland of the Greater Bay Area. Within this year, we will roll out an enhanced version of the Digital Transformation Support Pilot Programme to help small and medium-sized enterprises adopt ready-to-use AI solutions. We attach great importance to building the infrastructure and ecosystem needed to support this vision. On the computing power front, construction of the Sandy Ridge Data Facility Cluster site is now underway; by 2032, it is expected to deliver around 180,000 PFLOPS \u2013 equivalent to 36 times Hong Kong\u2019s current total computing capacity. The Hong Kong Artificial Intelligence Research and Development Institute is also set to commence operation soon. Meanwhile, 56% of the funds committed by the Hong Kong Investment Corporation Limited last year went to hard technology, including AI, while also fostering the ecosystem development of the RISC-V open-source architecture. Together, these efforts will strengthen our computing capacity and nurture a vibrant ecosystem for AI applications. Ultimately, technological innovation and application come down to people. Our \u201cAI Training for All\u201d initiative will span three levels: basic outreach, professional empowerment and practical enhancement. It aims to help members of the public try AI, learn to use it, and apply it more effectively. For the global economy, AI is a new engine of growth, but it also brings new risks and challenges. No economy can achieve every breakthrough on its own, nor can any economy address every risk alone. Development and governance must go hand in hand, and mutual benefit and inclusive growth must be valued, so that we can move not only quickly, but also steadily and sustainably. At the World Artificial Intelligence Conference held in Shanghai a few days ago, President Xi Jinping delivered a keynote address, noting that AI is an important driver for shared prosperity and common security. The World Artificial Intelligence Cooperation Organization, initiated by our country, has now been established, with 29 countries signing the agreement to become founding members. \u201cTaking a people-centred approach and developing AI for the positive and for good\u201d is emerging as a shared goal widely embraced in international technological development. We firmly believe that technological progress should make people\u2019s lives better, and we must work to ensure that its benefits reach as many people as possible. As an international I&T centre, Hong Kong is leveraging its distinctive advantage of being connected to both the Mainland and the world under the \u201cone country, two systems\u201d framework. We serve not only as a hub for AI research and development (R&D) and outcome transformation, but also as a strategic springboard for Mainland AI enterprises going global \u2013 helping them align their frontier technologies and business models with international standards and practices. Our role as a highly efficient international financial centre further provides robust funding support for these ventures and transformations. Together, these strengths are drawing a growing number of technology enterprises to Hong Kong. In recent months, we have engaged with many AI-related companies \u2013 suppliers spanning hardware and equipment, key materials and computing power \u2013 and they have expressed their intention to expand their operations here and use the city as a platform for wider global growth. Future competition in AI will not be merely about scaling up models in size and speed; it will be a comprehensive contest spanning application scenarios, data environments and talent. This new wave of competition will also test our ability to make technology more inclusive and to ensure that it truly benefits humanity. In Hong Kong, we are committed to developing the city into a hub for R&D in AI and outcome transformation, a launchpad for AI applications going global, a magnet for AI talent, and a source of end-to-end funding support. We look forward to working with all sectors to make AI a new driver of high-quality development and a solid foundation for digital livelihoods \u2013 as well as a bridge, a pathway and a stage on which young people can pursue their dreams and the society can move forward. July 12, 2026"}, {"title": "A Message of Encouragement for DSE Students", "link": "https://www.fso.gov.hk/eng/blog/blog20260712.htm", "date": "12.7.2026", "description": "This year\u2019s DSE results will be released on Wednesday. For more than 58,000 DSE candidates, the release of their exam results marks not only the culmination of years of hard work, but also a pivotal moment when they must choose the path for the next chapter of their lives. Whether they decide to pursue further studies or enter the workforce, this is an important milestone in their life journey. The wait for exam results can be unsettling. Yet many who have been through it come to realise that while exam scores may define a moment in time, they do not define one\u2019s future. Students today enjoy more diverse pathways. Even if they cannot secure a place in their preferred programme, there are many other options for pursuing further studies, including associate degrees, higher diplomas and applied learning courses, as well as vocational training. Those who complete such courses or training can then choose to articulate to bachelor\u2019s degree programmes. While these pathways have long existed, it is worth noting in particular that artificial intelligence (AI) is opening up new branches further along these traditional routes. This will offer students more avenues for development and job opportunities in the future, whichever path they choose. Today, even if one doesn\u2019t know how to write code, large language models allow you to instruct computers to complete tasks using natural language. This means the threshold for adopting AI is getting lower. Whether you study business, design, nursing or the humanities, the key question is no longer whether you have programming skills, but whether you have the ingenuity to combine your interests and knowledge with AI tools. For this reason, whether at innovation and technology (I&T) companies or traditional enterprises undergoing transformation, the most sought-after employees are cross-disciplinary talents\u2014people who possess expertise in a professional field and know how to use AI tools to amplify their abilities. By identifying their interests, keeping a curious mind, and combining these with a knowledge of AI, students can find a breakthrough point for enhancing their own capabilities. The development of AI applications is both expanding and deepening. Over the years, the HKSAR Government has stepped up its investment in this area, while continuing to strengthen two-way interaction with the Mainland and overseas markets. These efforts aim to create more opportunities for all sectors of the society amid this new wave of technology, and to provide broader points of access and entry for local young people and working professionals. Take LEAP, the Middle East\u2019s largest flagship I&T event, as an example. The event made its Asian debut in Hong Kong. The three-day exhibition attracted more than 25,000 participants, over half of whom came from outside Hong Kong. Investors attending the event represented US$6.5 trillion in assets under management. One key feature of this Saudi Arabian event is that it brings together cutting-edge I&T enterprises, technology parks, and investment and financing communities from more than 30 countries and regions. It will continue to be held in Hong Kong over the next three years. In fact, after several years of deeper exchanges and engagement with the Middle East, the two sides have gradually built stronger mutual trust and friendship. We have also forged closer ties in trade and the economy, finance, innovation and technology, and people-to-people exchanges. Trade between Hong Kong and the Gulf Arab states grew by about 5% last year, and in the first five months of this year, it rose by more than 35% year on year. Bilateral trade with the United Arab Emirates, in particular, surged by more than 52%. In terms of capital flows, Gulf sovereign wealth funds invested mainly in the European and US markets in the past. Yet of the tens of billions of US dollars they allocated globally last year, about 40% went to Asia. This reflects a clear shift in their asset allocation, with a more diversified investment strategy gradually taking shape. For young people, world-class technology events and related activities held in Hong Kong offer a valuable window onto the latest cutting-edge developments around the world, especially the application of AI in areas such as healthcare, finance, energy and industrial production. Hong Kong is a hub that connects the world, and the exploration of personal interests and career directions has never been confined to the city alone. The Mainland and international markets also offer rich platforms for career development. AI is set to define the future competitiveness of every economy across a wide range of fields. The HKSAR Government is deepening its work on all fronts to enhance local AI literacy and promote AI training for all. On the academic side, universities and post-secondary institutions are progressively increasing the number of relevant programmes, while primary and secondary schools are promoting school-based AI education. For working adults, professional bodies across various sectors are offering more courses on AI applications. The Employees Retraining Board will also be upgraded and renamed Upskill Hong Kong to provide the public with greater support for AI training. For DSE candidates, no matter where your interests lie\u2014whether in business, design, nursing or the humanities\u2014and regardless of whether you gain direct admission to your preferred field of study at the next stage, you can still seek to combine those interests with AI tools, with the aim of exploring unique applications that benefit both yourself and the society. Identifying pain points and finding practical uses for them can lead to new solutions. This journey of exploration may even unlock new horizons, new imagination and new possibilities for the future. In the face of rapidly evolving technology, human interests and preferences are constantly shifting, and new challenges keep emerging. Yet one thing is certain: no one can navigate an entire career on the strength of a single result slip alone. Continuous learning, perseverance and curiosity are the most essential qualities in this era\u2014the qualities that will help you carve out a fulfilling career with no regrets. July 12, 2026"}, {"title": "Seizing Every Opportunity to Contribute to the Great Rejuvenation of the Chinese Nation", "link": "https://www.fso.gov.hk/eng/blog/blog20260705.htm", "date": "5.7.2026", "description": "Last Wednesday, the Conference Celebrating the 105th anniversary of the founding of the Communist Party of China (CPC) was solemnly held in Beijing. General Secretary Xi Jinping delivered an important speech at the conference, offering a comprehensive and systematic account of the CPC's glorious history of unremitting struggle and the tremendous achievements it has made in leading the entire nation forward with determination. As we watched the conference together in Hong Kong and reflected on the country's proud development journey under the leadership of the CPC, we were filled with profound excitement and inspiration. Over the past 105 years, the history of the CPC has been closely intertwined with that of the Chinese nation. The Party has led the country in achieving national independence and the liberation of the people, advancing socialist construction, and, in particular, steadfastly promoting economic development since reform and opening-up. Through the hard work and dedication of successive generations, our country has completed, in just a few decades, an industrialisation process that took developed countries several centuries to achieve. It has realised a historic leap in people's living standards \u2014 from inadequate access to food and clothing, to moderate prosperity overall, and then to the building of a moderately prosperous society in all respects. Our country's economic, technological, defence and overall national strengths have been comprehensively enhanced, creating the dual miracles of rapid economic development and long-term social stability. What we feel most deeply is that our destiny has always been inextricably linked with that of the Motherland. Despite facing a complex and volatile international environment, as well as diverse internal and external challenges, the country has continued to overcome obstacles and maintain steady development under the leadership of the CPC. Every stage of this progress and every leap forward have opened up new horizons for Hong Kong. Indeed, every step of Hong Kong's development has been inseparable from the nation's solid and unwavering support. In the magnificent landscape of our country's development, there is one uniquely distinctive stroke: \"one country, two systems.\" Conceived more than 40 years ago as a visionary concept advanced by the CPC, it has since evolved into an institutional strength of our country, providing a solid foundation for Hong Kong's unique advantages, prosperity, stability and development. No other city in the world is quite like Hong Kong. We are deeply integrated into the country's economic development and governance framework, while remaining seamlessly connected with international rules and markets. Established under the authorisation of the \"one country\" framework, we continue to uphold the common law and free port system under \"two systems.\" We participate actively in the Mainland's domestic circulation while also serving as a vital node in international circulation. General Secretary Xi Jinping has explicitly pointed out that \"promoting the long-term prosperity and stability of Hong Kong and Macao is an inherent requirement of the great rejuvenation of the Chinese nation.\" Under the strong leadership and support of the Central Government, Hong Kong is advancing towards a future of greater prosperity and development. It has become evident that Hong Kong is not only a beneficiary of the country's development, but also a contributor to the advancement of national strategies. We must combine the institutional, international, financial and professional advantages built through the hard work of generations under the \"one country, two systems\" framework with the new opportunities arising from the country's steady, high-quality development. By doing so, we can transform these strengths into more solid, long-term and sustainable contributions to the country's overall development in this new stage, while ultimately carving out a new growth trajectory for Hong Kong's future. Specifically, there are several areas in which we can accelerate progress, deepen engagement and further consolidate our work. First, we should promote the internationalisation of the Renminbi (RMB) and deepen mutual access between the Mainland and Hong Kong financial markets. As a global hub for offshore RMB business, Hong Kong currently handles more than 70% of global offshore RMB settlements. In terms of interbank clearing and settlement services, Hong Kong's monthly RMB settlement volume exceeds RMB41 trillion, equivalent to about RMB2 trillion per business day. As our country continues to advance high-level opening up, more foreign enterprises are choosing to invest in and expand their businesses on the Mainland. At the same time, the country's high-end manufacturing, consumer goods, technology products and business services are gaining increasing recognition in overseas markets, prompting more Mainland enterprises to expand their global operations. This will further increase two-way flows of people and goods, trade settlements, and demand for cross-boundary fund allocation and management. With the efforts of the HKSAR Government and various financial regulators, an increasing number of enterprises have chosen to establish their international or regional headquarters in Hong Kong and use RMB as their principal settlement currency. With the support of the People's Bank of China, the Hong Kong Monetary Authority has launched the RMB Business Facility, enabling banks to obtain RMB funds at lower interest rates and better meet enterprises' financing and working capital needs. We have also seen banks in Hong Kong progressively adopting this enhanced model to serve more clients and create new business opportunities. Looking ahead, we will step up efforts to encourage enterprises to make greater use of offshore RMB in trade, investment and financing, while strengthening collaboration with more central banks in the region. The Hong Kong Fixed Income and Currency (FIC) and Bond Connect Summit to be held this Tuesday will not only discuss the development of Hong Kong's bond market, but also explore key issues such as the growth of the offshore RMB market. Second, we should actively participate in building the country's modernised industrial system. The development and application of technological innovation are the result of the long-term integration of talent, scientific research, capital, manufacturing capabilities and real-world use cases. Hong Kong enjoys an international research environment and talent pool, practises the common law system, and maintains a robust intellectual property protection regime as well as a mature capital market. It is also advancing the development of the Northern Metropolis and actively fostering an ecosystem for patient capital, venture capital funds and other forms of investment. If Hong Kong's strengths in basic research, talent, capital, international innovation resources and market networks can be more effectively integrated with the industrial capabilities and application scenarios of the Guangdong-Hong Kong-Macao Greater Bay Area and the country as a whole, the city will be well positioned to play a more active role in building the country's modernised industrial system. Third, we should support broader regional and global co-operation by leveraging our international character and professional services capabilities. The world continues to face significant development imbalances. Many regions are still striving to advance infrastructure development, industrial upgrading and improvements to people's livelihoods, while countries in the Global South face challenges such as financing constraints and lagging infrastructure development. With years of experience in financing, risk management, ESG compliance, project management, legal services and dispute resolution, Hong Kong can, through the Belt and Road Initiative, multilateral development banks and various international cooperation platforms, apply these professional strengths to concrete projects and help more enterprises and regions identify sustainable and viable cooperation opportunities. 