Highlights

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Strengthen the diversified development as an international financial centre

Consolidate the leading position in the stock market, deepen our presence in areas with growth potential such as bonds, specialty insurance and Renminbi (RMB) business, etc., and proactively lay out forwarding plan for emerging sectors (such as tokenised products):

• RMB business – Enhance the Currency Swap Agreement with the People's Bank of China, and explore the arrangements for direct exchange between offshore RMB and other currencies.

• Bonds – Strengthen the connectivity between the Central Moneymarkets Unit (CMU) and markets in Europe and America, the Middle East, Central Asia and ASEAN.

• Tokenised products – Conduct tests on the operation of the tokenisation of Exchange Fund Bills.

• Stocks – Begin consultation on streamlining prospectus disclosure requirements to facilitate the listing of quality overseas enterprises in Hong Kong.

• Insurance – Develop specialty insurance to meet the needs of emerging industries, covering gold storage, commodity trading, green-fuel bunkering and more.

Develop a commodity trading ecosystem

• Implement a half-rate tax concession for physical commodity trading.

• Explore the provision of tax concessions for qualifying activities within the gold and commodity trading ecosystem for consultation with the Legislative Council (LegCo) next year.

• Announce details of the new RMB-denominated and physically settled gold futures contracts.

• Explore the possibility of increasing the Exchange Fund's gold holdings, as well as gradually transfer physical gold holdings to designated vaults appointed by the Hong Kong Precious Metals Central Clearing Company Limited.

• Establish a Joint Working Group on Commodity Trading to identify market opportunities and prospects for cross-exchange collaboration.

Advance international maritime centre and strengthen high value-added maritime services

The development focus of Hong Kong as a maritime centre will further shift from traditional port logistics to leveraging our advantages in high value-added maritime services, covering areas such as ship management, ship leasing, ship finance, marine insurance, and maritime law and arbitration, etc.:

• Announce to develop a Hong Kong-centric "Green Energy Corridor" in collaboration with a Mainland city.

• Establish a clear and transparent carbon-emission calculation framework for the bunkering and trading of green maritime fuels.

• Drive the expansion of underwriting capacity of the industry's marine specialty risk pool.

• Support the development of onshore power-supply facilities and explore port dues incentives to attract the use by international liners.

• Promote the establishment of a maritime academy in Hong Kong.

Support international aviation hub and foster the development of the sustainable aviation fuel (SAF) industry

• Spearheaded the establishment of Hong Kong's world-leading SAF production base in Dongguan.

• Study the establishment of a mandatory consumption-ratio mechanism and the development of a green energy certification system, etc.

Consolidate international trade centre and build a high value-added supply chain services centre

• Deepen the work of the Task Force on Supporting Mainland Enterprises in Going Global, including collaboration with Hong Kong and Mainland trade associations; and introduce environmental, social and governance (ESG) services, among others.

• Introduce a bill into the LegCo to provide pre-approved Corporate Treasury Centres and their associated companies with additional tax benefits and flexibilities.

• Promote digital trade by introducing a bill facilitating the digitalisation of "business-to-business" trade documents and advancing connectivity of Single Windows with the General Administration of Customs of the People's Republic of China and ASEAN, etc.

• Establish the Task Force on High Quality Development of Textile and Fashion Industry, led by the Secretary for Commerce and Economic Development, to co-ordinate and pursue the textile and fashion industry's high-quality development.

Develop international innovation and technology centre

Co-ordinate the application and risk governance of artificial intelligence (AI)

• Promote AI awareness and deepen AI application and development in finance, healthcare, legal sector, construction, transport, social welfare, tourism and broadcasting, etc., as well as support AI upgrading for small and medium enterprises (SMEs).

• Focus on seven areas of action in the AI risk-governance strategy:

  • Combat the use of AI in criminal activities

  • Enhance the protection of users who are minors

  • Promote market assessment of AI ethical risks

  • Promote the safe and orderly application of AI across industries

  • Examine legal liability arising from accidents caused by AI products

  • Introduce guidelines on AI Agent management

  • Examine the impact of AI on employment

• Create the post of Commissioner for AI to assist with the related work.

United Nations establishing a centre of excellence on global advanced manufacturing in Hong Kong

• Successfully facilitated the United Nations Industrial Development Organization (UNIDO) to establish its first centre of excellence on global advanced manufacturing in the Asia-Pacific region in Hong Kong, with a focus on the fields of AI+ manufacturing, robotics, new energy and industrial design.

• The centre will promote technology exchange, alignment of standards and talent training, etc., between the Mainland and overseas counterparts, as well as seek to host influential global events.

• Expected to begin operation in the second quarter of next year.

