Business and Finance Updates from Hong Kong Government

Financial Secretary Paul Chan will depart for Europe tomorrow to visit Paris, Brussels and Zurich, where he will promote Hong Kong’s latest developments and advantages as an international financial centre to attract investment and promote exchanges. While in Paris on May 18 and 19, Mr Chan will attend the “No Money for Terror” Ministerial Conference on Counter-Terrorism Financing. Organised by France, the event brings together delegations from over 80 countries and regions to enhance global co-operation against terrorist financing. He will also meet local political, business and financial leaders, as well as think tank representatives. Mr Chan will then travel to Brussels on May 20 to meet European Union officials, political figures and corporate representatives. On May 21 and 22, he will visit Zurich to host roundtable discussions with senior executives from local financial institutions, family offices, venture capital firms and private equity funds. Mr Chan will return to Hong Kong on the morning of May 23. During his absence, Deputy Financial Secretary Michael Wong will be Acting Financial Secretary.

The International Monetary Fund (IMF) commended Hong Kong’s resilient economic growth in a statement published today outlining its assessment of the city’s economic and financial situation. The IMF conducts annual health checks on economies known as Article IV Missions. This year’s mission in Hong Kong noted in a concluding statement that the city’s economy has continued to recover, supported by robust technology-related exports, improving private demand and a rebound in financial market activity. It also reaffirmed Hong Kong’s role as an international financial centre and “super connector”. The mission observed that policy initiatives such as the Northern Metropolis are conducive to fostering innovation and high-value services, while supporting economic growth and structural transformation. Moreover, the mission considers Hong Kong’s fiscal stance appropriate in light of current economic conditions, while supporting a focus on achieving stronger medium-term consolidation to rebuild fiscal reserves and address rising spending pressures.  The mission states that financial sector risks are manageable, supported by strong buffers and robust regulatory oversight. It also recognises that Hong Kong is well placed to build further on its digital and sustainable finance agenda. Financial Secretary Paul Chan welcomed the mission’s assessment of Hong Kong’s ongoing economic recovery and its support for the Government’s efforts to drive economic growth and […]

The Government reported that Hong Kong's economy expanded robustly in the first quarter of 2026, with real gross domestic product (GDP) rising 5.9% year-on-year, the strongest in nearly five years. Releasing the First Quarter Economic Report 2026 today, the Government noted that the economy in the first quarter was driven by the sustained strong performance in external trade and pick-up in domestic demand, accelerating from the 4% growth in the preceding quarter. On a seasonally adjusted quarter-to-quarter basis, real GDP rose rose notably by 2.9%. Underpinned by sustained global demand for artificial intelligence (AI)-related electronic products and buoyant regional trade flows in Asia, total exports of goods grew markedly by 23.7% year-on-year in real terms in the first quarter. Exports of services continued to expand solidly by 3.5% in real terms over a year earlier, with broad-based growth across all major service groups. Domestically, private consumption expenditure saw accelerated growth of 4.9% in the first quarter, while overall investment expenditure continued to expand at a double-digit rate of 17.7% year-on-year in real terms. Looking ahead, the Government noted that Hong Kong's economic outlook remains broadly resilient. Sustained global demand for AI-related investment and products presents an upside risk to growth. Yet, the Middle East conflict remains highly uncertain, poses downside risk to growth and upside risk to inflation. Taking into account the […]

The Government stated today that the issuance of “Letters of Offer” to owners of units at Wang Fuk Court in Tai Po is now under way. The move comes after the Government unveiled its Wan Fuk Court Long-term Housing Arrangements plan on February 21, and announced supplementary arrangements for owners of units at Wang Chi House on April 28. With the addition of Wang Chi House, the only block that was untouched by last November’s fire, all eight blocks of Wang Fuk Court are addressed by the plan. The Housing Bureau has been working at full speed, with its engagement team reaching out to owners to explain the details of the plan and answer their enquiries. It is also concurrently drafting legal documents necessary for the Government’s acquisition of the units. The Government’s Letters of Offer provide a range of options for owners. Upon receipt of each signed “Letter of Acceptance”, the Government will assist owners in completing an “Agreement for Sale & Purchase” and a “Deed of Assignment”, taking into account the circumstances of each case. For owners who opt for cash payment, the Government will expedite the disbursement of funds upon completion of the transaction. This will enable them to immediately make purchase arrangements in the private market or the secondary market for subsidised sale flats, or to participate in the “Special Sales Exercise” for Wang Fuk Court owners to acquire a new subsidised sale flat either with cash or under the […]