29 years after Hong Kong's return to the Motherland, sustained efforts across various sectors have laid a solid foundation and given the city a distinctive leading edge. Under the strong leadership of the CPC, the country is advancing with confidence and determination along the Chinese path to modernisation. As a unique node on this journey, Hong Kong has not only the capability, but also the responsibility and confidence, to seize every opportunity and contribute to the great rejuvenation of the Chinese nation. July 5, 2026"}, {"title": "From Dalian to Xi'an: A Shared Journey across Mountains and Seas", "link": "https://www.fso.gov.hk/eng/blog/blog20260628.htm", "date": "28.6.2026", "description": "Over the past week, I visited Dalian and Xi'an. Joining me for all or part of the trip were representatives from the Office for Attracting Strategic Enterprises (OASES), the Hong Kong Investment Corporation Limited, the Hong Kong Exchanges and Clearing Limited, Invest Hong Kong, the Hong Kong Science Park, Cyberport, and the Hong Kong-Shenzhen Innovation and Technology Park, along with a number of local and overseas innovation and technology (I&T) enterprises that these organisations have nurtured or helped attract. Our itinerary began with the Summer Davos Forum, officially known as the Annual Meeting of the New Champions, in Dalian, where I joined political and business leaders from around the world in discussions centred on innovating at scale and the current challenges facing global development. From there, I travelled to Xi'an to take part in the First Western Commercial Space Conference. These trips gave me valuable opportunities to engage in in-depth exchanges with representatives from the political and business communities, the technology sector and universities in Liaoning and Shaanxi, including the heads of more than 100 local enterprises. Through these intensive exchanges and visits, we not only witnessed the solid industrial foundations of the Northeast and the vibrant innovation momentum of the Northwest, but also gained a deeper appreciation of Hong Kong's role under the country's \"dual circulation\" development strategy. Beyond serving as an important channel for attracting businesses and investment, we also act as a key bridge for Mainland enterprises and products to go global, and as an \"adapter\" of standards and rules that connects technological innovation to international markets. To sum up this visit, I would like to share three observations on how Hong Kong and these regions can further strengthen collaborative development: First, the efficient synergy between the Mainland's outstanding I&T capabilities and Hong Kong's international connectivity. Both Liaoning and Shaanxi boast deep foundations in research and development (R&D), strong industrial bases and rich resources in science and education. They have long focused on frontier innovation, pursued the integrated development of technology, education and talent, and worked to deepen the integration of technological and industrial innovation to drive high-quality regional development. At the industry level, the two regions each have their own strengths: Liaoning excels in heavy industry, equipment manufacturing and shipbuilding, while Shaanxi enjoys distinct advantages in hard technology and the aerospace industry. Indeed, through years of sustained investment, R&D and perseverance in overcoming challenges, many of the I&T enterprises I visited have steadily built up their capabilities over time, bringing their technologies to the forefront of their respective industries. The challenge that remains, however, is how to translate research outcomes, products and technological applications into overseas orders as these enterprises expand globally and scale up their operations around the world. Whether in expanding customer networks, building brands, meeting international standards, or testing and refining products, Hong Kong can play an important role in helping the Mainland's R&D align with global application. Hong Kong's international character is our unique advantage. Our common law system, robust protection of intellectual property rights, free flow of capital and other factors of production, and the convergence of international capital and talent \u2014 together with our internationally aligned professional services in fields such as accounting, law and corporate governance \u2014 all help these enterprises accelerate the growth of their cross-boundary business, while enabling them to do so steadily and sustainably. This leads to my second observation: the interplay between capital and technology. Going global has now become a key strategy for the continued growth of Mainland enterprises. Whether at the going-global promotion conference for Mainland enterprises in Dalian, the seminar for enterprise leaders in Xi'an, or the exchange session for technology enterprises in Nanjing the week before, entrepreneurs consistently expressed a keen interest in raising international capital to support their global expansion. This stems not only from a practical need for funding, but also from a desire to enhance their international visibility, recognition and appeal to talent by bringing international investors on board. Furthermore, they are also seeking the support of patient capital. This is particularly important in many hard technology sectors, where R&D requires substantial investment and long cycles, calling for long-term investors who are willing to share the risks. Here too, Hong Kong can play a leading role. We can help mobilise international long-term capital to co-invest in small-scale, early-stage and long-horizon projects, thereby helping promising technology enterprises, along with those in emerging and future industries, to grow and thrive. My third observation concerns the vibrant and frequent interplay among technology, education, talent and industry. Underpinned by their strong capabilities in basic research, universities in Liaoning and Shaanxi have brought together top-tier scientific research talent. Xi'an, in particular, stands out in space science and aeronautical engineering. It has launched a number of industry-academia-research collaboration projects in areas such as lasers, testing, industrial intelligence, semiconductors, energy storage, new materials, and life and health. In recent years, through institutional reforms, Xi'an has gone further in encouraging researchers to translate their findings into real-world applications. Entrepreneurship is thriving on its campuses, with many doctoral students in science and engineering having founded one or two technology enterprises of their own to bring their research to market. This aligns well with the direction we are pursuing for the Northern Metropolis (NM). The fast-developing NM will be home to our future university town, while also providing space for enterprises to establish a presence and for industries to grow. We welcome closer co-operation with institutions and enterprises from the two regions to bring together more world-class research teams, international experts and talent. This will help create a virtuous cycle in which education, technology, talent and industry reinforce one another, driving technological and industrial innovation to advance in greater depth, breadth and across multiple dimensions. In the face of today's complex and ever-changing global landscape, our country is creating \"China Opportunity 2.0\" through its mega-sized market and technological innovation. With our international connectivity, capital, talent and institutional strengths under the \"one country, two systems\" framework, Hong Kong can translate these opportunities into development prospects that are more tangible and accessible to overseas investors. In doing so, we can turn technological strengths into asset value recognised by global capital. Whether it is Dalian's heavy equipment or Xi'an's hard technology, Hong Kong is playing the roles of \"super connector\", \"super value-adder\" and \"super adapter\" \u2014 empowering Mainland enterprises and adding value to them, while at the same time achieving continued development and functional enhancement for itself. June 28, 2026"}, {"title": "From the Greater Bay Area to the Yangtze River Delta: Hong Kong\u2019s Value as an International Platform", "link": "https://www.fso.gov.hk/eng/blog/blog20260621.htm", "date": "21.6.2026", "description": "Last week, I travelled to Shanghai and Nanjing. Besides attending the Lujiazui Forum, I met with representatives from frontier technology enterprises and toured a number of companies specialising in artificial intelligence (AI), semiconductors, biotechnology, the low-altitude economy, and other emerging fields. This series of visits and exchanges gave me fresh insights and prompted some new reflections. These hard-tech enterprises rest on solid technological foundations. Many are genuinely at the cutting edge, with business models already proven in the Mainland market and products now entering markets overseas. The questions they are grappling with are practical ones: how to tap into global capital, find more partners and potential customers around the world, plan their production capacity, and manage their treasury. They are keen to seize this critical period of rapid AI development\u2014consolidating their position at home while accelerating their push abroad\u2014and to map out the optimal global footprint for their business. For Mainland technology enterprises, going global no longer means simply exporting products. By bringing in international capital and talent and by building their brands and sales networks, they are turning overseas business into a new engine of growth. What struck me most was hearing one executive after another describe the same ambition: to become true multinationals. That means connecting with the world not only in their markets, but also in their capital structure, governance systems, talent, research and development (R&D), and production and supply chains. Many have chosen Hong Kong as the strategic base from which to adapt to international expansion. This reflects their trust in Hong Kong's international investor network and global platform\u2014and their recognition of Hong Kong as the bridge linking Chinese technological innovation with global capital. What these enterprises expect of Hong Kong now goes far beyond a simple financing platform. Our common law system, free flow of capital, financial reporting and corporate governance standards aligned with international norms, worldwide investor networks, world-class professional services, and the everyday convenience of working in both Chinese and English\u2014these are precisely the support and infrastructure that such rapid adaptation requires. For Mainland technology enterprises, Hong Kong is a gateway to the world. For international capital, it is the best window to access China's innovation and technology (I&T) sector. As more and more hard-tech enterprises choose to launch initial public offerings or secondary listings here, international investors can take part more directly in the rapid growth of China's I&T industries, while the enterprises themselves are tempered by Hong Kong's regulatory framework and market discipline into stronger global competitors. This two-way dynamic is exactly what makes Hong Kong both a \"super connector\" and a \"super value-adder\". Hong Kong is one of the core cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). As the GBA and the Yangtze River Delta pursue closer regional coordination during the 15th Five-Year Plan period, Hong Kong is becoming the international anchor point for both of these fast-growing regions. From listing and fundraising to trade finance and treasury operations, and from intellectual property protection and trade to the deployment of international talent, Hong Kong's professional services\u2014and our regulators' deep understanding of I&T enterprises\u2014help these companies to be better understood, recognised and valued. Seen in this light, Hong Kong's journey over the 29 years since its return to the Motherland comes into sharper focus. Our role as an international platform has grown steadily stronger, and its substance richer and deeper. With the country's firm backing, Hong Kong has kept moving forward over the past four years. The economy has expanded for three years running, growing by about 3.6% in 2025 to reach a total of $3.3 trillion, and growth in the first half of this year was both faster and more broad-based. International recognition has been rising too. In the latest World Competitiveness Yearbook 2026, published by the International Institute for Management Development in Lausanne, Switzerland, Hong Kong climbed to second place worldwide\u2014up five places in three years. In the Global Financial Centres Index, we remain first in the Asia-Pacific and third globally, and the Fraser Institute of Canada continues to rank Hong Kong as the world's freest economy. Our financial market keeps evolving and reinventing itself, growing ever deeper and broader. Since the listing regime reforms of 2018, new economy companies' share of total market capitalisation has surged from 2.8% that year to around 25%. The number of exchange-traded products rose to 243 by April this year, with assets under management approaching HK$700 billion\u2014a gain of more than 80% in just over three years. In wealth management, total assets under management reached HK$35.1 trillion at the end of 2024, equivalent to 11 times our GDP, and continued to grow last year; the number of single-family offices passed 3,380, up more than 25% from the end of 2023. In I&T, the Office for Attracting Strategic Enterprises has brought in over 120 strategic enterprises, expected to deliver around HK$73 billion in investment and create some 25,000 jobs, while the number of start-ups exceeded 5,200, an 11% rise year-on-year and yet another record high. Trade also performed well: total merchandise exports reached HK$5,240.3 billion in 2025, a record high and up 15.4% year-on-year. Hong Kong's air cargo throughput has ranked first in the world for many years running. Although air freight accounts for less than 3% of our total export volume, it represents around 45% of total export value\u2014and the value of air exports has climbed by nearly 35% so far this year, a sign of Hong Kong's central role in high value-added supply chains and e-commerce. Hong Kong's commitment to I&T shows in many ways. Beyond the steady growth in R&D spending and the research workforce, and the rising number of I&T enterprises we are nurturing and attracting, it is also evident in how we cultivate and gather talent. Thanks to our sustained efforts to strengthen STEM education, the proportion of undergraduates enrolled in science, engineering and technology programmes at post-secondary institutions rose to over 52.3% in the 2025/26 academic year, up 5.5 percentage points from three years ago. Our higher education sector has also become more international: in the recently released QS World University Rankings, for instance, five Hong Kong universities ranked among the world's top 50 for their international faculty ratio. Many leading scholars from around the world have come to Hong Kong to set up research centres or pursue collaboration. Looking ahead, we launched the public consultation on Hong Kong's first five-year plan last week, designed to align the city with the positioning set out in the National 15th Five-Year Plan: consolidating and enhancing Hong Kong's status as an international centre for finance, trade, and shipping; developing it into an international I&T centre; and building it into a magnet for top-tier talent, among other goals. We will also use \"Finance+\" to empower the real economy and \"AI+\" to drive industrial upgrading. As we approach the 29th anniversary of Hong Kong's return to the Motherland, tracing the path we have travelled over these years\u2014and seeing just how rapidly things have moved forward \u2014 I am confident that a still more prosperous and stable future awaits us. This confidence is well founded: it rests on the country's steady progress and the firm support of the Central Government, as well as on the concerted efforts of the HKSAR Government and the community at large. Hong Kong's institutional strengths and international outlook, together with the country's prowess in innovation and industry, reinforce one another\u2014giving the city a unique and irreplaceable place in the global landscape of competition and cooperation in technological innovation. June 21, 2026"}, {"title": "Building Consensus for a New Chapter of Hong Kong", "link": "https://www.fso.gov.hk/eng/blog/blog20260614.htm", "date": "14.6.2026", "description": "As