{"total-count": 26, "returned-count": 26, "results": [{"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"}, {"title": "Synergistic development of \u201cAI+\u201d and \u201cFinance+\u201d", "link": "https://www.fso.gov.hk/eng/blog/blog20260301.htm", "date": "1.3.2026", "description": "Over the past few days, my colleagues and I have been making use of various channels to brief the public in greater depth on the newly released Budget, including its key contents, measures and underlying considerations. The theme of this year\u2019s Budget is \u201cDriving High-quality, Inclusive Growth with Innovation and Finance\u201d. At its core, the Budget responds to a period in which great changes unseen in a century are accelerating and geopolitical uncertainties are intensifying. The question we must answer is how Hong Kong can seize opportunities to leverage its unique advantages and inject fresh momentum into our future growth, thereby making development more resilient and inclusive. A major focus of this Budget is to press ahead with the synergistic development of \u201cAI+\u201d and \u201cFinance+\u201d. We are now at a pivotal juncture in technological innovation. Artificial intelligence (AI) is not only a core technology for the future, but also a transformative force capable of reshaping every sector and industry. Accelerating \u201cAI+\u201d development is, in practice, about transforming and upgrading our industries with competitive edge and scaling up emerging ones. As an international financial centre, Hong Kong must deeply integrate cutting-edge AI technologies into its services. This will expand and strengthen our financial services while extending AI technologies into a wider range of application scenarios, with a view to achieving two-way empowerment and positive interaction. During this process, deep integration and rapid execution are of paramount importance. \u201cAI+\u201d On the \u201cAI+\u201d front, we are pursuing a multi-pronged approach. Regarding the top-level design, I will establish and chair the Committee on AI+ and Industry Development Strategy, bringing together experts, academics and business representatives to formulate strategies for accelerating AI-powered growth across different industries, thereby serving as a catalytic force for industrial transformation. We are also pressing ahead with the development of multiple industrial parks in the Northern Metropolis\u2014including the Hong Kong Park of the Hetao Co-operation Zone, San Tin Technopole, and the Hung Shui Kiu Industrial Park\u2014and accelerating the build-out of computing-power infrastructure at the Sandy Ridge data facility. These efforts will support R&D and application of frontier technologies such as AI as well as life and health technologies, while providing space for high-end manufacturing. Our overall objective is to attract more high value-added segments of the innovation and technology value chain\u2014R&D, pilot production, commercialisation, and advanced manufacturing\u2014to establish a presence in Hong Kong, thereby generating greater economic value and fostering higher-quality industries. Talent development is equally critical to the success of \u201cAI+\u201d. We must closely align investment in infrastructure with investment in people. Accordingly, one Budget measure is to allocate $50 million to support public institutions, technology companies and tertiary institutions in organising activities to promote AI learning, application and responsible use by all, thereby raising the overall AI literacy across the community. \u201cFinance+\u201d When \u201cAI+\u201d converges with \u201cFinance+\u201d, the resultant synergistic effect will be enormous and far-reaching. This is not merely a simple addition of two forces, but rather a mutually reinforcing \u201cflywheel effect\u201d, as well as a development strategy that is tailored to local conditions and built on deep integration with one another. As the two forces keep driving each other forward, new values and opportunities will be created. Several aspects of \u201cFinance+\u201d merit emphasis. First, finance provides a robust foundation for technological innovation and real-economy development. Hong Kong\u2019s vibrant financial market and active capital ecosystem can offer end-to-end financing support\u2014from venture capital and private equity through to initial public offerings (IPOs). Over the past year, Hong Kong\u2019s stock market has performed strongly. Many leading Mainland technology enterprises are making full use of Hong Kong to raise international capital, accelerating their global expansion and strengthening overseas industrial and supply-chain networks. Emerging and future industries highlighted in proposals for the National 15th Five-Year Plan will likewise require sustained capital support. In aerospace, for example, the Budget announces that the Office for Attracting Strategic Enterprises will take the lead in identifying suitable aerospace companies to develop in Hong Kong. HKEX will also review relevant listing requirements to facilitate and attract more aerospace companies to list in Hong Kong. Second, innovation within financial services itself can help the real economy scale up, expand capacity and address pain points. Advances in AI, blockchain and other technologies are continuously enhancing financial services, enabling more efficient and convenient transaction systems and opening new channels for trade, fundraising, financing and risk management. Financial innovation will also create substantial opportunities for the industry, helping market participants explore new markets and develop new products. Third, the development of technology services. Professional services tend to track closely fast-growing industries and economic activities. As AI drives industrial transformation and upgrading, and integrates deeply with finance, market demand for new professional services will spring up. Examples include valuation and risk assessment of technology assets and data assets, as well as related accounting, auditing, and certification services. It is foreseeable that we will need enterprises that are more proficient in the application of AI, as well as financial and professional service providers that are more conversant in AI and innovation and technology. This will enrich Hong Kong\u2019s role as an international financial centre, while enabling the combination of finance with technological and industrial innovation to support the building of our country\u2019s modern industrial system. Leveraging Hong Kong\u2019s strengths in accordance with local conditions and proactively aligning with national development strategies are essential to achieving better development for our city. The two main themes of \u201cAI+\u201d and \u201cFinance+\u201d proposed in the Budget aim to help Hong Kong scale new heights in high-quality development in the course of accelerated economic transformation. March 1, 2026"}, {"title": "Kung Hei Fat Choi!", "link": "https://www.fso.gov.hk/eng/blog/blog20260222.htm", "date": "22.2.2026", "description": "Today is the sixth day of the Chinese New Year. I wish you good health, vitality, prosperity, and success in all endeavours in the year ahead. The 2026-27 Budget will be delivered this Wednesday. I would like to express my sincere gratitude to members of the public, as well as businesses and organisations from various sectors and backgrounds, for their valuable views and suggestions submitted during this period. We share a common aspiration for Hong Kong\u2019s continued progress and enhanced support for different communities. The current-term Government has been making great strides to drive the economy forward and improve people\u2019s livelihood, responding to the aspirations of the community. However, the strategies and pathways for achieving our goals \u2013 and the allocation of resources \u2013 are often shaped and constrained by current realities. We must set priorities, and difficult choices may have to be made. We have listened carefully to views and ideas from the community, and have adopted a holistic approach in preparing the Budget. In our proposals, we have sought to strike an appropriate balance among competing needs and considerations. Building on the sustained economic growth recorded last year, Hong Kong has made a good start this year. Nevertheless, amid a volatile external environment and uncertainties arising from economic transformation, we must exercise fiscal prudence. We will take into account the needs of our society in the short, medium and long term, while maintaining adequate reserves to meet unforeseen circumstances. The colour of this year\u2019s Budget cover is purple, symbolising Hong Kong\u2019s strengthening economic momentum amid a rapidly changing external environment. Let us work together, with unwavering dedication, to advance higher-quality, more inclusive social and economic development for Hong Kong. February 22, 2026"}, {"title": "Riding High into the Year of the Horse", "link": "https://www.fso.gov.hk/eng/blog/blog20260215.htm", "date": "15.2.2026", "description": "As the Chinese New Year draws near, we warmly welcome the Year of the Horse with optimism, warmth and heartfelt blessings. I sincerely wish everyone a year filled with success, energy and prosperity. Today marks the 28 th day of the 12 th lunar month, and the city is alive with festive preparations. Taking the opportunity during the year-end, I