Hong Kong's First Five-Year Plan and 2026 Policy Address: Building New Growth Drivers While Reinforcing Hong Kong's Global Advantages

The publication of Hong Kong’s First Five-Year Plan (2026-2030) alongside the Chief Executive’s 2026 Policy Address marks a significant evolution in the city’s approach to policymaking and economic development. For the first time, Hong Kong has set out a formally adopted medium-term development framework that extends beyond the annual policy cycle, providing businesses and investors with a clearer view of the government’s priorities, policy direction and growth agenda over the next five years.

As the city’s first multi-year long development plan adopted by the Legislative Council, the city’s legislature, the Five-Year Plan carries greater institutional authority than previous policy blueprints. It also positions Hong Kong within the National 15th Five-Year Plan, aligning the city’s development with broader national priorities in areas such as technology, innovation, advanced industries and financial market development, while reinforcing Hong Kong’s role as an international financial centre and gateway between China and global markets.

Together, the Five-Year Plan and Policy Address provide greater policy continuity through the 2027 change of government and signal a more coordinated and directive approach to economic and industrial development. Resources and policy support are increasingly concentrated on three strategic pillars: financial services, innovation and technology, and the Northern Metropolis.

Taken together, these initiatives suggest a shift in Hong Kong’s development model, from primarily annual policy initiatives towards longer-term economic and industrial planning. The policy focus remains centred on strengthening Hong Kong’s traditional advantages as an international financial centre while developing new growth engines through artificial intelligence, innovation and technology, advanced industries and Greater Bay Area integration.

For international businesses, the measures highlighted below provide important insights into where future policy attention, public investment and commercial opportunities are likely to be concentrated over the coming five years.

Key Highlights

1. Reinforcing Hong Kong’s International Financial Centre Position

The Five-Year Plan places significant emphasis on strengthening Hong Kong’s financial markets while deepening integration with Mainland China’s capital markets and accelerating RMB internationalisation. It also reinforces Hong Kong’s role as an international asset and wealth management centre and a global offshore RMB hub.

Key measures

1. Offshore RMB and Market Connectivity

• Expand offshore RMB investment, financing and risk-management products.
• Promote wider use of RMB in pricing, settlement, investment and cross-border business activities.
• Enhance Stock Connect, Bond Connect and Wealth Management Connect mechanisms.
• Strengthen Hong Kong’s position as a global offshore RMB business hub.

2. Capital Markets

• Consult in 2027 on streamlining prospectus disclosure requirements to facilitate overseas listings in Hong Kong.
• Promote dual-primary and secondary listings by Southeast Asian and Belt and Road companies.
• Review Chapter 18C listing requirements for specialist technology companies.
• Expand ETFs, bond index products and derivatives offerings.

Why it matters

The Government is taking a more active approach to strengthening Hong Kong’s role as the leading offshore RMB centre. Beyond market reforms and connectivity schemes, the policy direction suggests a broader effort to embed RMB more deeply into Hong Kong’s economic and financial ecosystem while leveraging the city’s position as the primary gateway between global capital and Mainland markets.

2. Building a Commodities and Gold Trading Hub

The Five-Year Plan identifies commodities trading, with gold as an entry point, as a potential new growth pillar for Hong Kong’s financial markets ecosystem.

Key measures

• Establish a commodities ecosystem covering trading, clearing, settlement, storage and risk management.
• Launch the Hong Kong Gold Central Clearing and Settlement System in Q1 2027.
• Introduce RMB-denominated physically settled gold futures.
• Attract additional London Metal Exchange-approved warehouses.
• Explore additional tax incentives and customs facilitation measures for commodities-related activities.

Why it matters

Hong Kong’s proposition is built not only on its mature financial ecosystem, common-law legal system, free flow of capital and deep custody and settlement infrastructure, but also on its proximity and connectivity to Mainland commodity and gold trading platforms. This combination creates a differentiated position that few competing financial centres can replicate.

3. Accelerating Artificial Intelligence Development
   

Artificial intelligence is one of the clearest priorities across both the Five-Year Plan and Policy Address, reflecting the Government’s ambition to strengthen future economic competitiveness through technology adoption, computing infrastructure and industrial application.

Key measures

• Inject HK$1 billion into the Artificial Intelligence Subsidy Scheme.
• Continue implementation of the Government’s “AI+” strategy.
• Accelerate development of the Sha Ling Data Park, expected to provide computing capacity equivalent to approximately 36 times Hong Kong’s current level by 2032.
• Support AI research, commercialisation and industrial application.
• Expand the talent pipeline for AI-related professions. 

Why it matters

The scale of investment and policy attention devoted to AI signals that the Government views artificial intelligence as a strategic capability rather than a standalone technology sector. Public investment is increasingly being used to crowd in private capital, support infrastructure development and accelerate capability building in emerging industries.

4. Innovation, Research and Advanced Industries

 Innovation and technology are identified as major drivers of future economic growth and industrial transformation. The Government is seeking to strengthen research capabilities, accelerate commercialisation and build strategic industries capable of supporting Hong Kong’s next phase of growth.