the country embarks on the 15th Five-Year Plan, we stand at a pivotal moment in the new era of artificial intelligence (AI). How Hong Kong seizes this opportunity, plays to its strengths, serves the nation's needs and harnesses that momentum for its own development, will be decisive for its future. With that in mind, we will launch the public consultation tomorrow for Hong Kong's First Five-Year Plan. Some may ask: in an era of rapid change, is a five-year plan too long a horizon? Five years ago, no one could have foreseen that AI would reshape industries at such speed. Five years from now, we likewise cannot predict what the next disruptive technology or pivotal shift will be. Yet macro trends tend to follow clear and stable patterns. As our country progresses steadily, and digital and intelligent technological advancement gathers pace across the board, the direction ahead has been set amid an uncertain future. A five-year plan will give the business community, enterprises and members of the public a clearer framework to plan for the future. It will also help the society build consensus, pool resources and channel collective energy into shared development. We look forward to sparking richer insights and broader perspectives through continued exchanges and discussions. By staying responsive to changing times and local circumstances, we can fully unlock Hong Kong's potential and, working together in common purpose, achieve something great. The National 15th Five-Year Plan sets out a clear and forward-looking vision for Hong Kong: to reinforce and enhance its status as an international financial, shipping and trading centre; develop into an international innovation and technology (I&T) centre; strengthen its role as a global offshore Renminbi business hub; build an ecosystem for commodities trading; and grow into an international hub for high-calibre talent, among others. These priorities have given Hong Kong clear strategic directions. But how do we translate these directions into concrete advantages\u2014playing to Hong Kong's distinctive strengths while addressing its gaps? How do we map out practical pathways and maximise the returns on development? These are precisely the issues the consultation needs to address. Drawing a clear line of connection\u2014from national positioning through industrial opportunity and sectoral pathways to development of individuals\u2014requires not only a thorough review of where we have been, but a broad and ambitious vision of where we are headed. Hong Kong\u2019s development has consistently benefited from the country\u2019s long-term planning and sustained progress, while we also contribute distinctively to national development in return. In finance, leading enterprises from the country's I&T sector have continued to raise the \"technology quotient\" of Hong Kong stocks. New economy companies now account for around 25% of the total market capitalisation of the Hong Kong stock market. Stock market liquidity has also continued to grow, with average daily turnover exceeding HK$270 billion in the first five months of this year, up 14% year on year. In trade, as the country's industrial base expands\u2014supported by the broadening regional footprint of industrial and supply chains and manufacturers' push into new markets such as Southeast Asia and the Middle East\u2014Hong Kong's goods exports have shown tremendous resilience in a challenging and volatile global environment. They grew by more than 15% for the whole of last year and rose a further 35% in the first four months of this year. The five-year plan consultation is not merely about sustaining these positive trends, but about consolidating and enhancing them, opening up new growth frontiers, and generating new engines of development. Industrial development, as well as economic upgrading and transformation, will be our key priorities. We must accelerate the development of the Northern Metropolis as a strategic platform for building emerging and future industries. Over the past few years, we have made encouraging progress in attracting business and investment, as well as drawing frontier technology enterprises to Hong Kong. Across the different dimensions of \"AI+\", we have also laid a solid foundation\u2014building computing power infrastructure, supporting frontier research, encouraging industrial applications, attracting high-calibre talent, and developing a comprehensive financing ecosystem. The next questions facing us are: how can these technologies and capital take deeper root in Hong Kong, scale up and create more high-quality employment? How can industrial space planning better respond to the needs of enterprises at different stages, from early-stage R&D and start-ups through to maturity and expansion? How can we further strengthen the AI literacy of members of the public, so that they can better understand, embrace and make effective use of AI? To address these questions, we must listen carefully to the industry, investors, research institutions, academia and every stakeholder. \u201cAI+\u201d and \u201cFinance+\u201d are two strategic directions worthy of deeper exploration. AI is no longer simply an I&T sector in its own right; it plays a crucial role in raising the competitiveness of various industries. In trade, it can be integrated with business data to improve the efficiency of trade finance. In finance, it can strengthen data analytics, risk management and customer service. \"Finance+\", meanwhile, means making full use of Hong Kong's end-to-end fundraising and financing capabilities\u2014including building a more comprehensive patient-capital ecosystem to fuel the growth of frontier technology enterprises. We look forward to hearing public views during the consultation on how these efforts can be further strengthened and deepened. We must also strengthen coordinated development with regions across the country. On a global level, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is the only city cluster that combines strengths in AI, advanced manufacturing, international application environments, and is home to an international financial centre. We need to further promote alignment of rules and mechanisms, as well as the more efficient flow of various factors of production within the GBA. Besides, the Yangtze River Delta and the Beijing-Tianjin-Hebei region are likewise important engines of regional development for the country. The 15th Five-Year Plan calls for stronger efforts to promote coordinated regional development. This week, I will travel to Shanghai and Nanjing. In Shanghai, I will attend the Lujiazui Forum to discuss further financial cooperation between Shanghai and Hong Kong, and to advance more concrete, mutually beneficial collaboration. In Nanjing, I will visit I&T enterprises to strengthen exchanges in science and technology, and to explore how finance can better support and empower that development. Hong Kong\u2019s Five-Year Plan is not only about generating stronger economic momentum and enabling the wider application of technology; it is also about building a more inclusive society, creating more high-quality employment opportunities for our people, and enabling a better life for all. The public consultation will last for two months, during which public views will be gathered through various channels. Let us join hands and move forward together, so that Hong Kong can advance on a stronger foundation. June 14, 2026"}, {"title": "Artificial Intelligence for Good", "link": "https://www.fso.gov.hk/eng/blog/blog20260607.htm", "date": "7.6.2026", "description": "Our country is a global leader in embodied intelligence, with application scenarios expanding rapidly beyond factory floors and performance venues into everyday life. An embodied-intelligence company from the Chinese Mainland, introduced by the Hong Kong Investment Corporation Limited, will soon open its first fully autonomous robotic retail store outside the Mainland on the Hung Hom waterfront. The store will feature a humanoid robot manager providing multilingual customer service around the clock. The company\u2019s management has chosen Hong Kong as the first stop in the global expansion of its retail store concept, specifically to leverage the city\u2019s role as an international showroom, its open environment for piloting new technologies, and the strong visibility it offers for innovation and technology projects. International capital continues to follow closely, and remains optimistic about, our country\u2019s leading position in various emerging and future industries. As an important international financing and fundraising centre for these enterprises, Hong Kong is becoming increasingly attractive to start-ups and technology companies. The imminent debut of a humanoid robot store manager in Hong Kong points to an accelerating trend: artificial intelligence (AI) is entering people\u2019s everyday lives in more tangible ways. In vigorously promoting AI development, we aim not only to empower industries and strengthen economic competitiveness, but also to deliver convenience that residents can truly experience, while creating new areas of growth and opportunity. Over the past few years, we have advanced AI development at full speed across key areas including computing power, basic research, talent and application scenarios. Hong Kong\u2019s overall computing power currently stands at 5,000 PFLOPS, while the Sandy Ridge Data Facility Cluster has entered the construction stage and is expected to deliver 180,000 PFLOPS by 2032 \u2014 equivalent to 36 times the city\u2019s current computing capacity. To date, the Artificial Intelligence Subsidy Scheme has approved more than 30 projects, covering areas such as large language models, medical large language models and embodied intelligence. The Hong Kong AI Research and Development Institute will officially commence operations in the second half of this year. Meanwhile, The Hong Kong Science Park and Cyberport are now home to nearly 1,000 AI companies. Through collaboration among the Government, industry, academia, as well as the research and investment sectors, we are attracting more top-tier international AI talent to use Hong Kong as a base for research and development, exchange and entrepreneurship. The above measures form part of our supply-side planning. As AI capabilities are rolled out more broadly, technologies evolve at pace, and the market develops rapidly, demand-side momentum is equally important: how AI is used, who uses it, whether it is well understood and how effectively it is applied. In technology adoption, scenarios often shape the market, while applications determine value. Progress on these fronts will determine how quickly Hong Kong can advance in AI development. The dual-track approach of \u201cAI + Industry\u201d and \u201cAI Training for All\u201d, as proposed in the Budget, is designed precisely to build bridges between AI and different sectors. It encourages the integration of technological and industrial innovation, promotes product innovation and value creation, and strengthens training to enhance residents\u2019 adaptability to, and mastery of, AI applications. This will enable people from all walks of life to participate in and benefit from AI in ways, and at a pace, that suit their needs, while building broader social consensus and support. The Committee on AI+ and Industry Development Strategy, announced in the Budget, has been successfully established. Its members include experts, academics, and representatives from chambers of commerce, enterprises, park companies and other sectors. The Committee will hold its first meeting later this month. Given the broad scope of AI empowerment, the Committee will initially focus not only on life and health technology, and embodied intelligence, but will also examine strategies for applying AI across a range of sectors, including transport, the cultural and creative industries, as well as sustainable development. To implement \u201cAI Training for All\u201d, we have allocated $50 million and invited three organisations \u2014 Cyberport, the Hong Kong Science and Technology Parks Corporation, and the Hong Kong Productivity Council \u2014 to work with technology companies, tertiary institutions, industry chambers and others to organise AI application classes, seminars, competitions and other activities. The programme is expected to deliver more than 200 activities in the current and next financial years, benefiting around 50,000 participants in total. In addition, various education and publicity initiatives targeting a wider set of community groups will also be launched. \u201cAI Training for All\u201d will necessarily take diverse forms to meet the needs of different groups. For students, for example, training can place greater emphasis on hands-on practice. Popular formats in recent years, such as hackathons and techathons, provide students with opportunities to test their ideas and learn through real-world market applications. Meanwhile, to help elderly people develop a basic understanding of AI tools, use them more effectively, and avoid being deceived, we will first provide training to community members and students, enabling them to become AI learning ambassadors for the elderly. This will not only promote intergenerational inclusion, but also help build a closer and more caring community. Take vocational training as another example. The Higher Diploma programmes of the Vocational Training Council have already made AI a compulsory module, with AI application elements tailored to different industries. For the transformation and upskilling of working individuals, the Budget announced that the Employees Retraining Board would be upgraded into \u201cUpskill Hong Kong\u201d, providing various types of skills-based training, including in AI applications. Together, these three levels \u2014 the popularisation of AI across society, vocational pathways for young people, and transformation and upskilling opportunities for working individuals \u2014 will enable residents of different ages and circumstances to find a pathway suited to their needs. We also attach importance to the needs of small and medium-sized enterprises (SMEs) in their technological and operational upgrading. This year, $300 million will be allocated to promote the enhanced Digital Transformation Support Pilot Programme, with a focus on supporting SMEs in adopting off-the-shelf AI and cybersecurity digital solutions. These solutions will help SMEs better anticipate consumer trends, optimise their marketing strategies, and automate more of their day-to-day operations. Hong Kong has always grown through transformation and advanced through innovation. The AI era will test the society\u2019s readiness for technological innovation across multiple dimensions, including digital infrastructure, regulatory regimes, technology application, the innovation ecosystem and talent development. We must take a forward-looking approach and make thorough preparations to seize the opportunities that lie ahead. June 7, 2026"}, {"title": "What the Global Wealth Report Reveals", "link": "https://www.fso.gov.hk/eng/blog/blog20260531.htm", "date": "31.5.2026", "description": "Last week, an international consulting firm released its Global Wealth Report 2026, offering an observation that merits careful reflection: amid geopolitical turbulence and the sweeping global wave of artificial intelligence (AI), capital is being reallocated on an unprecedented scale. Unilateralism and regional conflicts have added significant uncertainty to the global economic outlook, accelerating capital flows towards stable and reliable safe havens. At the same time, continuing breakthroughs in AI have revealed enormous development potential, attracting substantial capital into related sectors. How Hong Kong can both capture and make good use of these two streams of capital is one of the key issues for our current development. The report estimates that Hong Kong's cross-boundary wealth under management grew by 10.7% year on year to approximately $23 trillion last year, enabling Hong Kong to Switzerland to become the world's largest cross-boundary wealth management centre \u2014 achieving our original target ahead of schedule. The report further projects that, from now to 2030, cross-boundary wealth managed in Hong Kong will grow by around 9% annually, outpacing Switzerland. This represents a vote of confidence from capital in both the Mainland and overseas in Hong Kong's institutions and investment environment. Under the \"one country, two systems\" framework, Hong Kong upholds the common law system, the free flow of capital, the free convertibility of its currency, a simple and low tax regime, and a regulatory framework aligned with international standards. These institutional strengths continue to attract sustained inflows of capital. According to the Asset and Wealth Management Activities Survey published annually by the Securities and Futures Commission, the total value of Hong Kong's asset management business has exceeded $35 trillion, with 54% of assets coming from investors outside the Chinese Mainland and Hong Kong. This reflects the continued strengthening of Hong Kong's international profile as an asset management centre. Hong Kong's asset management business has recorded substantial growth over time. Over the decade from 2015 to 2024, assets under management doubled, while the number of Type 9 licensed corporations \u2014 for asset management \u2014 rose from 1,135 to 2,212, representing an increase of nearly 100%. In recent years, the HKSAR Government has introduced a series of support measures, including tax concessions for eligible family office businesses, providing sustained impetus for the industry's development. Equally important is the vibrant development