Promote the development of a low-altitude economy ecosystem

• Formulate the Action Plan on Developing Low-Altitude Economy, including:

  • Launching cross-boundary, low-altitude logistics trial flights as early as possible, and progressively expand the low-attitude cross-boundary logistics network across the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

  • Beginning the development of the Smart Low-altitude Traffic Management System, with a target for progressive implementation from 2028.

  • Beginning drafting legislation for unconventional aircraft weighing over 150 kilograms.

Formulate the development plan of frontier technology and support aerospace development and others

• Set up a new Task Group on Frontier Technology by the Innovation, Technology and Industry Bureau, covering AI, new energy, new materials, aerospace, quantum technology and other areas to explore technology and industry development.

• Launch a new round of Special Call on Aerospace Technology, with an emphasis on supporting technology research related to national space missions.

• The Hong Kong Exchanges and Clearing Limited will consider enhancements to Chapter 18C of the Listing Rules to attract enterprises in emerging industries such as aviation and aerospace to raise capital in Hong Kong.

• The Hong Kong Investment Corporation Limited will leverage patient capital to pave the way for future industry development.

• The Insurance Authority (IA) and the industry will study risks and insurance products related to commercial aerospace development.

Deepen the development of an international education hub

• Extend for two years the pilot arrangement of including graduates from the GBA campuses of Hong Kong universities under the Immigration Arrangements for Non-local Graduates for them to remain in / come to Hong Kong for employment.

• Put the first student hostel site up for sale in this financial year for market bidding to construct new hostels.

• Support the Hong Kong Direct Subsidy Scheme Schools Council in formulating the Code of Practice for Operating Student Hostels, setting operator standards for accommodation, hygiene, safety and warden arrangements, providing suitable accommodation facilities for incoming students.

• Allocate sites in the Northern Metropolis (NM) or other areas next year for the development of international schools to meet society's demand and support talent development.

Develop three university towns, driving the simultaneous development of education, technology and industry

• The university towns will be developed based on the concept of town area comprising campus area, technology area, industry area and living community area, and planned around "One Town, Five Elements" (education, technology, industry, talent and urban development).

• Develop three university towns in San Tin, Hung Shui Kiu and Ta Kwu Ling in the NM, with the overall planned areas exceeding 1 000 hectares.

• Building 1 of the Loop Hong Kong Park at San Tin University Town, scheduled for completion by the end of this year, will be positioned as the flagship project for launching of the university town, bringing together the frontier research capabilities of leading local, Mainland and international universities and institutions.

• Invite within this year applications from post-secondary institutions for the construction of campuses to kick-start Hung Shui Kiu University Town's campus development.

• The Working Group on Planning and Construction of the University Town, led by the Chief Secretary for Administration, will be upgraded to become the Committee on Construction and Development of the University Town, providing high-level steer, facilitating and incentivising NM University Town institutions to pursue the transformation of research outcomes.

Promote the capacity expansion and quality enhancement of post-secondary education

• Increase the number of University Grants Committee-funded research postgraduate places by around 30% to 9 600 (2030/31 academic year).

• Starting from the 2027/28 academic year, gradually increase the annual quota of the Hong Kong PhD Fellowship Scheme from 400 to 550 places (2029/30 academic year).

• Starting from the 2027/28 academic year, an additional funding of $20 million per academic year will be provided to support knowledge transfer.

Commencement of all nine New Development Areas in the Northern Metropolis

• Begin statutory planning and related procedures for Lau Fau Shan New Development Area (NDA) and Au Tau NDA and part of Ma Tso Lung NDA within this year and next year respectively.

• Site formation and infrastructure works for Ngau Tam Mei NDA will start in the first half of next year, with "spade-ready sites" available progressively, starting at the end of 2028.

• Begin the statutory planning and related procedures for the over 200-hectare Priority Development Area of Ta Kwu Ling NDA next year.

• Continue to streamline procedures:

  • Use a digital platform to shorten the approval time for works projects by three to six months; reduce the time for the first approval for building plans of new railway projects by half to 30 days; optimise foundation designs to save about $1.4 billion in the construction costs of NM public housing.

  • Expand the application scope of the Hong Kong Environmental Database, by optimising planning with AI, to reduce the time needed for the environmental impact assessment (EIA) process to about 15 to 24 months from about 36 to 48 months. For the NM-related projects, the time needed for the EIA process will be targeted at about 15 to 20 months.

• Introduce an amendment bill into the LegCo by year-end, providing preferential tax rates of 5%, or half-rate, for selected enterprises operating in key sectors such as finance, advanced manufacturing, innovation and technology, as well as research and development, headquarters activities and logistics and supply chain management, etc.

Deepen the development of an international legal and dispute resolution services centre

• Welcome the International Organization for Mediation to accept and handle disputes in emerging industries, including commodity trading and space economy, etc.

• Support the International Institute for the Unification of Private Law in establishing a presence in Hong Kong.

• Support the Judiciary in advancing the development of the International Commercial Court.