extended early New Year greetings to members of the public. Yesterday, together with my colleagues, I visited two families and toured the Lunar New Year Fair at Victoria Park, where we shared our best wishes with the community. The Food and Environmental Hygiene Department has set up 14 Lunar New Year Fairs across various districts, each with unique local characteristics. Among them, the Victoria Park Fair remains the largest and most vibrant. Visitors were seen carefully selecting orchids, while others were drawn to the beauty of peach blossoms. The knowledgeable guidance of stallholders helped us choose and take care of festive flowers. While speaking with several stall operators, many shared that this year's fair felt livelier and more vibrant than the last one. Notably, some stalls were run by tertiary and secondary school students, who brought fresh energy and creativity to the event. These young entrepreneurs designed a range of horse-themed festive products and catchy slogans, blending seasonal charm with inventive ideas. From warming mugs and cushions to decorative items and handwritten couplets, their creations were not only visually appealing but also emotionally resonant \u2014 bringing joy to shoppers. Our young people are truly bursting with creativity! Hong Kong's Chinese New Year celebrations encapsulate a unique blend of tradition and modern flair. With a wide array of large-scale events and performances, both residents and visitors have plenty to enjoy. Since the beginning of the year, visitor arrivals have continued to climb. From January 1 to last Friday, the total number of visitors reached 7.23 million \u2014 a 9.6% increase year-on-year \u2014 with overseas arrivals rising by 16.4%. During the upcoming Spring Festival Golden Week, the number of Mainland visitors to Hong Kong is expected to reach 1.43 million, with daily arrivals projected to grow by about 6% compared to last year. This coming Tuesday marks the first day of the Chinese New Year. During the three-day public holiday, a range of celebratory activities awaits. The dazzling float parade in Tsim Sha Tsui, under the theme of \"Best Fortune. World Party.\", will feature 16 local and overseas performance groups, 13 of which are making their debut in Hong Kong. Besides performances from the city's two major theme parks, this year's parade will also feature appearances from popular IP characters such as Labubu and Molly. The second day will feature a spectacular fireworks show under the theme of \"Prosperity Gallops Across Hong Kong\", with 31,888 fireworks lighting up the sky, accompanied by lighting effects for an enhanced viewing experience. From the New Year Raceday on the third day to the Chinese New Year Cup 2026 football match on the fifth day, and the bustling traditional temples across districts, Hong Kong will be filled with celebrations throughout the festive period. As we bid farewell to the Snake and welcome the Horse, may the New Year bring you great fortune, good health, blooming prosperity and boundless happiness! February 15, 2026"}, {"title": "Leveraging Hong Kong's Strengths to Contribute to the National Needs", "link": "https://www.fso.gov.hk/eng/blog/blog20260208.htm", "date": "8.2.2026", "description": "This year marks the beginning of the national 15th Five-Year Plan. As the most significant guiding framework for the nation's socio-economic development over the next five years, the Plan has drawn considerable attention both domestically and internationally, with many seeking to gain a more comprehensive understanding of the country's future development directions and the opportunities it brings. The Plan also charts a clear course for Hong Kong to speed up and scale up its development in the future. Last week, together with Mr Michael Wong, Deputy Financial Secretary, Secretaries from five bureaux, and colleagues from the civil service, I engaged in an interactive exchange session with legislators in the Legislative Council's Ante Chamber on proactively aligning with the Plan. We all agreed that Hong Kong possesses unique strengths in various areas such as finance, trade, innovation and technology (I&T), etc. and that many emerging fields and new dimensions are rich with opportunities. In fact, institutions and organisations across different sectors have shown keen interest in how Hong Kong can better seize the opportunities arising from the 15th Five-Year Plan. They have been organising different forums and seminars, exploring ways to align with and contribute to the national development strategies more proactively while seeking broader development prospects for their respective industries. Recently, I attended a forum organised by the Hong Kong Productivity Council (HKPC) under the theme \"Bridging Opportunities with the 15th Five-Year Plan\". The event brought together over 500 representatives from the Government, the business community, and various sectors both on-site and online. It was also livestreamed on Mainland platforms and received an enthusiastic response. Both local and overseas industry representatives expressed interest in leveraging Hong Kong as a springboard to identify partners for collaboration and to promote industry-wide cooperation\u2014jointly advancing the deep integration of technological and industrial innovation. At the forum, the sharing by several I&T enterprises which recently established a presence in Hong Kong was particularly significant. A representative of a Mainland I&T enterprise, introduced to Hong Kong through the Office for Attracting Strategic Enterprises (OASES), noted that beyond convenient fundraising and financing and talent aggregation, Hong Kong's recent vigorous efforts to develop a smart city were equally crucial. These efforts have provided application scenarios that align with international rules for their technologies, allowing them to adapt regulations and standards, make technical adjustments, and conduct market promotion in Hong Kong\u2014paving the way for overseas expansion. In addition, another representative from a microelectronics enterprise with a presence in Hong Kong shared that they had successfully applied for funding under the New Industrialisation Acceleration Scheme to establish a new production line in the city. This line focuses on the production and verification of semiconductor equipment, with a total investment amount exceeding HK$800 million. In addition to introducing cutting-edge technologies and nurturing talent, these production lines help attract upstream and downstream supply chain partners to develop in Hong Kong\u2014contributing to the creation of a relevant industrial ecosystem and speeding up industry development. Under the leadership of the HKSAR Government, different departments and public organisations are actively working in close partnership, combining efforts to accelerate the cultivation of Hong Kong's new quality productive forces. Whether it is supporting Mainland I&T enterprises to \"go global\", attracting them to establish R&D centres in Hong Kong, or fostering the clustering of target enterprises in the city, the efforts are yielding increasingly evident results. HKPC is one such example. As a member of the HKSAR Government's \"Mainland Enterprises Going Global Taskforce,\" HKPC operates \"The Cradle \u2013 Going Global Service Centre\" (The Cradle), which focuses on offering a wide range of funding support and complementary services to enterprises pursuing international expansion. These include services in smart manufacturing, technical research and assessment, international standards and testing, professional services, as well as training and study mission, etc. supporting enterprises in entering global markets more efficiently. Since its establishment in April last year, The Cradle has received indication of interest from over 350 enterprises, with more than 100 projects progressing to the stage of concrete follow-up. Including projects already supported by HKPC prior to The Cradle's formation, the cumulative project total now exceeds 450. To further drive the clustering of I&T enterprises, we are stepping up the efforts to attract enterprises to set up in Hong Kong. In recent years, the Innovation, Technology and Industry Bureau, OASES, Invest Hong Kong, etc. have been working hard in this regard. For example, over the past three years, OASES has attracted more than 100 enterprises to establish a presence in Hong Kong, with expected total investment amount exceeding HK$60 billion, creation of 22,000 R&D or management positions, and occupancy of 1.85 million square feet of space. In advancing industrial development, we should also leverage Hong Kong's strengths as an international financial centre\u2014empowering industries to grow through financial support. Hong Kong's full-chain capabilities in fundraising and financing as well as financial services enable the city to meet the needs of I&T enterprises at different development stages. Last year, Hong Kong's IPO market ranked first globally: 119 companies were listed and raised over HK$280 billion, with sectors such as information technology, biotechnology, new energy, and advanced industry accounting for approximately 70% of the funds raised. The Hong Kong Investment Corporation Limited (HKIC) has played a strategic role in channeling patient capital into smaller, early-stage, long-term and hard and core technology projects. To date, the HKIC has invested in more than 170 projects, with each dollar invested attracting over six dollars of long-term capital in the market. Through the concerted efforts of all sectors over the past few years, Hong Kong's I&T development has been gaining stronger momentum. We will fully seize the opportunities presented by the 15th Five-Year Plan, taking a more proactive approach to integrating into and contributing to the overall national development, promoting the deep integration of technological and industrial innovation, further strengthening the link between technology and industry, and driving our economy forward towards higher quality, greater value-added, and enhanced diversification. 