{"total-count": 26, "returned-count": 26, "results": [{"title": "Contributing to Shared Success", "link": "https://www.fso.gov.hk/eng/blog/blog20261018.htm", "date": "18.10.2026", "description": "Last week, I attended the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group in Bangkok. Discussions on the global economic outlook, both at the meetings and on the sidelines, centred on two powerful forces: the shock of persistently high energy prices driven by war, and the AI wave sweeping the globe. Together, they are reshaping the global economic landscape. The IMF\u2019s latest forecast projects global economic growth of 3.1% this year, down from 3.5% last year. More fundamentally, growth is becoming increasingly uneven, with a widening divergence in economic prospects. Growth forecasts for economies affected by war have been revised down substantially, while some economies deeply integrated into the AI supply chains have seen their growth forecasts upgraded. Asia as a whole continues to grow considerably faster than the global average. The IMF has also raised its growth forecast for Hong Kong to 3.8% this year, though our own assessment is even more positive. Slower growth is not the only cause for concern. We must also remain alert to the nature of the risks confronting the global economy. Risks such as geopolitical conflicts, energy supply pressures, rising inflation, extreme weather, trade frictions and tight financial conditions are not isolated challenges. They interact and, at times, reinforce one another. The current situation of global public finances illustrates this clearly. Government bond yields in many Western countries have surged to around 20-year highs. Global public debt ratio is approximately 95% of GDP, with debt ratios in some advanced economies considerably higher. Rising debt-servicing costs are steadily eroding the fiscal buffers available to governments to respond to unforeseen shocks. Two contrasting pictures stood out at this year\u2019s meetings. On the bright side, AI-related goods accounted for nearly 30% of global import growth over the past two years, underscoring the new opportunities that new technology is creating. Yet a more pressing challenge also demands attention. Over the next 10 to 15 years, some 1.2 billion young people will enter the labour markets of developing countries. On current trends, the shortfall in jobs will reach 800 million. The World Bank has therefore placed job creation at the centre of its development agenda. Behind both pictures lies the same multiplier: technology. It can amplify strengths, but it can also compound existing risks. Whether the objective is to harness technology for economic transformation or to strengthen growth and sustain employment, efficient access to finance is essential. Hong Kong can contribute on several fronts, not least by facilitating the efficient flow of capital. At the high-level roundtable jointly organised by the Hong Kong Monetary Authority and the IMF, I set out three areas in which Hong Kong will focus its efforts: mobilising long-term capital, broadening currency options, and managing and sharing risk. In mobilising long-term capital, our financial markets continue to demonstrate their strengths. Funds raised through initial public offerings in Hong Kong approached US$50 billion in the first nine months of this year\u2014double the amount raised in the same period last year, and already exceeding last year\u2019s full-year total. Green and sustainable debt issuance reached US$77 billion last year, with bond issuance ranking first in Asia. Securitisation of infrastructure financing can also help borrowing countries release capital earlier for investment in new projects. This is closely aligned with the World Bank\u2019s emphasis on capital recycling. These are practical examples of how efficient international financial markets can support investment and development in the real economy. Hong Kong is also uniquely placed to broaden currency options for international borrowers and investors. A growing number of countries in the Global South are settling trade with the Mainland in renminbi, accumulating substantial renminbi holdings in the process. Hong Kong can provide a wider range of investment products, risk-management instruments and liquidity arrangements to meet their needs. At the same time, more developing economies are turning to Hong Kong to issue renminbi bonds, seeking both to diversify risk and to benefit from relatively low renminbi interest rates. In August this year, for example, Kazakhstan\u2019s state-owned oil and gas company issued RMB3.5 billion in bonds in Hong Kong. The offering was nearly seven times oversubscribed. Its state-owned railway company is also exploring a Hong Kong listing to raise capital. The outstanding volume of dim sum bonds in Hong Kong now stands at close to RMB1.9 trillion\u2014the largest in the world. Annual issuance has exceeded RMB1 trillion in each of the past two years. The global economy needs technological progress to sustain growth. Mainland enterprises, meanwhile, are seeking to expand their global footprint with technological innovations. Capturing this dynamic requires a platform with strong Mainland links and a thorough understanding of international rules and market practices. Co-operation between Jiangsu and Hong Kong illustrates how this can work. Last week, I led a delegation to Nanjing. The partnership between our two economies already rests on firm foundations. Hong Kong is Jiangsu\u2019s largest source of foreign investment and its largest destination for outward investment. There are 129 Jiangsu enterprises listed in Hong Kong, with a combined market capitalisation exceeding HK$1.4 trillion. During the visit, we explored how to build on our financial and investment ties by extending co-operation into research and development, the alignment of standards, industrial collaboration and joint expansion into overseas markets. Following years of development, Mainland enterprises expanding overseas need more than just capital. Talent, legal support, compliance, corporate governance and risk management must all keep pace. Enterprises also need to navigate differences between national and international standards. For sectors such as healthcare and AI, cross-border data connectivity is another important requirement. International expansion has entered a new phase. It is no longer simply about exporting products, but also about bringing technology and brands to global markets. Comprehensive professional support throughout that process has become essential. Under \u201cone country, two systems\u201d, Hong Kong provides both an important operating platform and the talent base to support this next stage of development. AI offers significant opportunities for growth, but the transition may also bring some pain. A common concern among the international community is how to ensure that its benefits reach the wider population and translate into new employment opportunities. The World Bank advocates \u201csmall but practical\u201d AI applications: helping farmers improve their yields, enabling teachers to tailor their instruction to cater for students\u2019 needs, and supporting healthcare professionals to make better treatment and care decisions. The IMF has likewise emphasised that the gains from AI will not materialise automatically; they must be supported by institutional reforms and equitable access. Hong Kong\u2019s efficient capital-raising and financing capabilities can support investment in AI infrastructure across developing economies. Through technology transfer and talent development, we can also help enhance the AI affordability and accessibility for more economies. At home, we are promoting AI training across the community so that people of different ages and circumstances are better equipped to use the technology. My visits to Nanjing and Bangkok last week brought two enormous needs into clear focus: developing economies need capital and technology, while Mainland enterprises need access to international markets and professional services. It happens that these two needs converge in Hong Kong - our city connects global capital with the Mainland\u2019s technological and industrial capabilities. We are well-positioned to support the development of others while strengthening our own capacity for growth. These advantages, however, will not reinforce one another automatically, just as risks will not resolve themselves. Technological innovation is opening up new opportunities for development, but it is also creating challenges for employment. Realising its benefits requires deliberate action and sustained cooperation. The discussions in Bangkok will continue in Hong Kong this week, when we host the Asia-Pacific Economic Cooperation Finance Ministers\u2019 Meeting for the first time. With leaders from government, business and finance gathering here, I look forward to substantive exchanges on these shared challenges and the opportunities for closer cooperation. October 18, 2026"}, {"title": "Reinforcing Connectivity with the Mainland and the World", "link": "https://www.fso.gov.hk/eng/blog/blog20261011.htm", "date": "11.10.2026", "description": "Having served for more than three decades, the Lok Ma Chau Control Point completes its historic mission today. Tomorrow, the new Huanggang Port will continue to serve this Hong Kong\u2013Shenzhen corridor with upgraded facilities. With a total gross floor area of approximately 690,000 square metres, the new port's joint inspection building is the world's largest single-building land boundary control facility. It is designed to handle 200,000 passenger trips daily\u2014five times the design capacity of the old port. Under the \"collaborative inspection and joint clearance\" arrangement, travellers will be able to complete immigration procedures for both sides in approximately five minutes, down significantly from around 30 minutes at the old port. Round-the-clock clearance will be maintained. For residents, business travellers and visitors who regularly travel between Hong Kong and Shenzhen, this will make their journeys much more convenient. As new infrastructure strengthens our connections with the Mainland, a major international event will also reinforce our links with the wider world. In just over a week, Hong Kong will host the Asia-Pacific Economic Cooperation (APEC) Finance Ministers' Meeting for the first time. Finance ministers and representatives from economies across the region will gather here to explore how fiscal policy and financial services can strengthen regional economic ties. APEC's 21 member economies have a combined population of around three billion and account for more than 60% of global GDP. Hong Kong, China, is a member economy and has long played an active role in APEC's work. Trade with fellow APEC economies accounts for 87% of Hong Kong's total external trade, underscoring the importance of the Asia-Pacific region, where our most active markets are located. The decision to hold the Finance Ministers' Meeting here demonstrates our country's strong support for Hong Kong and reflects our standing as a major international financial centre in the region. The global economic environment is fraught with uncertainty. The United Nations Conference on Trade and Development's newly released Trade and Development Report 2026 projects that global economic growth will slow to 2.6% this year, down from 2.9% last year. Geopolitical tensions, energy and supply chain risks, and tightening financial conditions are putting pressure on economic development around the world. How economies can strengthen cooperation, sustain growth and safeguard people's livelihoods will be a key question at this Finance Ministers' Meeting. This is the \"APEC China Year\", with the theme \"Building an Asia-Pacific Community to Prosper Together\" and three priorities: \"openness, innovation and cooperation\". The Finance Ministers' Meeting will focus on four areas: fiscal policies that support people's livelihoods, financing for digital infrastructure, financial inclusion, and exchanges and cooperation among young talent in economics and finance. These priorities are aimed at safeguarding livelihoods, boosting productivity, supporting small and medium enterprises (SMEs), and nurturing the next generation. Regional cooperation matters directly to businesses, the public and young people. All four priorities align with Hong Kong's strengths and offer opportunities for us to contribute actively. Take the mobilisation of long-term capital for the region's low-carbon transition, for example. Green and sustainable debt issued in Hong Kong totalled more than US$76 billion in 2025. Of this, green and sustainable bonds arranged in Hong Kong accounted for around US$38 billion, placing us first in Asia for the eighth consecutive year. Projects across the region need funding, while investors need transparency. Hong Kong is well placed to connect the two through our strengths in green bonds, transition finance, project certification and professional services, etc. Digital infrastructure is another area with substantial financing needs. The development of artificial intelligence is driving investment in computing power, data centres and cloud services. These projects are large in scale and subject to rapid technological change, making it essential to balance commercial viability with fiscal sustainability. Hong Kong can promote greater exchange and collaboration among APEC member economies, bringing together governments, financial institutions, investors and technology companies across the region to explore public-private financing models. Public resources can play a guiding role in attracting more private capital to support the region's digital economy and AI development, helping to accelerate growth in real economies across the region. Hong Kong also continues to promote financial inclusion, extending the benefits of financial services to more businesses and individuals. The Hong Kong Monetary Authority's Commercial Data Interchange is one example. SMEs can authorise banks in advance to access their operational data from different sources, improving the efficiency of loan approvals and helping to ease financing difficulties. By the end of June this year, the platform had facilitated more than 108,000 loan applications, with approved credit totalling nearly HK$90 billion. The fourth priority of the Finance Ministers' Meeting concerns exchanges and cooperation among young talent in economics and finance across the region. This is an area we have long championed. Hong Kong's regulators and financial institutions offer a range of programmes, from training and internships for students to professional development and exchange opportunities for young people already in the workforce. Through our talent development initiatives in green finance, asset and wealth management, and fintech, we hope to help young people better understand regional markets and emerging business areas. Notably, more than 150 young volunteers will help welcome guests at this meeting. While helping the event run smoothly, they will have opportunities to interact with government and business leaders and see first-hand how an international conference is run. This will be a valuable learning experience beyond the classroom, while also giving our guests a sense of the enthusiasm and friendliness of Hong Kong's young people. Beyond contributing to the meeting's agenda, Hong Kong will also actively showcase its strengths and promote the role of finance in accelerating regional development. Our capabilities extend beyond fundraising and financing: Hong Kong is also an international insurance and risk management hub. Our insurance-linked securities services, captive insurers and dedicated maritime risk pools offer opportunities for cooperation with regional partners. Catastrophe bonds and specialised risk underwriting can also provide additional protection and financing tools to support infrastructure investment and help address climate risks across the region. These capabilities open up broader markets for Hong Kong's financial, insurance and professional services sectors. The APEC Finance Ministers' Meeting is an international gathering that attracts global attention and one of Hong Kong's major world-class events. Beyond attending the meeting, visiting financial officials, business leaders and other guests will have the opportunity to learn about Hong Kong's progress in innovation and technology, as well as urban development, while experiencing the vibrancy and appeal of our arts and culture. From the world's top-ranked bar and best hotel to a diverse range of cuisines and picturesque countryside, Hong Kong has attractions at every turn. We warmly welcome guests from around the world to explore and experience all that the city has to offer. October 11, 2026"}, {"title": "Seizing Opportunities to Deepen International Ties and Co-operation", "link": "https://www.fso.gov.hk/eng/blog/blog20261004.htm", "date": "4.10.2026", "description": "The National Day Golden Week has brought a vibrant festive atmosphere to Hong Kong. In its first three days, the city recorded more than 732,000 visitor arrivals from the Mainland, up about 8.4% year-on-year. Many restaurants and shops, particularly those in the tourist areas, have enjoyed a boost in business. On National Day, I visited a Hong Kong-style caf\u00e9 in Central, where I met local residents and visitors alike amid a lively and welcoming atmosphere. The Immigration Department expects around 1.29 million Mainland visitor arrivals during the Golden Week, with average daily arrivals increasing by more than 5% year-on-year. Beyond the Mainland, arrivals from Europe, the United States (US) and some emerging markets have also recorded considerable growth since the start of the year. Apart from a buoyant tourism sector, Hong Kong's financial markets have remained active. In the first nine months of this year, average daily turnover in the stock market reached HK$272.9 billion, up 6.4% from the same period last year. The initial public offering (IPO) market was similarly vibrant, with 116 companies listing in Hong Kong and raising more than HK$388 billion\u2014more than double the amount raised in the same period last year and already exceeding last year's full-year total. However, long-term US Treasury yields have climbed to a 24-year high, fuelling concerns about the global economic outlook and inevitably weighing on sentiment in Hong Kong's stock market. Short-term market volatility, however, has not changed the broader trends in global asset allocation and the restructuring of industrial and supply chains. Last week, I visited Doha, Qatar, to attend the Annual Meeting of the Asian