Full text of "The Chief Executive's 2026 Policy Address" (3)

Introduction

On 16 Sep 2026, Part (3) of 'The Chief Executive's 2026 Policy Address' was published by the Information Services Department at HKT 13:05 on Wednesday. This section addresses Hong Kong's positioning as an International Trade Centre and sets out a comprehensive suite of strategic measures aimed at consolidating and strengthening that status within China's broader high-level opening-up framework.

Trade Positioning and Strategic Objectives

In accordance with the 'Global Trade Outlook and Statistics' report issued by the World Trade Organization ("WTO"), Hong Kong was ranked as the world's fifth-largest entity in merchandise trade for 2025, representing an upward movement of two places from the preceding year. The Government has affirmed its commitment to consolidating and enhancing this status, with a particular emphasis on leveraging Hong Kong's role within China's high-level opening-up strategy.

GoGlobal Task Force – Operational Achievements

The Task Force on Supporting Mainland Enterprises in Going Global (the "GoGlobal Task Force") was established in October 2025. Since its inception, the Task Force has rendered assistance to more than 340 Mainland enterprises across multiple service areas, including listing and capital raising in Hong Kong, alignment with overseas standards, acquisition of industry certifications, and fulfilment of compliance requirements. Approximately 30% of such enterprises have designated Hong Kong as their regional or international headquarters or corporate treasury centre ("CTC"). In June 2026, the Chief Executive led a delegation comprising representatives of Mainland enterprises on an official visit to Central Asia, during which meetings were held with local counterparties and numerous companies successfully matched with local partners for collaborative ventures. The GoGlobal Task Force will continue to facilitate enterprise expansion into the Central Asian market.

GoGlobal Task Force – Forward-Looking Initiatives

The Government has outlined four principal measures through which the GoGlobal Task Force shall further consolidate Hong Kong's facilitative role: (i) deepening collaboration with trade associations in both jurisdictions to deliver more targeted support services; (ii) strengthening engagement with professional organisations to develop talent pipelines for the GoGlobal initiative and enhance the quality of professional services rendered; (iii) extending the Cross-sectoral Professional Services Platform by incorporating a new sector dedicated to environmental, social and governance ("ESG") advisory services, thereby leveraging Hong Kong's international expertise to assist Mainland enterprises in meeting target-market regulatory requirements; and (iv) enhancing the platform's matching function to foster connections between Mainland enterprises and Hong Kong-based professional service providers, with ongoing monitoring of case-level effectiveness.

Insurance Development and Media Network Expansion

The Insurance Authority is mandated to promote the development of a specialty insurance business aligned with the real economy, thereby providing diversified risk management instruments for enterprises undertaking cross-border expansion. In parallel, the Government has stated that it will continue to support local media organisations in extending their operational networks beyond Hong Kong's borders to amplify positive narratives regarding the city.

High Value-Added Supply Chain Services Centre

Since first announcing this initiative in the 2024 Policy Address, the Government has been progressively enhancing its strategic framework to encourage Mainland enterprises to utilise Hong Kong as a supply chain services hub. The improvement of China's comprehensive overseas services system and the orderly development of cross-border industry and supply chains present substantial opportunities for Hong Kong. In this regard, the city shall better align with China's modern industrial system—including the upgrade and transformation of traditional industries and the cultivation of emerging pillar sectors—enabling enterprises to leverage strengths in international finance, trade, shipping, scientific research, branding, design, exhibitions, and global networks.

Financial Institutions: International Headquarters and Capital Market Operations

Mainland financial institutions possessing stronger capital bases and higher compliance and internal control standards are encouraged to establish international headquarters in Hong Kong, subject to full compliance with applicable laws and regulations, risk-controlled operations, and voluntary commercial participation. The Government further supports major Chinese securities firms' plans—pursuant to legal requirements—to increase the capital of their subsidiaries in Hong Kong and to utilise the city as a booking centre for risk management and capital market activities.

Corporate Treasury Centres: Tax Concessionary Framework

The Government has completed its review of tax concessionary measures applicable to CTCs, together with a public consultation on recommendations affording pre-approved CTCs and associated companies additional tax benefits and operational flexibilities. An amendment bill is anticipated for introduction into the Legislative Council in the first half of 2027. Under preferential policy packages designed to attract enterprises and investments, a tax concession equivalent to five per cent (i.e., a half-rate) may be extended on a case-by-case basis, contingent upon individual investment plans and actual contribution to Hong Kong's economy.