8 Feb 2026"}, {"title": "Stay Positive and Move Forward with Care", "link": "https://www.fso.gov.hk/eng/blog/blog20260201.htm", "date": "1.2.2026", "description": "Entering 2026, global market conditions remain highly volatile, driven by escalating geopolitical instability and persistent uncertainty. These dynamics have triggered rapid and unpredictable cross-border capital flows. Even traditionally safe-haven assets have undergone sharp corrections after repeatedly reaching record highs. Gold is a notable example: after rising steadily over the past four years, its price surged by nearly 30% in January, approaching a historic high of US$5,600. However, in recent days, it experienced a significant pullback, at one point falling more than 12% from its peak. Commodities have also rotated as market leaders, contributing to short-term rallies. In the foreign exchange market, the United States (US) dollar index dropped to a near four-year low, while the Japanese yen came under renewed pressure. Even some previously strong US technology stocks have registered notable sell-offs. Looking back at January, Hong Kong stocks delivered a strong performance. The Hang Seng Index closed at 27,387 points last Friday, marking a monthly gain of nearly 7%. Average daily turnover exceeded HK$272 billion, representing a year-on-year increase of 90%. Despite heightened external volatility, Hong Kong\u2019s financial system remained robust and functioned smoothly, with total bank deposits surpassing HK$19 trillion. The developments in January have further reinforced market expectations that global financial conditions will remain turbulent this year. In particular, unpredictable geopolitical shifts are likely to influence both the direction and velocity of international capital flows. In the face of inevitable volatility and external market fluctuations, it is essential that we maintain strong buffers within our financial system and allocate sufficient fiscal resources to effectively respond to potential shocks. Last week, the Government released its fiscal position for the first nine months of the 2025\u201326 financial year (April to December), recording a consolidated surplus of HK$43.9 billion. This outcome reflects, in part, seasonal factors\u2014including the peak collection period for profits tax and salaries tax\u2014as well as proceeds from bond issuance. As in previous years, Government revenue is expected to taper off between January and March, while recurrent public expenditure continues at a steady pace. Our fiscal position is improving, both in the Consolidated Account and the Operating Account which reflects recurrent revenue and expenditure. On the operating front, the strong financial market performance last year\u2014particularly the doubling of average daily turnover in the stock market to around HK$250 billion\u2014has resulted in higher-than-expected stamp duty revenue. Coupled with ongoing fiscal consolidation efforts that have effectively contained the growth of government spending, we now expect the Operating Account to return to surplus within this financial year (2025\u201326), one year ahead of the original schedule. For the Capital Account, the Government will continue to scale up infrastructure investment, including in strategic initiatives such as the Northern Metropolis. As such, bond issuance will remain necessary to support such commitments. That said, even with an improving fiscal position, we must continue to manage public resources with prudence, ensuring that the growth of public expenditure does not exceed the growth of revenue. During the Budget consultation, representatives from various sectors and members of the public across different segments of the society have expressed calls for enhanced support to address their needs. At the same time, in light of the profound challenges and opportunities presented by technological transformation\u2014particularly in areas such as artificial intelligence\u2014the market expects the Government to scale up investment, accelerate the development of high value-added industries, and create more quality job opportunities. These efforts are essential to driving economic growth and ensuring its benefits are more broadly and equitably shared across the community. The aspiration to build a vibrant economy and advance development is widely shared across the society. Growing the economic pie will equip us with more resources to address a broad range of social needs more effectively. With the staunch support of our country and the concerted efforts of the Government and the community, Hong Kong\u2019s economy grew by 3.5% in 2025, outperforming the initial forecast. Overall investment also picked up notably, registering a year-on-year increase of 10.9% in the fourth quarter, marking the fourth consecutive quarter of positive growth and resulting in an increase of 4.5% for the year as a whole. Boosted by a series of mega events and a rebound in asset markets, private consumption increased by 1.6% last year, reversing the decline recorded in the previous year. The value of retail sales for December, scheduled for release this week, is also expected to show continued growth, with the pace of expansion slightly accelerating compared to the preceding month. Confidence among overseas enterprises and investors in Hong Kong continues to strengthen. Last year, the number of companies in Hong Kong with parent companies in the Chinese Mainland and overseas increased by more than 10%, surpassing 11,000. The start-up ecosystem also expanded, with the number of start-ups rising by over 10% to exceed 5,200. According to recent surveys conducted by foreign chambers of commerce, a majority of member companies expressed optimism about Hong Kong\u2019s business outlook, with the proportion holding positive expectations reaching a recent high. During the 19th Asian Financial Forum last week, I met with political and business leaders from Europe, the US and the Middle East, as well as representatives from the Mainland and multilateral organisations. Across the board, they shared positive views on Hong Kong\u2019s outlook and recognised the emergence of new opportunities in our market. As the global political and economic landscape continues to evolve rapidly, risks and volatility in the year ahead are expected to remain significant. We will press ahead with efforts to align with the country\u2019s 15th Five-Year Plan and accelerate our integration into, and contribution to, the nation\u2019s overall development. To this end, we must leverage finance to power technological innovation and support the upgrading of traditional industries, promote deeper integration between innovation and industrial development, and enhance the training for the workforce\u2014particularly in skills development and technology application. These efforts will help raise the quality and expand the scale of Hong Kong\u2019s economic growth. 1 Feb 2026"}, {"title": "World Economic Forum Annual Meeting 2026", "link": "https://www.fso.gov.hk/eng/blog/blog20260125.htm", "date": "25.1.2026", "description": "The World Economic Forum (WEF) Annual Meeting held in Davos, Switzerland, has just been concluded. The Annual Meeting brought together about 3 000 political and business leaders from different countries and regions. Through intensive meetings, participants exchanged perspectives and ideas, hoping to better grasp macro trends and the pulse of development at this pivotal historical juncture. Over the past year or so, we have all witnessed and experienced the intensification of unilateralism and hegemonism, now reaching a critical point where choices must be made. Against this backdrop, this year's meeting exhibited a distinct yet more profound tension compared with previous ones: given the severe disruption to the existing international order, leaders from around the world raised many questions about where the world is heading and what direction it should take, while also putting forward their own proposals. Whether advocating for Europe's strategic independence or calling for \"middle powers\" to act together, these voices all point toward diversifying economic relationships \u2014 and even security relationships \u2014 in order to strengthen strategic resilience. Indeed, fragmentation and divisions in the international community were more pronounced at this Annual Meeting. However, for the vast majority of countries and regions, the world must not revert to the \"law of the jungle\" where the strong prey on the weak; instead, mutual respect, seeking common ground amid differences, and shared development remain as deep-seated aspirations of the people. Many political and business leaders I met at the meeting expressed a common view: as the world is now confronting complex development and governance challenges, we should