Infrastructure Investment Bank (AIIB). Extensive exchanges with political and business leaders from different parts of the world reinforced my conviction that co-operation linking the Mainland and Hong Kong with the Middle East and the wider Global South is gathering pace. It is moving beyond two-way flows of capital and people towards broader collaboration in innovation and technology (I&T) and industrial projects, as well as deeper exchanges of experience in institutional development. In recent years, Middle Eastern economies have actively pursued economic diversification, investing heavily in infrastructure and developing non-energy industries. Their sovereign wealth funds have broadened their investment portfolios accordingly. Key investment themes \u2013 including infrastructure, artificial intelligence (AI) and digitalisation, healthcare, industrial automation and robotics, new consumption models, renewable energy and new materials \u2013 align closely with Hong Kong's I&T development priorities. Some family-owned businesses in the region are also diversifying beyond domestic real estate into technology, logistics, capital markets and other sectors, taking a longer-term view of investment and business development. Amid shifting geopolitical and economic conditions, building strategic reserves of essential supplies and commodities, and ensuring stable supplies for domestic markets, have become key priorities. Businesses are therefore taking a more proactive approach to exploring investment opportunities in warehousing and logistics. With its extensive experience in these areas, Hong Kong is a partner they are keen to work with. Participation by some Middle Eastern funds in Hong Kong's IPO market has also increased notably over the past year. They told me that they hoped to allocate a larger share of their portfolios to Hong Kong. Compared with my previous overseas visits, discussions on this trip showed a clearer shift from expressions of interest in closer co-operation to detailed exchanges on specific projects. Our counterparts are looking not just for investment, but also for collaboration on projects and industrial development, expertise in institution-building, professional services and trusted partners. Representatives from a Central Asian country spoke candidly of their wish to draw on Hong Kong's experience in developing an international financial centre underpinned by common law. They were also interested in studying our listing rules for real estate investment trusts and welcomed Hong Kong banks to establish operations in their country. Representatives of Middle Eastern chambers of commerce raised concerns about the protection of contractual rights and dispute resolution in cross-border trade and investment. They showed keen interest in my suggestion that contracts designate Hong Kong as the venue for mediation and arbitration. These exchanges underscore that Hong Kong's value in regional co-operation extends well beyond the depth and efficiency of its financial markets. It also rests on our unique role under the \"one country, two systems\" framework in connecting the Mainland with the world, our common law system, our credibility, our internationally-oriented professional services and other sources of soft power. At the AIIB Annual Meeting, I delivered a keynote speech on Hong Kong's digital public infrastructure. I shared our experience in identity authentication, convenient electronic payments and data exchange, explaining how these systems can improve public service delivery, facilitate cross-boundary transactions and help small and medium-sized enterprises use their data to secure trade finance. I also outlined our approach to AI applications and the governance of associated risks. Many developing economies have a pressing need for developing digital infrastructure. Turning plans into working projects, however, requires more than funding: it also calls for the capacity to plan and execute projects throughout their life cycle. Hong Kong's practical experience can be of good reference value for other economies in the Global South. The visit made clear that Hong Kong's co-operation with the Middle East and the wider Global South is deepening and delivering increasingly concrete outcomes. These range from plans by major asset managers in the region to establish offices in Hong Kong and the development of Exchange Traded Products (ETPs) cross-listed in Hong Kong and partner markets, to collaboration in energy storage, data centres, e-commerce logistics and aviation. These examples illustrate how \"Finance+\" connects finance with the real economy and fosters international co-operation. They also demonstrate how Hong Kong can fulfil its roles as a \"super connector\" and \"super value-adder\", supporting economic development in partner markets and creating shared opportunities for success. We will continue to expand Hong Kong's international connections and influence as an international financial centre. Over the coming months, the city will host a series of major international financial events. This month, the Asia-Pacific Economic Cooperation (APEC) Finance Ministers' Meeting will be held in Hong Kong for the first time, bringing together finance ministers from across the region. Early next month, the Global Financial Leaders' Investment Summit will convene more than 100 chairmen and chief executive officers of the world's leading financial institutions. The Asian Financial Forum, to be held in January next year, will be even larger in scale, reinforcing its position as one of the region's most important annual financial events. These gatherings offer valuable opportunities to engage face to face with industry leaders and political and business figures from around the world. They allow us to showcase Hong Kong's strengths and business environment, deepen friendships and connections, and translate dialogue into practical co-operation. While short-term investment sentiment is vulnerable to swings, the underlying trends and forces shaping economic development over the medium to long term are more enduring. In a complex and volatile global environment, Hong Kong has become a preferred partner for many in trade and investment, thanks to its institutional advantages under the \"one country, two systems\" framework, its international character, its transparency and its ability to work across different systems. We will continue to build on Hong Kong's strengths in financial markets, trade and logistics, I&T, culture and tourism, and international conferences and mega events. By attracting more talent, capital, technology and business opportunities from around the world, we will further strengthen Hong Kong's role as a global platform and enhance its international profile and influence. October 4, 2026"}, {"title": "The 77th Anniversary of the Founding of the People's Republic of China", "link": "https://www.fso.gov.hk/eng/blog/blog20260927.htm", "date": "27.9.2026", "description": "During the recent Mid-Autumn Festival, many members of the public enjoyed gatherings with family and friends amid a strong festive atmosphere under the bright full moon. Activities featuring unique district characteristics were also held throughout the city. For example, the \u201cWorld Lantern Boulevard\u201d at Victoria Park was well received, bringing together more than 3,000 distinctive lanterns from 20 countries and regions, each showcasing its own charm. In response to the overwhelming public reaction, the Lantern Boulevard will remain on display until October 4. While the Mid-Autumn Festival embodies the Chinese people's cherished tradition of family reunion, the National Day on October 1, which falls in this week, carries profound national sentiments and bears witness to the extraordinary journey of New China \u2014 transforming from standing up and growing prosperous to becoming strong. Over the past 77 years, through perseverance and unremitting efforts, the country has steadfastly advanced its reform and opening-up, continuously steering Chinese-style modernisation towards new stages through high-quality development. This process is most clearly seen at the industrial level: the manufacturing sector is accelerating its transformation towards high-end, smart and green development; emerging industries such as new energy vehicles, photovoltaics, commercial space and quantum technology are growing rapidly; and last year, the Chinese Mainland's research and development (R&D) expenditure exceeded RMB3.9 trillion, ranking second globally in scale. With a comprehensive and well-structured industrial system and a vast consumer market, the country provides Hong Kong with a broader platform to leverage its own strengths, integrate into and serve the overall development of the country, while achieving long-term development of its own. The country has always remained committed to advancing high-level opening-up, adhering to the development philosophy of mutual benefit and win-win co-operation, and continuously creating a more favourable environment for Hong Kong to open up new development space. During his state visit to the United States, President Xi Jinping made it clear that \u201cChina-US co-operation may not solve all the global problems, but without co-operation between the two countries, many problems in the world would be difficult to resolve\u201d. Maintaining communication and co-operation between the two countries will add certainty to the international market, providing stability and predictability for global economic development. During the meeting, China and the US have reached consensus on eight outcomes, agreeing to jointly forge a constructive, strategically stable relationship guided by respect, fairness and reciprocity, and to establish a bilateral dialogue channel on artificial intelligence. It is reasonable to believe that, when competition is \u201ca race of catching up with one another, rather than a wrestle in which one either wins or loses\u201d, global development will compete on a track of positive progress and continuous innovation. Technological innovation, in particular the development of artificial intelligence, is generating momentum for the economy. Driven by demand for artificial intelligence and related electronic products, the value of Hong Kong's total merchandise exports reached $667.9 billion in August, up 53% year-on-year; for the first eight months as a whole, it rose by 42.5% year-on-year. According to the latest assessment by the Government Economist, we are confident of achieving the revised real GDP growth forecast target of 3.5% to 4.5% for 2026 as a whole. However, AI also presents governance challenges. As major economies begin discussions on AI governance, data, compliance and risk management, Hong Kong can leverage its unique strengths in providing \u201crules\u201d and \u201ctrust\u201d. With its common law system, biliterate and trilingual common law professionals, internationally aligned standards and professional services, as well as financial support, Hong Kong is well placed to provide trusted solutions in areas spanning model training, cross-boundary data flows, privacy protection and dispute resolution. Artificial intelligence will bring Hong Kong new types of jobs and new arenas. We need talent who understand the AI industry; talent who have the courage to explore applications through AI; and talent in areas that even the strongest AI cannot replace. The AI literacy of the workforce and broader skills enhancement are not only related to our future competitive edge in the market, but also to Hong Kong's need to adapt to AI development, as well as the work and daily lives of the public. According to the Government's latest manpower projection, among the overall manpower shortage of 130,000 in Hong Kong by 2028, the shortfall will be concentrated in occupations most reliant on interpersonal interaction, on-site judgement and complex craftsmanship. We are making every effort to support members of the public in learning more about and using AI. The \u201cAI for All\u201d Inclusive Programme will roll out more than 200 training courses and activities by the first quarter of 2028; the AI skills enhancement programme is expected to benefit at least 40,000 employees; and the new Policy Address has proposed the \u201c30,000 Youth Employment and Internship Programme\u201d. Together with the industrial and business sector as well as major employer associations, these initiatives \u2014 covering entry-level positions in the industrial and business sectors, internships in innovation and technology and start-ups, as well as internships in the financial services industry and on-the-job training in the construction industry \u2014 will provide young people with preparation and assistance as they enter the workplace and new arenas. This morning, I arrived in Doha, Qatar, where I will attend the Annual Meeting of the Asian Infrastructure Investment Bank (AIIB). I will share with various AIIB Governors Hong Kong's experience in promoting infrastructure development, fostering regional connectivity, advancing sustainable development, etc. I will also introduce the new opportunities and new advantages that Hong Kong enjoys through alignment with national development strategies. With the National Day approaching, I look forward to celebrating with everyone in Hong Kong this important occasion marking the 77th Anniversary of the Founding of the People's Republic of China. September 27, 2026"}, {"title": "With a Blueprint, Let's Work Together for the Future", "link": "https://www.fso.gov.hk/eng/blog/blog20260920.htm", "date": "20.9.2026", "description": "For the first time since its establishment as a trading port, Hong Kong has drawn up a comprehensive five-year development plan of its own. The First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region was released last week, on the same day when the Chief Executive delivered his latest Policy Address. Setting out the direction, objectives, indicators and timetable, the Five-Year Plan serves as Hong Kong's development blueprint for the next five years. The Policy Address, meanwhile, provides the annual action agenda for putting that blueprint into practice, with the flexibility to respond to changing conditions at home and abroad and realities on the ground. The two documents are closely aligned and mutually reinforcing. The value of planning lies not merely in the document itself, but also in viewing the present through the lens of the future and translating a vision into indicators and action plans that can be reviewed year by year. The more volatile the external environment, the greater the market's need for certainty beyond the annual horizon. The Government sets the direction, invests in infrastructure and drives institutional innovation, while the market allocates resources and unleashes dynamism. These roles complement and reinforce each other. With a clear understanding of where Hong Kong is headed over the next five years, businesses will be better placed to work with the Government to harness the combined strengths of a capable government and an efficient market. The Five-Year Plan sets a clear direction and concrete targets: within five years, the Northern Metropolis will deliver 900 hectares of spade-ready sites; the value added by manufacturing and industries related to new industrialisation will rise to 5.5% of gross domestic product (GDP); and total domestic expenditure on innovation activities will aim to reach 3% of GDP. The Policy Address translates these five-year targets into concrete annual actions, assigning each task to the relevant bureaux or departments with clear lines of accountability so that progress can be reviewed each year. Space is a prerequisite for innovation and technology (I&T) development, and the Northern Metropolis is central to Hong Kong's provision of industrial space. Accounting for about one-third of Hong Kong's total land area and projected population, the Northern Metropolis is moving from blueprint to fruition. At least 200 hectares of spade-ready sites will be delivered across the current and next financial years. All nine new development areas have been launched, with construction already under way in four, covering about 800 hectares of land. Space is only the starting point; industry is the key. The Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (Loop Hong Kong Park) has already attracted more than 100 I&T enterprises and institutions, and its two wet laboratory buildings are fully leased. Scheduled for completion by the end of the year, Building 1, to be named \u201cLoop Academy One\u201d, will serve as the flagship project to kick-start the university town's development. San Tin Technopole will provide 210 hectares of I&T land, linking up with the Loop to form an integrated industrial chain: the Loop will focus primarily on research and development (R&D), San Tin on pilot and mass production, and the Sandy Ridge Data Facility Cluster on computing power. The Hung Shui Kiu Industry Park has entered into substantive negotiations with enterprises in sectors such as advanced construction and testing and certification, strengthening the industrial chain's links to the market. From R&D through mass production to market, each park has a distinct role to play, enabling I&T to bring fresh momentum to Hong Kong's development, create jobs and generate economic benefits. Ultimately, industrial upgrading depends on talent. The three university towns in the Northern Metropolis are being planned around the \u201cOne Town, Five Elements\u201d concept, with their total planned area expanded to more than 1,000 hectares. San Tin University Town will focus on medicine, life and health technology, artificial intelligence, robotics and microelectronics. To support the development of the university towns, the number of research postgraduate places will gradually rise from 7,200 to 9,600\u2014an increase of about 30%\u2014while the number of places under the Hong Kong PhD Fellowship Scheme will increase from 400 to 550. Talent drives industrial development, while thriving industries help retain talent: the two are mutually reinforcing. Even with parks completed, talent in place and enterprises established, financial support remains essential to sustain development and give businesses greater confidence to plan for the long term. The Hong Kong Investment Corporation Limited will continue to deploy patient capital to mobilise market resources in support of enterprises setting up in the Northern Metropolis. In parallel, the Innovation and Technology Industry-Oriented Fund has selected about 20 fund management companies and will be formally launched this year. Before the end of the year, we will introduce an amendment bill to offer