of different market segments \u2014 from equities and bonds to fixed income, private equity and venture capital \u2014 which continues to drive the overall advancement of the financial market. By offering a richer and more diversified range of investment products and risk management tools, Hong Kong's ecosystem enables international capital to find suitable allocation opportunities. This is also one of our key competitive advantages. Over the past decade, Hong Kong's stock market has grown steadily, with total market capitalisation rising from $23 trillion to more than $47 trillion. Average daily turnover this year has exceeded $270 billion, nearly 10% higher than the figure for last year as a whole. Fundraising activity has also remained very active. Since the beginning of this year, IPO proceeds have exceeded $165 billion, while listed companies have raised more than $241 billion through follow-on fund-raising. The market's liquidity provides a fertile ground for enterprises to grow and thrive. With the rapid development of AI, related industries and listed companies have become highly sought-after investment targets for global capital. In Hong Kong's stock market, a number of stocks connected to AI large language models or AI hardware have recorded multi-fold gains this year. Finance and innovation and technology are increasingly forming a mutually reinforcing cycle. In the Budget, I proposed the development strategies of \"AI+\" and \"Finance+\" to accelerate the integration and mutual reinforcement of these two key forces. As the HKSAR Government's flagship for patient capital investment, the Hong Kong Investment Corporation Limited (HKIC) demonstrates how investment can support development in practical terms. As at the end of March, the HKIC has invested in more than 200 projects across strategic sectors, including hard and core technology, biotechnology and health technology, as well as new energy and green technology. Among its portfolio companies, 10 have already listed in Hong Kong, while more than 30 others have either submitted, or planned to submit, their listing applications in Hong Kong this year. To strengthen this virtuous cycle, we are taking forward the capital injection into the HKIC and actively considering the launch of a new offshore Renminbi (RMB) venture fund. This initiative will help channel and leverage offshore RMB funds into frontier technologies and emerging industries, while supporting the steady internationalisation of RMB. In addition, the Northern Metropolis' integrated strategic framework of \"R&D\u2013translation\u2013mass production\" will provide a solid foundation for enterprises within the HKIC's innovation and technology ecosystem to further develop and expand in Hong Kong. A new wave of technological revolution and industrial transformation is gathering pace. Breakthroughs in technology, product innovation and advances in design are driving investment and sales, and have become key engines of economic growth. Supported by strong exports of AI-related electronic products, the value of Hong Kong's total merchandise exports grew at an even faster pace in April, rising by 42.9% year on year. Retail sales figures for April, which are due to be released this week, are also expected to show solid growth, marking 12 consecutive months of increase and reflecting the steady recovery momentum of Hong Kong's retail sector. Hong Kong's strong investment in innovation and technology is generating a new momentum for economic growth at an accelerated pace. However, these efforts must be pursued with even greater intensity and speed. We are already seeing the powerful pull effect of this positive cycle: finance supports innovation and technology, while innovation and technology, in turn, drive the development of finance. By accelerating the interaction between the two, we can inject stronger momentum into Hong Kong's high-quality economic development. May 31, 2026"}, {"title": "My Visit to Three European Countries", "link": "https://www.fso.gov.hk/eng/blog/blog20260524.htm", "date": "24.5.2026", "description": "Yesterday, I concluded a five-day visit to Europe, covering France, Belgium and Switzerland. During the trip, I held in-depth exchanges at multiple levels with leaders from the political, business and financial sectors. My strongest impression from this visit was Europe's clear and growing desire for change. This is evident on several fronts. Politically, unilateralism and intensifying competition among major powers have reinforced Europe's awareness of the need to secure greater strategic autonomy. In economic and trade relations, Europe is seeking stronger multilateral cooperation and better risk diversification to build stronger economic resilience. In industrial investment, particularly in cutting-edge innovation and technology fields such as artificial intelligence (AI), there is a clear recognition that discussion must be turned into action, and that Europe needs to pool its strengths and catch up as quickly as possible. Against this backdrop, there is significant room for Hong Kong and Europe to pursue pragmatic cooperation in trade, investment as well as innovation and technology, with a view to creating mutual benefits. Take investment as an example. Some representatives from the European financial sector pointed out that their current asset allocations were overly weighted towards US dollar assets, thereby resulting in excessive risk concentration. At the same time, households across the European Union possess wealth amounting to tens of trillions of euros, with savings rates among the highest in the world. Yet, much of their wealth remains parked in bank deposits and fixed-income products that only offer conservative returns. It has not been sufficiently channelled into capital markets with stronger growth potential. Nor has it been used effectively to support local technological innovation and strengthen economic momentum. Europe also faces funding gaps amounting to trillions of euros in addressing climate change and investing in strategic industries. Mobilising this wealth and channelling capital into the real economy to support technological innovation and application have become one of Europe's most pressing priorities. For Europe, Hong Kong's value proposition is particularly compelling in three areas. First, Hong Kong remains an under-allocated market for European financial institutions and investors. As one of the world's most active stock markets, a hub for venture capital and private equity funds, as well as a centre for cross-border asset and wealth management, Hong Kong offers a diverse range of investment products and risk management tools, covering securities, bonds, currencies, derivatives and digital assets. Hong Kong is also closely connected to the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Mainland's frontier innovation, technology and advanced manufacturing capabilities. These present diversified asset allocation opportunities with strong potential returns. To European investors, the opportunities in Hong Kong are highly attractive. In fact, during my exchanges with local representatives from asset management, venture capital and private equity sectors, their questions were practical and specific. They asked about various issues such as the licensing requirements in Hong Kong, the right timing for setting up operations, the local investment ecosystem, and the communication channels with regulatory authorities. Second, Hong Kong and Europe can explore cross-border investment and regulatory cooperation to help each other expand market access. In recent years, Hong Kong has actively promoted connectivity between the Mainland and overseas capital markets. This has improved market liquidity and broadened investment choices (e.g. mutual listing of ETF products with Saudi Arabia and Korea). Hong Kong has also supported high-quality companies seeking dual listings and has promoted cross-border regulatory cooperation. At the same time, Hong Kong is gradually building an ecosystem for \"patient capital\", providing stronger long-term support for emerging and future industries. During my discussions with European financial institutions, they expressed strong interest in Hong Kong's experience in these areas, and agreed that both sides should work together to advance cooperation. Third, financial innovation. The use of blockchain and AI will be an inevitable trend in the future development of finance. Yet these technologies also bring real governance challenges. Criminals and terrorists may attempt to exploit differences in regulatory regimes across jurisdictions for money laundering and fundraising. At this year's \"No Money for Terror\" Ministerial Conference, preventing financial innovation from being misused for illegal purposes was a major topic of discussion. During the conference, I shared Hong Kong's principles, practices and experience in the development and regulation of digital assets. In these areas, Hong Kong is indeed ahead of Europe, and there is considerable room for cooperation and mutual learning. This not only can support the healthy development of the industry, but also contribute to stronger global governance. Hong Kong and Europe, of course, do not see eye to eye on every issue, and this underscores the importance of maintaining communication and dialogue. Europe is concerned about its trade balance with our country, particularly on the trade deficit in goods. However, trade is fundamentally a process of division of labour based on comparative advantages. It is also a matter of consumer choice. Even if Europe records a trade deficit with China, it should be noted that European companies investing in China export nearly 40% of the goods produced back to Europe. In other words, while the trade surplus is in China, the profits go to European investors. Moreover, Europe still restricts exports to China in certain areas. Beyond trade in goods, Europe has recorded a trade surplus in services with our country for more than a decade. Many European companies are family-owned and perform well in their home markets. But their knowledge and understanding of China and the wider Asia-Pacific market can be further deepened. This region is where opportunities for their future development lie, and Hong Kong is the best entry point for them to seize these opportunities and expand their business. Meanwhile, high-quality Mainland enterprises are accelerating the development of their global industrial and supply chain networks, including in Europe. Hong Kong is well positioned to play a key bridging role in supporting their expansion overseas. In passing, the International Monetary Fund published an assessment report last week that commended Hong Kong's resilient and stronger-than-expected economic growth. It also reaffirmed Hong Kong's position as an international financial centre. The report highlighted Hong Kong's \"super connector\" role as a key advantage. It also recognised our policies to advance digital finance, and acknowledged that initiatives such as the development of the Northern Metropolis can strengthen cross-boundary integration, support innovation and promote high value-added services. Some representatives from the European Union and international organisations whom I met during this visit to Europe had not visited Hong Kong since the pandemic. Through these face-to-face meetings, candid exchanges and briefings, their understanding of the Hong Kong market was deepened and their positive expectation for Hong Kong's future development strengthened. Some previous misconceptions and misunderstandings were also addressed. There were European representatives who said that they welcomed investment by Mainland enterprises, which could bring capital, technology and local jobs, but at the same time harboured concerns that European companies may face increased competition as a result. I invited them to organise delegations to visit Hong Kong and the GBA. Such visits will help them get a better grasp of the opportunities here and explore flexible models of cooperation, creating opportunities for both sides to foster more stable, long-term and mutually beneficial development. May 24, 2026"}, {"title": "Strengthening Ties to Forge the Future", "link": "https://www.fso.gov.hk/eng/blog/blog20260517.htm", "date": "17.5.2026", "description": "Late tonight, I will depart for Paris, Brussels and Zurich. My first stop will be Paris, where I will attend the \u201cNo Money for Terror\u201d Ministerial Conference on Counter-Terrorism Financing. Thereafter, I will join representatives from more than 80 countries and regions to discuss ways to enhance co-operation, demonstrating Hong Kong\u2019s commitment in this area as an international financial centre. I will also meet representatives of leading European financial institutions, private equity and venture capital funds, as well as family office principals in these cities, with a view to deepening partnerships and attracting investment. Strengthening international engagement through direct, face-to-face dialogue enables us to answer questions and address concerns in person. This helps the overseas business and financial communities gain a fuller understanding of Hong Kong\u2019s current situation and development trajectory, as well as its strategic value for those seeking to expand their business in China and across Asia. Several years ago, Hong Kong, China became the first jurisdiction in the Asia-Pacific region to achieve overall compliance in the fourth-round mutual evaluation conducted by the Financial Action Task Force (FATF) on anti-money laundering and counter-terrorist financing. This recognition by the FATF, an organisation established under the auspices of the Organisation for Economic Co-operation and Development (OECD), has provided a solid foundation for Hong Kong to strengthen its voice and influence in discussions in this field. Last week\u2019s summit between the leaders of China and the United States, and the forthcoming visit of the President of Russia to China, have sent positive signals for the evolving international landscape. At a time of geopolitical turbulence, such high-level dialogue can inject much-needed stability into the global order and create a more favourable environment for Hong Kong to strengthen its external connections. Recent objective recognition by a range of international bodies also points to growing international awareness of Hong Kong\u2019s latest developments and future potential. The International Monetary Fund, in its latest report, reaffirmed Hong Kong\u2019s role as an international financial centre and a \u201csuper connector\u201d, and noted that policy initiatives, including the development of the Northern Metropolis, would support innovation and high-value services, thereby fostering economic growth and structural transformation. Moody\u2019s and Fitch have also recently reaffirmed Hong Kong\u2019s credit ratings with \u201cstable\u201d outlooks. These assessments not only affirm Hong Kong\u2019s sound economic fundamentals, positive outlook and robust public finances, but also show that proactive and sustained engagement helps international institutions gain a fuller understanding of the city\u2019s latest conditions, development direction and opportunities. Their evaluations provide a valuable reference for global investors and the business and financial community, and will help attract more long-term international capital to Hong Kong. Recent market developments have further affirmed the appeal of Hong Kong\u2019s business environment and economic prospects. More institutions are setting up or expanding their operations in Hong Kong \u2014 hiring additional staff, increasing their office space, and launching innovative services and products. A survey conducted earlier by the Hong Kong Academy of Finance found that financial institutions, industry associations, family office principals and market practitioners regard Hong Kong\u2019s well-developed regulatory framework, mature financial markets, competitive tax regime and free flow of capital as the key foundations of their confidence in the city. From a macro perspective, the country is making vigorous efforts to cultivate new quality productive forces, accelerate the development of strategic emerging industries such as artificial intelligence (AI) and biomedicine, and take a forward-looking approach to planning for future industries. Leveraging its strengths in \"finance+, trade+, scientific research+ and AI+\u201d, Hong Kong is actively aligning with the 15th Five-Year Plan and further integrating into the overall development of the country. In this process, Hong Kong will continue to perform its dual role as an international gateway and an efficient exchange platform for innovation and technology (I&T) development in the Greater Bay Area (GBA), thereby further unleashing its own development potential. Over the past two weeks, I attended a series of seminars organised by university business and medical schools, as well as think tanks. These exchanges offered valuable first-hand insights into how \u201cAI+\u201d is bringing together professional talent and creating new business opportunities. From medical innovation to financial technology, and from academic research to real-world applications, Hong Kong is increasingly becoming a preferred destination for leading talent to gather, exchange ideas and pursue cross-sector collaboration. The interaction between talent and capital, powered by the combined strengths of \u201cAI+\u201d and \u201cFinance+\u201d, is generating a virtuous cycle and opening up new business and investment opportunities. Through my visit to Europe this week, I hope to present Hong Kong\u2019s vibrant I&T and financial ecosystem, together with its deep talent pool, to international investors, and