The Government today welcomed the passage, by the Legislative Council, of the Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions & Allowances) Bill 2026, which allows implementation of the concessionary tax measures proposed in the 2025 Policy Address and the 2026-27 Budget.  The legislation will be published in the Government Gazette on May 22. The measures include increasing the basic allowance, the married person’s allowance, the single parent allowance, the basic and additional child allowance, and the basic and additional allowance for dependent parents/grandparents, as well as raising the deduction ceiling for elderly residential care expenses and extending the claim period for additional child allowance for newborns starting from the year of assessment 2026-27. About 2.09 million taxpayers will benefit, reducing tax revenue by about $5.51 billion per year. A one-off 100% reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2025-26 will also be granted, subject to a ceiling of $3,000 per case. This is expected to benefit about 2.12 million taxpayers and 170,000 businesses, with about 24% of the former and 18% of the latter not needing to pay tax for the year of assessment 2025-26. Government revenue will be reduced by about $5.78 billion. The one-off tax concessions, increased allowances and deduction ceilings will be reflected in taxpayers’ final tax payable for the year of assessment […]

Good morning. It is a pleasure to join you, once again, for the opening of the Asia Summit on Global Health, the sixth edition. You represent the full spectrum of the global health community. That includes medical professionals and government officials, also representatives of multinational pharmaceutical and health-tech enterprises, investors and entrepreneurs. Your presence here in Hong Kong underscores a simple but powerful truth: in an age of complex health challenges, progress is powered by collaboration. This summit makes collaboration easy, with more than 90 high-profile speakers from 15 countries and regions. They include Nobel Prize Laureate in Chemistry Prof Michael Levitt, who will speak at the Dialogue with Global Pioneer in Health session. And count on the latest medical developments and research, together with wide-ranging opportunities for networking and creative partnerships that make all the difference. Your expertise and contributions are desperately needed. Today's world grapples with profound health challenges, with new threats continually emerging. We also face the pressing realities of ageing populations. There is the silent crisis of antimicrobial resistance. And there are persistent inequities in healthcare access – both regional and global. That makes the theme of this year's summit, “Fuelling Healthcare Breakthroughs”, particularly relevant. The two-day programme highlights three key areas: First, China opportunities in aligning with the […]

Welcome to Hong Kong, and the Global Mediation Summit of the IOMed – the International Organization for Mediation. Today's global gathering comes on the first anniversary of the signing ceremony for the Convention on the Establishment of the IOMed. The inauguration of IOMed followed, last October, here in Hong Kong. That cheering event has placed much expectation and hope, worldwide, on the new institution and its promise of contributing to the peaceful settlement of international disputes through mediation – and doing so in line with the United Nations Charter. I am pleased to note that, since last October's inauguration ceremony, the number of signatory states has climbed from 37 to 41, while the number of contracting states has gone from eight to 13. In these perilous times, when global affairs have become increasingly complex and volatile, the pursuit of peace – and peaceful resolutions – is imperative. Which makes today's summit especially timely. And it is a great pleasure to see more than 400 leaders, policymakers and distinguished professionals from 48 countries and regions gathered, here in Hong Kong, to share their invaluable experience and insights on international mediation. Hong Kong has long supported mediation. Mediation echoes concord and co-existence, creating co-operation where there was conflict. Concord and co-existence are values deeply rooted in Chinese culture. They are indispensable for resolving disputes and restoring trust. They […]