strategic enterprises in sectors such as finance, advanced manufacturing, I&T research and development, headquarters activities, logistics and supply chain management a preferential tax rate of 5% or a half-rate tax concession. The Northern Metropolis Financing Advisory Task Force, established by the Hong Kong Monetary Authority and the Hong Kong Association of Banks, brings together 23 banks to tailor financing solutions for enterprises establishing a presence there. Only when space, talent, enterprises and capital are all in place can the local I&T industry accelerate its development. We must nurture emerging industries while consolidating our traditional strengths. These are not competing priorities, but mutually reinforcing ones. In finance, we will enhance the securities market and listing regime to attract more high-quality enterprises from the Mainland and overseas to list in Hong Kong, and work towards including real estate investment trusts in the mutual market access arrangements as soon as possible. In shipping, we will actively harness \u201cFinance+\u201d to support the maritime industry's development, working with the sector to explore closer links between finance and shipping while expanding the underwriting capacity of the marine specialty risk pool. In trade, we will build on the work of the Task Force on Supporting Mainland Enterprises in Going Global to provide more targeted support. Moving our traditional industries up the value chain will provide a solid foundation for emerging industries to grow. The National 15th Five-Year Plan calls for accelerating the country's development into a financial powerhouse. Hong Kong has a clear and distinctive role to play, including providing a safe and reliable offshore platform fully aligned with international rules. Hong Kong's offshore renminbi (RMB) lending reached a record RMB 935 billion last year, while the RMB Business Facility has been expanded to RMB 500 billion. We will further expand the dim sum bond market and develop RMB-denominated gold and commodities markets, helping the country strengthen its influence over international pricing in these areas. We will leverage Hong Kong's strengths to serve the country's needs. The country's high-quality development is both Hong Kong's greatest opportunity for growth and its strongest source of confidence. In the nearly 30 years since Hong Kong's return to the Motherland, the city has weathered many ups and downs. Each time, seizing opportunities and overcoming challenges has required long-term strategic vision and sustained effort. Today, we bid farewell to Mr Tung Chee-hwa, the esteemed first Chief Executive of the Hong Kong Special Administrative Region. A leader of great foresight, he charted development directions of lasting strategic significance. Looking back, time has borne out his vision. Hong Kong now stands once again at a critical juncture, with immense potential for development. The blueprint has been drawn up; we must now turn it into reality, step by step, with even greater confidence and perseverance. September 20, 2026"}, {"title": "Connecting with Global South to Advance High-quality Development", "link": "https://www.fso.gov.hk/eng/blog/blog20260913.htm", "date": "13.9.2026", "description": "In last week's blog, we explored the deepening co-operation between Hong Kong and the Middle East. Events over the past week have brought this growing partnership into sharper focus. Sohar International, Oman's second-largest bank, opened its first office outside the Middle East in Hong Kong, becoming the first Omani bank to establish a presence here. On the same day, the Oman Investment Authority announced plans to participate in the Hong Kong SAR Government's Innovation and Technology Venture Fund by investing approximately HK$250 million in partnership with a local fund management company. It is the first Middle Eastern sovereign wealth fund to participate in the scheme. Co-operation between the Middle East and Hong Kong is expanding beyond finance into industry-oriented innovation and technology (I&T), opening up new avenues for trade and investment. The 11th Belt and Road Summit, held last week, further underscored this trend. More than 6,000 government and business leaders and other participants from over 70 countries and regions gathered in Hong Kong, with memoranda of understanding and agreements covering a wide range of sectors signed both at the Summit and on its sidelines. During the Summit, the Hong Kong Monetary Authority (HKMA), Hong Kong Exchanges and Clearing Limited, the Dubai Financial Services Authority and Nasdaq Dubai announced the establishment of a strategic working group to put financial connectivity between Asia and the Middle East on a more structured and sustained footing. Meanwhile, the Financial Services and the Treasury Bureau and the Central Bank of Uzbekistan exchanged a memorandum of understanding on strengthening co-operation between each other's gold markets. It will explore how Hong Kong's central clearing system for precious metals can complement Uzbekistan's strengths as a major gold producer and holder of gold reserves. From the Middle East to Central Asia, Hong Kong's mutually beneficial partnerships with Belt and Road economies are moving beyond individual projects towards broader, more interconnected networks underpinned by institutional arrangements. This expansion of cross-regional co-operation into I&T rests on Hong Kong's solid research and innovation capabilities, together with its strong links with the technology and industrial chains of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Last week in Geneva, the World Intellectual Property Organization released its ranking of the world's top 100 innovation clusters under the Global Innovation Index 2026. The Shenzhen\u2013Hong Kong\u2013Guangzhou cluster ranked first globally for the second consecutive year. The ranking draws on three indicators: international patent filings under the Patent Cooperation Treaty (PCT), scientific publications and venture capital deals. In per capita terms, the cluster recorded 2,259 PCT applications, 4,060 scientific publications and 138 venture capital deals per million inhabitants over the past five years. Hong Kong's own I&T foundations continue to strengthen. The number of start-ups grew from over 1,500 in 2015 to more than 5,200 in 2025, while Hong Kong Science Park and Cyberport have together nurtured around 20 unicorns to date. Since the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone opened in December last year, more than 100 technology enterprises and institutions have signed leases and have begun moving in. Meanwhile, the 210 hectares of I&T land in the San Tin Technopole are being developed in tandem with the Loop Hong Kong Park to support co-ordinated development across the upstream, midstream and downstream segments of the I&T chain. For our partners in the Middle East and Central Asia, this means access to Hong Kong's strengths in research and development, commercialisation and high-end industry. When combined with the advanced manufacturing capabilities and vast markets of our sister cities in the GBA, these strengths can deliver not only commercial returns, but also high-quality development that benefits all sides. Cross-regional co-operation also extends to the green transition, where aligning rules and standards is essential. The Global South is on the front line of climate change and faces a substantial financing gap in its transition to a greener economy. Credible standards give investors the confidence to direct capital to where it is most needed. Hong Kong Green Week, held last week, showcased the breadth of Hong Kong's capabilities in supporting this process. The HKMA launched a public consultation on the prototype for the next phase of the Hong Kong Taxonomy for Sustainable Finance, setting out practical transition pathways for hard-to-abate sectors such as aviation and iron and steel manufacturing. This work aims to help establish a common reference framework across jurisdictions. Indeed, green and sustainable bonds arranged in Hong Kong in the first half of this year totalled US$20.2 billion, with Hong Kong retaining its position as Asia's leading market for the eighth consecutive year. Capital needs investment opportunities, and technology needs real-world applications. Rules and standards are essential to bringing the two together. This is another important contribution Hong Kong can make to the Global South. It is worth emphasising that this co-operation works both ways. The Global South brings Hong Kong new business opportunities, greater capital inflows and deeper market liquidity, while Hong Kong provides tangible and essential support for its development. A joint survey released last week by the Securities and Futures Commission and the HKMA showed that sales of non-exchange-traded investment products in Hong Kong rose by 63% year on year to a record HK$9.9 trillion in 2025. The number of clients who completed transactions also increased to more than 1.6 million. In recent months, several major financial institutions from the Middle East, Europe and North America have expanded their teams and operations here. Global investors' growing demand for diversification represents a structural shift that is adding depth and breadth to Hong Kong's markets. It is also creating a larger and more diverse pool of capital to support our partnerships with Belt and Road economies. Over the past week, Hong Kong's connections with Belt and Road economies and the Global South have continued to broaden and deepen\u2014from the Middle East to Central Asia, and from finance and I&T to green transition. The outline of the National 15 th Five-Year Plan supports Hong Kong's development as an international I&T centre and the consolidation and enhancement of its status as an international financial, shipping and trade centre. Our country's steadfast support across all these areas gives Hong Kong the confidence and strength to build closer ties with the Global South and accelerate development. This week, market attention will turn to Hong Kong's First Five-Year Plan and the new Policy Address. They will set out the overarching vision and direction for Hong Kong's development, together with concrete policy measures to be rolled out progressively. This will give businesses and investors a clearer basis for planning further investment and expansion in Hong Kong and the wider region. Together, we can open a new chapter of boundless opportunity as Hong Kong advances from stability to prosperity. September 13, 2026"}, {"title": "A New Chapter for the Belt and Road: Hong Kong's Growing Contribution", "link": "https://www.fso.gov.hk/eng/blog/blog20260906.htm", "date": "6.9.2026", "description": "The International Monetary Fund's latest global macroeconomic projections, released a few months ago, forecast growth of 3.8% and 4.5% for emerging market and developing economies this year and next year respectively\u2014well above the rates for both the global economy and advanced economies. Indeed, emerging markets have been growing at a relatively faster pace for a quarter of a century. This sustained growth has fuelled demand for consumer goods and infrastructure in emerging markets. The progressive relocation of Mainland industrial chains to Belt and Road regions is a response to these expanding opportunities. Mainland enterprises have now established around 58,000 companies overseas, creating more than 2 million local jobs each year. Their outward investment stock has reached US$3.4 trillion, with nearly 90% in developing economies. Market demand is shaping the location of industrial chains, while economic growth is drawing in capital. The direction of trade and investment is clear, with vibrant flows in both directions\u2014and Hong Kong stands at their intersection. Over the past five years, Hong Kong's merchandise trade with ASEAN, the Middle East and Central Asia has grown by an average of nearly 10% a year, with these markets' combined share of the city's total merchandise trade rising to about 17%. ASEAN has remained Hong Kong's second-largest trading partner since 2010. On the investment front, Hong Kong's direct investment in ASEAN reached US$16.5 billion last year, an increase of nearly 140% from five years earlier, accounting for almost 7% of ASEAN's total foreign direct investment inflows. On the business front, the number of companies from ASEAN and the Middle East with a presence in Hong Kong has also exceeded 930, up nearly 30% from five years ago. A survey by the Hong Kong Trade Development Council shows that Hong Kong is the preferred platform for overseas expansion for the vast majority of Mainland enterprises seeking to enter Belt and Road markets. Whether it is facilitating inward investment or supporting overseas expansion, Hong Kong serves as a key hub for accelerating development and deepening exchanges. The 11th Belt and Road Summit, to be held in Hong Kong this week, will further strengthen this role. Under the theme \"Advancing High-Quality Development \u2022 Embarking on a New Journey\", this year's summit will introduce a dedicated \"Go Global Chapter\" for the first time, offering further support to Mainland enterprises expanding overseas. It will also focus on energy, artificial intelligence, the low-altitude economy and urban development, with site visits providing additional opportunities for exchanges and collaboration that benefit businesses and markets on both sides. Hong Kong's strengths and experience in financial services also play a vital role in accelerating regional development and strengthening cooperation. In infrastructure financing, for example, the Hong Kong Mortgage Corporation has launched three rounds of infrastructure loan-backed securities in recent years. These draw market capital into mature projects, freeing up funds for new ones. Together, the securities cover dozens of projects worldwide and have a total value exceeding US$1.2 billion, enhancing liquidity for infrastructure projects in the region. In equity financing, more than 100 enterprises from Belt and Road regions are currently listed on Hong Kong's stock exchange, with a combined market capitalisation of over HK$340 billion. A state-owned infrastructure company from Central Asia is also planning to list in Hong Kong. In bond financing, issuers from Belt and Road regions had, as of July this year, issued 82 listed bonds in Hong Kong, raising more than HK$470 billion. In recent years, governments, public bodies and enterprises from Southeast Asia, Central Asia and the Middle East have tapped Hong Kong's offshore Renminbi (RMB) bond market, also known as the \"dim sum bond\" market. The Indonesian Government, for example, issued approximately RMB 9.25 billion in dim sum bonds in February this year. In August, a Kazakh oil and gas company issued approximately RMB 3.5 billion in dim sum bonds in Hong Kong\u2014the largest such issuance by a Central Asian enterprise in the city. Sovereign wealth funds from the Gulf region also continue to expand their presence in Hong Kong. A major international bank from a Gulf country will officially open a representative office here this week, while that country's sovereign wealth fund partnered with a local fund last year to launch an energy transition fund. These developments further reinforce Hong Kong's role as a destination for long-term capital and a platform for expanding business across the Asia-Pacific region. The development of trade and capital markets requires a robust institutional framework. As RMB's share of regional trade financing continues to rise, Hong Kong\u2014the world's largest offshore RMB hub\u2014is providing reliable support for greater currency diversification in regional trade. With strong support from the People's Bank of China, the total quota under Hong Kong's RMB Business Facility (RBF) has been further expanded to RMB 500 billion. Bank Indonesia, the Hong Kong Monetary Authority and the People's Bank of China have also signed a memorandum of understanding to facilitate direct settlement in Indonesian rupiah and offshore RMB between businesses and institutions in Indonesia and Hong Kong. This will significantly reduce businesses' foreign exchange costs. We aim to further support Belt and Road enterprises in entering new markets and reducing transaction costs, helping to unlock the region's growth potential. Hong Kong has signed comprehensive avoidance of double taxation agreements with 43 Belt and Road tax jurisdictions, while its investment agreements and free trade agreements cover 20 and 14 economies respectively. Established last year, the GoGlobal Task Force has helped more than 300 Mainland enterprises set up or expand their operations in Hong Kong. By bringing together institutional support, capital and high-growth services, we are making regional collaboration and market connectivity faster, more tangible and more efficient. Looking ahead, artificial intelligence and the green transition are widely recognised as key priorities for future development. To foster exchanges and deepen cooperation, the Government has established the Hong Kong Green Technology Innovation Centre Limited to advance green technology research, development and application, environmental certification, talent development and international cooperation. A green technology project accelerator, spearheaded by a local think tank and supported by a number of Mainland and international financial institutions, will also be launched soon to support the green transition in Belt and Road regions. The Hong Kong Monetary Authority updated the Hong Kong Taxonomy for Sustainable Finance this year, providing clearer guidance for the region's low-carbon transition. This week, we will also co-host a climate finance conference with the Dubai Financial Services Authority. Through these initiatives, Hong Kong is bringing its combined strengths in green technology and green finance to support regional development. Hong Kong will continue to leverage its unique advantages under the \"one country, two systems\" framework. From advancing infrastructure projects that strengthen \"hard connectivity\", to aligning rules and standards through \"soft connectivity\", and bringing people closer together through people-to-people bonds, we will take concrete action to contribute to building a community with a shared future for mankind. September 6, 2026"}, {"title": "Fast-tracking Development of the Northern Metropolis through Market Forces ", "link": "https://www.fso.gov.hk/eng/blog/blog20260830.htm", "date": "30.8.2026", "description": "The Northern Metropolis is a key new engine for Hong Kong's future economic growth. We recently announced the tender result for the first \u201clarge-scale land disposal\u201d project in the Northern Metropolis \u2014 a new milestone in its development. For the 11-hectare pilot area in Hung Shui Kiu, we moved away from the traditional cash tender approach of awarding the land to the highest bidder. Instead, we adopted a \u201ctwo-envelope approach\u201d, which places greater weight on how much a tender proposal will contribute, over the long term, to Hong Kong's industrial development and the wider economy. The successful bidder is a company formed by a consortium of six enterprises from different sectors \u2014 local developers, Mainland state-owned enterprises and a leading e-commerce technology company \u2014 whose combined strengths cover infrastructure development, technological innovation, facility operation, supply chain management, business networks and ecosystem building. Price was not the only consideration in the tender assessment. Greater weight was given to whether the bidder could attract strategic industries, create jobs and drive the development of industry chains. This ensures that the successful bidder is not merely a property developer, but a long-term strategic partner with strong all-round capabilities and a proven track record of delivering concrete results in industrial development. The successful bidder will invest a total of about $16.8 billion in the project, which is expected to generate more than 6,000 jobs in construction, logistics operations, business management and other areas. The innovative large-scale land disposal model enables the Government to mobilise private sector resources and capitalise on the market's flexibility, responsiveness, professional knowledge and experience. It can accelerate project delivery and ensure that the development better serves the needs of its users at every stage, from design and construction through to future operation. The successful bidder will also be required to provide public facilities and open space, and to undertake site formation works for certain land parcels to be handed back to the Government. By reducing the Government's upfront cash commitment, the model delivers a win-win outcome. Hong Kong is in fact no stranger to public-private partnership models. Market forces have long played a part in taking forward land development and infrastructure projects \u2014 well-known examples include City One Shatin and the tunnels built under the build-operate-transfer (BOT) model. The successful tender for this large-scale land disposal project establishes a new public-private partnership model, and is a milestone for the development of the Northern Metropolis as a whole. We will keep in close touch with the market, monitor market conditions closely and launch tenders for the other pilot areas at an appropriate time. The development blueprint for the Northern Metropolis is ambitious. Research by a major bank estimates that the Northern Metropolis will create 500,000 new jobs and account for at least 13% of Hong Kong's GDP, with technology-related activities making up about four percentage points of that \u2014 a significant boost to technology's contribution to the economy. Realising this blueprint calls for more than innovation in land policy. We must also tap the vast resources of the financial market to provide stable, long-term funding for development on this scale. To this end, the Hong Kong Monetary Authority and the Hong Kong Association of Banks established the Northern Metropolis Financial Advisory Taskforce in April this year. Comprising 23 banks with experience in large-scale project financing, the Taskforce has held two meetings to date. The participating banks will explore financing solutions tailored to the characteristics of individual Northern Metropolis projects, including syndicated loans, bond underwriting, infrastructure financing, securitisation and other ancillary financial services. This matters for projects such as innovation and technology parks, industrial developments and modern logistics facilities, because each has its own construction period, cash flow, risk profile and return profile, and each calls for flexible financial instruments. We are also actively tapping the bond market to fund infrastructure in the Northern Metropolis. In May this year, we successfully issued green bonds and infrastructure bonds totalling $27.6 billion under two bond programmes. Total subscriptions reached almost $240 billion, or some 8.6 times the issue size, with orders received from global investors across more than 30 markets. Notably, against the current geopolitical backdrop, investor demand for Hong Kong dollar bond products has risen markedly. Market data show that Hong Kong dollar bond issuance \u2013 wonton bonds \u2013 from the start of this year to mid-August exceeded $670 billion, up nearly 80% year on year and already ahead of last year's full-year total of about $620 billion. Several local public bodies have also launched large bond offerings, which were readily absorbed by the market. This is a vote of confidence by international investors in Hong Kong's public finances, exchange rate stability and development prospects, and it gives us ample scope to continue drawing on market resources to speed up the development of the Northern Metropolis. With funding and land in place, the ultimate test of the Northern Metropolis will be whether it can attract high value-added, high-potential industries and quality enterprises to establish their presence there, allowing an innovation and technology ecosystem to flourish. That means using capital as a lever and platforms as vehicles to steer market forces towards substantive industrial development. In this regard, the Hong Kong Investment Corporation Limited (HKIC) serves as one of our principal vehicles for developing the industrial ecosystem. HKIC will continue to align its work closely with the National 15th Five-Year Plan, extending its investments into future industries such as embodied artificial intelligence (AI), commercial aerospace and brain-computer interfaces. Tomorrow, an embodied AI company in HKIC's portfolio will hold a ceremony to launch its fully autonomous robot retail store in Hong Kong. The company is committed to using Hong Kong as a base to deepen scenario-based applications, expand its international business, attract top talent and carry out related research and development. At the same time, the Hong Kong Science and Technology Parks Corporation (HKSTP), one of Hong Kong's flagship innovation and technology (I&T) institutions, is actively building platforms to speed up investment matching in I&T. Next week, it will host the Co-Development and Investment Conference, which will bring together more than 200 start-ups and over 200 investors, along with a number of major technology companies, to develop more of the solutions that different industries need. The conference will subsequently be held in Dongguan in the Greater Bay Area and in Hangzhou in the Yangtze River Delta, connecting I&T resources across regions to maximise synergy. Whether by unlocking land value through large-scale land disposal, by providing long-term capital through the financial market, or by guiding industries to take root through HKIC and HKSTP, we are building real momentum behind the integrated development of technology, industry and talent. The Government sets the vision, draws up the long-term plans and clears the way; the market invests, brings in the industries and runs the businesses. This chain linking land, capital and industry will reshape Hong Kong's economic and industrial structure more quickly, enabling us to integrate better into and serve the overall development of the country under the National 15th Five-Year Plan and Hong Kong's Five-Year Plan. That, in turn, will make our socio-economic development more diversified, resilient and sustainable. For the public, it means a wider range of quality jobs and a better living environment. August 30, 2026"}, {"title": "Promoting the Adoption and Application of AI", "link": "https://www.fso.gov.hk/eng/blog/blog20260823.htm", "date": "23.8.2026", "description": "Every wave of technological innovation brings a fresh cycle of equipment upgrades and unleashes enormous consumer demand. This trend is clearly on display at the Hong Kong Computer & Communications Festival 2026 (HKCCF 2026), now being held at the Hong Kong Convention and Exhibition Centre in Wan Chai. Last week, I officiated at the opening ceremony and toured the exhibition booths. The venue was buzzing with activity. A number of exhibitors told me that the AI boom has sparked strong consumer interest in related electronic products, giving a further boost to their sales. This year's event is themed \u201cAI Connect: Let's Link the Future!\u201d. The venue features a number of themed and special zones covering innovation and technology in sports, green technology living and smart campuses, giving members of the public the opportunity to experience AI applications first-hand. For the first time, the organiser has also co-organised an AI and Digital Transformation Zone with the Hong Kong Productivity Council (HKPC), offering interactive workshops for enterprises on topics such as corporate technology transformation, cybersecurity and professional services. AI is advancing rapidly in the physical world, with robots becoming a key vehicle for its development. This theme has become increasingly prominent in various competitions and exhibitions. For example, ABU Robocon 2026, held today at Queen Elizabeth Stadium under the theme \u201cKung Fu Quest\u201d, brought together 16 top university teams from 15 countries and regions. The teams competed by controlling robots to perform highly challenging tasks, including crossing plum-blossom piles and collecting martial arts manuals. Beyond the competition, the young participants will also visit Hong Kong Science Park and Qianhai in Shenzhen to gain first-hand insights into the innovation and technology ecosystem of the Greater Bay Area. This trend is not confined to the competition arena. A Mainland embodied AI enterprise brought in by the Hong Kong Investment Corporation Limited will present its latest robots and product series to Hong Kong at the end of this month for a public showcase, following their debut at the World Robot Conference in Beijing. The showcase will allow members of the public and students to experience close-up interactions with the robots. From university competitions to corporate product showcases, robots are truly becoming within reach in Hong Kong. Greater participation in AI-related competitions, talks and exhibitions can help young people gain a deeper understanding of cutting-edge technological developments and inspire them to think about their future careers. It may even give them the opportunity to meet future start-up partners or investors. All these experiences can be of considerable value in enriching their personal portfolios and helping them explore future career paths. With the rapid development of AI over the past few years, people have become increasingly aware of the need to keep pace with the times, and enhance both their understanding of AI and their ability to apply it. In fact, a research report by a multinational technology company found that nearly 70% of respondents in Hong Kong are already proficient in using AI, including the ability to compare different tools. Around 20% are \u201csuper users\u201d who know how to use AI agents to automate daily tasks. The report further estimates that if AI adoption among Hong Kong's small and medium enterprises (SMEs) catches up with that of large enterprises by 2035, this could generate economic benefits of up to HK$65 billion for Hong Kong. Our country's rapid development in AI has provided significant impetus to Hong Kong's economy and financial markets. Hong Kong's economic growth in the first half of this year exceeded earlier expectations, partly due to the strong global demand for advanced electronics and AI-related products. This demand supported high double-digit growth in Hong Kong's exports for several consecutive quarters. Between December last year and May this year, AI-related IPO fundraising in Hong Kong amounted to nearly HK$100 billion, accounting for about 55% of total IPO funds raised during the period. Following its latest quarterly review, Hang Seng Indexes Company Limited also included a number of AI-related companies in various indices, properly reflecting the growing importance of AI in the economy. The operations of the HKSAR Government are also becoming more deeply empowered by AI. The AI Efficacy Enhancement Team has facilitated the first batch of 30 efficacy enhancement projects across 13 departments, covering areas such as licence applications, facility bookings, environmental hygiene and complaint handling. The Transport Department will launch \u201cEasy Licence Application Approval\u201d by the end of this year, using AI to automatically recognise documents. It aims to cut the processing time for online vehicle licence renewals from up to 10 working days to just one. In the first quarter of next year, a trial will also be launched to use AI to adjust traffic signals in real time, with a view to shortening pedestrian waiting times. As technology develops rapidly, what is even more critical is enhancing the capabilities of the workforce. The 2026\u201327 Budget allocated HK$50 million to launch the \u201cAI Training for All\u201d programme with precisely this objective in mind. Through Cyberport, the Hong Kong Science and Technology Parks and the HKPC, various activities have been rolled out to provide diversified AI training for working people, students and members of the public. The target is to organise more than 200 activities this year and next year, benefiting around 50,000 participants. Taking HKPC as an example, its efforts mainly target SMEs and working people. During this year's HKCCF, it brought together nearly 30 partner enterprises to support SMEs in the specification application of AI across various areas, from cybersecurity and online legal arbitration to omnichannel AI chatbots and business messaging solutions. Over the next two years, it will also continue to conduct the AI Readiness in Workplace Survey to provide a reference for formulating more targeted support measures. The Employees Retraining Board will also collaborate with a major technology company to launch AI courses, which are expected to be rolled out to working people in November. Frontier technologies and applications are still evolving and will inevitably bring challenges to the job market. We must step up our response, including enabling young people to acquire new skills early and providing them with opportunities to apply those skills in the workplace. Hong Kong is home to a large number of SMEs. Their flexibility, adaptability and innovative spirit have withstood the tests of past technological changes and economic cycles. In the current period of technological paradigm shift, we will give them our full support in preparing for and responding to change, so that they can continue to move forward. August 23, 2026"}, {"title": "Reinforcing Hong Kong's Status as an International Aviation Hub", "link": "https://www.fso.gov.hk/eng/blog/blog20260816.htm", "date": "16.8.2026", "description": "Following the Book Fair and Ani-Com & Games, the Food Expo is taking place this week at the Hong Kong Convention and Exhibition Centre in Wan Chai. This highly popular large-scale exhibition and four concurrent fairs have drawn more than 1,800 exhibitors from over 30 countries and regions around the world. This year also marks the first time that enterprises and representatives from all 11 ASEAN member states are taking part. In addition to business representatives exploring opportunities, the venue has been bustling with members of the public sampling delicacies and snacks. Hong Kong has long been a preferred destination for major exhibitions and conventions. In the first half of this year, the city's two flagship venues \u2014 the Hong Kong Convention and Exhibition Centre and AsiaWorld-Expo \u2014 hosted more than 170 events, attracting 3.5 million participants. Hong Kong's success as a convention and exhibition capital is underpinned not only by its role as a gateway connecting the Mainland and international markets, and by its vibrant commercial environment, but also by its dynamic city life and efficient, convenient global connectivity. At present, around 140 airlines operate flights connecting Hong Kong with more than 225 destinations worldwide, forming an efficient and convenient network for both point-to-point travel and transit, offering passengers flexible and diverse travel options. In the first half of this year, Hong Kong International Airport handled more than 200,000 aircraft movements, an increase of 4.4% year-on-year, while passenger throughput reached 32.8 million, representing an 11.7% year-on-year growth. Efficient and convenient international connectivity, coupled with a vibrant lineup of mega events, has helped attract more business and leisure visitors to Hong Kong. In the first seven months of this year, Hong Kong recorded 31.22 million visitor arrivals, up 12% year-on-year. This continuous flow of people has injected greater vitality into the city and created more business opportunities. Hong Kong's status as an international aviation hub is not only the lifeblood of its aviation industry; it is also a critical piece of infrastructure that enables Hong Kong to perform its role as a \"super value-adder\" and \"super connector\". It supports the continued growth of trade, logistics, conventions and exhibitions, tourism as well as broader cultural and people-to-people exchanges. As geopolitics and regional trade patterns continue to evolve, we are taking a more proactive approach to expanding Hong Kong's aviation network, concluding more bilateral air services arrangements, and continuously upgrading our airport infrastructure. The Three-runway System, commissioned two years ago, will gradually increase aircraft movement capacity. The departure facilities at Terminal 2, which came into operation in May this year, are now used by 15 airlines and are expected to divert around 8 million passengers in their first year of operation, thereby strengthening the airport's capacity to handle outbound passenger flows. Many local, Chinese Mainland and overseas travellers who have used Hong Kong International Airport have spoken highly of their experience. The Airport Authority Hong Kong (AAHK) is also actively advancing the development of a \"smart airport\", comprehensively upgrading airport operations through biometrics, artificial intelligence and the Internet of Things. These initiatives enhance the efficiency