help turn these strengths into tangible opportunities. Our dedicated efforts to strengthen external ties are aimed at helping the international community better understand and have greater confidence in Hong Kong\u2019s openness, stability and development prospects. We are pressing ahead at full speed to consolidate and enhance our strengths, open up new horizons for Hong Kong\u2019s development amid a changing global landscape, and contribute to the overall development of the country. As international capital converges with Hong Kong\u2019s development momentum and connects with frontier innovation in the Greater Bay Area, the resulting synergy will enable Hong Kong to make its unique contribution to shared global prosperity in the years ahead. May 17, 2026"}, {"title": "Industrial Synergy and Regulatory Alignment", "link": "https://www.fso.gov.hk/eng/blog/blog20260510.htm", "date": "10.5.2026", "description": "Across the world\u2019s major bay-area economic clusters, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is unique in combining three distinctive strengths: cutting-edge artificial intelligence (AI) research and development, a comprehensive high-end manufacturing ecosystem, and an international financial centre. This powerful combination of \u201cAI + manufacturing + finance\u201d places Hong Kong in an ideal position during the 15th Five-Year Plan period to assume a strategic role and perform two key functions: industrial synergy and regulatory alignment. In particular, Hong Kong can serve as an international gateway for emerging industries seeking to establish a presence in the GBA, as well as a platform for exchange and conversion through which domestic and international standards can be aligned and mutually referenced. Last week, with the joint support of the Hong Kong SAR Government and the Dongguan Municipal Government, sustainable aviation fuel company EcoCeres signed an Investment Letter of Intent to establish its first supply chain operation in Dongguan. The company is a homegrown startup. The initiative exemplifies the synergy between Hong Kong\u2019s strengths in upstream R&D and international green finance certification, and the GBA\u2019s large-scale advanced manufacturing capabilities. It vividly illustrates the integration of technological and industrial innovation, demonstrating how the region\u2019s cutting-edge green technologies can expand onto the global stage. It also highlights Hong Kong\u2019s role as an international gateway for innovation and technology development in the GBA. Notably, EcoCeres is one of the projects backed by Hong Kong Investment Corporation Limited, underscoring the strong support of the Government\u2019s patient capital flagship for the green technology sector and its commitment to nurturing emerging industries. To translate innovation into tangible outcomes and support their sustained growth, adequate space and infrastructure are essential. We are pressing ahead at full speed with the development of the Northern Metropolis, particularly the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and the San Tin Technopole, to promote the commercialisation and industrialisation of R&D outcomes. This year\u2019s Budget has already earmarked resources to expedite the development of the key sites, with a focus on emerging industries such as AI and biomedicine. Together, these initiatives will enable our upstream R&D capabilities to forge deeper complementarities and closer collaboration with the GBA\u2019s industrial strengths. Industrial innovation cannot flourish without strong financial support. This year\u2019s Budget introduced the \u201cFinance+\u201d strategy with a view to enabling the financial sector to better serve the real economy and support the development of a modernised industrial system. The strategy aims to provide technology enterprises with a full-cycle financing support, covering the startup, growth, listing and post-listing stages. Better leveraging this advantage will help accelerate the GBA\u2019s all-round development. Later this month, the Shenzhen-Hong Kong Financial Cooperation Committee, jointly established by Hong Kong and Shenzhen, will convene to discuss key issues including financial market connectivity in the GBA during the 15th Five-Year Plan period, as well as deeper collaboration in fintech and green finance. These efforts will further strengthen the scale, depth and overall competitiveness of the GBA\u2019s financial markets. The deepening of industrial development and the flow of capital both require greater alignment of rules and standards to ensure smooth and efficient progress. With its common law system under the \u201cone country, two systems\u201d principle, internationally aligned regulatory framework, and mature professional services sector, Hong Kong plays an indispensable and pivotal role in advancing the alignment of rules and mechanisms within the GBA. This not only facilitates the cross-boundary flow of innovation-related elements and enhances the efficiency of resource allocation, but also provides critical support for promoting the internationalisation of the country\u2019s advanced standards. The construction sector provides a compelling example. The recently opened eastern section of the Fanling Bypass features a pedestrian footbridge that is the world\u2019s first to be built using S960 high-strength steel produced in our country. With a strength three times that of ordinary steel, the material significantly reduces both material consumption and structural weight, lowering the footbridge\u2019s construction cost by around 30% while also enabling more flexible and innovative design. This achievement reflects coordinated efforts on multiple fronts. Hong Kong\u2019s academic sector conducted a systematic comparison of steel parameters used in the Chinese Mainland, Europe and the United States, and established a database of \u201cequivalent steel grades\u201d to help align high-end Mainland products with international standards. At the same time, the practical engineering work of Government departments has enabled high-end construction materials and technologies from our country to be applied in local infrastructure projects. This case marks the first validation of our country\u2019s high-end manufacturing standards within Hong Kong\u2019s engineering regulatory system, which is aligned with international practice, and provides an important reference point for interoperability between Chinese and international standards. In the medical sector, standards alignment has also seen encouraging progress. Experts from Hong Kong and the Mainland have jointly developed hospital accreditation standards that integrate both international and national benchmarks, and these have already been adopted in some public hospitals. In addition, Hong Kong has established facilities such as chest pain centres and stroke centres in accordance with national accreditation standards. The Chest Pain Centre at Queen Mary Hospital is a notable example. After obtaining accreditation last year, its median door-to-balloon time fell significantly from 105 minutes to 53 minutes, helping to improve survival rates and treatment outcomes. These initiatives not only enhance Hong Kong\u2019s overall healthcare standards, but also provide a valuable demonstration to the international community of the country\u2019s healthcare standards, thereby supporting their international adoption. Guangdong, Hong Kong and Macao are jointly advancing the development of the \u201cGBA Standards\u201d for voluntary adoption by industry, with the aim of enhancing the quality of products and services, promoting the integrated development of the GBA, and creating more favourable conditions for Mainland products and services to reach wider international markets. As of March this year, 270 standards had been promulgated, covering a broad range of areas, including electrical and mechanical engineering, transport, healthcare, education and more. Looking ahead, in the 15th Five-Year Plan period, our country is vigorously fostering new quality productive forces, accelerating the development of strategic emerging industries such as AI, the low-altitude economy, and biomedicine, while making forward-looking plans for future industries including quantum technology, biomanufacturing, embodied AI and brain-computer interfaces. We are confident that, under the \u201cone country, two systems\u201d framework, Hong Kong will leverage its unique advantage of being backed by the Motherland and connected to the world, to deepen co-operation with its sister cities in the GBA, accelerate technological innovation and application, and make greater contributions to the mutual reference of national and international rules and standards. May 10, 2026"}, {"title": "Advancing Growth in Both Quality and Scale", "link": "https://www.fso.gov.hk/eng/blog/blog20260503.htm", "date": "3.5.2026", "description": "As Hong Kong enters the third day of the Golden Week holiday, the city remains vibrant, with strong foot traffic and a positive business atmosphere. According to Immigration Department figures, more than 602,000 visitors entered Hong Kong through various control points in the first two days of May, representing a 6% year-on-year increase. Over the past few days, streets, shopping malls and country parks have been bustling with visitors and local residents alike. Many retailers and restaurants expect solid business performance during this Golden Week holiday period. Over the past year, the local consumption market has shown a clear recovery trend. Businesses have actively upgraded and adapted to changing consumption patterns, while improving service standards and product quality. The Government has also continued to stage mega events to attract more visitors. At the same time, local spending by residents returned to growth in the second quarter of last year, and has strengthened further since the start of this year. Data from a major electronic payment platform in Hong Kong show that residents\u2019 daily consumer spending has increased year-on-year for six consecutive quarters. In the first quarter of this year, retail- and dining-related spending rose by 5.2%, while spending at non-fast-food restaurants increased by nearly 8%. Asset market sentiment has remained positive. Stock market turnover stayed active, while the residential property market continued to improve. In the first quarter of this year, the unemployment rate fell to 3.7%, and the latest figures show that full-time employees\u2019 income rose by more than 3%. Inbound tourism also remained strong, with visitor arrivals up 17% year on year to more than 14.3 million\u2014a new post-pandemic quarterly high. For the full year, arrivals may exceed the original estimate of 53.8 million, lifting inbound tourism-related spending to over HK$240 billion, up 9.5% from last year. Together, these trends should further improve the outlook for the local retail and catering sectors, and continue to support overall economic growth and employment. With private consumption continuing to improve, and exports and fixed investment remaining strong, the advance estimate for the first-quarter GDP, to be released this week, is expected to grow faster than the revised 4.0% recorded in the fourth quarter of last year. It will be the strongest quarterly expansion in nearly five years. As one of the region\u2019s major re-exports hubs, Hong Kong has long counted on exports as a key driver of economic growth. In the first quarter of this year, exports remained strong, rising 32% in value terms\u2014the 25th consecutive month of growth and the best quarterly performance in five years. In March alone, export value increased by nearly 36%. Strong global demand for AI-related products and electronic goods has helped to offset, at least in part, the impact of geopolitical tensions on Hong Kong\u2019s exports and economy. By product category, growth was especially strong in two areas. Exports of \u201celectrical machinery, apparatus and appliances, and electrical parts thereof\u201d rose by more than 40%, driven by demand for integrated circuits; while exports of \u201ctelecommunications and sound recording and reproducing apparatus and equipment\u201d increased by over 63%, supported by demand for communications equipment. By market, amid the deep reconfiguration of regional production and supply chains, Hong Kong\u2019s exports to the Mainland and ASEAN grew by nearly 35% and 38% respectively. The Mainland\u2019s industrial chain remains the world\u2019s largest, most comprehensive and most efficient, with advantages that are difficult to replace. Against this backdrop, Hong Kong\u2019s exports to the United States and the European Union also rose by more than 47% and 15% respectively. While geopolitical developments have created challenges, Hong Kong, as an international trade centre, continues to gain new growth drivers and fresh opportunities, with both the pace and quality of growth improving. Under the National 15th Five-Year Plan, the country is accelerating the development of a modernised industrial system, deepening the integration of technological and industrial innovation, upgrading industries towards greater intelligence, greenness and integration, and strengthening complementarity and division of labour across regional production and supply chains. By leveraging its distinctive strengths to serve the country\u2019s development needs, Hong Kong is playing an even stronger and more effective role. We are accelerating efforts to develop Hong Kong into a global centre for high value-added supply chain management. By building a smarter, more data-driven and efficient port, expanding innovative trade financing channels, and strengthening high value-added professional services\u2014including legal, accounting and ESG advisory services\u2014we aim to enhance Hong Kong\u2019s role as an international trade centre. We are also working to attract more Mainland and overseas enterprises to establish international or regional headquarters and treasury centres in Hong Kong, further strengthening the city\u2019s headquarters economy. At the same time, we are advancing an \u201cAI+\u201d and \u201cFinance+\u201d development strategy to accelerate industrial upgrading, strengthen economic momentum and resilience, and better prepare Hong Kong for potential headwinds. Geopolitical tensions are weighing on the global economy, with the prolonged conflict in the Middle East adding to the risks. Last month, the International Monetary Fund (IMF) revised its global growth forecast for this year down to 3.1%, 0.2 percentage point lower than its projection at the start of the year and below the 3.4% growth recorded in 2025. The IMF also warned that a prolonged or escalating conflict could have a more serious impact on global growth and inflation. We are closely monitoring developments in the Middle East and the impact of rising international oil prices on Hong Kong\u2019s key sectors, SMEs, and the wider economy. To ease pressure on industries with high fuel costs, particularly transport, the Government has announced a targeted short-term support package of about HK$2 billion, including diesel and liquefied petroleum gas subsidies, as well as a 50% reduction in government tunnel tolls for commercial vehicles. In addition, to help local SMEs navigate rapidly changing market conditions, we have asked the Hong Kong Monetary Authority and the banking sector to introduce a new round of support measures, including larger dedicated SME funds, credit relief for affected sectors, and more flexible loan repayment arrangements. Despite a complex and fast-changing external environment, Hong Kong\u2019s economy is advancing with stronger momentum and higher-quality growth. To sustain this progress, we must stay firmly anchored in stability while pursuing development proactively. In particular, we should accelerate the adoption of artificial intelligence across sectors and strengthen talent development, so that digital and smart transformation is more deeply embedded in industries and business operations. By building on its resilience and steady development, Hong Kong will be better placed to withstand global uncertainty and external shocks, and to achieve faster, higher-quality economic growth. May 3, 2026"}, {"title": "Building Stronger Momentum with Innovation and Partnership", "link": "https://www.fso.gov.hk/eng/blog/blog20260426.htm", "date": "26.4.2026", "description": "Hong Kong's role and standing as an international financial centre continue to strengthen and evolve. Despite the challenges posed by an increasingly complex geopolitical landscape, the city is cultivating new drivers of growth through sustained innovation and deeper collaboration. Last week, alongside welcoming the city's largest IPO so far this year, Hong Kong also saw the listing of its largest gold exchange-traded fund (ETF). Meanwhile, the Hong Kong Exchanges and Clearing Limited (HKEX), following the launch of a co-branded index with Bursa Malaysia, also announced plans to introduce related ETFs. Building on its strong performance last year, Hong Kong has remained the world's leading IPO market so far this year. As of last week, funds raised through IPOs in Hong Kong had exceeded HK$140 billion. More high-quality companies are seizing the opportunity to leverage the city's vibrant fundraising platform to accelerate their global expansion. Since March, average daily turnover in the Hong Kong stock market has surpassed HK$280 billion. These developments show that, despite external uncertainties, Hong Kong's financial market continues to demonstrate strong momentum. This is the result of the concerted efforts of both the Government and the industry. At a time of rapid technological change and heightened geopolitical risk, global investors