work together to uphold multilateralism and resolve issues through dialogue and cooperation. In his address at the Annual Meeting this year, Vice Premier He Lifeng of the State Council highlighted four key points: firmly supporting free trade and jointly advancing a universally beneficial and inclusive economic globalisation; firmly safeguarding multilateralism, making the international order more just and equitable; adhering to win-win cooperation, working to make the \"pie\" bigger and resolve development challenges together; as well as upholding mutual respect and equal-footed consultation, making good use of dialogue to properly manage differences and resolve problems. He also noted that China would actively expand domestic demand, steadfastly widen opening-up, accelerate technological innovation, and pursue green development. All these represent China's consistent and unequivocal stance, demonstrating our nation's strategic resolve, as well as policy coherence and predictability. China's rapid development remained as a focal point of attention at the meeting this year. In fact, with improvements in workforce capabilities, leapfrogging advancement in technology, and people's growing aspirations for a better life, developed economies should recognise that China's previous growth model, which was driven by the exports of labour-intensive products, has been undergoing a qualitative transformation. Its high-end industrial and technological products are rapidly gaining market share internationally. Meanwhile, China's middle-income groups are expanding quickly, offering enormous consumption potentials and creating substantial opportunities for foreign-invested enterprises. In observing China, they are undergoing a \"paradigm shift.\" Beyond geopolitics, another focus of the Annual Meeting was the direction of technological transformation. During this year's meeting, it was not difficult to see that various countries showed great interest, anticipation and concern regarding the development of cutting-edge technologies and the ways in which technology is profoundly reshaping traditional industries. There is a consensus that the ability to master and advance innovative technologies has become a \"make-or-break\" factor for sustaining economic momentum and competitiveness. Focal points of discussion included how to leverage artificial intelligence (AI) to support economic growth, and how to address employment challenges arising from AI's development. At this Annual Meeting, I, together with other members of the \"Hong Kong Inc.\" (including representatives from public organisations, the finance and innovation and technology (I&T) sectors, academia and the media), actively engaged with global leaders through public speeches, roundtable discussions and bilateral meetings, briefing them on Hong Kong's latest developments and publicising its competitive advantages. The continued inflow of international capital into Hong Kong and the positive momentum in its financial markets have captured the attention of these leaders, who expressed strong interest in Hong Kong's steady and promising development outlook. Overall, participants were generally positive about China's and Hong Kong's economic development and prospects\u2014a marked shift from their attitude in the past few years. As countries around the world adjust their strategies to develop more diversified and resilient economic, trade and industrial and supply chain partnerships, Hong Kong, as a \"super connector\" and \"super value-adder\" linking China and the world, is expected to benefit from this trend and open up new opportunities. Take the I&T industry as an example. Through years of efforts by the HKSAR Government and the industry, Hong Kong has achieved solid progress in areas such as AI and biomedicine, where the global investment community is paying heightened attention to, as investors compete to identify start-ups with the greatest breakout potential. Together with its sister cities in the Guangdong\u2013Hong Kong\u2013Macao Greater Bay Area, Hong Kong possesses one of the most dynamic I&T clusters with multiple top-100 universities, strong research capabilities, a well-developed production system, and a vibrant venture-capital ecosystem\u2014making it an important region that international capital cannot overlook when seeking investment opportunities. Green transformation is another example. Although some countries are stepping away, the international community is generally sustaining its efforts towards carbon neutrality. China's frontier technologies and vast production capacity in the green energy sector are powerful drivers enabling the implementation of energy transition around the world. Hong Kong can actively strengthen its role as an international green finance centre by further diversifying and innovating green finance products, while channelling more capital into decarbonisation to help narrow the funding gap. As changes unseen in a century accelerate, and competition among major countries intensifies, we must remain highly vigilant against geopolitical risks and strengthen our sense of preparedness. Equally important is seizing the new opportunities arising from the country's efforts to boost high-level two-way opening-up and advance high-quality development. We should fully leverage Hong Kong's unique advantage of being connected to both the Mainland and the world to create greater room for our own development, while contributing to fostering dialogue and cooperation at the international level. January 25, 2026"}, {"title": "Seizing Development Opportunities amid a Complex Global Landscape", "link": "https://www.fso.gov.hk/eng/blog/blog20260118.htm", "date": "18.1.2026", "description": "Tonight, I will depart for Davos, Switzerland, to attend the Annual Meeting of the World Economic Forum. This year\u2019s Meeting will bring together around 3,000 political and business leaders, as well as representatives from think tanks, non-governmental organisations and academia from over 100 countries and regions to discuss the challenges currently facing the international community. During the Meeting, I will engage with political and business leaders from around the world to exchange views on the global economy, deliver public speeches and participate in thematic discussions. I will also take the opportunity to promote the new opportunities that Hong Kong will embrace under the national 15th Five-Year Plan. The theme of this year\u2019s Meeting is \u201cA Spirit of Dialogue\u201d, which resonates deeply with the current international climate. Since the beginning of 2026, we have witnessed a troubling rise in unilateralism, protectionism and hegemonism, with some countries even flagrantly infringing on the sovereignty of others to pursue their own economic interests, severely undermining international norms. These actions have seriously eroded mutual trust, and will inevitably have far-reaching implications for the global economy and trade landscape. How to rebuild co-operation through dialogue is an urgent task that political and business leaders worldwide must address immediately. The Meeting will also focus on the paradigm shifts brought by innovative technologies such as artificial intelligence (AI), and how to better invest in people and enhance the skill levels of the workforce. Amid the rapidly evolving international landscape, Hong Kong\u2019s unique roles as a \u201csuper connector\u201d and a \u201csuper value-adder\u201d under the \u201cone country, two systems\u201d arrangement have become even more prominent, particularly in the context of a fast-shifting global economic and trade environment. While we continue to strengthen and enhance the efficiency and competitiveness of our traditional pillar industries, it is equally important to foster new drivers of growth. A prime example is the accelerated development of an international gold trading centre. In recent years, international investors have shown a growing appetite for diversified asset allocations beyond US dollar-denominated holdings. As a result, gold has seen its role further solidified\u2014as a central bank reserve asset, an investment vehicle and a hedge against risk. In 2025, gold prices surged by over 60%, marking the largest annual increase since 1979. By the third quarter of last year, the total value of global gold demand had risen 44% year-on-year, reaching US$146 billion. At the same time, there is strong global demand, particularly in Asia, for more diversified and reliable platforms for gold storage, trading, clearing and even pricing. With the concerted efforts of the HKSAR Government and industry stakeholders, Hong Kong\u2019s spot gold trading market has become significantly more active. As of last November, the average daily turnover of 99 gold on the Hong Kong Gold Exchange more than doubled year-on-year, reaching HK$2.9 billion. However, spot over-the-counter (OTC) gold transactions in Hong Kong currently require both counterparties to handle the clearing by themselves, which presents clear inefficiencies. To address this, we are expediting the establishment of a central clearing system for gold as a key financial infrastructure. This initiative aims to enhance the reliability and efficiency of gold trading and physical delivery in Hong Kong, lower transaction costs and boost market liquidity. It is our goal to commence trial run within this year, and we will invite the Shanghai Gold Exchange to