of passenger and flight operations while providing travellers with a smoother and more pleasant journey. For example, the facial-recognition-based Flight Token system has accelerated the entire check-in and boarding process; mobile express baggage drop-off services have been introduced; and the Smartlane system has been adopted to improve security screening efficiency. As at June this year, the Flight Token service covered around 80% of departing passengers at the airport. Around the world, many international hub airports are no longer merely immigration and transport facilities; they have become major integrated tourism and service landmarks, attracting more high value-added and high-spending international visitors. Hong Kong International Airport has enormous development potential in this regard. The SKYTOPIA project will develop a new landmark integrating high-end commerce, art, tourism, leisure and wellness activities. Among them, construction of AsiaWorld-Expo Phase 2 has commenced and is expected to be completed in 2028, which will significantly expand capacity for conventions, exhibitions and mega-events. The strategic location and attractive waterfront setting of SKYTOPIA offer new opportunities for developing yacht tourism. AAHK will make use of the waters adjacent to the Airport Island and the Hong Kong Port Island to provide more than 500 berths, including berths for superyachts over 100 metres in length, together with supporting facilities and a water recreation area. AAHK has extensively engaged local, Mainland and overseas investors and operators on the development, and has received a very positive response. The project is expected to be completed in phases from 2028 onwards. At the same time, we will establish an arts ecosystem within SKYTOPIA, bringing together art creation, appreciation, trading and storage. This will include a storage facility for artworks and valuables, supported by related professional services. The facility is expected to commence operation in early 2027, generating greater synergy with the high-end passenger flows served by airport lounges and the business aviation centre. We will continue to adopt a multi-pronged strategy to fully leverage Hong Kong's strengths as an aviation hub and attract more passenger and cargo flows on all fronts. This includes developing integrated multimodal transport to make it easier for passengers to reach Hong Kong International Airport by sea and land for their flights; strengthening co-operation between the Hong Kong and Zhuhai airports; working with travel companies to attract more transit passengers; and collaborating with Dongguan to promote the innovative sea-land-air cargo intermodal transport model. When travellers from around the world arrive at, depart from or transit through Hong Kong International Airport, every detail of the services they experience shapes their impression of Hong Kong. These experiences can open up more opportunities for tourism, exchanges and business. We will continue to make every effort to further reinforce Hong Kong's status as an international aviation hub, while injecting new vitality into the interconnected development of related economic sectors. August 16, 2026"}, {"title": "Arts, Cultural Creativity and Mega Events", "link": "https://www.fso.gov.hk/eng/blog/blog20260809.htm", "date": "9.8.2026", "description": "Last week, I visited the Hong Kong Palace Museum in the West Kowloon Cultural District to see the recently launched exhibition, The Forbidden City and the World. The rare and valuable works on display drew crowds of visitors, many of whom stopped to admire them. One piece that especially caught my attention was a Qing-dynasty hanging screen depicting a landscape. Set against a black lacquer ground, its mountains were embellished with kingfisher-feather inlay, while the pavilions, trees and rocks glow in blue-green hues against the darkness. The composition feels lively and intricate, with a striking sense of depth and layering. The superb craftsmanship of our country at the time \u2013 combined with the distinctive kingfisher feathers sourced from Southeast Asia \u2013 makes this cultural relic truly unforgettable. This exhibit is just one of more than 130 treasures on display. The exhibition also features 18 grade-one national treasures spanning paintings and calligraphy, jewellery, clocks and watches, and furniture. Tracing over 600 years of history across the Yuan, Ming and Qing dynasties, the show highlights China's exchanges with the wider world in diplomacy, trade, ideas, religion and craftsmanship, inviting visitors to explore how these encounters shaped art and sparked innovation. Complementing The Forbidden City and the World is Ancient Egypt Unveiled in the neighbouring gallery. Since opening at the end of last year, it has attracted more than 570,000 visits. The cultural and creative products area at the exit was packed, with visitors lingering to browse and choose souvenirs \u2013 an example of how exhibit-inspired creativity can be translated into real economic value. In this sense, cultural content provides the foundation of value; industry platforms determine its scale; and major events help unlock it. These three elements are tightly connected, together forming a dynamic, self-reinforcing ecosystem. Cultural Content From artworks to cultural and creative products, creations that speak to the soul resonate with audiences and generate value. The combined revenue of the Hong Kong Palace Museum and M+ rose by 22% compared with the previous financial year, with venue hire and sales of cultural and creative products becoming important income streams. Take Ancient Egypt Unveiled as an example: the museum launched around 200 related cultural and creative items, and total sales have already exceeded $30 million. Hong Kong is one of the world's top three art trading centres, and we are committed to building a richer ecosystem that brings together more high-end art services and transactions. This includes developing art storage facilities at the airport and creating an integrated operating model that spans collecting, appraisal and trading. The Artist Square Towers in the West Kowloon Cultural District, scheduled for completion this year, aim to attract galleries, insurers, auction houses, family offices and other businesses across the art-industry value chain. We have also signed a five-year collaboration agreement with Art Basel, under which Hong Kong will remain the exclusive host city in the region. Industry Platforms At the same time, intellectual property (IP) trading platforms in the cultural and creative sphere play a vital role in unlocking value. They generate wider economic benefits for creative and innovation-driven industries, while also encouraging further creativity and innovation. For example, with support from the Cultural and Creative Industries Development Agency, the Hong Kong Trade Development Council has strengthened the Asia IP Exchange, which began operations in March this year. The newly added arts and creative IP database features information on more than 10,000 cultural and creative IP assets, along with market transaction data and related professional services. This makes it easier for potential buyers to identify relevant IP, thereby facilitating deals and enabling cross-sector collaboration. Mega Events Mega events drive both local and inbound visitor flows, while creating multi-dimensional links across consumption. Following the recently concluded World Cup matches, the Hong Kong Football Festival 2026 and the Audi Football Summit 2026 \u2013 held at Kai Tak Sports Park \u2013 drew a combined audience of more than 120,000 across three matches. Ticket revenue is expected to exceed $180 million. Beyond ticket sales, these events generated broader positive spillovers. For instance, some restaurants near Kai Tak reported business growth of around 20% during the period. Many merchants also rolled out ticket-stub promotions, dining discounts and free parking, using creative offers to capture new opportunities. The Hong Kong Tourism Board worked with industry partners to launch joint promotions across different districts during major events, further stimulating visitor spending. In summary, in the first half of this year, around 1.75 million visitors attended more than 130 mega events, generating approximately $5.8 billion in spending and contributing about $3.3 billion in value added to Hong Kong's economy. From arts and cultural creativity to major events, these initiatives have helped create a positive social atmosphere and stimulate consumer demand in the city. The broader figures point to the same momentum: Hong Kong's total retail sales value has risen year on year for 14 consecutive months, with a growth of 9.6% in the first half of this year. Looking ahead to the second half of the year, we will host more than 100 mega events, including the HKTDC Food Expo, the National Day Fireworks Display, the Hong Kong Cyclothon, the Hong Kong Wine & Dine Festival, and much more. These events are expected to attract over 1.85 million visitors, generate around $5.9 billion in spending, and contribute about $3.3 billion in value added to Hong Kong's economy. Notably, Hong Kong will host its first-ever APEC Finance Ministers' Meeting this October, bringing together key political and business leaders from across the Asia-Pacific region. We will seize this opportunity to showcase Hong Kong not only as a premier international financial centre, but also as a world-class events capital \u2013 rich in cultural, creative, arts, sports and lifestyle experiences, and an ideal place to live, work and visit. August 9, 2026"}, {"title": "A New Milestone for Offshore Renminbi Business", "link": "https://www.fso.gov.hk/eng/blog/blog20260802.htm", "date": "2.8.2026", "description": "With the strong support of relevant central ministries and authorities, the long-awaited offshore RMB China Government Bond Futures will be listed in Hong Kong tomorrow. The debut contract to be listed will be a five-year product, currently the only product of its kind in the offshore market. It will allow international investors to trade and settle the relevant contracts in the offshore market using their existing trading accounts, practices and procedures in Hong Kong. This marks a new milestone in Hong Kong's development as an offshore RMB business hub. It not only enriches the range of RMB risk management tools available in our market, but also signifies the deepening development of China Government Bonds in the offshore market and the orderly advancement of RMB internationalisation. Bond Connect was launched in 2017, facilitating overseas investors to participate in the Mainland bond market through Northbound Bond Connect. Southbound Bond Connect was subsequently launched, enabling two-way trading. Three years ago, Swap Connect was introduced, allowing investors to hedge interest rate risks for their onshore bond holdings. The launch of China Government Bond Futures this time provides a standardised, exchange-traded and liquid offshore hedging tool for Chinese Government Bonds. In other words, Bond Connect, Swap Connect and now the launch of China Government Bond Futures have completed the loop for risk management between the cash bond and futures markets. This allows overseas investors to participate in RMB Chinese Government Bond trading in the offshore market more efficiently and conveniently, with the Hong Kong market playing a key role. This development is underpinned by the continued expansion of investors' demand for northbound asset allocation. Bond Connect has long been the main channel for overseas investors to access the Mainland's onshore bond market, accounting for about two-thirds of overall trading. The Chinese bonds held through this channel exceeded RMB 3 trillion as at the end of June this year, representing nearly a threefold increase from about RMB 800 billion at the end of 2017. The expansion in holdings reflects not only stronger investment appetite, but also leads to greater demand for risk management. In fact, the development of Hong Kong's offshore RMB market has continued to deepen. Issuance of dim sum bonds exceeded RMB 1 trillion in each of the past two years, with outstanding volume surpassing RMB 1.6 trillion. The monthly settlement amount through the interbank settlement system is approaching RMB48 trillion. At the same time, we are accelerating the development of an international gold trading centre and a commodities trading ecosystem, supporting the launch of more RMB-denominated products. The development of the offshore RMB market is built on the country's growing economic strength, as well as its sound economic and monetary policies. In the first half of this year, China's total imports and exports of goods exceeded RMB 25 trillion, representing year-on-year growth of 16.9% and reaching a record high. Globally leading industrial clusters are also taking shape at an accelerating pace in areas such as new energy, electric vehicles, artificial intelligence, embodied intelligence and storage chips. The continued deepening of international economic, trade and industrial cooperation will inevitably create more use cases for the RMB \u2014 from trade settlement to investment, and from asset allocation to central bank reserves. The further development of RMB internationalisation requires the support of a comprehensive and highly efficient offshore market. From northbound bond allocation and interest rate hedging, to offshore financing and clearing, and on to RMB-denominated trade settlement, these functions are converging in Hong Kong. This makes Hong Kong a hub for two-way allocation and two-way risk management. We will continue to play our role as a bridge connecting the Mainland and global markets, and actively promote the sound, steady and deeper development of the offshore RMB market. In doing so, we will reinforce and enhance Hong Kong's function and status as the world's largest offshore RMB business hub. Hong Kong's own economic and financial performance has also provided a favourable environment for this upgraded development. In July, the Hang Seng Index rose by about 3,000 points, or 13%. This was the largest monthly gain in nearly two years in terms of increase in points. Average daily turnover remained above HK$300 billion for the second consecutive month. A number of high-quality technology companies have continued to apply for listing in Hong Kong. In the first seven months of this year, total funds raised through Hong Kong IPOs had already exceeded the full-year total for last year by 13%. Post-listing fundraising by listed companies also increased by more than 20% year on year. Apart from the financial markets, Hong Kong's overall economy has also continued to grow steadily. Supported by buoyant external trade and resilient domestic demand, the Hong Kong economy has recorded growth for 14 consecutive quarters. Real Gross Domestic Product grew by 4.3% year-on-year in the second quarter of this year. Within which, exports of goods remained particularly strong, with growth accelerating further to 28.8% in real terms in the second quarter. Private consumption expenditure also grew steadily by 2.9% in real terms. Hong Kong's economy grew by 5.1% in the first half of this year, stronger than expected. In the second half of the year, merchandise exports should continue to benefit from strong global demand for AI products. Continued external demand for Hong Kong's financial and business services, together with an increase in visitor arrivals, would support growth in exports of services, and is conducive towards local consumption and investment sentiments. Taking into account the overall economic situation, the revised full-year economic growth forecast to be released in the middle of this month will be adjusted upwards from the original forecast range. Nonetheless, the outlook would still be affected by geopolitical developments, US interest rates and other uncertainties. We will remain highly vigilant, and step up efforts to accelerate economic development while safeguarding economic and financial security. August 2, 2026"}, {"title": "Building a World-class City for Living, Working, Studying and Visiting", "link": "https://www.fso.gov.hk/eng/blog/blog20260726.htm", "date": "26.7.2026", "description": "We are now formulating the first five-year plan for the Hong Kong Special Administrative Region. At the same time, public consultation is under way for the Chief Executive's new Policy Address. Last week, a consultation session on the theme of sustainable and liveable city was attended by more than 80 representatives from the planning, environmental, social welfare, and think tank sectors, as well as professional bodies and organisations. They offered views from different perspectives and contributed ideas for the further development of Hong Kong as a liveable city. Participants expressed great enthusiasm for the development of the Northern Metropolis. They agreed that its beautiful natural ecology, sound spatial planning, convenient transport links and quality tertiary education would be organically combined with the incoming technology enterprises, talent and industries. This will facilitate the development of the Northern Metropolis into a hub ideal for living, working, studying and visiting, while serving as a new engine for Hong Kong's future economic growth. At present, works have commenced in four new development areas in the Northern Metropolis. More than 520 hectares of land have been resumed, and about 120 hectares have been formed. In the next five years, the Northern Metropolis will provide more than 70,000 housing units and 1 million square metres of economic floor area. Looking ahead, over the next decade, about 240,000 housing units and over 10 million square metres of economic floor area will be completed in the Northern Metropolis. Communities in the Northern Metropolis are being planned under the concept of a \"15-minute living circle\". Community facilities will be distributed in a balanced and reasonable manner, so that residents can meet most of their daily needs within a walk or bicycle ride of no more than 15 minutes. We also hope to take the opportunity of developing the Northern Metropolis to gradually improve the living space and quality of life of our residents. For residential units built there, the living space per person for public housing is being enhanced, while the size requirements for private housing units are also being raised. As for public space, the standard adopted in the Northern Metropolis will be about 30% higher than the current territory-wide level, reaching 3.5 square metres per person. We believe the development of the Northern Metropolis will also create