Key measures

• Increase innovation expenditure, with a long-term target of raising R&D spending to 3% of GDP after 2030, up from 1.63% in 2024.
• Continue development of the Hetao Hong Kong Park, which has already attracted more than 100 innovation and technology companies.
• Establish Hong Kong’s first National Manufacturing Innovation Centre.
• Establish a HK$10 billion Innovation and Technology Industry-Oriented Fund focused on strategic industries including life and health technology, AI and robotics, semiconductors, digital transformation and sustainability.
• Strengthen collaboration among industry, universities and research institutions.

Why it matters

The ambition extends beyond increasing R&D spending. Success will depend on the Government’s ability to identify emerging opportunities, channel resources strategically and convert innovation investment into commercially viable technologies, businesses and industries.

5. Advancing the Northern Metropolis and Strategic Industries
   

The Northern Metropolis remains the centrepiece of Hong Kong’s long-term economic development strategy and a key platform for innovation, higher education, talent development and Greater Bay Area integration.

Key measures

• Progress development across all nine New Development Areas.
• Develop university clusters in San Tin, Hung Shui Kiu and Ta Kwu Ling.
• Accelerate investment promotion for the San Tin Technopole and Hung Shui Kiu developments.
• Establish dedicated corporations to drive development of San Tin Technopole and Hung Shui Kiu Industrial Park.
• Introduce dedicated Northern Metropolis legislation and development mechanisms.
• Deploy sector-specific incentives and flexible development models to attract strategic enterprises.

Investment Attraction and Headquarters Incentives

• Expand bespoke investment packages covering land, grants, financing support and tax concessions.
• Introduce preferential 5% or half-rate tax concessions for qualifying companies in sectors including finance, innovation and technology, advanced manufacturing, headquarters activities, logistics and supply chain management.
• Enhance incentives for corporate treasury centres and regional headquarters. 

Why it matters

The Northern Metropolis is increasingly being positioned not simply as an infrastructure project, but as Hong Kong’s primary platform for technology development, industrial growth, talent attraction and cross-boundary economic integration. It is expected to play a central role in supporting the city’s next phase of economic expansion.

6. Strengthening Hong Kong’s Global Talent Proposition

Talent attraction remains central to the Government’s competitiveness agenda, particularly in technology, finance and other knowledge-intensive sectors. The policy direction increasingly reflects the view that talent is a strategic economic resource underpinning long-term growth and innovation. 

Key measures

• Update the Talent List to include additional AI-related professions.
• Relax Top Talent Pass Scheme renewal requirements for startup founders.
• Expand the Invited Persons Facilitation Scheme to include Central Asia and the Middle East.
• Target more than 50,000 successful talent visa renewals annually between 2025 and 2027. 

Why it matters

By expanding talent admission pathways and supporting entrepreneurship, the Government is seeking to strengthen Hong Kong’s position as a regional base for innovation, finance and high-value professional services while supporting the workforce needed for future growth sectors.

Key Takeaway

The Five-Year Plan is more than a collection of policy initiatives. It represents a shift towards more institutionalised, medium-term economic planning, providing greater visibility on Hong Kong’s development priorities while introducing clearer mechanisms for measuring implementation and performance.

Taken together, the Five-Year Plan and Policy Address point to three overarching priorities for the next phase of Hong Kong’s development:

1. Reinforcing Hong Kong’s position as an international financial centre through RMB internationalisation, capital market development and new asset classes.
2. Building new growth drivers through artificial intelligence, innovation and advanced industries, supported by increased public investment and strategic industry development.
3. Accelerating the Northern Metropolis as a platform for technology development, talent attraction and deeper integration with Mainland and regional growth opportunities.

For businesses and investors, the significance lies not only in the individual initiatives, but also in the Government’s increasing willingness to play a more active role in shaping long-term economic development and directing resources towards strategic sectors. As with any long-term strategy, the ultimate test will be execution.

Shaping your Hong Kong strategy

The Five-Year Plan and Policy Address create clear opportunities for businesses to strengthen their Hong Kong and regional strategies. With policy direction set and reforms underway, early and coordinated action will be key to securing advantage.

Immediate steps to consider:

1. Form a small cross functional taskforce (strategy, government affairs, communications) to reassess Hong Kong’s role in your regional plans.
2. Prioritise two to three high impact opportunities most relevant to your business, such as capital market and technology initiatives, talent policy, or Northern Metropolis participation.
3. Develop a 6–12 month engagement plan to position your organisation in media, contribute to consultations, and deepen stakeholder relationships.

We would be pleased to discuss how these developments affect your organisation and outline the targeted public affairs and communications support we can provide to help you act decisively.

Note: The initiatives above are a selective summary of measures relevant to international businesses. They are not intended to be an exhaustive review. For the full report, please refer to the official Five-Year Plan (link) and Policy Address (link).