• Advance the construction of the Hong Kong International Legal Service Building.

• Deepen the Hong Kong International Legal Talents Training Academy.

Develop a regional intellectual property trading centre and strengthen the in-house examination capacity under the original grant patent system

• Introduce pilot facilitation measures for the original grant patent applications in major technology fields next year.

• Launch a public consultation on the regulatory framework for local patent agents within this year, and formulate specific legislative proposals next year.

• Officially launch the Hong Kong Intellectual Property Academy in the fourth quarter this year.

Develop an East-meets-West centre for international cultural exchange and boost the development of the cultural industry

• WestK Performing Arts Centre to open next year, with four performance venues built to top international theatre standards.

• Inject $200 million and reform the funding mechanism for major performing arts groups while maintaining the prevailing overall funding level for them.

Deepen the development of the Guangdong-Hong Kong-Macao Greater Bay Area

• Support the high-quality development of major co-operation platforms in Qianhai and Nansha.

• Set up a Task Force on Expediting the Alignment of Rules and Mechanisms in Guangdong, Hong Kong and Macao.

Deepen regional co-operation with the Mainland

• Foster the linkage of the Faster Payment System with UnionPay within this year to facilitate local and cross-boundary retail payments.

• Establish Integrated Cardiovascular Diseases Centre in accordance with national standards.

• Participate in the drafting of the national standards for hydrogen, and target to implement a certification scheme for green hydrogen recognised by the Mainland and the international community next year.

Deepen international exchange and co-operation

• Spare no effort in arranging and organising the Asia-Pacific Economic Co-operation Finance Ministers' Meeting to be held in the HKSAR this October.

• The United Nations Office on Drugs and Crime will establish GlobE Network Asia Pacific Regional Bureau in Hong Kong.

• Plan to organise a large-scale international AI conference in Hong Kong.

Pursue co-operation under the Belt and Road (B&R) Initiative

• Launch the Green Technology Bridgehead Programme to export green solutions to B&R countries.

• Organise the Belt and Road Green Innovation Conference with the Ministry of Ecology and Environment for the first time in Hong Kong.

• Starting from 2027/28 academic year, increase the annual quota for the B&R Scholarship to 200 places.

Support youth employment and development by launching the "30 000 Youth Employment and Internship Programme"

• Launch the "30 000 Youth Employment and Internship Programme", a two-year initiative to facilitate youth employment, covering the business sector, I&T, the construction sector and the financial services sector.

• Launch an International Young Talent Exchange Base this year and introduce a new Home and Youth Affairs Bureau-United Nations Youth Leaders Internship Programme.

30 000 Light Public Housing completed ahead of target and waiting time for Subsidised Rental Housing continues to shorten

• The public housing production to exceed 35 000 units per year on average in the next five years from 2027-28, an increase of about 73% compared to the five-year period since the current-term Government took office.

• All 30 000 Light Public Housing units launched by the current-term Government to be completed by the end of March next year, ahead of the target.

• The Composite Waiting Time for Subsidised Rental Housing shortened to 4.8 years, a reduction of more than a year over the past four years; and general applications for public rental housing dropped by over 30%, and the waiting list is being shortened.

• Work towards the goal of reducing the Composite Waiting Time for Subsidised Rental Housing to 4.5 years by 2027.

Eleven measures to promote fertility

New measures include:

• The $20,000 newborn baby bonus to be extended for three years.

• The newborn baby bonus for the second or subsequent child born on the day of or after the announcement of the Chief Executive's 2026 Policy Address to increase from $20,000 to $30,000 for a period of three years.

• The relevant tax allowance for the second or subsequent child born on the day of or after the announcement of the Chief Executive's 2026 Policy Address to increase from $140,000 to $160,000.

• For the second and subsequent child mentioned above, the additional tax allowance for the first two years following childbirth to increase from $140,000 to $160,000.

• Eligible families purchasing a residential property within the period of one year preceding or two years after the birth of the child to be granted a stamp duty waiver of up to $20,000.

• The maximum mortgage loan-to-value ratio for White Form family applicants with newborns to raise to 95% starting from the next sales exercise of the Home Ownership Scheme.

• The Hospital Authority to increase the service quotas of in-vitro fertilisation treatment in phases over the next three years, to 1 900 treatment cycles per year.

• The Primary Healthcare Commission to gradually extend its free pre-pregnancy, antenatal and postnatal classes to all District Health Centres (DHCs) and DHC Expresses across the territory; and the Family Planning Association of Hong Kong to launch a publicity campaign this year to promote healthy fertility.

• Set up three more aided standalone child care centres, expecting to provide around 1 800 additional day care service places for children between birth and three years old by the end of 2030.

• Regularise the School-based After School Care Service Scheme starting from the 2027/28 school year with no quota imposed.