more favourable conditions for the renewal of old districts. \"Infrastructure-led and industry-driven\" is the core principle of the Northern Metropolis development. It will also bring more convenient transport and more employment opportunities for residents in the area. Kwu Tung Station, located between Sheung Shui Station and Lok Ma Chau Station on the East Rail Line, will open next year and become Hong Kong's 100th heavy rail station. Hung Shui Kiu Station on the Tuen Ma Line is expected to come into operation in 2030. The Northern Link Main Line and Spur line are being taken forward together as one project. This will not only save costs, but also advance the programme of the Spur Line by two years to commission together with the Main Line by 2034 or earlier. In future, travelling from Hung Shui Kiu to Qianhai on the Hong Kong-Shenzhen Western Rail Link will take only about 15 minutes. On the industry front, the Northern Metropolis will be where the development of innovation and technology as well as diversified industries will be promoted. It is expected to create about 500,000 new jobs. At the Hong Kong-Shenzhen Innovation and Technology Park in the Hetao area, more than 90 innovation and technology enterprises have already moved in, and five more buildings will be completed within this year. Park companies for San Tin Technopole and the Hung Shui Kiu Industry Park have also been established, and they are expediting work. Together with the large-scale Northern Metropolis University Town, these developments will realise integrated development among the Government, industry, academia, research and investment, while creating more employment opportunities. Another distinctive feature of the Northern Metropolis is its beautiful countryside and bays. Robin's Nest Country Park, covering 530 hectares, was established the year before last as Hong Kong's 25th country park. We are also taking forward the Sam Po Shue Wetland Conservation Park, which will cover more than 300 hectares. The park will not only protect wildlife, but also preserve more than 250 hectares of ecologically enhanced fishponds. It will promote local biodiversity, provide quality local aquatic products for the public, and offer a pleasant leisure destination. The first phase of works for the park will begin as early as the end of this year, with completion targeted for 2031. Efficient city management with high accessibility is essential to a city ideal for living, working and visiting, as it is linked to residents' direct experience of everyday life. Smart management is a key development direction for urban management. Taking immigration clearance as an example, Hong Kong handles a massive volume of passenger and cargo flows on a daily basis, giving rise to a substantial need for smart clearance. In 2026, an average of approximately 500,000 passenger trips are made daily by Hong Kong residents using the e-Channel service. The relevant services have in fact been continuously enhanced. Examples include the launch of the \"Contactless e-Channel\" in 2021, the \"Face Easy e-Channel\" at the Hong Kong International Airport in September last year, and the \"Seamless e-Channel\" at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port in June this year. At present, about 380,000 passenger trips are made daily using the aforementioned upgraded e-Channel services across various control points. In addition, the airport's smart security screening system has been upgraded. Computed tomography X-ray machines, or CTX, generate 360-degree three-dimensional images, allowing security officers to inspect the inside of baggage clearly from different angles. As a result, items such as computers, power banks and liquids no longer need to be removed from carry-on baggage during security screening. Building a smart city and providing more efficient and convenient public services require more comprehensive support from a digital foundation. We are committed to providing digital identity authentication for citizens and businesses. As a personal digital identity and a one-stop personalised digital services platform, \"iAM Smart\" has more than 4.6 million registered users, with average daily usage exceeding 220,000 times. Within this year, we will provide an AI Assistant for \"iAM Smart\" users to answer enquiries and offer more personalised services, further enhancing the user experience. The \"Digital Corporate Identity Platform\" is also under development and is expected to be launched within this year, with services to be expanded gradually thereafter. Over the past few decades, we have continued to invest resources, accelerate infrastructure development, and make steady progress towards becoming a more liveable and business-friendly city. This is also a key theme in the ongoing public consultations for Hong Kong's five-year plan and the Chief Executive's Policy Address. I look forward to your active participation, so that together we can build greater momentum for a beautiful home that is smarter, more efficient, more convenient, and greener. July 26, 2026"}, {"title": "AI for Good and for the People", "link": "https://www.fso.gov.hk/eng/blog/blog20260719.htm", "date": "19.7.2026", "description": "The Hong Kong Book Fair is currently underway at the Convention and Exhibition Centre in Wan Chai. In recent years, I have made a point of visiting the fair with young people and picking out a book as a gift for them. The year before last, it was One Hundred Thousand Whys . Last year, it was Physics in Graphics . This year, I chose a book on the applications of artificial intelligence (AI) and human-AI collaboration. Taken together, the books from these three years trace a clear trajectory: from exploring principles and understanding science to applying cutting-edge technologies. At this year's Book Fair, innovation and technology (I&T) \u2013 AI in particular \u2013 feature far more prominently, whether in the books, the exhibitions or the seminars. The popularity of the AI theme shows that it is no longer merely an imagined future confined to the pages of books; it is becoming part of everyday life. Indeed, technological innovation and AI have quickly become indispensable parts of our lives. At the Book Fair, the \u201cWorld of Art & Culture\u201d zone features an interactive installation that instantly generates a personalised reading list based on visitors' personalities and reading preferences. Government booths also showcase how AI can improve public services \u2013 for instance, by enhancing landslide warning systems. It is fair to say that this generation of young people is growing up with AI. Whether for supporting learning or gathering information for their projects, AI has become a partner in their daily work and thinking process. In the age of AI, rather than passively adapting to change, we should take the initiative to deepen our understanding of its underlying principles and put it to good use. AI may gradually take over highly repetitive and mechanical tasks, but in doing so it frees up time and space for us to focus on work that calls for analytical thinking and creativity. In other words, AI can serve as an amplifier of human intelligence and decision-making. AI is being applied at many different levels, including a shift from chat-based interaction to embodied intelligence in the physical world. This shows that AI is moving out of the digital realm and into the real world, reaching into every aspect of daily life. Like computers and the Internet before it, AI will become a cornerstone of economic and social development. Today, everyone needs to know how to use a computer, even if not everyone needs to be an engineer. The far-reaching changes brought by AI will affect not just individual industries; they will transform the very ways we learn, live, work, do business, and create. Hong Kong has been an active participant in the broader wave of technological innovation and application, while at the same time moving full speed ahead to deepen support for local adoption. Last month, the Committee on AI+ and Industry Development Strategy held its first meeting, discussing key areas ranging from research and innovation, data flow and security, and computing power to application scenarios, talent development and funding. This marked a new stage in Hong Kong's AI development \u2013 a shift from advancing individual initiatives to adopting a more systematic approach, with the aim of empowering industries across the board through AI. In its initial phase, the Committee will focus on life and health technology and embodied intelligence: the former is where Hong Kong holds considerable strengths in research, while the latter can draw on the industrial hinterland of the Greater Bay Area. Within this year, we will roll out an enhanced version of the Digital Transformation Support Pilot Programme to help small and medium-sized enterprises adopt ready-to-use AI solutions. We attach great importance to building the infrastructure and ecosystem needed to support this vision. On the computing power front, construction of the Sandy Ridge Data Facility Cluster site is now underway; by 2032, it is expected to deliver around 180,000 PFLOPS \u2013 equivalent to 36 times Hong Kong's current total computing capacity. The Hong Kong Artificial Intelligence Research and Development Institute is also set to commence operation soon. Meanwhile, 56% of the funds committed by the Hong Kong Investment Corporation Limited last year went to hard technology, including AI, while also fostering the ecosystem development of the RISC-V open-source architecture. Together, these efforts will strengthen our computing capacity and nurture a vibrant ecosystem for AI applications. Ultimately, technological innovation and application come down to people. Our \u201cAI Training for All\u201d initiative will span three levels: basic outreach, professional empowerment and practical enhancement. It aims to help members of the public try AI, learn to use it, and apply it more effectively. For the global economy, AI is a new engine of growth, but it also brings new risks and challenges. No economy can achieve every breakthrough on its own, nor can any economy address every risk alone. Development and governance must go hand in hand, and mutual benefit and inclusive growth must be valued, so that we can move not only quickly, but also steadily and sustainably. At the World Artificial Intelligence Conference held in Shanghai a few days ago, President Xi Jinping delivered a keynote address, noting that AI is an important driver for shared prosperity and common security. The World Artificial Intelligence Cooperation Organization, initiated by our country, has now been established, with 29 countries signing the agreement to become founding members. \u201cTaking a people-centred approach and developing AI for the positive and for good\u201d is emerging as a shared goal widely embraced in international technological development. We firmly believe that technological progress should make people's lives better, and we must work to ensure that its benefits reach as many people as possible. As an international I&T centre, Hong Kong is leveraging its distinctive advantage of being connected to both the Mainland and the world under the \u201cone country, two systems\u201d framework. We serve not only as a hub for AI research and development (R&D) and outcome transformation, but also as a strategic springboard for Mainland AI enterprises going global \u2013 helping them align their frontier technologies and business models with international standards and practices. Our role as a highly efficient international financial centre further provides robust funding support for these ventures and transformations. Together, these strengths are drawing a growing number of technology enterprises to Hong Kong. In recent months, we have engaged with many AI-related companies \u2013 suppliers spanning hardware and equipment, key materials and computing power \u2013 and they have expressed their intention to expand their operations here and use the city as a platform for wider global growth. Future competition in AI will not be merely about scaling up models in size and speed; it will be a comprehensive contest spanning application scenarios, data environments and talent. This new wave of competition will also test our ability to make technology more inclusive and to ensure that it truly benefits humanity. In Hong Kong, we are committed to developing the city into a hub for R&D in AI and outcome transformation, a launchpad for AI applications going global, a magnet for AI talent, and a source of end-to-end funding support. We look forward to working with all sectors to make AI a new driver of high-quality development and a solid foundation for digital livelihoods \u2013 as well as a bridge, a pathway and a stage on which young people can pursue their dreams and the society can move forward. July 12, 2026"}, {"title": "A Message of Encouragement for DSE Students", "link": "https://www.fso.gov.hk/eng/blog/blog20260712.htm", "date": "12.7.2026", "description": "This year's DSE results will be released on Wednesday. For more than 58,000 DSE candidates, the release of their exam results marks not only the culmination of years of hard work, but also a pivotal moment when they must choose the path for the next chapter of their lives. Whether they decide to pursue further studies or enter the workforce, this is an important milestone in their life journey. The wait for exam results can be unsettling. Yet many who have been through it come to realise that while exam scores may define a moment in time, they do not define one's future. Students today enjoy more diverse pathways. Even if they cannot secure a place in their preferred programme, there are many other options for pursuing further studies, including associate degrees, higher diplomas and applied learning courses, as well as vocational training. Those who complete such courses or training can then choose to articulate to bachelor's degree programmes. While these pathways have long existed, it is worth noting in particular that artificial intelligence (AI) is opening up new branches further along these traditional routes. This will offer students more avenues for development and job opportunities in the future, whichever path they choose. Today, even if one doesn't know how to write code, large language models allow you to instruct computers to complete tasks using natural language. This means the threshold for adopting AI is getting lower. Whether you study business, design, nursing or the humanities, the key question is no longer whether you have programming skills, but whether you have the ingenuity to combine your interests and knowledge with AI tools. For this reason, whether at innovation and technology (I&T) companies or traditional enterprises undergoing transformation, the most sought-after employees are cross-disciplinary talents\u2014people who possess expertise in a professional field and know how to use AI tools to amplify their abilities. By identifying their interests, keeping a curious mind, and combining these with a knowledge of AI, students can find a breakthrough point for enhancing their own capabilities. The development of AI applications is both expanding and deepening. Over the years, the HKSAR Government has stepped up its investment in this area, while continuing to strengthen two-way interaction with the Mainland and overseas markets. These efforts aim to create more opportunities for all sectors of the society amid this new wave of technology, and to provide broader points of access and entry for local young people and working professionals. Take LEAP, the Middle East's largest flagship I&T event, as an example. The event made its Asian debut in Hong Kong. The three-day exhibition attracted more than 25,000 participants, over half of whom came from outside Hong Kong. Investors attending the event represented US$6.5 trillion in assets under management. One key feature of this Saudi Arabian event is that it brings together cutting-edge I&T enterprises, technology parks, and investment and financing communities from more than 30 countries and regions. It will continue to be held in Hong Kong over the next three years. In fact, after several years of deeper exchanges and engagement with the Middle East, the two sides have gradually built stronger mutual trust and friendship. We have also forged closer ties in trade and the economy, finance, innovation and technology, and people-to-people exchanges. Trade between Hong Kong and the Gulf Arab states grew by about 5% last year, and in the first five months of this year, it rose by more than 35% year on year. Bilateral trade with the United Arab Emirates, in particular, surged by more than 52%. In terms of capital flows, Gulf sovereign wealth funds invested mainly in the European and US markets in the past. Yet of the tens of billions of US dollars they allocated globally last year, about 40% went to Asia. This reflects a clear shift in their asset allocation, with a more diversified investment strategy gradually taking shape. For young people, world-class technology events and related activities held in Hong Kong offer a valuable window onto the latest cutting-edge developments around the world, especially the application of AI in areas such as healthcare, finance, energy and industrial production. Hong Kong is a hub that connects the world, and the exploration of personal interests and career directions has never been confined to the city alone. The Mainland and international markets also offer rich platforms for career development. AI is set to define the future competitiveness of every economy across a wide range of fields. The HKSAR Government is deepening its work on all fronts to enhance local AI literacy and promote AI training for all. On the academic side, universities and post-secondary institutions are progressively increasing the number of relevant programmes, while primary and secondary schools are promoting school-based AI education. For working adults, professional bodies across various sectors are offering more courses on AI applications. The Employees Retraining Board will also be upgraded and renamed Upskill Hong Kong to provide the public with greater support for AI training. For DSE candidates, no matter where your interests lie\u2014whether in business, design, nursing or the humanities\u2014and regardless of whether you gain direct admission to your preferred field of study at the next stage, you can still seek to combine those interests with AI tools, with the aim of exploring unique applications that benefit both yourself and the society. Identifying pain points and finding practical uses for them can lead to new solutions. This