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Economy grows 4.3% in Q2

Hong Kong’s economy in the second quarter grew 4.3% year-on-year, down from a 5.9% increase in the first quarter. On a seasonally adjusted quarter-to-quarter comparison basis, real GDP decreased by 0.6%. The Hong Kong Special Administrative Region (HKSAR) Government said the Hong Kong economy continued to expand robustly in the second quarter, underpinned by external trade and resilient domestic demand. Looking ahead, the Hong Kong economy should continue to post solid growth in the second half of 2026. Nonetheless, lingering external headwinds, particularly geopolitical tensions in the Middle East, uncertainties surrounding US monetary policy, and trade protectionist measures among major advanced economies still warrant close surveillance.

Hong Kong cinema in spotlight at 25th New York Asian Film Festival

Hong Kong cinema took the spotlight at the 25th New York Asian Film Festival (NYAFF), running July 10 - 26, with a record 17 films screening under the “Hong Kong Panorama” banner, supported by the Hong Kong Economic and Trade Office in New York (New York ETO) since 2009. The festival’s centre piece was the presentation of the Best From The East Award to actor Daniel Wu on July 20, ahead of the special screening of COLD WAR 1994, honouring a career that began in Hong Kong cinema before extending to Hollywood and the world stage. The New York ETO hosted a special reception for Wu and other attending Hong Kong film talents before the award ceremony. Director of the New York ETO, Maisie Ho, congratulated Wu for his contributions to Asian cinema and for bringing Hong Kong storytelling sensibility to global audiences while highlighting the festival’s long-standing ties to Hong Kong cinema, dating back to its earliest editions.

This year’s Hong Kong Panorama featured five North American premieres, and several films supported and funded by the HKSAR Government, including AFTERPIECE, BIRD OF PARADISE, DOG DAY EVENING, and GAMER GIRLS. Actress Angela Yuen received the Screen International Rising Star Asia Award on July 21, underscoring Hong Kong’s strong pipeline of talent with international reach. The festival also shone the spotlight on director Andrew Lau as its 2026 Filmmaker in Focus, showcasing his works THE STORM RIDERS, INITIAL D and his new feature, THE DUMPLING QUEEN.

New York ETO luncheon spotlights Hong Kong’s financial momentum

The New York ETO hosted a luncheon on July 29 with Aveline San, Chief Executive Officer & Banking Head of Citi Hong Kong and board director of Hong Kong’s Financial Services Development Council. In her welcome remarks, the Director of New York ETO, Maisie Ho, highlighted Hong Kong’s strong economic momentum, noting that the city has reclaimed its title as the world’s top IPO hub. She said Hong Kong is pushing into the next frontier of finance, including fintech, tokenised bonds, stablecoins, virtual assets, and AI as a strategic industry, all backed by pro-innovation policy and robust investor safeguards. As a “super connector” and “super value-adder”, Hong Kong remains Asia’s indispensable hub for capital, innovation and talent. Addressing the luncheon, Ms San gave an overview of Hong Kong’s current economic momentum and market sentiment, and shared her views on how AI, fintech and digital assets are creating new business and financing opportunities that position Hong Kong at the forefront of the next chapter of global finance. The luncheon brought together a distinguished group of senior executives, investors, as well as representatives from business and financial institutions.

HKETONY Dragon Riders ready to race at Hong Kong Dragon Boat Festival in New York

The New York ETO’s dragon boat team, the HKETONY Dragon Riders, is gearing up for the 36th Hong Kong Dragon Boat Festival in New York, set for August 8 – 9, in Flushing Meadows Corona Park. On August 1, the team hit the water for an intense training session, synchronising their paddles for the finishing line. They will be joined by more than 170 teams at the festival, bringing an incredible energy, from the pounding of drums, to the rhythmic paddles and strong camaraderie, exemplifying the team spirit and friendly competition that makes this festival a one-of-a-kind celebration. Join the festivities this weekend and experience the vibrant East-meets-West energy of Hong Kong culture. Beyond thrilling dragon boat races, the festival features lion dances, martial arts demonstrations, live music, arts and crafts, delicious food, and family-friendly games for all ages. See you at the festival!

Market co-operation measures lauded

The HKSAR Government welcomed new measures announced by the China Securities Regulatory Commission and Securities and Futures Commission to deepen market co-operation between Hong Kong and the Mainland, reinforcing Hong Kong’s role as an international financial centre. Chief Executive John Lee said the 10 measures, covering cross-boundary listings, financing, indices, futures and ETFs, will support enterprise development and cross-boundary financing and boost market connectivity and support Hong Kong’s role in “bringing in and going global.” He said the move aligns Hong Kong with the National 15th Five-Year Plan and efforts to promote renminbi internationalisation. Financial Secretary Paul Chan said the measures, which also include RMB-denominated futures, streamlined Mainland professional qualification applications, and stronger regulatory co-operation, will help investors capture opportunities from the country’s economic development while reinforcing Hong Kong’s role in connecting Mainland and global capital markets.