• Strengthen professional support for the After School Care Programme for Pre-primary Children and provide escort services.

Ten measures to support small and medium enterprises

Measures include:

• The Commerce and Economic Development Bureau to expand the geographical scope of the BUD Fund to cover Uzbekistan and Qatar.

• The Hong Kong Export Credit Insurance Corporation to extend the 20 free-buyer credit checks for one year.

• The Hong Kong Trade Development Council to strengthen support for SMEs in expanding e-commerce markets outside Hong Kong; while the Trade and Industry Department to support brand development.

• Enable banks to enhance efficiency in credit approval for SMEs by strengthening data connection to Commercial Data Interchange.

• The Hong Kong Monetary Authority to take forward the trade data interchange with Shanghai and connections with ASEAN's electronic port systems to enable banks' one-stop access to data for credit approval for SMEs.

• Subsidise SMEs in conducting valuations of intellectual property assets to facilitate related financing.

• Provide more targeted funding support for AI projects under the BUD Fund.

• The Cyberport to provide funding support for more SMEs on a matching basis to assist them to apply AI and cybersecurity-related digital solutions.

• The Hong Kong Productivity Council to consolidate consultancy services for SMEs through its Digital DIY Portal, providing professional advice and technical support on AI application scenarios and cybersecurity.

• Provide subsidies for SMEs to adopt innovative logistics technology solutions to interface with the Port Community System.

Foster a sense of security and worthiness among the elderly

• Adhere to the principle of promoting "ageing in place as the core, with institutional care as back-up" as follows:

  • Increase the number of Community Care Service Vouchers for the Elderly by 2 000 to 18 000 in the 2027-28 financial year.

  • Increase the number of Residential Care Service Vouchers for the Elderly by 1 000 to 8 000.

  • Set up five new subsidised day care facilities for the elderly, providing about 200 service places.

  • Set up five new Neighbourhood Elderly Centres, which are expected to serve about 5 000 elderly persons each year.

  • Set up three new residential care homes for the elderly, providing about 400 places.

• Earmark $100 million to launch the Gerontechnology Promotion Scheme, encouraging and supporting local technology enterprises to develop elderly-care products and solutions, accelerating product optimisation for the benefit of the citizens.

• Establish a mutual support network for young-olds.

• Launch the mobile version of JoyYou Card by the end of this year to make it more convenient for the elderly.

Introduce a three-tier mechanism for resolving building management disputes

• Tier I: District Council (DC) members to make early intervention to work with neighbours over building management issues and concerns, seeking to resolve disputes through amicable negotiations.

• Tier II: DC members to refer the parties concerned to the professional meditation services established by the Home Affairs Department, including the Free Mediation Service Scheme for Building Management¹, the Panel of Advisors on Building Management Disputes² and the Building Management Dispute Resolution Service³, enabling all parties to resolve the disputes in a time- and cost-saving manner.

• Tier III: If the issues still cannot be resolved satisfactorily, cases may be taken to court.

Set up an "AI City Brain" integrated city management system

• Set up an "AI City Brain" integrated city management system, linking big data about government works, environment, transportation and emergency response, etc., creating a data sharing environment for multi-directional empowerment, enabling departments to receive real-time information and enhancing their capabilities in day-to-day city management and handling emergencies.

• Set up a Task Force on "AI City Brain" System to examine and develop the "AI City Brain" system.

• The digital infrastructure of the Security Bureau's Emergency Monitoring and Support Centre to be integrated into the system in the first phase.

Accelerate the replacement and repair of water pipes, and leverage technology to improve water supply reliability

• Launch a water supply network upgrading programme:

  • Replace or rehabilitate 350 kilometres of aged water mains with higher risks of leakage over the coming five years, at an average rate of 70 kilometres per year, double that for 2026-27, and focus on areas such as Shau Kei Wan, Wong Tai Sin and Kwai Tsing.

  • Establish an Intelligent Water Network Closed-loop Management Chain and perform AI predictive maintenance.

Enhance 1823 services to achieve the goal of "prompt referral and successful resolution"

Enhance 1823 services with the goal of achieving "prompt referral and successful resolution":

• A lead department to be designated and authorised to co-ordinate the handling of inter-departmental service requests and complaints.

• Each department to assign a directorate officer to monitor its efficiency and effectiveness in handling service requests and complaints lodged by members of the public.

• Leverage AI technology to identify recurrent problems for departments to review and formulate targeted solutions, shifting from "post-complaint management" to a proactive approach.

• The Deputy Chief Secretary for Administration to review the implementation progress of the new initiative regularly and brief the Steering Committee on District Governance.

Optimise government services through "AI+"

• Improve public rental housing estate management and service quality using AI technologies.

• The Hospital Authority will use AI to facilitate service arrangement and reduce average time to triage.

• Expand drone application in emergency response and crime prevention to protect citizens.