journey of exploration may even unlock new horizons, new imagination and new possibilities for the future. In the face of rapidly evolving technology, human interests and preferences are constantly shifting, and new challenges keep emerging. Yet one thing is certain: no one can navigate an entire career on the strength of a single result slip alone. Continuous learning, perseverance and curiosity are the most essential qualities in this era\u2014the qualities that will help you carve out a fulfilling career with no regrets. July 12, 2026"}, {"title": "Seizing Every Opportunity to Contribute to the Great Rejuvenation of the Chinese Nation", "link": "https://www.fso.gov.hk/eng/blog/blog20260705.htm", "date": "5.7.2026", "description": "Last Wednesday, the Conference Celebrating the 105th anniversary of the founding of the Communist Party of China (CPC) was solemnly held in Beijing. General Secretary Xi Jinping delivered an important speech at the conference, offering a comprehensive and systematic account of the CPC's glorious history of unremitting struggle and the tremendous achievements it has made in leading the entire nation forward with determination. As we watched the conference together in Hong Kong and reflected on the country's proud development journey under the leadership of the CPC, we were filled with profound excitement and inspiration. Over the past 105 years, the history of the CPC has been closely intertwined with that of the Chinese nation. The Party has led the country in achieving national independence and the liberation of the people, advancing socialist construction, and, in particular, steadfastly promoting economic development since reform and opening-up. Through the hard work and dedication of successive generations, our country has completed, in just a few decades, an industrialisation process that took developed countries several centuries to achieve. It has realised a historic leap in people's living standards \u2014 from inadequate access to food and clothing, to moderate prosperity overall, and then to the building of a moderately prosperous society in all respects. Our country's economic, technological, defence and overall national strengths have been comprehensively enhanced, creating the dual miracles of rapid economic development and long-term social stability. What we feel most deeply is that our destiny has always been inextricably linked with that of the Motherland. Despite facing a complex and volatile international environment, as well as diverse internal and external challenges, the country has continued to overcome obstacles and maintain steady development under the leadership of the CPC. Every stage of this progress and every leap forward have opened up new horizons for Hong Kong. Indeed, every step of Hong Kong's development has been inseparable from the nation's solid and unwavering support. In the magnificent landscape of our country's development, there is one uniquely distinctive stroke: \"one country, two systems.\" Conceived more than 40 years ago as a visionary concept advanced by the CPC, it has since evolved into an institutional strength of our country, providing a solid foundation for Hong Kong's unique advantages, prosperity, stability and development. No other city in the world is quite like Hong Kong. We are deeply integrated into the country's economic development and governance framework, while remaining seamlessly connected with international rules and markets. Established under the authorisation of the \"one country\" framework, we continue to uphold the common law and free port system under \"two systems.\" We participate actively in the Mainland's domestic circulation while also serving as a vital node in international circulation. General Secretary Xi Jinping has explicitly pointed out that \"promoting the long-term prosperity and stability of Hong Kong and Macao is an inherent requirement of the great rejuvenation of the Chinese nation.\" Under the strong leadership and support of the Central Government, Hong Kong is advancing towards a future of greater prosperity and development. It has become evident that Hong Kong is not only a beneficiary of the country's development, but also a contributor to the advancement of national strategies. We must combine the institutional, international, financial and professional advantages built through the hard work of generations under the \"one country, two systems\" framework with the new opportunities arising from the country's steady, high-quality development. By doing so, we can transform these strengths into more solid, long-term and sustainable contributions to the country's overall development in this new stage, while ultimately carving out a new growth trajectory for Hong Kong's future. Specifically, there are several areas in which we can accelerate progress, deepen engagement and further consolidate our work. First, we should promote the internationalisation of the Renminbi (RMB) and deepen mutual access between the Mainland and Hong Kong financial markets. As a global hub for offshore RMB business, Hong Kong currently handles more than 70% of global offshore RMB settlements. In terms of interbank clearing and settlement services, Hong Kong's monthly RMB settlement volume exceeds RMB41 trillion, equivalent to about RMB2 trillion per business day. As our country continues to advance high-level opening up, more foreign enterprises are choosing to invest in and expand their businesses on the Mainland. At the same time, the country's high-end manufacturing, consumer goods, technology products and business services are gaining increasing recognition in overseas markets, prompting more Mainland enterprises to expand their global operations. This will further increase two-way flows of people and goods, trade settlements, and demand for cross-boundary fund allocation and management. With the efforts of the HKSAR Government and various financial regulators, an increasing number of enterprises have chosen to establish their international or regional headquarters in Hong Kong and use RMB as their principal settlement currency. With the support of the People's Bank of China, the Hong Kong Monetary Authority has launched the RMB Business Facility, enabling banks to obtain RMB funds at lower interest rates and better meet enterprises' financing and working capital needs. We have also seen banks in Hong Kong progressively adopting this enhanced model to serve more clients and create new business opportunities. Looking ahead, we will step up efforts to encourage enterprises to make greater use of offshore RMB in trade, investment and financing, while strengthening collaboration with more central banks in the region. The Hong Kong Fixed Income and Currency (FIC) and Bond Connect Summit to be held this Tuesday will not only discuss the development of Hong Kong's bond market, but also explore key issues such as the growth of the offshore RMB market. Second, we should actively participate in building the country's modernised industrial system. The development and application of technological innovation are the result of the long-term integration of talent, scientific research, capital, manufacturing capabilities and real-world use cases. Hong Kong enjoys an international research environment and talent pool, practises the common law system, and maintains a robust intellectual property protection regime as well as a mature capital market. It is also advancing the development of the Northern Metropolis and actively fostering an ecosystem for patient capital, venture capital funds and other forms of investment. If Hong Kong's strengths in basic research, talent, capital, international innovation resources and market networks can be more effectively integrated with the industrial capabilities and application scenarios of the Guangdong-Hong Kong-Macao Greater Bay Area and the country as a whole, the city will be well positioned to play a more active role in building the country's modernised industrial system. Third, we should support broader regional and global co-operation by leveraging our international character and professional services capabilities. The world continues to face significant development imbalances. Many regions are still striving to advance infrastructure development, industrial upgrading and improvements to people's livelihoods, while countries in the Global South face challenges such as financing constraints and lagging infrastructure development. With years of experience in financing, risk management, ESG compliance, project management, legal services and dispute resolution, Hong Kong can, through the Belt and Road Initiative, multilateral development banks and various international cooperation platforms, apply these professional strengths to concrete projects and help more enterprises and regions identify sustainable and viable cooperation opportunities. 29 years after Hong Kong's return to the Motherland, sustained efforts across various sectors have laid a solid foundation and given the city a distinctive leading edge. Under the strong leadership of the CPC, the country is advancing with confidence and determination along the Chinese path to modernisation. As a unique node on this journey, Hong Kong has not only the capability, but also the responsibility and confidence, to seize every opportunity and contribute to the great rejuvenation of the Chinese nation. July 5, 2026"}, {"title": "From Dalian to Xi'an: A Shared Journey across Mountains and Seas", "link": "https://www.fso.gov.hk/eng/blog/blog20260628.htm", "date": "28.6.2026", "description": "Over the past week, I visited Dalian and Xi'an. Joining me for all or part of the trip were representatives from the Office for Attracting Strategic Enterprises (OASES), the Hong Kong Investment Corporation Limited, the Hong Kong Exchanges and Clearing Limited, Invest Hong Kong, the Hong Kong Science Park, Cyberport, and the Hong Kong-Shenzhen Innovation and Technology Park, along with a number of local and overseas innovation and technology (I&T) enterprises that these organisations have nurtured or helped attract. Our itinerary began with the Summer Davos Forum, officially known as the Annual Meeting of the New Champions, in Dalian, where I joined political and business leaders from around the world in discussions centred on innovating at scale and the current challenges facing global development. From there, I travelled to Xi'an to take part in the First Western Commercial Space Conference. These trips gave me valuable opportunities to engage in in-depth exchanges with representatives from the political and business communities, the technology sector and universities in Liaoning and Shaanxi, including the heads of more than 100 local enterprises. Through these intensive exchanges and visits, we not only witnessed the solid industrial foundations of the Northeast and the vibrant innovation momentum of the Northwest, but also gained a deeper appreciation of Hong Kong's role under the country's \"dual circulation\" development strategy. Beyond serving as an important channel for attracting businesses and investment, we also act as a key bridge for Mainland enterprises and products to go global, and as an \"adapter\" of standards and rules that connects technological innovation to international markets. To sum up this visit, I would like to share three observations on how Hong Kong and these regions can further strengthen collaborative development: First, the efficient synergy between the Mainland's outstanding I&T capabilities and Hong Kong's international connectivity. Both Liaoning and Shaanxi boast deep foundations in research and development (R&D), strong industrial bases and rich resources in science and education. They have long focused on frontier innovation, pursued the integrated development of technology, education and talent, and worked to deepen the integration of technological and industrial innovation to drive high-quality regional development. At the industry level, the two regions each have their own strengths: Liaoning excels in heavy industry, equipment manufacturing and shipbuilding, while Shaanxi enjoys distinct advantages in hard technology and the aerospace industry. Indeed, through years of sustained investment, R&D and perseverance in overcoming challenges, many of the I&T enterprises I visited have steadily built up their capabilities over time, bringing their technologies to the forefront of their respective industries. The challenge that remains, however, is how to translate research outcomes, products and technological applications into overseas orders as these enterprises expand globally and scale up their operations around the world. Whether in expanding customer networks, building brands, meeting international standards, or testing and refining products, Hong Kong can play an important role in helping the Mainland's R&D align with global application. Hong Kong's international character is our unique advantage. Our common law system, robust protection of intellectual property rights, free flow of capital and other factors of production, and the convergence of international capital and talent \u2014 together with our internationally aligned professional services in fields such as accounting, law and corporate governance \u2014 all help these enterprises accelerate the growth of their cross-boundary business, while enabling them to do so steadily and sustainably. This leads to my second observation: the interplay between capital and technology. Going global has now become a key strategy for the continued growth of Mainland enterprises. Whether at the going-global promotion conference for Mainland enterprises in Dalian, the seminar for enterprise leaders in Xi'an, or the exchange session for technology enterprises in Nanjing the week before, entrepreneurs consistently expressed a keen interest in raising international capital to support their global expansion. This stems not only from a practical need for funding, but also from a desire to enhance their international visibility, recognition and appeal to talent by bringing international investors on board. Furthermore, they are also seeking the support of patient capital. This is particularly important in many hard technology sectors, where R&D requires substantial investment and long cycles, calling for long-term investors who are willing to share the risks. Here too, Hong Kong can play a leading role. We can help mobilise international long-term capital to co-invest in small-scale, early-stage and long-horizon projects, thereby helping promising technology enterprises, along with those in emerging and future industries, to grow and thrive. My third observation concerns the vibrant and frequent interplay among technology, education, talent and industry. Underpinned by their strong capabilities in basic research, universities in Liaoning and Shaanxi have brought together top-tier scientific research talent. Xi'an, in particular, stands out in space science and aeronautical engineering. It has launched a number of industry-academia-research collaboration projects in areas such as lasers, testing, industrial intelligence, semiconductors, energy storage, new materials, and life and health. In recent years, through institutional reforms, Xi'an has gone further in encouraging researchers to translate their findings into real-world applications. Entrepreneurship is thriving on its campuses, with many doctoral students in science and engineering having founded one or two technology enterprises of their own to bring their research to market. This aligns well with the direction we are pursuing for the Northern Metropolis (NM). The fast-developing NM will be home to our future university town, while also providing space for enterprises to establish a presence and for industries to grow. We welcome closer co-operation with institutions and enterprises from the two regions to bring together more world-class research teams, international experts and talent. This will help create a virtuous cycle in which education, technology, talent and industry reinforce one another, driving technological and industrial innovation to advance in greater depth, breadth and across multiple dimensions. In the face of today's complex and ever-changing global landscape, our country is creating \"China Opportunity 2.0\" through its mega-sized market and technological innovation. With our international connectivity, capital, talent and institutional strengths under the \"one country, two systems\" framework, Hong Kong can translate these opportunities into development prospects that are more tangible and accessible to overseas investors. In doing so, we can turn technological strengths into asset value recognised by global capital. Whether it is Dalian's heavy equipment or Xi'an's hard technology, Hong Kong is playing the roles of \"super connector\", \"super value-adder\" and \"super adapter\" \u2014 empowering Mainland enterprises and adding value to them, while at the same time achieving continued development and functional enhancement for itself. June 28, 2026"}, {"title": "From the Greater Bay Area to the Yangtze River Delta: Hong Kong's Value as an International Platform", "link": "https://www.fso.gov.hk/eng/blog/blog20260621.htm", "date": "21.6.2026", "description": "Last week, I travelled to Shanghai and Nanjing. Besides attending the Lujiazui Forum, I met with representatives from frontier technology enterprises and toured a number of companies specialising in artificial intelligence (AI), semiconductors, biotechnology, the low-altitude economy, and other emerging fields. This series of visits and exchanges gave me fresh insights and prompted some new reflections. These hard-tech enterprises rest on solid technological foundations. Many are genuinely at the cutting edge, with business models already proven in the Mainland market and products now entering markets overseas. The questions they are grappling with are practical ones: how to tap into global capital, find more partners and potential customers around the world, plan their production capacity, and manage their treasury. They are keen to seize this critical period of rapid AI development\u2014consolidating their position at home while accelerating their push abroad\u2014and to map out the optimal global footprint for their business. For Mainland technology enterprises, going global no longer means simply exporting products. By bringing in international capital and talent and by building their brands and sales networks, they are turning overseas business into a new engine of growth. What struck me most was hearing one executive after another describe the same ambition: to become true multinationals. That means connecting with the world not only in their markets, but also in