are accelerating the diversification of their asset allocation, reducing reliance on any single market or asset class. Meanwhile, Hong Kong is actively developing an international gold trading market, further deepening its financial ecosystem in response to evolving market demand. The listing of the city's largest gold ETF last week, which supports physical gold subscriptions and redemptions as well as trading and custody in Hong Kong, marks an important step in helping the city gradually build a comprehensive gold industry and value chain. Hong Kong's distinctive strengths \u2014 including its stability and security, its concentration of capital and talent, the free flow of key factors such as capital and data, and a legal system and rule of law that are well understood and trusted by the global business and financial community \u2014 are making it increasingly attractive to international investors. As investment themes continue to evolve, the range of underlying assets for ETFs is steadily expanding, encompassing products linked to the spot and futures markets for precious metals, technology and semiconductor companies, and even digital assets. These thematic ETFs, including products with varying leverage features, provide investors with efficient and transparent investment options. The features of ETF products also make them particularly well suited to cross-boundary collaboration. In recent years, we have advanced the mutual listing of ETFs with the Saudi Exchange. We also introduced a joint index with the Korea Exchange and promoted the listing of related ETF products. HKEX has also partnered with Bursa Malaysia to launch a co-branded benchmark index tracking the 60 largest listed companies by market capitalisation across the two markets. It has also authorised asset managers to issue related ETFs. This marks another important step forward in expanding cooperation in cross-market investment products. In fact, the diversified development of the broader exchange-traded product (ETP) segment, which includes ETFs, underscores growing investor recognition of the themes, structures and trading efficiency of such products. By trading volume, Hong Kong's ETP market now ranks behind only the United States and the Mainland. In February this year, the average daily turnover in the ETP market reached HK$38.6 billion, reflecting robust trading activity. The underlying assets of ETP products extend across the Mainland, the United States, Europe, Japan, Korea, Southeast Asia, the Middle East and South America. This broad coverage helps cater to the diverse investment strategies and risk appetites of international investors, enhances overall market liquidity, and provides an important liquidity buffer during periods of market volatility. Looking at the longer-term trend, global investment in Asia doubled between 2014 and 2024 to around US$6 trillion. Since 2000, Asia's capital markets have expanded fourfold, surpassing US$34 trillion by the end of 2024. Global institutional investors are actively seeking diversified and long-term growth opportunities. At the same time, Asia is seeing the rise of leading companies and projects in sectors such as green energy, advanced manufacturing and digital finance. This growth is broad-based and robust. As a leading international financial centre in the region, Hong Kong will continue to play its role as a \"super connector\". It will facilitate the efficient matching of capital with opportunities across Asia for mutual benefit and shared success. At present, Hong Kong has signed mutual recognition agreements with 20 exchanges worldwide. This has facilitated dual listings by companies and fostered a broader network of market collaboration. We are also actively exploring the inclusion of Bursa Malaysia in the list of recognised stock exchanges. This would create favourable conditions for the development of Islamic finance. It would also help attract new sources of capital and new listing candidates. We are continuing to deepen cross-boundary financial exchange and cooperation. Last week, Hong Kong hosted the annual conference of the Asian and Oceanian Stock Exchanges Federation (AOSEF), which brought together 18 Asian exchanges and more than 100 industry leaders. At the conference, I encouraged exchanges across Asia to strengthen collaboration and move from fragmented market development towards a higher level of coordinated regional growth. This will enhance the region's overall appeal to global capital. As the host of the event, HKEX also took the opportunity to showcase in detail the new opportunities emerging from Hong Kong's market development. The steady improvement in the financial markets, together with the recovery in asset markets such as residential property, has supported the local economy and, to some extent, lifted consumer confidence. Data released in recent months for the retail, food and beverage sectors indicate that the overall situation continues to improve. The latest unemployment rate for the first quarter of this year stood at 3.7%, down by 0.1 percentage point from the preceding period. The decline was particularly notable in the accommodation services sector. This week marks the start of the Mainland's Labour Day Golden Week. The Immigration Department estimates that around 980,000 Mainland visitors will enter Hong Kong during the period, about 7% more than in the corresponding period last year. This will bring significant business opportunities to the retail, catering, hotel and tourism sectors. We will ensure that all supporting arrangements are in place. We will also strengthen crowd management at popular attractions. Our aim is to enhance the visitor experience and enable sectors such as catering and retail to continue to benefit. April 26, 2026"}, {"title": "Attracting Strategic Enterprises to Drive the Development of Emerging Industries", "link": "https://www.fso.gov.hk/eng/blog/blog20260419.htm", "date": "19.4.2026", "description": "Today, the world is undergoing changes of a scale not seen in a century, and the pace is accelerating. Geopolitical dynamics are becoming more complex and fluid, while the global division of labour is steadily evolving toward deeper regional cooperation. At the same time, frontier technologies, particularly artificial intelligence (AI), are fundamentally reshaping production systems, business models and consumption patterns. Under the dual pressures of climate change and energy security, the global transition to a greener economy is also gathering momentum. Against this backdrop, we must see today through the lens of posterity, remain firmly committed to technology and innovation, and accelerate the development of emerging and future industries. Take AI as an example. From large language models to agentic AI, and from chatbots to embodied intelligent robots, human\u2013machine collaboration is already delivering substantial productivity gains for businesses. A comprehensive push to deepen AI adoption, application and innovation will not only create new industries, but also inject fresh momentum into existing sectors. This will strengthen the core competitiveness across finance (intelligent risk management and compliance), healthcare (drug discovery and clinical solutions), trade (smart supply chains), shipping (smart port and logistics operations) and professional services (AI-assisted analysis). In this year's Budget, we have proposed establishing the Committee on AI+ and Industry Development Strategy. Bringing together academics, experts, enterprises and park companies, the Committee will develop strategic priorities and foster enabling conditions with a view to accelerating industrial upgrading and transformation. On the green transition, sustainable development must remain at the core. Amid energy-supply uncertainties heightened by geopolitical turbulence, the global demand for greater energy resilience and autonomy has become more pressing. Technologies such as new energy vehicles, high-efficiency energy storage (batteries), smart grids and green hydrogen are not only tools for reducing emissions; they will become the essential foundations for future industrial production and economic activity. Together, they will deliver energy solutions that are more reliable, cost-effective and compatible with environmental stewardship. This year marks the opening year of the National 15th Five-Year Plan. As set out in the Plan's Outline, building a modernised industrial system, and accelerating the realisation of high-level technological self-reliance, are among the top priorities. Our country's science and technology innovation capacity now ranks among the world's leaders, and deeper integration between technological and industrial innovation is advancing across the board, accelerating development in all sectors. Hong Kong is proactively aligning with the National 15th Five-Year Plan. As we deepen our integration into and contribution to the overall national development, we will take root in the Greater Bay Area while remaining connected to the world. We will focus on high value-added industries, fully leveraging the unique strengths of the \"one country, two systems\" framework. Hong Kong's advantages are clear. Our standards are aligned with international best practices, and key factors of production flow freely. We also offer strong basic research capabilities, outstanding professional services, a deep pool of talent, and a comprehensive chain of financial services. In recent years, these strengths have attracted many strategic enterprises to establish a presence in Hong Kong. This is accelerating the development of a more dynamic innovation ecosystem in the city. The Office for Attracting Strategic Enterprises (OASES) has successfully attracted over 100 strategic enterprises, with a focus on life and health technology, AI and data science, fintech, advanced manufacturing and new energy, as well as cultural and creative technology. These enterprises come from the Mainland as well as Europe and the United States. This has underscored Hong Kong's robust business and innovation environment, and its appeal as a two-way platform connecting the Mainland and the rest of the world. Multiple indicators have shown that these enterprises are positioning Hong Kong as an international hub for R&D and operations, and are making steady progress in their development here. For example: (1) more than half of them have already been listed in Hong Kong (52 companies), with another 16 preparing for listing; (2) about 90% (89 companies) have established, or are in the process of establishing, R&D centres; and (3) around three quarters (76 companies) have set up global or regional headquarters in Hong Kong. Their tangible contributions to Hong Kong's economy are gradually becoming evident. To date, their combined cumulative actual investment has reached HK$22.5 billion, more than 30% above the expected figure for the relevant stage. They have also created over 8,000 jobs. These positions span a range of high value-added fields, including research, AI, healthcare, cybersecurity and professional services. As of March this year, the total commercial and industrial floor area occupied by these strategic enterprises reached 2.6 million square feet, representing a 40% year-on-year increase. This reflects their continued expansion of R&D, production and operational activities in Hong Kong. Beyond their direct economic contributions, it is equally important that most of these enterprises have begun collaborating with local universities, research institutions and businesses. This is fostering closer industry\u2013academia\u2013research collaboration in Hong Kong. At the same time, these enterprises are advancing the application of technologies across a wide range of local use cases and stepping up internationalisation efforts. In doing so, they are contributing to technology upgrading across local industries and to smart-city development. For example, an intelligent driving enterprise has selected Hong Kong as its international R&D centre, obtained a pilot licence under the new local regulatory framework, and completed cross-district autonomous driving tests. A smart logistics enterprise has successfully deployed its technologies at the Hong Kong International Container Terminals and air cargo terminals, enhancing the efficiency and competitiveness of Hong Kong as a logistics hub while demonstrating cutting-edge R&D outcomes to the international community. In addition, a number of enterprises have established R&D centres, laboratories and pilot production lines at the Hong Kong\u2013Shenzhen Innovation and Technology Park in the Northern Metropolis, laying the groundwork for future advanced manufacturing facilities. This will also add higher value-added content to \"Made in Hong Kong\" and help strengthen the foundation for Hong Kong's new industrialisation. Tomorrow, we will announce a new batch\u2014the sixth batch\u2014of strategic enterprises. The list will include several companies with market capitalisation of over HK$100 billion, spanning frontier areas such as life and health technology, the low-altitude economy, artificial intelligence, new energy materials, cross-boundary financial infrastructure and fintech. Among them are globally leading life and health technology enterprises that will conduct clinical research in Hong Kong, further strengthening Hong Kong's position in international medical R&D. Several enterprises will also establish R&D centres, treasury centres and regional headquarters in Hong Kong, reinforcing our role as a key hub connecting the Mainland and global markets and further energising the local innovation-and-technology ecosystem. Looking ahead, we will continue to attract more high-quality enterprises at full speed and provide more targeted policy support to facilitate their development in Hong Kong. We will promote deeper integration across the innovation, industrial and capital chains. Through a dual-track approach\u2014attracting enterprises from outside Hong Kong while strengthening support for local start-ups\u2014Hong Kong will accelerate the development of a more diversified, more resilient and more internationally competitive industrial structure. This will enable Hong Kong to play a more proactive role in the country's high-quality development and inject sustained momentum into our own economy. April 19, 2026"}, {"title": "Following a Holistic Approach to Development and Security", "link": "https://www.fso.gov.hk/eng/blog/blog20260412.htm", "date": "12.4.2026", "description": "This Wednesday (15 April) is the National Security Education Day. Across the country, themed activities are being held to help citizens better understand the vital importance of national security. In Hong Kong, the HKSAR Government and different sectors of the community are organising district-wide events to deepen public understanding of the nation\u2019s development and achievements, and to highlight the close, mutually reinforcing relationship between development and security. The theme of this year\u2019s National Security Education Day is: \u201cProactively Align with the 15th Five-Year Plan Follow a Holistic Approach to Development and Security\u201d. Security underpins a nation\u2019s survival and progress, and it is essential to social stability and people\u2019s well-being. Development and security reinforce each other: security is the prerequisite for development, while development provides the guarantee for security. Only by advancing both in a coordinated way can we ensure lasting stability and sustained prosperity. Profound changes unseen in a century are accelerating, and the international landscape is growing more complex and volatile. In some regions, wars continue and flashpoints remain unresolved; in others, social unrest persists. These developments underscore that national security extends across multiple interconnected domains\u2014including finance, energy, science and technology, food security and overseas interests. We must therefore firmly uphold a holistic approach to national security and strengthen our capabilities in risk prevention and contingency response. The 15th Five-Year Plan Outline identifies \u201cFollowing a holistic approach to development and security\u201d as one of the six guiding principles for advancing economic and social development during the 15th Five-Year Plan period. The same principle is also highlighted in the white paper Hong Kong: Safeguarding China\u2019s National Security Under the Framework of One Country, Two Systems, published this February, as one of the six principles Hong Kong should follow in safeguarding national security. In practice, as a free and open international centre for finance, trade, shipping, and innovation and technology, Hong Kong must strike a proper balance between development and security. This means safeguarding security while remaining open, and, as we consolidate and strengthen our advantages and promote innovation, placing strong emphasis on preventing risks before they materialise. Take the financial sector as an example. Hong Kong\u2019s financial system has long been robust and efficient, supporting smooth market operations and strong growth. At the same time, we have consistently safeguarded stability by closely monitoring market conditions and interlinkages, and by maintaining strong buffers. The Linked Exchange Rate System provides a reliable anchor for monetary and financial stability. Banks\u2019 capital adequacy and liquidity ratios are well above international standards, and securities brokers maintain adequate capital and orderly trading. At the same time, we attach great importance to innovation. As the country advances high-quality development, Hong Kong has long served as both a \u201ctesting ground\u201d and a \u201cfirewall\u201d for reform and opening up. We support the