Innovation & Technology Accelerator Scheme

The Pilot Innovation and Technology Accelerator Scheme was launched in January 2026 with the objective of accelerating growth among innovation and technology ("I&T") companies by attracting professional I&T enterprise service providers with demonstrated track records to establish accelerator bases in Hong Kong. To date, one provider has established an accelerator base at Cyberport serving approximately 100 member enterprises, including eight listed companies with a combined market capitalisation exceeding $180 billion. The scheme focuses on key sectors such as artificial intelligence, embodied intelligence and robotics, new energy and new materials, and biomedicine.

Green Technology Development and Construction Standardisation

The Green Tech Fund continues to support Hong Kong research institutions and enterprises in conducting joint R&D activities with Mainland counterparts for the development of low-carbon technologies possessing commercialisation potential. Additionally, the Development Bureau ("DEVB") has executed a co-operation agreement with the relevant Mainland organisation to establish a collaborative mechanism for construction standardisation and to jointly formulate Greater Bay Area ("GBA") construction standards, thereby facilitating local and Mainland construction enterprises in accessing global markets through Hong Kong's established strengths in testing and certification.

Textile and Fashion Industry Task Force

The Government shall establish the Task Force on High Quality Development of Textile and Fashion Industry under the leadership of the Secretary for Commerce and Economic Development. The mandate encompasses enhancing government-industry collaboration to pursue high-quality development across innovation and technology, fashion design, supply chain management, sustainable development, brand promotion, and talent cultivation.

CEPA Comprehensive Upgrade

Following the execution of an amendment agreement under the Closer Economic Partnership Arrangement ("CEPA") framework in 2024—which further liberalised trade in services with the Mainland—the Commerce and Economic Development Bureau ("CEDB") is to sign a Memorandum of Understanding ("MoU") with the Ministry of Commerce. The MoU shall provide for continued joint pursuit of a comprehensive upgrade of CEPA, deeper cooperation across services sectors, and expanded market access.

Overseas Market Engagement and Investment Agreements

Hong Kong is to deepen its trade and investment ties with established markets in Europe, the Americas, ASEAN, and the Middle East while actively exploring emerging opportunities in Central Asia and Africa. With the Economic and Trade Office ("ETO") in Kuala Lumpur having officially commenced operations, four ASEAN-based ETOs will intensify trade and investment promotion across ASEAN and neighbouring Asian countries; the Government is further examining the establishment of an ETO in Kazakhstan.

The Chief Executive noted that Hong Kong executed an investment agreement with Bangladesh immediately prior to the Policy Address (September 2026), and expressed intent to pursue agreements with Qatar and Peru at the earliest practicable opportunity. Negotiations for new investment agreements are presently underway with Saudi Arabia and Egypt, while exploratory discussions continue with Kazakhstan and Uzbekistan.

Trade Single Window and Digital Trade Infrastructure

Upon full operationalisation of Phase 3 services, the Trade Single Window shall provide a unified consolidated platform for the submission of import/export declarations and cargo information across different transport modes. The Government will expand the 'Single Submission for Dual Declaration' Scheme in coordination with China's General Administration of Customs to encompass additional trade documents and transport modalities, advance interoperability connectivity with ASEAN's Single Window system, and effect integration between the Trade Single Window and the HKMA's Commercial Data Interchange ("CDI") infrastructure by mid-2027.

Within 2026, a bill facilitating the digitalisation of 'business to business' trade documents is to be introduced. Separately, the HKMA will explore further applications of tokenised deposits, including collaboration with Mainland counterparts on trade-financing use cases, with pilot transactions targeted for completion by end-2026.

Wan Chai North Redevelopment and Convention & Exhibition Centre Expansion

The Government is progressing the Wan Chai North Redevelopment project to facilitate expansion of the Hong Kong International Convention and Exhibition Centre. A task force under the chairmanship of the Deputy Financial Secretary shall oversee project delivery, while HKTDC is expected to submit a proposal on development approach to the Government in early 2027. The Government has allocated $100 million specifically for attracting high-quality, large-scale international exhibitions incorporating novel elements; the inaugural flagship exhibition—centred on super yachts and premium lifestyle features showcasing internationally leading brands—is scheduled for November 2026. All existing users of Wan Chai North sites are required to vacate within 2028.