their capital structure, governance systems, talent, research and development (R&D), and production and supply chains. Many have chosen Hong Kong as the strategic base from which to adapt to international expansion. This reflects their trust in Hong Kong's international investor network and global platform\u2014and their recognition of Hong Kong as the bridge linking Chinese technological innovation with global capital. What these enterprises expect of Hong Kong now goes far beyond a simple financing platform. Our common law system, free flow of capital, financial reporting and corporate governance standards aligned with international norms, worldwide investor networks, world-class professional services, and the everyday convenience of working in both Chinese and English\u2014these are precisely the support and infrastructure that such rapid adaptation requires. For Mainland technology enterprises, Hong Kong is a gateway to the world. For international capital, it is the best window to access China's innovation and technology (I&T) sector. As more and more hard-tech enterprises choose to launch initial public offerings or secondary listings here, international investors can take part more directly in the rapid growth of China's I&T industries, while the enterprises themselves are tempered by Hong Kong's regulatory framework and market discipline into stronger global competitors. This two-way dynamic is exactly what makes Hong Kong both a \"super connector\" and a \"super value-adder\". Hong Kong is one of the core cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). As the GBA and the Yangtze River Delta pursue closer regional coordination during the 15th Five-Year Plan period, Hong Kong is becoming the international anchor point for both of these fast-growing regions. From listing and fundraising to trade finance and treasury operations, and from intellectual property protection and trade to the deployment of international talent, Hong Kong's professional services\u2014and our regulators' deep understanding of I&T enterprises\u2014help these companies to be better understood, recognised and valued. Seen in this light, Hong Kong's journey over the 29 years since its return to the Motherland comes into sharper focus. Our role as an international platform has grown steadily stronger, and its substance richer and deeper. With the country's firm backing, Hong Kong has kept moving forward over the past four years. The economy has expanded for three years running, growing by about 3.6% in 2025 to reach a total of $3.3 trillion, and growth in the first half of this year was both faster and more broad-based. International recognition has been rising too. In the latest World Competitiveness Yearbook 2026, published by the International Institute for Management Development in Lausanne, Switzerland, Hong Kong climbed to second place worldwide\u2014up five places in three years. In the Global Financial Centres Index, we remain first in the Asia-Pacific and third globally, and the Fraser Institute of Canada continues to rank Hong Kong as the world's freest economy. Our financial market keeps evolving and reinventing itself, growing ever deeper and broader. Since the listing regime reforms of 2018, new economy companies' share of total market capitalisation has surged from 2.8% that year to around 25%. The number of exchange-traded products rose to 243 by April this year, with assets under management approaching HK$700 billion\u2014a gain of more than 80% in just over three years. In wealth management, total assets under management reached HK$35.1 trillion at the end of 2024, equivalent to 11 times our GDP, and continued to grow last year; the number of single-family offices passed 3,380, up more than 25% from the end of 2023. In I&T, the Office for Attracting Strategic Enterprises has brought in over 120 strategic enterprises, expected to deliver around HK$73 billion in investment and create some 25,000 jobs, while the number of start-ups exceeded 5,200, an 11% rise year-on-year and yet another record high. Trade also performed well: total merchandise exports reached HK$5,240.3 billion in 2025, a record high and up 15.4% year-on-year. Hong Kong's air cargo throughput has ranked first in the world for many years running. Although air freight accounts for less than 3% of our total export volume, it represents around 45% of total export value\u2014and the value of air exports has climbed by nearly 35% so far this year, a sign of Hong Kong's central role in high value-added supply chains and e-commerce. Hong Kong's commitment to I&T shows in many ways. Beyond the steady growth in R&D spending and the research workforce, and the rising number of I&T enterprises we are nurturing and attracting, it is also evident in how we cultivate and gather talent. Thanks to our sustained efforts to strengthen STEM education, the proportion of undergraduates enrolled in science, engineering and technology programmes at post-secondary institutions rose to over 52.3% in the 2025/26 academic year, up 5.5 percentage points from three years ago. Our higher education sector has also become more international: in the recently released QS World University Rankings, for instance, five Hong Kong universities ranked among the world's top 50 for their international faculty ratio. Many leading scholars from around the world have come to Hong Kong to set up research centres or pursue collaboration. Looking ahead, we launched the public consultation on Hong Kong's first five-year plan last week, designed to align the city with the positioning set out in the National 15th Five-Year Plan: consolidating and enhancing Hong Kong's status as an international centre for finance, trade, and shipping; developing it into an international I&T centre; and building it into a magnet for top-tier talent, among other goals. We will also use \"Finance+\" to empower the real economy and \"AI+\" to drive industrial upgrading. As we approach the 29th anniversary of Hong Kong's return to the Motherland, tracing the path we have travelled over these years\u2014and seeing just how rapidly things have moved forward \u2014 I am confident that a still more prosperous and stable future awaits us. This confidence is well founded: it rests on the country's steady progress and the firm support of the Central Government, as well as on the concerted efforts of the HKSAR Government and the community at large. Hong Kong's institutional strengths and international outlook, together with the country's prowess in innovation and industry, reinforce one another\u2014giving the city a unique and irreplaceable place in the global landscape of competition and cooperation in technological innovation. June 21, 2026"}, {"title": "Building Consensus for a New Chapter of Hong Kong", "link": "https://www.fso.gov.hk/eng/blog/blog20260614.htm", "date": "14.6.2026", "description": "As the country embarks on the 15th Five-Year Plan, we stand at a pivotal moment in the new era of artificial intelligence (AI). How Hong Kong seizes this opportunity, plays to its strengths, serves the nation's needs and harnesses that momentum for its own development, will be decisive for its future. With that in mind, we will launch the public consultation tomorrow for Hong Kong's First Five-Year Plan. Some may ask: in an era of rapid change, is a five-year plan too long a horizon? Five years ago, no one could have foreseen that AI would reshape industries at such speed. Five years from now, we likewise cannot predict what the next disruptive technology or pivotal shift will be. Yet macro trends tend to follow clear and stable patterns. As our country progresses steadily, and digital and intelligent technological advancement gathers pace across the board, the direction ahead has been set amid an uncertain future. A five-year plan will give the business community, enterprises and members of the public a clearer framework to plan for the future. It will also help the society build consensus, pool resources and channel collective energy into shared development. We look forward to sparking richer insights and broader perspectives through continued exchanges and discussions. By staying responsive to changing times and local circumstances, we can fully unlock Hong Kong's potential and, working together in common purpose, achieve something great. The National 15th Five-Year Plan sets out a clear and forward-looking vision for Hong Kong: to reinforce and enhance its status as an international financial, shipping and trading centre; develop into an international innovation and technology (I&T) centre; strengthen its role as a global offshore Renminbi business hub; build an ecosystem for commodities trading; and grow into an international hub for high-calibre talent, among others. These priorities have given Hong Kong clear strategic directions. But how do we translate these directions into concrete advantages\u2014playing to Hong Kong's distinctive strengths while addressing its gaps? How do we map out practical pathways and maximise the returns on development? These are precisely the issues the consultation needs to address. Drawing a clear line of connection\u2014from national positioning through industrial opportunity and sectoral pathways to development of individuals\u2014requires not only a thorough review of where we have been, but a broad and ambitious vision of where we are headed. Hong Kong's development has consistently benefited from the country's long-term planning and sustained progress, while we also contribute distinctively to national development in return. In finance, leading enterprises from the country's I&T sector have continued to raise the \"technology quotient\" of Hong Kong stocks. New economy companies now account for around 25% of the total market capitalisation of the Hong Kong stock market. Stock market liquidity has also continued to grow, with average daily turnover exceeding HK$270 billion in the first five months of this year, up 14% year on year. In trade, as the country's industrial base expands\u2014supported by the broadening regional footprint of industrial and supply chains and manufacturers' push into new markets such as Southeast Asia and the Middle East\u2014Hong Kong's goods exports have shown tremendous resilience in a challenging and volatile global environment. They grew by more than 15% for the whole of last year and rose a further 35% in the first four months of this year. The five-year plan consultation is not merely about sustaining these positive trends, but about consolidating and enhancing them, opening up new growth frontiers, and generating new engines of development. Industrial development, as well as economic upgrading and transformation, will be our key priorities. We must accelerate the development of the Northern Metropolis as a strategic platform for building emerging and future industries. Over the past few years, we have made encouraging progress in attracting business and investment, as well as drawing frontier technology enterprises to Hong Kong. Across the different dimensions of \"AI+\", we have also laid a solid foundation\u2014building computing power infrastructure, supporting frontier research, encouraging industrial applications, attracting high-calibre talent, and developing a comprehensive financing ecosystem. The next questions facing us are: how can these technologies and capital take deeper root in Hong Kong, scale up and create more high-quality employment? How can industrial space planning better respond to the needs of enterprises at different stages, from early-stage R&D and start-ups through to maturity and expansion? How can we further strengthen the AI literacy of members of the public, so that they can better understand, embrace and make effective use of AI? To address these questions, we must listen carefully to the industry, investors, research institutions, academia and every stakeholder. \u201cAI+\u201d and \u201cFinance+\u201d are two strategic directions worthy of deeper exploration. AI is no longer simply an I&T sector in its own right; it plays a crucial role in raising the competitiveness of various industries. In trade, it can be integrated with business data to improve the efficiency of trade finance. In finance, it can strengthen data analytics, risk management and customer service. \"Finance+\", meanwhile, means making full use of Hong Kong's end-to-end fundraising and financing capabilities\u2014including building a more comprehensive patient-capital ecosystem to fuel the growth of frontier technology enterprises. We look forward to hearing public views during the consultation on how these efforts can be further strengthened and deepened. We must also strengthen coordinated development with regions across the country. On a global level, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is the only city cluster that combines strengths in AI, advanced manufacturing, international application environments, and is home to an international financial centre. We need to further promote alignment of rules and mechanisms, as well as the more efficient flow of various factors of production within the GBA. Besides, the Yangtze River Delta and the Beijing-Tianjin-Hebei region are likewise important engines of regional development for the country. The 15th Five-Year Plan calls for stronger efforts to promote coordinated regional development. This week, I will travel to Shanghai and Nanjing. In Shanghai, I will attend the Lujiazui Forum to discuss further financial cooperation between Shanghai and Hong Kong, and to advance more concrete, mutually beneficial collaboration. In Nanjing, I will visit I&T enterprises to strengthen exchanges in science and technology, and to explore how finance can better support and empower that development. Hong Kong's Five-Year Plan is not only about generating stronger economic momentum and enabling the wider application of technology; it is also about building a more inclusive society, creating more high-quality employment opportunities for our people, and enabling a better life for all. The public consultation will last for two months, during which public views will be gathered through various channels. Let us join hands and move forward together, so that Hong Kong can advance on a stronger foundation. June 14, 2026"}, {"title": "Artificial Intelligence for Good", "link": "https://www.fso.gov.hk/eng/blog/blog20260607.htm", "date": "7.6.2026", "description": "Our country is a global leader in embodied intelligence, with application scenarios expanding rapidly beyond factory floors and performance venues into everyday life. An embodied-intelligence company from the Chinese Mainland, introduced by the Hong Kong Investment Corporation Limited, will soon open its first fully autonomous robotic retail store outside the Mainland on the Hung Hom waterfront. The store will feature a humanoid robot manager providing multilingual customer service around the clock. The company's management has chosen Hong Kong as the first stop in the global expansion of its retail store concept, specifically to leverage the city's 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's 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's 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's 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's 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' 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's 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's 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's 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's 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's latest developments and future potential. The International Monetary Fund, in its latest report, reaffirmed Hong Kong's 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's and Fitch have also recently reaffirmed Hong Kong's credit ratings with \u201cstable\u201d outlooks. These assessments not only affirm Hong Kong's 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's 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's 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's 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's 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's 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's development amid a changing global landscape, and contribute to the overall development of the country. As international capital converges with Hong Kong's 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's 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's strengths in upstream R&D and international green finance certification, and the GBA's large-scale advanced manufacturing capabilities. It vividly illustrates the integration of technological and industrial innovation, demonstrating how the region's cutting-edge green technologies can expand onto the global stage. It also highlights Hong Kong's 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's 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's 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's industrial strengths. Industrial innovation cannot flourish without strong financial support. This year's 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's 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's 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's 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's 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's construction cost by around 30% while also enabling more flexible and innovative design. This achievement reflects coordinated efforts on multiple fronts. Hong Kong's 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's high-end manufacturing standards within Hong Kong's 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's overall healthcare standards, but also provide a valuable demonstration to the international community of the country's 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' 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' 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's 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's 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's exports to the Mainland and ASEAN grew by nearly 35% and 38% respectively. The Mainland's industrial chain remains the world's largest, most comprehensive and most efficient, with advantages that are difficult to replace. Against this backdrop, Hong Kong's 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's 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's 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's 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's 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's 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"}]}