HKEX launches five-year China Government Bond Futures

Hong Kong Exchanges and Clearing (HKEX) launched (Aug 3) its Five-Year China Government Bond Futures contract, marking a major step in developing Hong Kong’s fixed-income and currencies ecosystem. This expands HKEX’s growing China-related product suite and complements existing mutual market access programmes, including Bond Connect and Swap Connect. As the only such offshore instrument, this gives investors a new tool to manage duration and interest-rate risk in Chinese Mainland bonds. Financial Secretary Paul Chan said it is an important step in supporting the long-term development of the offshore renminbi bond market and the broader process of the internationalisation of renminbi. HKEX Chairman Carlson Tong said the product strengthens Hong Kong’s offshore RMB suite and its role as a connector between China and global investors while HKEX CEO Bonnie Chan called it a milestone in building a diversified, multi-asset marketplace.

Views sought on corporate tax perks

The Financial Services & the Treasury Bureau and the Inland Revenue Department (IRD) launched (Jul 27) a public consultation on proposed enhancements to the tax concession regime for corporate treasury centres (CTCs), introducing a two-tiered structure. Tier 1 refines existing tax concessionary measures for qualifying CTCs and intra-group financing businesses operating in Hong Kong while Tier 2 introduces a pre-approval mechanism allowing eligible CTCs and their associated corporations that meet specified conditions to access additional tax benefits or flexibilities over a five-year validity period, subject to IRD approval. Secretary for Financial Services & the Treasury Christopher Hui called the consultation a major initiative to revamp the tax regime and a significant step towards implementing the “Action Plan to Promote the Development of CTCs in Hong Kong”, adding that the proposed tiered approach targets industry pain points, with greater tax certainty, and compliance flexibility. The HKSAR Government plans to issue administrative clarifications this year, followed by legislative amendments to the Legislative Council in the first half of next year.

Whitepaper on quantum preparedness of Hong Kong’s banking sector launched

The Hong Kong Monetary Authority (HKMA) launched (Jul 27) the Whitepaper on Quantum Preparedness of Hong Kong’s Banking Sector, together with the first Quantum Preparedness Index and relevant support measures for the industry, at the eighth edition of the FiNETech series. Developed under the HKMA’s Fintech Promotion Blueprint, the initiatives aim to enhance the banking sector’s understanding of quantum computing’s implications and support early preparation for quantum-related cyber risks. A survey underpinning the paper found 68% of banks surveyed showed awareness or were progressing toward planning or piloting stages, while 32% had yet to start transition, and half lacked formal post-quantum planning. Around half of surveyed banks had discussed quantum computing at board level; and about one-third had already begun exploring or piloting quantum-related initiatives. The HKMA will continue to support the banking sector’s transition through a Post-Quantum Cryptography toolkit and capability building workshops.

Historic silver for Hong Kong men’s foil team

Hong Kong men’s team clinched a historic silver medal at the Fencing World Championships, held in Hong Kong (Jul 28), narrowly falling 45-44 to Italy in the final. The squad, comprising two-time reigning Olympic champion Cheung Ka-long, 2025 individual world gold medallist Ryan Choi Chun-yin, Harris Ho and Leung Chin-yu, delivered Hong Kong’s first-ever team silver medal in the Fencing World Championships history.

Civil service exams set

The HKSAR Government has scheduled a new round of the Common Recruitment Examination (CRE) tentatively for October 3, with applications closing at 11.59pm on August 7 (Hong Kong time). Details can be found on the Civil Service Bureau’s webpage. The September’s recruitment exercises cover the positions of Administrative Officer, Executive Officer II, Assistant Information Officer, Assistant Trade Officer II, Management Services Officer II and Transport Officer II, requiring valid CRE results in advance. Eligibility now includes students in their third year of undergraduate studies under a four-year curriculum, alongside degree or professional qualification holders and university students graduating in the 2026–27 or 2027–28 academic year. Applicants who have not yet passed the Basic Law and National Security Law Test (BLNST) (Degree/Professional Grades) must apply separately for the test and obtain a passing result before December 5 to be considered for appointment. For overseas candidates, the CRE and the paper-based BLNST (Degree/Professional Grades) are tentatively scheduled for December 5 in overseas cities including New York.

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: May the HKSAR issue passports and travel documents on its own?

A: Yes. The HKSAR may issue HKSAR passports to Chinese citizens who are permanent residents of the Region, and issue other travel documents in accordance with the law. These passports and documents shall be valid for all states and regions which recognise them. (BL Article 154)