Hong Kong's 2026 Policy Address Unveils Strategic Vision to Drive Reform and Boost Development

Hong Kong's Chief Executive, John Lee, on September 16 announced his fifth Policy Address, titled "A Strategic Vision for a Bright New Era, Driving Reform and Boosting Development, Unleashing Opportunities and Enhancing Livelihood." The address, delivered during the opening year of the National 15th Five-Year Plan, sets forth a comprehensive blueprint for economic and social development from 2026 to 2030, with a focus on five major development opportunities.

Central to the plan is the attraction and retention of high-calibre talent. The Hong Kong Special Administrative Region (HKSAR) Government will expedite the development of the Northern Metropolis University Town to bolster the city's status as an international education hub. Research postgraduate places will increase by around 30 percent, and the quota for government scholarships will rise by 200. Additionally, five new major academies will be established: the International Clinical Trial Academy, Maritime Academy, Hong Kong International Legal Talents Training Academy, Hong Kong Intellectual Property Academy, and Hong Kong International Academy of Policing.

To promote industry development, the Policy Address proposes accelerating the development of an international gold trading market and exploring tax concessions for qualifying activities within the gold and commodity trading ecosystem. Details of new Renminbi-denominated and physically settled gold futures contracts will be announced, and the Exchange Fund's gold holdings may be increased, with physical gold gradually transferred to designated vaults appointed by the Hong Kong Precious Metals Central Clearing Company Limited.

Further measures include introducing specialty insurance for commodities and commercial aerospace, injecting funding into the Artificial Intelligence Subsidy Scheme to support the intelligent computing industry, accelerating medical innovation and industry chain development, and fostering new economic landscapes for low-altitude and emerging industries such as commercial aerospace. Six special industry parks are being developed, including the Loop Hong Kong Park, San Tin Technopole, Hung Shui Kiu Industry Park, Sandy Ridge Data Facility Cluster, and Hung Shui Kiu/Ha Tsuen modern logistics cluster. Land is also earmarked for an advanced construction industry park.

Tax incentives are a key feature. Tax concessions will be granted based on the value brought by enterprises, rather than solely considering the industry sector. An amendment bill will be introduced this year to provide preferential tax rates of 5 percent, or half-rate, for selected enterprises in key sectors such as finance, advanced manufacturing, innovation and technology, research and development, headquarters activities, and logistics and supply chain management.

On the international front, the HKSAR Government will fully support the International Organization for Mediation headquartered in Hong Kong and build a global capital of mediation. It will also drive the establishment of the International Institute for the Unification of Private Law in Hong Kong, support the Judiciary in advancing the International Commercial Court, and establish a Strategy Committee on Intellectual Property Trading Development. Two United Nations organizations—the centre of excellence on global advanced manufacturing and the Office on Drugs and Crime's GlobE Network Asia Pacific Regional Bureau—will establish a presence in Hong Kong. The new WestK Performing Arts Centre, opening next year, will feature four performance venues built to the highest international theatre standards, and Asian and international sports associations will be encouraged to establish a presence.

"Today, Hong Kong is at a critical juncture in advancing from stability to prosperity," Mr. Lee said. "We are fully aware that formulating a comprehensive, strategic roadmap is integral to our long-term development. The Government has been persistent in mapping our way by driving development through reform. The primary goal of our policies is to enable economic development that can benefit the people of Hong Kong, and meet their aspirations for a better life."

For details and key points of the Policy Address, visit www.policyaddress.gov.hk. More information about Hong Kong's initiatives can be found at https://www.brandhk.gov.hk/.