participate in this important development. At the upcoming 19th Asian Financial Forum next week, we will sign a memorandum of cooperation with the Shanghai Gold Exchange and announce our latest plans to take forward the establishment of a central gold clearing system\u2014laying the foundation for mutual market access with the Mainland in the future. The geopolitical landscape is not only changing global asset allocation strategies, but also fundamentally reshaping global trade patterns, restructuring industrial and supply chains, fostering new trade partnerships, and driving the emergence of innovative economic models. Hong Kong must accelerate the upgrading and transformation of its entire trade ecosystem to reinforce and enhance its position as an international trade centre. While supporting Mainland enterprises in accelerating their pace of \u201cgoing global\u201d, we are also fast-tracking the digitalisation of Hong Kong\u2019s logistics infrastructure and trade ecosystem. By leveraging innovative technologies and consolidating relevant data in a holistic manner, we aim to enhance the efficiency and management of trade logistics. This will also make it easier for enterprises to secure financing, enabling them to flexibly adjust their business strategies and effectively seize emerging business opportunities. We are driving progress on multiple fronts. In the area of smart logistics, a major government-led digital infrastructure\u2014the Port Community System\u2014was officially rolled out last week, with participation from over 2,300 companies. Leveraging artificial intelligence and blockchain technology, the system provides one-stop, round-the-clock, real-time cargo tracking, significantly improving transparency and efficiency across Hong Kong\u2019s logistics chain. The availability of more comprehensive and accessible data also opens up new opportunities for innovation in trade finance. Under the leadership of the HKSAR Government, the Hong Kong Monetary Authority (HKMA), in collaboration with multiple government departments, is actively advancing Project CargoX. By effectively leveraging cargo and trade data and streamlining trade finance processes, the initiative aims to support SMEs in accessing trade financing more easily. This week, we will release the latest CargoX roadmap, built around three strategic pillars: data, infrastructure and connectivity. The roadmap will put forward 20 concrete recommendations to enhance Hong Kong\u2019s digital trade finance ecosystem\u2014paving the way for a more digitalised, efficient and competitive environment. No matter how the international geopolitical landscape evolves, Hong Kong will remain committed to free and open policies, drawing on our collective strengths and unique advantages. We will continue to enhance the development of our traditional pillar industries through practical and targeted measures. Public consultation on the upcoming Budget is now underway, with a focus on key areas such as empowering the growth of various industries, creating more diverse and high-quality employment opportunities, strengthening public services, and improving people\u2019s livelihoods. In evaluating different proposals, we must take a balanced and holistic approach, carefully considering a range of factors\u2014including the external political and economic environment, the challenges of local economic transformation, the development needs of the community in the short, medium and long term, as well as the importance of managing public expenditure prudently. January 18, 2026"}, {"title": "Building the Future Together through Dialogue and Collaboration", "link": "https://www.fso.gov.hk/eng/blog/blog20260111.htm", "date": "11.1.2026", "description": "The upcoming Budget will be delivered on 25 February, and the public consultation has been underway for nearly a month. During this period, we have actively been engaging with representatives from various sectors and industries, as well as with organisations and members of the public, to listen to their views and suggestions. Yesterday, I participated in RTHK's programme \"Voices from the Hall\", where I engaged directly with residents from diverse backgrounds to gain a more comprehensive understanding of their concerns and ideas. We also had open and candid discussions on the current internal and external environment, as well as the challenges facing Hong Kong. In fact, feedback from various consultation sessions reflects a general consensus that, from a macro perspective, Hong Kong's economy has been developing steadily in the years following the pandemic. One notable example is the financial sector, which accounts for 26% of our GDP and remains one of our largest industries. The local financial market performed strongly last year, boosting market demand and fostering positive expectations for the sector. On the other hand, the trade sector, which contributes 15% of our GDP, benefited from robust export performance, providing solid support to the overall economy. In addition, a series of mega events attracted more visitors to Hong Kong, injecting energy into the city and creating a vibrant, dynamic atmosphere. However, geopolitical tensions around the world are intensifying, with unilateralism and hegemonism on the rise. As global uncertainties grow, the possibility of increased market volatility cannot be ruled out. We must stay vigilant and proactively guard against the potential impact of external market fluctuations on Hong Kong's financial markets and capital flows. At the same time, as Hong Kong's economy undergoes transformation, there will inevitably be imbalances and uneven development. Certain industries and residents are indeed facing challenges. Over the past few decades, Hong Kong's economy has undergone several rounds of transformation. The reform and opening-up of our country, combined with the flexibility, innovation and unwavering efforts of our enterprises and people, have driven continuous progress. The steadfast support from the nation and the steady growth of the Mainland economy remain Hong Kong's strongest pillars. This year marks the beginning of the National 15th Five-Year Plan. The country is advancing high-level two-way opening-up, fostering technological self-reliance and strength, deepening the integration of technological and industrial innovation, and more. These national strategies present new opportunities for Hong Kong as an international centre for finance, trade, shipping, and innovation and technology. To seize these opportunities, our traditional industries must focus on enhancing quality and competitiveness, while emerging sectors should pursue rapid expansion. Together, these efforts will drive Hong Kong's economic development forward with greater momentum and resilience. In this era of accelerated transformation driven by \"AI+\", the widespread and high-quality application of technology will be a key determinant of an economy's core competitiveness. A question we must address\u2014through collective wisdom and joint efforts\u2014is how to better harness technology to empower industries, businesses and the public, enabling them to fully benefit from the rapid advancement of AI. By doing so, we can help enhance their creativity and competitiveness, while advancing new business models and markets. As we undergo economic restructuring, it is equally important to focus on cultivating new engines of growth and creating more diverse, high-quality employment opportunities\u2014ensuring that the benefits of development are more widely shared across various sectors of the society. High-quality economic development provides a solid foundation for addressing the challenges and needs that emerge throughout the development process. At the same time, we must continue to exercise prudent management of public finances. Last year, we implemented a reinforced fiscal consolidation programme, which helps contain the growth of government expenditure. With the support of a buoyant financial market, the overall revenue\u2014including stamp duty receipts\u2014has increased, enabling the Government to achieve an operating surplus earlier than anticipated. However, the total government expenditure continues to rise. Spending on education, healthcare and social welfare now accounts for nearly 60% of recurrent government expenditure. It is therefore essential for the Government to allocate resources with precision and enhance efficiency, ensuring that our limited public resources are used wisely and that public services remain financially sustainable. We must continue to invest proactively in the future\u2014particularly by accelerating the development of the Northern Metropolis, seizing emerging opportunities, and strengthening the drivers of long-term growth. As returns on infrastructure investments typically materialise gradually after project completion, the capital account is expected to remain in deficit this year due to increased capital works expenditure. To support ongoing infrastructure development, we will leverage market forces, including the issuance of bonds at an appropriate scale. Currently, the HKSAR Government's outstanding debt stands at approximately 12% of GDP\u2014a level that remains very healthy by international standards. In the coming month and so, we will continue to engage in extensive consultations and in-depth dialogue with stakeholders across various sectors, drawing on the collective wisdom of the community. Our goal