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“AI+”, “Finance+” highlighted in Hong Kong Budget to drive high-quality growth

Financial Secretary Paul Chan unveiled the 2026-27 Budget (Feb 25), outlining measures to accelerate innovation-led growth and economic transformation under the theme of “Driving High-quality, Inclusive Growth with Innovation and Finance”. Key initiatives included advancing artificial intelligence (AI) development through a new Committee on AI+ and Industry Development Strategy, expanding digital infrastructure such as the Sandy Ridge data facility cluster, and promoting new industrialisation, including the establishment of the first national manufacturing innovation centre outside the Mainland. The Budget also sought to strengthen Hong Kong’s position as an international financial centre by enhancing tax regimes for family offices and funds, introducing licensing frameworks for digital asset service providers, and advancing Renminbi internationalisation.

Public finances showed earlier-than-expected improvement, with the Operating Account for 2025-26 projected to return to surplus of US$6.5 billion (HK$51.3 billion). Relief measures were proposed, including higher tax allowances and deductions, while operating expenditure growth would continue to be contained.

Chief Executive John Lee said the Budget put forward a series of innovative and practical measures to further implement the direction of the Policy Address to actively dovetail with the National 15th Five-Year Plan. He said, in pursuing the two major areas of "AI+" and "Finance+", the Budget would vigorously foster the enhancement of sectoral development, build Hong Kong into an international hub for high-calibre talent, further strengthen the city's core competitiveness, boost economic momentum, and speed up and scale up the sustainable development of the economy.

More than 400 guests joined New York ETO at Spring Reception

The Hong Kong Economic and Trade Office in New York (New York ETO) welcomed over 400 guests from business, academic and community sectors at its Hong Kong Spring Reception (Feb 18). Director of New York ETO Maisie Ho underscored the strength of Hong Kong–US economic ties, noting an 11% increase in American companies in Hong Kong in 2025 and growing business optimism. She highlighted Hong Kong’s economic resilience, with GDP growth of 3.5% and the city ranking first globally in IPO fundraising, raising US$37.4 billion across 119 listings. Hong Kong also hosted over 3,380 single-family offices. Looking ahead, she said the city would advance the development of the Northern Metropolis, strengthen its role as an international education hub, and deepen engagement in the eastern US through joint trade and investment promotion under the Economic and Trade Express platform. The reception also featured a musical programme by Hong Kong-born composer Elliot Ho Yat Leung (梁皓一), performed by New York-based young musicians from Hong Kong.

Global Talent Summit Week to showcase Hong Kong opportunities

Hong Kong Talent Engage (HKTE) announced details of the Global Talent Summit Week, a major international event with nine satellite events to be held on March 18 and 19. Comprising the International Talent Forum and the CareerConnect Expo, the Summit Week would focus on the integration of education, technology and talent, with the aim of highlighting Hong Kong’s advantages as an international talent hub and a gateway for global talent. Under the theme “Connecting Global Minds”, the Forum would bring together leaders from government, business and academia worldwide, featuring a keynote speech by Nobel laureate Professor Christopher A. Pissarides and discussions on global manpower trends and talent strategies. The two-day Expo would host about 70 large enterprises, education and technology institutions, and government departments, offering industry insights and career opportunities in Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area. HKTE would also sign a collaboration agreement with Junior Chamber International to strengthen international promotion and foster cross-regional talent collaboration.

New Capital Investment Entrant Scheme attracts nearly HK$95 billion in expected investment

Invest Hong Kong announced that as at February 28, 2026, the New Capital Investment Entrant Scheme (New CIES) had received nearly 3,200 applications since its launch in March 2024, representing an anticipated investment value of about US$12 billion (HK$95 billion). The figures further underscores Hong Kong’s position as an international wealth management centre. The Government had continued to enhance the Scheme to meet market demand. Starting from March 1, 2026, applicants may use an eligible private holding company established within the past six months, providing greater flexibility in asset allocation. Under the CIES Investment Portfolio, more than US$384 million (HK$3 billion) from the 2025 batch had begun capital allocation, supporting sectors such as AI-enabled applications, sustainable technologies, materials science and biotechnology, thereby strengthening Hong Kong’s innovation and technology ecosystem.

Hong Kong eases e-Channel access for frequent air travellers

Starting February 27, 2026, frequent visitors who have entered Hong Kong via Hong Kong International Airport at least twice in the past 24 months can enrol for the e-Channel service free of charge. Under the relaxed eligibility criteria and simplified enrolment process, eligible visitors need only present the valid travel document used for entry, have their photo taken, and sign a consent form (fingerprint collection is no longer required) to use e-Channels at all immigration control points for faster arrivals and departures. The new arrangement enables visitors to save time and enjoy more of Hong Kong from the moment they arrive.

New York ETO brings Hong Kong films and talent to Chicago 

The New York ETO is sponsoring seven films under the “Spotlight on Hong Kong Cinema” showcase at the 20th Asian Pop-Up Cinema, to be held in Chicago from March 20 to April 12, 2026. The festival would open with the Hong Kong sports comedy “Pass and Goal”, starring Hong Kong actress Gigi Leung and directed by Jil Wong. Other Hong Kong titles would include the esports-themed comedy “Good Game”, directed by Dickson Leung, and the romantic drama “Someone Like Me”, featuring Fish Liew. Gigi Leung, Jil Wong, and Dickson Leung would attend the festival. Tickets are on sale now.

Hong Kong composer featured at New York Philharmonic Lunar New Year Gala

The New York Philharmonic Lunar New Year Gala held in Lincoln Center (Feb 25) featured selected works by Hong Kong-born composer Elliot Ho Yat Leung, including “Chinese Kitchen” – a 10-movement suite inspired by 10 Chinese delicacies. Director of the New York ETO, Maisie Ho, congratulated Leung at the concert, celebrating Hong Kong’s contribution to music and culture.

HKSAR Government lodges protest over Panama port takeover

Secretary for Commerce and Economic Development Algernon Yau lodged a strong protest (Feb 24) with the Consul General of Panama in Hong Kong over the Panamanian government’s forceful takeover of two ports operated by Hutchison Ports Panama Ports Company and the termination of its operating rights. The Hong Kong Special Administrative Region (HKSAR) Government expressed strong dissatisfaction with and opposition to the action, stating that it gravely damaged the legitimate rights and interests of the Hong Kong company and undermined the spirit of contracts. The HKSAR Government urged the Panamanian authorities to respect the spirit of contracts, provide a fair and just business environment, and ensure that Hong Kong enterprises receive fair and reasonable treatment and protection. It stressed that Hong Kong remains firmly committed to safeguarding the legitimate rights and interests of its enterprises overseas.

The Basic Law (BL) is the constitutional document of the HKSAR. It provides the guarantees to maintain our existing way of life, including socio-economic development, the rights and duties of Hong Kong people, the rule of law and other areas. The Basic Law was put into effect on July 1, 1997.

Q: Does the Hong Kong Special Administrative Region manage its own public finances independently?

A: Yes. The Hong Kong Special Administrative Region shall have independent finances. It shall use its financial revenues exclusively for its own purposes, and they shall not be handed over to the Central People’s Government. (BL Article 106)