The Development Bureau today announced that the Government, following approval by the Chief Executive, has appointed Jeffrey Lam to be Chairperson of the Board of Directors at the Hung Shui Kiu Industry Park Company. The Government also appointed five official and five non-official members of the board. The appointees will serve a three-year term starting from June 1. The five official directors are the Secretary for Development, the Secretary for Financial Services & the Treasury, the Secretary for Commerce & Economic Development, the Secretary for Innovation, Technology & Industry, and the Secretary for Transport & Logistics. The five non-official directors are Wingco Lo, Sunny Tan, Wai Chi-sing, Albert Wong and Kenneth Wong. Secretary for Development Bernadette Linn remarked that Mr Lam is a veteran industrialist with extensive experience in public service and administrative management, and brings an extensive network in the industrial and commercial sectors. “He will certainly be able to effectively lead the company in attracting high-value-added manufacturers to establish a foothold in Hung Shui Kiu, and bringing in technology, employment opportunities and economic output.” Ms Linn highlighted that the non-official directors named have backgrounds and experience in new industries, innovation and technology, engineering and finance, and can help the company to draw on expertise from outside the Government. She added that the Government will […]

The Government today announced the successful pricing of approximately HK$27.6 billion worth of green bonds and infrastructure bonds under its Sustainable Bond Programme and Infrastructure Bond Programme. Denominated in Hong Kong dollars, renminbi (RMB), US dollars and euros, the bonds are expected to be settled on May 14. They will be listed on the Hong Kong Stock Exchange and the London Stock Exchange. The Monetary Authority noted that the bonds were priced yesterday following a virtual roadshow. The bonds have been assigned credit ratings of AA- by Fitch, Aa3 by Moody’s and AA+ by S&P Global Ratings. The infrastructure bonds include a HK$3 billion 30-year tranche at 3.95%, an RMB6 billion 20-year tranche at 2.6%, an RMB6 billion 30-year tranche at 2.7%, and a US$500 million 5-year tranche at 4.052%. A EUR750 million 8-year green tranche at 3.119% was also issued. The offering attracted a wide spectrum of investors from more than 30 markets across Asia, Europe, the Middle East and the Americas. It drew approximately HK$239 billion in orders, representing a subscription ratio of about 8.6 times.  Financial Secretary Paul Chan said the Government has continued to issue longer-tenor HK-dollar and RMB bonds to meet institutional demand and foster the development of fixed income and currency markets. “Issuance of RMB bonds will further enrich offshore RMB product offerings, improve the offshore RMB yield curve and promote RMB internationalisation,” Mr Chan […]

It is a pleasure to join you once again at the LME Asia Metals Seminar. My thanks go to HKEX (Hong Kong Exchanges & Clearing Limited) and the LME (London Metal Exchange) for hosting this annual event. To international visitors who have travelled from around the world, a very warm welcome. Your presence testifies to Hong Kong's pivotal role as a global financial and trading hub, and increasingly, as an important member of the global metals community. A changing landscape of metalsWhen we met here last year, I spoke about the strong momentum in global non-ferrous metals trade. Over the past year, that momentum has not only continued, but strengthened. In 2025, global LME trading volumes averaged around 760,000 lots a day, an 8% increase over the record set in 2024. In 2026, the figure so far has further risen to close to 900,000 lots per day. Driving the structural demand are forces we all know well: the global push for AI (artificial intelligence) and data infrastructure, electric vehicles, renewable energy systems and advanced manufacturing, for which non-ferrous metals are essential input materials. Indeed, as technological innovation accelerates across applications, so will the demand for the metals that make them possible. But the world we face today has grown more complex and, sadly, more uncertain and volatile. Over the past few years, tariffs, conflicts and supply chain shocks have fundamentally reshaped global trade patterns. Trade flows are being rerouted. […]

The total value of retail sales in March, provisionally estimated at $33.9 billion, was up 12.8% compared with the same month a year earlier, the Census & Statistics Department announced today. After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales represents a 9.8% year-on-year increase. Online sales accounted for 9.7% of the total retail sales value in March. Provisionally estimated at $3.3 billion, the value of this segment rose 35.1% from the same month a year earlier. The value of sales of consumer goods “not elsewhere classified” increased 18.1% in March 2026 compared with the same period a year earlier. There were also increases in the following categories: jewellery, watches and clocks, and valuable gifts (up 27.2%); commodities in supermarkets (up 0.6%); electrical goods and other consumer durable goods not elsewhere classified (up 30.1%); medicines and cosmetics (up 3.1%); clothing (up 8.3%); food, alcoholic drinks and tobacco (up 1%); commodities in department stores (up 1.3%); motor vehicles and parts (up 80.8%); books, newspapers, stationery and gifts (up 3%); furniture and fixtures (up 0.6%); and optical items (up 7.4%). Meanwhile, the value of sales of fuels was down 14.2% in March compared with the same month in the previous year. This was followed by sales of Chinese drugs and herbs (down 5.4%); and footwear, allied products and other clothing accessories also fell (down […]