is to ensure that the upcoming Budget more effectively unleashes Hong Kong's economic potential, strengthens development momentum, and delivers tangible benefits to the public. Together, we can build a better and brighter future. January 11, 2026"}, {"title": "Advancing a New Frontier in Finance and Innovation", "link": "https://www.fso.gov.hk/eng/blog/blog20260104.htm", "date": "4.1.2026", "description": "As we entered 2026, the Hang Seng Index saw a strong start on the first trading day, surging over 700 points \u2013 or 2.8% \u2013 marking its best opening performance since 2013. Innovation and technology (I&T) companies led the market rally, with the Hang Seng TECH Index climbing by 4%. Many artificial intelligence (AI)-related stocks continued to attract strong investor interest. On the first trading day of the year, a strategic enterprise \u2013 among the first batch of such companies attracted to Hong Kong \u2013 was listed on the Hong Kong Stock Exchange. Recognised as one of the \"Four Little Dragons of Domestic GPUs (Graphics Processing Units)\", the company is also Hong Kong's first listed GPU stock. As China advances towards high-level self-reliance and strength in science and technology, Hong Kong's open and international financial market is well-positioned to provide strong funding support for Mainland frontier tech enterprises. In recent years, we have continuously pushed forward stock market reforms, including the introduction of Chapters 18A and 18C, as well as the Technology Enterprises Channel (TECH) announced in last year's Budget. These initiatives have accelerated the optimisation of Hong Kong's stock market structure in line with the rise of new quality productive forces, while also meeting growing demand from both domestic and international investors for access to cutting-edge technology sectors. As of the end of last year, more than 400 new economy companies had listed in Hong Kong. Although they accounted for only around 15% of all listed firms, they represented approximately 30% of total market capitalisation and turnover. It is expected that more frontier tech companies will seek listings in Hong Kong in the year ahead. We not only welcome these companies to list and raise capital in Hong Kong, but also encourage them to establish a broader presence in the city \u2013 by setting up research and development (R&D) centres, commercialising research outcomes, and developing advanced manufacturing facilities. This enables full leverage of Hong Kong's strengths in foundational research and its rich pool of international scientific talent. Through close collaboration and accelerated growth, these enterprises will further enrich and strengthen Hong Kong's I&T ecosystem and related industries. At the same time, we support them in establishing regional or international headquarters in Hong Kong, using the city as a strategic springboard to expand into global markets, including Southeast Asia and beyond. Take the newly listed GPU company as an example. During a visit to Shanghai in 2023, I met with the company's leadership and highlighted the many advantages Hong Kong offers under the \"one country, two systems\" framework. Later that year, the company became one of the first strategic enterprises attracted to Hong Kong. It has since established both an R&D centre and its regional headquarters at Cyberport. Over the past two years, the company has collaborated with local AI firms and research institutions to co-develop innovative solutions. Last year, it launched a strategic partnership with Cyberport, supporting the establishment of an Artificial Intelligence Laboratory and actively contributing to the development of Hong Kong's computing infrastructure through Cyberport's AI Supercomputing Centre. In addition, the company co-founded the Shanghai\u2013Hong Kong AI Industry Acceleration Alliance with Cyberport, connecting upstream, midstream and downstream players in the AI industry across both cities. This initiative promotes deeper integration between the AI ecosystems of Shanghai and Hong Kong, fostering mutual learning and accelerating the development of AI-related industries. In fact, in recent years, numerous I&T enterprises with cutting-edge capabilities have emerged across various regions of the Chinese Mainland, including the Greater Bay Area, the Beijing-Tianjin-Hebei region, the Yangtze River Delta, as well as the central and western regions. These companies are key drivers of China's technological and industrial innovation. Leveraging its unique position as a bridge between the Chinese Mainland and the rest of the world, Hong Kong is well-placed to connect innovation ecosystems and harness the comparative strengths of different regions. In particular, Hong Kong excels in mobilising international capital, attracting top global research talent, facilitating the flow of information and data, protecting intellectual property rights, enabling international patent licensing and offering globally relevant application scenarios \u2013 all of which can provide strong support for these enterprises in expanding to international markets. For instance, in recent years, Cyberport and Jiangsu Province jointly established the Hong Kong-Jiangsu Science and Technology Innovation Centre to promote a collaborative model of \"R&D in Hong Kong, application in Jiangsu\", fostering I&T development in both regions. In addition, Cyberport partnered with the National Torch Academy of Innovation and Entrepreneurship (Zhongguancun) to establish a Hong Kong Branch, aimed at strengthening talent development and business incubation between Beijing and Hong Kong. In 2024, the Hong Kong Science and Technology Parks Corporation signed a Co-incubation Programme Agreement with the Hangzhou Innovation Incubation Center. To date, 12 I&T companies from Zhejiang and Hangzhou have established a presence in the Hong Kong Science Park. The Hong Kong-Shenzhen Innovation and Technology Park at the Lok Ma Chau Loop has recently opened, marking a major milestone in collaboration between Hong Kong and other Greater Bay Area cities in I&T. The first three buildings in the park have been completed, including two wet labs, which have already leased out 80% of their floor area. To date, over 60 companies and institutions \u2013 both local and international \u2013 have established a presence in the park. By sector, approximately half of these companies specialise in artificial intelligence and data science, while around 40% are engaged in life and health technology. With the synergistic development of finance and I&T, Hong Kong's unique strengths are becoming increasingly prominent in this era where technological advancement defines competitiveness. We will build on this momentum to further strengthen our I&T and industrial ecosystem, thereby driving forward high-quality economic development. January 4, 2026"}, {"title": "Striding Confidently into the New Year", "link": "https://www.fso.gov.hk/eng/blog/blog20251228.htm", "date": "28.12.2025", "description": "2025 is about to come to an end. Looking back on the year, we overcame quite a number of challenges. Despite external uncertainties, the local asset markets continued to improve, capital kept flowing in, the number of visitor arrivals increased, overall exports and fixed capital investment performed well, and local consumption showed signs of stabilisation. It is estimated that Hong Kong\u2019s economic growth this year will accelerate to 3.2%, slightly higher than the forecast made at the beginning of the year. Overall, strong performances in exports and investment have been the main engines of economic growth. At the same time, both the stock and residential property markets saw increases in price and volume, further reinforcing the market\u2019s positive expectations. On asset markets, Hong Kong stocks performed strongly, rising for the second consecutive year. As of last week, the Hang Seng Index closed at 25,818 points, up by about 29% from the end of last year. In terms of gains, this is set to be the best year since 2017, and the performance ranks among the top of the world\u2019s major stock markets. This rally has been supported by active trading. Funds raised through initial public offerings (IPOs) more than doubled year-on-year; both market turnover and post-listing follow-on fundraising rose by about onefold year-on-year. In the first 11 months of 2025, the average daily turnover in the Hong Kong stock market was close to HK$260 billion. By mid-December, IPO fundraising ranked first in the world \u2013 exceeding HK$270 billion, with four listings among the global top ten this year. Over the same period, follow-on fundraising by listed companies exceeded HK$510 billion. For asset and wealth management, in the first nine months of the year, net inflows into SFC-authorised funds domiciled in Hong Kong exceeded US$41 billion, more than 1.5 times last year\u2019s full-year figure. The residential property market has also become active. In the first 11 months of the year, transactions were close to 57,000, up about 16% year-on-year, marking the second consecutive year of increase. Residential property prices rose by about 3% cumulatively, and rents rose by about 4%. Overall, the market holds a positive outlook for the residential sector. Sentiment in the office market has also improved: transaction volume in the first ten months of 2025 increased by 74% compared with the same period last year, and Grade A