Mainland in deepening capital market reforms, while guarding against the spillover of external risks. Only by pursuing innovation in a secure, well-controlled risk environment can we build a more resilient, dynamic and competitive financial system that is better able to withstand external shocks and sustain long-term growth. The Hong Kong Monetary Authority (HKMA) recently granted the first batch of stablecoin issuer licences under the Stablecoins Ordinance, demonstrating how security can be balanced with innovation. The HKMA recognises that stablecoins have significant potential to address pain points in economic activity\u2014especially in cross-border transactions and payments\u2014while maintaining clear safeguards for financial stability, anti-money laundering, and user and consumer protection. To achieve this balance, the HKMA has adopted a prudent, phased approach to licensing, with a strong emphasis on issuers\u2019 robust compliance capabilities. Energy is another case in point. Geopolitical developments have disrupted global energy supplies, and some regions have even experienced shortages. By contrast, the country\u2019s energy self-sufficiency rate has remained consistently at above 80% in recent years. The energy mix has also become more balanced. Non-fossil energy\u2014such as hydropower, nuclear, wind and solar, as well as natural gas, now account for over 30% of total consumption, while oil accounts for less than 20%. In addition, import sources have become more diversified. This structure has strengthened the country\u2019s resilience and its ability to absorb shocks amid volatility in global energy markets. Stable energy supply is essential to people\u2019s livelihoods and the smooth functioning of the economy. Around 80% of Hong Kong\u2019s oil products are sourced from the Chinese Mainland. With the country\u2019s steadfast support, Hong Kong\u2019s energy supply has remained stable. In response to the latest supply and demand conditions, the HKSAR Government has set up an Inter-departmental Task Force on Monitoring Fuel Supply to closely track market developments. The task force has proposed four short-term measures, including diesel price subsidies, to support industries and livelihood services that have been significantly affected. The Legislative Council has swiftly approved the necessary funding, and we are expediting the implementation details. Over the medium to long term, we must continue to drive the green transition of Hong Kong\u2019s energy sector. This includes strengthening regional cooperation to steadily increase the use of zero-carbon energy, working towards the \u201cnet-zero electricity generation\u201d target set out in the Hong Kong\u2019s Climate Action Plan 2050, and improving the diversity and resilience of Hong Kong\u2019s energy mix. The HKSAR Government plans to raise the share of zero-carbon energy in electricity generation to around 60\u201370% by 2035. With the Clean Energy Transmission System enhancement works expected to be completed within this year, Hong Kong will be able to progressively import more zero-carbon electricity. In today\u2019s fast-changing international environment, geopolitical competition is intensifying. Risks and challenges are present across various domains, from financial markets to energy supply. As circumstances continue to evolve, Hong Kong must place security at the heart of development, while strengthening the foundations of security through high-quality development. Only by pursuing development and security in a coordinated manner can Hong Kong seize new opportunities amid change and write a new chapter of greater prosperity, stability and momentum. April 12, 2026"}, {"title": "A City Alive with Mega Events", "link": "https://www.fso.gov.hk/eng/blog/blog20260405.htm", "date": "5.4.2026", "description": "As the first quarter of 2026 passed, the global landscape remains complex and highly fluid. The conflicts in the Middle East continue to weigh on the market sentiment. This external backdrop has dragged on Hong Kong\u2019s equity market: the Hang Seng Index is down around 2% year to date. Even so, trading has remained active. The average daily turnover in the first two months exceeded HK$260 billion, up 17% year on year. Entering March, market activities strengthened further, with average daily turnover surpassing HK$300 billion\u2014more than 8% higher than the same period last year. The increased asset allocations to Hong Kong by investors amid heightened uncertainty suggests that they not only view the city as a reliable safe haven for capital, but are also encouraged by the abundant investment opportunities created by the steady growth in the Mainland's economy and a strong pipeline of quality companies choosing to list in Hong Kong. Meanwhile, global competition in frontier technologies such as artificial intelligence has heated up. Breakthroughs in core technologies, the development of upstream and downstream segments of the industrial chain, and the exploration of broader application scenarios all require substantial capital support. Whether these companies and industries have smooth, stable, sustained and efficient access to financing is therefore critical. Hong Kong\u2019s listing platform is playing a pivotal role in this regard\u2014supporting the nation\u2019s technological advancement and establishment of a modernised industrial system while also attracting global capital into these future-oriented sectors. Taking initial public offerings (IPOs) as an example, Hong Kong\u2019s IPO market maintained the strong momentum from last year in the first quarter. As of March 27, fundraising had exceeded HK$103 billion, ranking first globally. Taking into account other funds raised including through follow-on fundraising, the total amount of funds raised reached approximately HK$237 billion. More importantly, more companies listing in Hong Kong now come from emerging industries\u2014AI, semiconductors, robotics, autonomous driving, biotech, and more. Applications currently in the pipeline for listing in Hong Kong have already surpassed 500 cases. In other words, the more uncertain the external environment becomes, the more companies see Hong Kong as a key gateway for fundraising and overseas expansion. Hong Kong\u2019s financial markets have long contributed to the country\u2019s reform, opening-up and economic development. Through the \u201cFinance+\u201d strategy, we are supporting the development of new quality productive forces and actively contributing to the building of a modernised industrial system in our country. Recently, Hong Kong was once again affirmed as one of the world\u2019s top three international financial centres, with a rating closely trailing the top two\u2014New York and London. This underscores that the Mainland\u2019s continued economic growth and the country\u2019s strong support for Hong Kong provide the firmest foundation for Hong Kong\u2019s status as an international financial centre. The financial markets have performed well, and Hong Kong\u2019s real economy also showed general improvement in the first quarter, with some areas recording notable results. On the export front, supported by a recovery in global demand for electronic products and the reconfiguration of regional production and supply chains, merchandise exports rose by nearly 30% year on year in value terms in the first two months, demonstrating a remarkable performance. This indicates that despite uncertainties in the external trade environment, Hong Kong\u2019s role as a trade hub remains solid. While many residents are travelling abroad these days with the Easter long holiday underway, the overall trend suggests that the foundation for recovery in the retail sector has become increasingly evident. In the first two months of the year, total retail sales value rose by 11.8% year on year, marking the tenth consecutive month of growth and accelerating from the growth in the fourth quarter of last year. The increase was not limited to high-end spending, but also seen in livelihood-related categories such as furniture and clothing, indicating that local consumer confidence is steadily strengthening. Online sales have also been buoyant, surging by 27.5% year on year in the first two months. This shift in consumption patterns promotes the development of supporting digital industries such as e-payments, logistics, and data analytics, etc., injecting new impetus into the retail ecosystem. The labour market has remained stable, with the unemployment rate edging down to 3.8%. Unemployment situation in the retail and food and beverage service activities sectors has improved, and overall employment earnings have continued to rise. This, along with the improving sentiment in both the stock market and the residential property market, renders support to local consumption. April 5, 2026"}, {"title": "A City Alive with Mega Events", "link": "https://www.fso.gov.hk/eng/blog/blog20260329.htm", "date": "29.3.2026", "description": "A series of mega events held in Hong Kong over the past few weeks has drawn visitors from around the world, creating a lively atmosphere across the city. One of the highlights over the past two days has undoubtedly been Art Basel Hong Kong, which is being held at the Hong Kong Convention and Exhibition Centre in Wan Chai. This flagship arts event has been staged in Hong Kong for 14 consecutive years. It continued even during the pandemic by switching to an online format. Many art lovers, collectors and visitors have long set aside this time of the year to visit Hong Kong and attend this renowned art fair, while exploring the city and enjoying its culinary delights. A number of major conferences and investment forums targeting family offices and high-net-worth individuals have also been scheduled to take place in Hong Kong at this time, allowing financial conferences and cultural and arts events to reinforce each other and create synergy. Yesterday, I paid a visit to Art Basel, where participating artists and gallery directors told me that this year had seen an increase in attendance, with better art sales. They value Hong Kong\u2019s openness and inclusiveness, its distinctive culture that bridges the East and the West. They regard Hong Kong as an ideal platform for expanding into the regional and even global market. At the Wealth for Good in Hong Kong Summit hosted by the HKSAR Government early last week, representatives from a number of family offices told me that their stay in Hong Kong would be longer this time as they would like to attend the art fairs to be held immediately afterwards. They were keen to gain a deeper understanding of the rich cultural heritage underpinning Hong Kong\u2019s status as an international financial centre. Art is an expression of human thought and emotion, fostering connections across geographies, cultures and eras. Works of art also carry transaction value and can generate high value-added services and industries. Hong Kong is among the world\u2019s top three art trading centres. To solidify Hong Kong\u2019s brand as a premier events destination in this area, we have entered into a five-year collaboration arrangement with the organiser of Art Basel, thereby reinforcing Hong Kong\u2019s position as the exclusive host city in the region. We will continue to promote a wide range of major events covering finance, arts and culture as well as sports to attract more high value-added visitors and to offer members of the public a wider range of cultural, leisure and entertainment programmes. Following this month\u2019s LIV Golf, major tournaments such as the Hong Kong Sevens and the UCI Track World Cup will be held in Hong Kong next month. Major events and sporting competitions are injecting greater momentum into the tourism sector. As of 27 March, visitor arrivals have exceeded 13.7 million so far this year, representing an increase of around 17% year-on-year. The recovery of the tourism sector is gaining traction, lifting sentiment in the domestic market. Together with the continued improvement in the stock market and the residential property market, this has supported continued growth in sectors such as catering and retail, further strengthening market confidence. Against this favourable backdrop, the total retail sales value for February\u2014scheduled for release this week\u2014is expected to record a solid increase and achieve year-on-year growth for the tenth consecutive month, reflecting the strengthening local consumption momentum. Hong Kong\u2019s overall economy continues to improve. On the export front, Hong Kong\u2019s merchandise exports surged by nearly 30% year-on-year in value terms in the first two months of the year, extending growth for 24 consecutive months and exceeding market expectations. This was mainly driven by increased exports of electronic products to the Mainland and ASEAN. It reflects that external demand is steadily recovering, and Hong Kong is playing a pivotal role as a \u201csuper connector\u201d amid the reconfiguration of regional production and supply chains. Investment also maintained growth: the Purchasing Managers\u2019 Index (PMI) in February rose to its highest level in nearly three years and stayed in the expansionary zone for the seventh consecutive month, indicating increasing confidence among businesses on the operating environment and future prospects. In the residential property market, both prices and transaction volumes rising have continued their uptrends so far this year. Over the first two months, the flat price index recorded a cumulative rise of about 2.6% , marking nine consecutive months of increases. Average monthly transaction volume was 18% higher than the monthly average last year, at more than 6,100 transactions per month\u2014a favourable performance, alongside positive and vibrant market sentiment. Hong Kong\u2019s economy is demonstrating solid resilience and momentum; public finances are also continuing to improve. The Government will pursue a dual-track approach of \u201cAI+\u201d and \u201cFinance+\u201d to drive upgrading and transformation across industries and to cultivate new growth engines. These efforts will help reinforce the market\u2019s positive expectations on Hong Kong\u2019s economy, though the external environment remains challenging. In my recent engagements with domestic and international political and business leaders, representatives of international organisations, and rating agencies, many have noted the improving economic and fiscal circumstances in Hong Kong, while also paying close attention to the potential impact of rapidly shifting global landscape. Indeed, the ongoing conflict in the Middle East, heightened geopolitical uncertainty, and sharp rises in fuel prices are weighing on the global economic outlook. How to diversify investment allocations and strengthen the security of energy, trade and production and supply chains have become a core concern for businesses, investors and governments worldwide. We are closely monitoring the situation in the Middle East and the potential impact of rising oil prices. In the short term, because Hong Kong\u2019s economy is services-oriented and the share of merchandise exports to the Middle East is relatively small, the direct impact is limited for now. While global investment sentiment may be affected, Hong Kong\u2019s financial markets have continued to operate smoothly and orderly, with stable and ample liquidity. In the medium term, if the conflict persists, it will inevitably affect the global macroeconomic environment, interest rate trends and capital flows. Hong Kong\u2019s energy supply remains relatively stable, supported by the strong backing of the country. However, any rise in fuel and energy costs could impose additional burdens on the shipping, logistics and other related sectors in the economy. The HKSAR Government is closely monitoring and assessing market conditions. The country\u2019s steady development remains Hong Kong\u2019s strongest support. Amid a complex external environment, our country has maintained strong strategic resolve and pursued stable, predictable and open economic and trade policies, serving as a \u201ccornerstone of certainty\u201d for the global economy. In recent years, rapid progress in areas such as artificial intelligence, robotics and new energy\u2014and sustained efforts to advance emerging and future industries\u2014has created opportunities and optimism for investors around the world and further enhanced the willingness of all parties to deepen cooperation. Hong Kong\u2019s distinctive role as a \u201csuper connector\u201d and \u201csuper value-adder\u201d will become increasingly prominent. With local economic conditions improving steadily, the country\u2019s steadfast support is the \u201cballast stone\u201d of Hong Kong\u2019s economic development\u2014helping us better withstand external headwinds and stay on a steady course. March 29, 2026"}, {"title": null, "link": "https://www.fso.gov.hk/eng/blog/blog20260322.htm", "date": "22.3.2026", "description": "Over the past few days, I have been on a visit to Beijing, where I called on several central ministries and financial regulators. We engaged in in-depth exchanges on the macroeconomic outlook, the current state and development of financial markets, and how Hong Kong can better play its role in the new phase of the country's development during the 15th Five-Year Plan period. This visit has enabled us to gain a more direct understanding of the direction and priority areas of the country's development, as well as its underlying rationale and considerations. This provides important guidance and reference for our work to better align Hong Kong with national development strategies, integrate into and serve the overall national development, and in turn achieve high-quality development for Hong