Chief Executive John Lee today received Prime Minister of Uzbekistan Abdulla Nigmatovich Aripov and his delegation at Government House as they arrived in Hong Kong for economic and trade events. The leaders discussed further strengthening co-operation between Hong Kong and Uzbekistan. Mr Lee noted that Hong Kong is a functional platform for the Belt & Road (B&R) Initiative, while Uzbekistan is a major country in Central Asia with abundant natural resources, a strong labour force, and experience in rapid economic growth. As the two places are both active participants in the Belt & Road Initiative, there is vast potential for co-operation. The Chief Executive said Hong Kong will continue to leverage its unique advantage of having the strong support of the motherland and being closely connected to the world under the “one country, two systems” principle, deepen international exchanges and co-operation, proactively explore B&R markets, and further strengthen collaboration with Uzbekistan in different areas, in order to jointly seize the opportunities brought by the B&R Initiative. Mr Lee told the prime minister that Hong Kong is making every effort to develop into an international innovation and technology centre and an international hub for high-calibre talent, apart from being an international financial, shipping and trading centre. The city offers a highly internationalised and market-driven business environment, being the world’s fifth-largest […]

According to the Immigration Department, around 1.19 million visitors arrived in Hong Kong over the Labour Day Golden Week of the Mainland from May 1 to 5, representing an 8% increase over the same period last year. Mainland inbound visitors accounted for around 1.01 million, representing an increase of 10% compared to last year. The interdepartmental working group on festival arrangements, led by Chief Secretary Chan Kwok-ki, said the surge in visitor arrivals directly boosted local businesses, including retail, catering and hotels, bringing significant economic benefits. Mr Chan said: “Popular attractions saw a large number of visitors and a vibrant atmosphere, showcasing the unique metropolitan charm of the city. “Representatives of some shopping malls indicated that consumption in various retail categories saw year-on-year double-digit increases, while the catering sector noted that businesses in tourist areas increased about 20% in the same period, generating considerable economic benefits. These results fully reflected the function of the tourism industry as an important driver of the local economy. “The Government will continue to work closely with these industries to promote diversified tourism products and projects, creating comprehensive and immersive travel experiences for tourists while spreading the economic advantages brought by visitor increases to different sectors to benefit the overall economy.” During the five-day Golden Week, there was a […]

Hong Kong’s economy in the first quarter grew 5.9% year-on-year, picking up from the 4% increase in the preceding quarter. The Census & Statistics Department announced the figures today as it released its advance estimates on gross domestic product (GDP) for the first quarter. On a seasonally adjusted quarter-to-quarter basis, real GDP rose further by 2.9%. Commenting on the figures, the Government said the Hong Kong economy expanded robustly in the first quarter, marking the strongest quarterly growth in nearly five years. Underpinned by strong global demand for artificial intelligence-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activities, the city’s economic growth outlook remains positive, it highlighted, adding that solid business and consumer sentiment is expected to continue supporting domestic demand. Nonetheless, the Government remarked that persistent tensions in the Middle East pose downside risks to the economic outlook. In response, targeted measures have been taken to safeguard energy supply stability and mitigate the impacts on affected sectors.

The Government today announced that property owners and residents of Wang Fuk Court will be waived from the final tax payable for the 2025-26 assessment year, a move aimed at easing the financial burden on those affected by the recent fire. This measure, combined with the tax waiver announced by the Government last December, means eligible persons will be waived from both the balance of tax payable for the 2024-25 assessment year and the tax payable for the 2025-26 assessment year. The Inland Revenue Department will issue tax returns to the affected individuals in the third quarter of this year to assess their provisional tax for the 2026-27 assessment year.