office vacancy rates had edged down slightly. In fact, Hong Kong\u2019s economy has maintained growth momentum for a third consecutive year, and the three drivers of the economy all delivered solid performances. Exports grew markedly in the first three quarters and remained a major contributor to growth. Fixed capital investment rose by 2.5% in the first three quarters; in the third quarter alone, the increase was 4.3%, the best in four quarters. This was mainly supported by a significant rise in investment in machinery, electronic equipment, software and other equipment, and intellectual property products, plausibly reflecting businesses\u2019 growing focus on automation, digitalisation and data-driven transformation. Private consumption also benefited from the recovery in asset markets and improved overall sentiment, rising by 0.9% in the first three quarters, reversing the decline seen in the same period last year. Looking ahead to next year, Hong Kong\u2019s economy is expected to maintain positive momentum. While the market generally expects the global economy to maintain a moderate, albeit slower, expansion, the Chinese Mainland and Asia as a whole will remain major growth engines, providing important support to our economy. In addition, expectations of interest rate cuts across major markets will likely boost business and investment sentiment. More importantly, 2026 marks the first year of the country\u2019s 15th Five-Year Plan. We will more proactively align with national development strategies, with finance, innovation and technology, and trade serving as Hong Kong\u2019s three key engines of development. First, we will work to comprehensively enhance Hong Kong\u2019s functions and substance as an international financial centre. This includes strengthening our advantages in the financial markets by enhancing the competitiveness of the stock market and attracting more high-quality companies \u2013 from Southeast Asia, the Middle East, the Global South and beyond \u2013 to list in Hong Kong. At the same time, we will diversify our financial offerings by accelerating the development of fixed income and currency markets, green finance, fintech, etc., while actively pursuing new opportunities, including commodities trading and international gold trading. Furthermore, the Renminbi (RMB)\u2019s role in global cross-border trade and investment is increasing. Hong Kong, as the offshore RMB business hub, will continue to support the prudent advancement of RMB internationalisation in three aspects: enhancing offshore RMB liquidity, improving relevant financial infrastructure, and expanding the range of investment products and risk management tools. Second, we will accelerate the development of a world-class innovation and technology (I&T) hub, particularly through close collaboration with sister cities in the Guangdong-Hong Kong-Macao Greater Bay Area. Globally, breakthroughs in artificial intelligence (AI) and biomedicine technology are major focal points for the investment community. Hong Kong must fully leverage its strengths and strive to take a leading role in this wave of innovation-led development. AI will define the core competitiveness of economies in the future and reshape the global economic landscape. We are accelerating efforts to develop AI as a core industry in Hong Kong and to empower the upgrading and transformation of traditional industries through an \u201cAI+\u201d strategy. We will advance AI development across six dimensions: computing power, algorithms, data, application development, funding support and talent cultivation. In biomedicine, Hong Kong\u2019s advantages are even more pronounced. We will continue to attract more world-class pharmaceutical companies and medical research institutions to establish a presence in Hong Kong, and we will introduce the \u201cprimary evaluation\u201d registration mechanism for drugs and medical devices, thereby solidifying Hong Kong\u2019s position as a regional hub for medical research and development. Third, we will enhance Hong Kong\u2019s functions as an international trade centre. In response to a new global economic and trade landscape and the ongoing reshaping of industrial and supply chains, Hong Kong will continue to perform its role as a \u201csuper-connector\u201d and \u201csuper value-adder.\u201d The country encourages Mainland enterprises to go global and participate more deeply in international industrial division of labour and collaboration. Hong Kong is actively building itself as a multinational supply chain management and trade financing hub. We will provide Mainland enterprises intending to go global with services such as supply chain management, trade financing, treasury management, professional services, compliance consultancy and corporate training. To facilitate this, we have established a GoGlobal Taskforce, bringing together resources from both the public and private sectors to provide more comprehensive support for these companies. Building upon the good foundation laid in 2025, we are about to enter a new year. While new challenges are inevitable, greater opportunities will also arise. In the course of better integrating into and serving the country\u2019s overall development agenda, Hong Kong will also achieve better progress, creating more high-quality jobs and allowing the benefits of economic growth and diversification to benefit the community more broadly. At the same time, we will maintain a high degree of vigilance. Given the persistent uncertainties in the external environment, we will guard against \u201cblack swan\u201d and \u201cgrey rhino\u201d risks, and carefully balance the dual priorities of security and development. This will allow Hong Kong to continue moving forward steadily on both the social and economic fronts in 2026. December 28, 2025"}, {"title": "Enhancing Quality of Life and Competitiveness through Continuous Improvement of Transport Infrastructure", "link": "https://www.fso.gov.hk/eng/blog/blog20251221.htm", "date": "21.12.2025", "description": "The Central Kowloon Bypass (Yau Ma Tei section), which runs across East and West Kowloon, officially opened to traffic this morning. Vehicles travelling between Yau Ma Tei and Kai Tak can now use this direct route, bypassing the previously busy urban road sections between the two districts. During peak hours, travel time can be greatly reduced from 30 minutes to about 5 minutes. Starting tomorrow, the first working day after the opening, 8 bus routes will utilise this bypass, saving up to 50 minutes of travel time per day (round trip) for commuters travelling across districts. When the other section of the bypass \u2014 the \"Kowloon Bay Section\" \u2014 is completed next year, the entire new route will form Route 6, together with the Tseung Kwan O\u2013Lam Tin Tunnel, to become the third major trunk road crossing Kowloon. Travel time between Tseung Kwan O and Yau Ma Tei will then be significantly reduced from currently around 65 minutes to about 12 minutes. The Central Kowloon Bypass (Yau Ma Tei Section) spans 4.7 km in total, with over 80% (3.9 km) consisting of underground tunnels that run underneath 240 buildings. To avoid underground foundations, the excavation of the project reached depths up to 150 metres below ground level. 2,400 blasting operations were carried out without affecting daily operations on the surface or the safety of other underground utilities. To take forward the project, facilities such as the Jade Bazaar in Yau Ma Tei and several community services, including a maternal and child health centre and a public library, had to be reprovisioned. From planning and design to local consultation and construction, this massive infrastructure project faced many challenges throughout its journey. Given the densely populated, complex construction environment and numerous constraints, public support and cooperation were crucial. Through the planning of this project, the community environment has also been beautified, with more green open space provided. This includes the on-going construction of a landscape deck of over 30,000 square metres near the tunnel's western entrance in Yau Ma Tei, providing more public green space. Smart, green, and efficient transportation infrastructure plays a vital role in improving residents' quality of life and promoting social and economic development. It also enhances Hong Kong's overall competitiveness, including strengthening economic integration with Chinese Mainland, especially within the Guangdong-Hong Kong-Macao Greater Bay Area \u2014 a key element in aligning with national development strategies. In 2025, the British magazine \"Time Out\" conducted an index survey where locals rated their city's public transport, including buses, trains, and trams. Hong Kong's public transport system ranked first in the world. In the Urban Mobility Readiness Index 2024, developed by an international consulting firm and an American university, Hong Kong's public transport system ranked second among a number of global cities, while our green transport system ranked first in Asia. Many visitors and locals who have travelled abroad also praised the efficiency and convenience of Hong Kong's transit system. In fact, reports including the World Competitiveness Yearbook and Global Financial Centres Index also consider transport network an essential factor in assessing competitiveness. We will continue to adopt the principles of \"infrastructure-led\" and \"capacity-creating\" to accelerate the implementation of projects outlined in the Hong Kong Major Transport Infrastructure Development Blueprint, including new railway lines, major highways, as well as smart and green mass transit systems. In terms of road network, key projects in the coming years include the remaining section of Route 6, the Trunk Road T4 in Sha Tin and the Northern Metropolis Highway. With the completion of these major highways, the total length of trunk roads is expected to increase by 46%, from the current about 260 km to nearly 380 km. In terms of railway network, we are pressing ahead with projects such as the Tung Chung Line Extension, Oyster Bay Station, Tuen Mun South Extension, Kwu Tung Station, and Hung Shui Kiu Station. They are expected to be completed progressively from 2027 onwards. Detailed planning and design of the South Island Line (West) also commenced this month, aiming for commissioning by 2034 or earlier. The construction of the Northern Link Main Line will be implemented together with the Spur Line, with a view to advancing the simultaneous commissioning by 2034 or earlier. Upon the progressive completion of these railway projects, the total length of Hong Kong's railway network will increase by 44%, from currently about 270 km to nearly 390 km. During the period of the 15th Five-Year Plan, Hong Kong will continue to actively integrate into and contribute to the national development agenda. The Greater Bay Area is a major national development strategy in this new era, and deeper integration of transportation infrastructure with neighbouring cities will facilitate more efficient flow of key production elements, including people and goods. In this connection, apart from the Northern Link Spur Line, we are also pressing ahead with the Hong Kong\u2013Shenzhen Western Rail Link (Hung Shui Kiu to Qianhai) (HSWRL), striving for completion of the construction works in 2034, followed by integrated testing and commissioning to realise the goal of commissioning both the Hong Kong and Shenzhen sections of HSWRL in 2035. This will further promote economic and high-end services collaboration between the two cities. Beyond hardware, smarter and greener transport software \u2014 including the use of advanced technology to improve efficiency and digital management \u2014 will enable more precise and effective transport systems and offer a better user experience. Our upcoming Transport Strategy Blueprint will embrace the vision of \"Implementing a People-centric Approach, Strengthening Connectivity with Both the Mainland and the World, Promoting Efficient Travel, and Embracing a Green Lifestyle\". It will highlight areas such as the application of technology and AI, promotion of autonomous vehicles, smart motorway management, improved public transport efficiency, and stronger integration with the Greater Bay Area. These efforts will make Hong Kong's transport network and urban management more intelligent, continuously improving residents' quality of life and travel convenience \u2014 and enhancing our city's overall competitiveness. December 21, 2025"}, {"title": "Accelerating Transformation with a Positive Outlook", "link": "https://www.fso.gov.hk/eng/blog/blog20251214.htm", "date": "14.12.2025", "description": "The 59th Hong Kong Brands and Products Expo, an annual event organised by the Chinese Manufacturers' Association, kicked off yesterday at Victoria Park. Featuring 12 themed zones and a total of 900 booths, the Expo attracted a large crowd of local residents and visitors from the Greater Bay Area. For many, attending the Expo has become a yearly tradition. Families and friends often visit together to enjoy the wide variety of food and shop for new products. Shoppers come prepared with trolleys, stocking up on goods and festive treats in anticipation of the upcoming Chinese New Year. I also visited the Expo at Victoria Park yesterday, where I purchased health food, local snacks, products from social enterprises and smart home appliances\u2014many of which were from Hong Kong brands. It was clear that many exhibitors are placing greater emphasis on product innovation and technological applications. Some cooked food vendors introduced snacks with new and creative flavours, offering visitors a refreshing culinary experience. Meanwhile, several local companies showcased upgraded smart home appliances and electronic products, including those equipped with sensing technology that monitors environmental data and automatically adjusts their operating modes \u2013 making household tasks more efficient. These innovative products and technologies are sparking consumer interest and driving sales. For years, we have emphasised the importance of brand building as a key driver of high value-added development. A strong brand reflects a commitment to quality and value, encouraging customers to pay a premium for superior products, services and experiences. This is especially crucial in the \"AI+\" era, where there is growing demand for smarter, more innovative products. Indeed, technology not only enables new design possibilities but also expands the scope of applications. Manufacturers that can align with emerging technological trends \u2013 by developing cutting-edge products, strengthening brand identity and improving operational efficiency \u2013 and leverage the unique strengths of \"Hong Kong Design\" and \"Made in Hong Kong\", can unlock greater business potential and open up new avenues for growth. These efforts also contribute to the development of new quality productive forces, supporting the broader goal of high-quality development. Recent data indicates that Hong Kong's exports of goods have experienced double-digit year-on-year growth since the beginning of this year. The domestic demand has improved, with a moderate uptick in private consumption. The retail, catering and residential property markets have stabilised, while business investment has also risen. Together, these factors have contributed to the steady expansion of Hong Kong's economy, despite ongoing external uncertainties. In the first three quarters of the year, the economy grew by 3.3% year-on-year, and the full-year growth forecast has recently been revised upward to 3.2%. Exports of services have also benefited from a vibrant financial market and a post-pandemic high in visitor arrivals. Thanks to the joint efforts of the Government and the industry, Hong Kong welcomed over 45 million visitors in the first 11 months of this year. This figure, marking a 12% year-on-year increase, has already surpassed the total for the whole of last year. Notably, more than 23% of these visitors were from outside the Chinese Mainland, totalling 10.77 million, which represents a 16% rise compared to the same period last year. The increase in visitor numbers has provided additional support to the retail and catering sectors. With the Christmas and New Year holidays just around the corner, a wide range of festive activities and industry-led promotions are set to create joyful moments for members of the public to enjoy with family and friends and exchange seasonal blessings. These celebrations are also expected to attract more tourists and inject renewed momentum into the consumer market and the broader economy. As Hong Kong's tourism industry continues to evolve, transform and strengthen, ongoing improvements to related infrastructure are also progressing well and delivering impressive results. Recently, Hong Kong International Airport was named the \"World's Leading Airport for Customer Experience\" at the 32nd World Travel Awards, a globally recognised top honour in the industry. According to international market research, Hong Kong currently ranks second worldwide in terms of international visitor arrivals. The city's unique blend of East and West, vibrant cultural scene, close proximity between urban and rural areas, diverse cuisine catering to all budgets, and excellent law and order are among the many advantages that are gaining increasing international recognition. Investors and the business community remain optimistic about Hong Kong's economic prospects, with investment spending gaining momentum. A recent survey by a local chamber of commerce indicates a significant improvement in business confidence among local enterprises. In recent months, financial institutions and major e-commerce platforms have leased or acquired multiple floors of commercial space \u2013 or even entire buildings \u2013 to expand their presence in Hong Kong, as part of their efforts to tap into both the Mainland and international markets. These developments reflect the market's positive expectations for the future. Over the years, comprehensive policies promoting innovation and technology (I&T) and economic development have progressively created favourable conditions for Hong Kong's continued advancement and enhanced our resilience in the face of external challenges. Public consultation for the upcoming Budget is about to begin. Key areas of focus include further expanding the scope of economic development, accelerating the growth and application of I&T, optimising the industrial structure, creating more high-quality employment opportunities, and injecting new momentum into high-quality development. We look forward to receiving concrete and constructive suggestions, as we work together\u2013 through collective wisdom and concerted efforts \u2013 to build a better future for all. December 14, 2025"}]}