Kong. The Director of the Hong Kong and Macao Work Office of the Communist Party of China (CPC) Central Committee and the Hong Kong and Macao Affairs Office of the State Council, Mr Xia Baolong, has shown great care and support for Hong Kong's development. He has also provided important guidance on Hong Kong's efforts to proactively align with the 15th Five-Year Plan. Central ministries and financial regulators have attached great importance to Hong Kong's unique functions and positive roles in contributing to the nation's vision of becoming a financial powerhouse, and have consistently offered strong support. We have been deeply impressed by the care, understanding and support for Hong Kong shown by various ministries and institutions. We have also recognised that only by having a more accurate understanding of the direction, priority areas and strategies of the country's development can Hong Kong accelerate its integration into and service of the overall national development, and make the most of its own strengths. The country is accelerating its high-quality development and high-level two-way opening up through new quality productive forces, while upholding the principles of win-win co-operation and inclusive development. This commitment is a right one. As a two-way gateway linking the country with the world, Hong Kong's roles and functions as a \"super connector\" and \"super value-adder\" will become increasingly important amid today's complex international environment. Sustained efforts are required to further solidify Hong Kong's distinctive international role as a global connector, while strengthening connectivity and synergy with the Mainland. Recently, the Hong Kong Trade Development Council, together with business chambers from Hong Kong and the Mainland, held a seminar in Beijing on the 15th Five-Year Plan and new opportunities for Hong Kong, facilitating more in-depth discussions and exchanges on these issues. In fact, with escalating international geopolitical conflicts and soaring energy prices, the global economic outlook has become even more uncertain. Enhancing trade flexibility, strengthening the resilience of industrial and supply chains, and promoting more proactive bilateral and regional co-operation have become universal aspirations. This is particularly important for enterprises planning cross-border business expansion. The China Development Forum 2026, which opened this morning in Beijing, clearly reflects this shared vision through its theme: \"China in its 15th Five-Year Plan Period: Advancing High-Quality Development and Creating New Opportunities Together\". Key discussion topics include expanding consumption, taking forward green transition, Healthy China, technological innovation and future industries, all of which are issues of interest to global businesses. This afternoon, I will take part in a thematic session at the Forum to share Hong Kong's contributions to the global green transition. In particular, as energy resilience has become a real and urgent issue worldwide, Hong Kong's strengths in green finance and green technology will have a broader room for growth. The China Development Forum has brought together hundreds of international business leaders, academics and think tank representatives. Over the past few days, I took part in exchanges with guests from different places and markets, who all agree that Hong Kong, as an energetic city, is entering a period of strategic opportunity. Compared with other financial centres, Hong Kong has solid security backing from the country and the free port status under the \"one country, two systems\" framework. Amid an intricate and rapidly changing geopolitical landscape, Hong Kong has been increasingly viewed by investors, capital and talent as a rare \"safe haven\" and investment destination, with funds, enterprises and talent converging at an accelerated pace. Data also speak for themselves. The total deposits in Hong Kong's banking system, after rising by 11.8% for the whole of last year, have continued to grow since the start of this year, with the total now exceeding $19 trillion. In the first two months of this year, the average daily turnover in Hong Kong's stock market rose by 17% year-on-year to more than $260 billion, with amounts exceeding $300 billion on multiple days in March. Last year, the number of companies established in Hong Kong by enterprises from the Mainland and overseas increased by 11%. Visitor arrivals in the first two months of this year were near 10 million, a substantial year-on-year increase of 18%. These figures underscore Hong Kong's unique attractiveness and international character. We must grasp this window of opportunity, accelerate Hong Kong's own high-quality development, and help the international community better understand the city's distinctive strengths and opportunities. This week, Hong Kong will host a series of conferences from finance to technology, including the fourth Wealth for Good in Hong Kong Summit organised by the HKSAR Government. The summit will bring family office decision-makers and successors from around the world to Hong Kong, allowing them to experience for themselves the city's charm and explore investment opportunities here. It will help advance Hong Kong's development into the world's largest cross-boundary asset and wealth management hub. We are pursuing a strategy to foster the synergistic development of \"AI+\" and \"Finance+\". In particular, the development and application of open-source frameworks in artificial intelligence (AI) will help Hong Kong pool talent and technologies from across the globe. On the hardware foundation of open-source frameworks, the RISC-V instruction set is viewed as a mainstream in future. Last week, the Hong Kong Investment Corporation Limited, together with a number of leading enterprises and institutions, formally launched the RISC-V Alliance to accelerate the building of the related industry and ecosystem, and to promote international collaboration. In addition, agentic AI has recently become a hot topic of discussion. This week, Cyberport will host the first Agentic AI Innovation and Security Forum to explore ways to ensure safe applications while fostering robust development. All these are initiatives outlined in the Budget last month and are being implemented. On local talent development, I proposed in the Budget to pool the strengths of technology companies, tertiary institutions and technology parks to provide cutting-edge AI training for both our students and teachers. Earlier, I attended an event jointly organised by a leading technology company and a local university, where I witnessed the industry and academia joining hands to promote the wider adoption and effective use of AI in Hong Kong. Collaboration of this kind allows young people and educators to have early access to cutting-edge technologies, laying a solid foundation for AI to empower the development of all sectors in Hong Kong in future. March 22, 2026"}, {"title": null, "link": "https://www.fso.gov.hk/eng/blog/blog20260315.htm", "date": "15.3.2026", "description": "The National Two Sessions concluded successfully in Beijing last week. At the Fourth Session of the 14th National People's Congress, the \"Outline of the 15 th Five-Year Plan for National Economic and Social Development of the People's Republic of China\" (the \"National 15 th Five-Year Plan\") was adopted, providing an extensive blueprint and action agenda for the nation's social and economic development over the next five years. Spanning more than 70,000 words, the National 15 th Five-Year Plan offers sharp insights into the trends and developments in the evolving international macroeconomic landscape. With notable clarity, it sets out the direction and pathways for building a modernised industrial system and advancing high-level self-reliance and strength in science and technology. It also provides clear guidance on supporting Hong Kong in solidifying and enhancing its competitive advantages, as well as better integrating into and contributing to overall national development. Taking the development of a modernised industrial system as an example, the Plan clearly sets out directions such as upgrading traditional industries, fostering emerging industries, planning ahead for future industries, and promoting high-quality and efficient development of the service sector. It also underscores the importance of advancing original innovation and achieving breakthroughs in core technologies in key fields, thereby accelerating self-reliance and strengthening science and technology capabilities. Regarding the development of Digital China, the Plan aims to build a strong digital and intelligent foundation, co-ordinate computing power and algorithmic models, and deepen the use of data resources to support the \"AI Plus\" initiative and drive progress across all sectors. As a Special Administrative Region, Hong Kong must continue to study and fully grasp the guiding principles of the National 15 th Five-Year Plan. By understanding the country's macro-level approach, we can align with the Plan more effectively; and by appreciating its development needs, we can better contribute to overall national development. It is important that we leverage Hong Kong's unique strengths \u2013 including the institutional advantages of \"one country, two systems\", the common law system, our role as an international platform, a strong cluster of leading enterprises and high-end talent, and our functions as an international financial centre \u2013 to unlock greater growth potential. Hong Kong, with its world-class financial markets and professional services, is well positioned to provide stronger support for accelerating the development of a modernised industrial system and for deepening the integration of technological and industrial innovation. We should step up efforts to enhance our full-chain fundraising ecosystem, intellectual property financing, and testing and certification capabilities. We should also strengthen technology services tailored to the needs of technology companies throughout their development journey. To promote co-ordinated regional development, we must work with our sister cities in the Guangdong\u2013Hong Kong\u2013Macao Greater Bay Area. Together, we will advance concrete, feasible measures on regulatory and regime alignment and on facilitating cross-boundary flows of innovation elements. Under the Chief Executive's leadership, the preparatory groups previously established by various policy bureaux have been converted into formulation teams to align with the National 15 th Five-Year Plan. Working at full speed, they will compile Hong Kong's first-ever five-year plan this year. With clear and shared goals, bureaux will coordinate closely to develop a comprehensive action plan. Throughout the process, we will strive to combine an effective government with an efficient market, move beyond conventional approaches, embrace innovation, and pursue reform with determination\u2014advancing our work with a proactive and pragmatic mindset. Participating in national development is both Hong Kong's responsibility and a significant opportunity for its future. With its extensive scope, the National 15 th Five-Year Plan clearly sets out how Hong Kong can better leverage its strengths over the next five years. Our objectives are clear, and our tasks are well defined. We must step up our efforts\u2014driving policy implementation with determination and committing all necessary resources\u2014to deliver high-quality development that is goal-oriented and results-driven. March 15, 2026"}, {"title": "The 15th Five-Year Plan: Leveraging Our Unique Strengths to Better Integrate into and Serve Overall National Development", "link": "https://www.fso.gov.hk/eng/blog/blog20260308.htm", "date": "8.3.2026", "description": "The \"Two Sessions\" of our country are being held in Beijing. Deputies and members have gathered to engage in active discussions on the draft outline of the National 15 th Five-Year Plan and its core elements. From building a modern industrial system to developing a robust domestic market, and from expanding high-level opening-up to solidly advancing rural revitalisation across the board, the 15 th Five-Year Plan maps out a panoramic blueprint for high-quality development. While holding profound significance to the building of a great country through Chinese modernisation and the great cause of national rejuvenation, it serves as important ideological guidance for Hong Kong in seizing new development opportunities and opening up new horizons. The current international landscape is fraught with turbulence and uncertainties, with geopolitics becoming increasingly complex and volatile, and global economic momentum slowing down. That said, under the strong leadership of the Central Government, our country has stood up to external challenges and pressure, maintained overall economic stability and progress. The outlook of our country, which always focuses on managing our own affairs well, remains highly promising in terms of policy consistency, technological innovation and integrated sustainability. The intricate global landscape, compounded by regional conflicts, underscores an important message: to safeguard its strategic initiative amid accelerating changes unseen in a century, our country must be strong and prosperous, with great technological capability and economic strength. This also underlines the importance of understanding the strategic direction of the 15 th Five-Year Plan, making it a guiding principle and aligning proactively with its strategies. Accordingly, we will press ahead with formulating and implementing Hong Kong's own five-year plan to drive the city towards high-quality development. As an international hub for finance, shipping and trade, Hong Kong possesses a wealth of talent and enjoys the distinctive advantage of being backed by the Motherland and connected to the world. During this golden strategic period under the 15 th Five-Year Plan, Hong Kong is well placed to do even more. Thanks to its unique institutional strengths and international character under the \"one country, two systems\" framework, Hong Kong has long served as a platform for and strategic partner of international investors entering the Mainland market. We are also an ideal gateway for Mainland enterprises to go global. Hong Kong can make positive contributions to the high-level opening-up under the dual circulation strategy, in respect of leveraging the Mainland's vast market and mobilising international resources. The country is striving to develop new quality productive forces and advance future industries such as artificial intelligence (AI), low-altitude economy and biomedicine. Hong Kong can fully leverage its international research platforms, professional services and capital markets, both to attract global innovation resources to the country and to inject fresh impetus into the local economy. We are advancing the development of the Northern Metropolis at full speed, with a particular focus on major projects such as the Hong Kong Park of the Hetao Shenzhen\u2013Hong Kong Science and Technology Innovation Co-operation Zone and the San Tin Technopole. These initiatives will deepen innovation and technology collaboration across the Guangdong\u2013Hong Kong\u2013Macao Greater Bay Area, enabling better integration of the factors of production, including technology, capital, talent and materials, and maximising the benefits of our connectivity with the Mainland and the world. In the financial sector, we are committed to solidifying and enhancing our strength as an international financial centre. More importantly, while ensuring security and effective risk control, we will pursue a \"Finance+\" approach to empower a broad range of industries, accelerate innovation and technology development as well as commercialisation, and enable finance to better serve the real economy in unleashing its potential. Specific priority areas include: improving financing support for technology start-ups and developing \"patient capital\"; strengthening Hong Kong's role as a premier offshore Renminbi business hub; advancing green finance; and building a vibrant ecosystem for gold and commodities trading. In preparing the Budget which was delivered recently, we had given deep thoughts to the trajectory and overarching macro direction of development from the 14th Five-Year Plan to the 15 th Five-Year Plan. Our goal is to align Hong Kong's strengths proactively with the broader national development agenda. Against this backdrop, we set \"AI+\" and \"Finance+\" as the main themes. To meet the challenges brought by the rise of \"AI+\", we will roll out AI Training for All through multiple channels. Through partnership with local universities and professional bodies, we will provide structured AI skills training for working professionals across different age groups and sectors. This will ensure that our workforce can adapt to, and benefit from, future shifts in the economic structure. These initiatives represent our response to the national \"AI Plus\" initiative, while also securing for us an early advantage in technological competition and developing new quality productive forces. At the same time, they will help our working population adapt to and capture new job opportunities emerging from \"AI+\", bringing investment in technology closely together with investment in people. The 15 th Five-Year Plan sets a clear direction for Hong Kong's future and strengthens confidence across the community. It brings vast opportunities, and Hong Kong has much to contribute\u2014and much to achieve. We need concerted efforts from the community, so that by better integrating into and serving the country's overall development, Hong Kong can secure even stronger growth for itself. March 8, 2026"}]}