Financial Secretary’s blog

This Wednesday (15 April) is the National Security Education Day. Across the country, themed activities are being held to help citizens better understand the vital importance of national security. In Hong Kong, the HKSAR Government and different sectors of the community are organising district-wide events to deepen public understanding of the nation’s development and achievements, and to highlight the close, mutually reinforcing relationship between development and security. The theme of this year’s National Security Education Day is: “Proactively Align with the 15th Five-Year Plan Follow a Holistic Approach to Development and Security”. Security underpins a nation’s survival and progress, and it is essential to social stability and people’s well-being. Development and security reinforce each other: security is the prerequisite for development, while development provides the guarantee for security. Only by advancing both in a coordinated way can we ensure lasting stability and sustained prosperity. Profound changes unseen in a century are accelerating, and the international landscape is growing more complex and volatile. In some regions, wars continue and flashpoints remain unresolved; in others, social unrest persists. These developments underscore that national security extends across multiple interconnected domains—including finance, energy, science and technology, food security and overseas interests. We must therefore firmly uphold a holistic approach to […]

As the first quarter of 2026 passed, the global landscape remains complex and highly fluid. The conflicts in the Middle East continue to weigh on the market sentiment. This external backdrop has dragged on Hong Kong’s equity market: the Hang Seng Index is down around 2% year to date. Even so, trading has remained active. The average daily turnover in the first two months exceeded HK$260 billion, up 17% year on year. Entering March, market activities strengthened further, with average daily turnover surpassing HK$300 billion—more than 8% higher than the same period last year. The increased asset allocations to Hong Kong by investors amid heightened uncertainty suggests that they not only view the city as a reliable safe haven for capital, but are also encouraged by the abundant investment opportunities created by the steady growth in the Mainland's economy and a strong pipeline of quality companies choosing to list in Hong Kong. Meanwhile, global competition in frontier technologies such as artificial intelligence has heated up. Breakthroughs in core technologies, the development of upstream and downstream segments of the industrial chain, and the exploration of broader application scenarios all require substantial capital support. Whether these companies and industries have smooth, stable, sustained and efficient access to financing is therefore critical. Hong Kong’s listing platform is playing a pivotal role in this regard—supporting the nation’s technological […]

A series of mega events held in Hong Kong over the past few weeks has drawn visitors from around the world, creating a lively atmosphere across the city. One of the highlights over the past two days has undoubtedly been Art Basel Hong Kong, which is being held at the Hong Kong Convention and Exhibition Centre in Wan Chai. This flagship arts event has been staged in Hong Kong for 14 consecutive years. It continued even during the pandemic by switching to an online format. Many art lovers, collectors and visitors have long set aside this time of the year to visit Hong Kong and attend this renowned art fair, while exploring the city and enjoying its culinary delights. A number of major conferences and investment forums targeting family offices and high-net-worth individuals have also been scheduled to take place in Hong Kong at this time, allowing financial conferences and cultural and arts events to reinforce each other and create synergy. Yesterday, I paid a visit to Art Basel, where participating artists and gallery directors told me that this year had seen an increase in attendance, with better art sales. They value Hong Kong’s openness and inclusiveness, its distinctive culture that bridges the East and the West. They regard Hong Kong as an ideal platform for expanding into the regional and even global market. At the Wealth for Good in Hong Kong Summit hosted by the HKSAR Government early last week, representatives from a number of family offices told me that their […]

Over the past few days, I have been on a visit to Beijing, where I called on several central ministries and financial regulators. We engaged in in-depth exchanges on the macroeconomic outlook, the current state and development of financial markets, and how Hong Kong can better play its role in the new phase of the country's development during the 15th Five-Year Plan period. This visit has enabled us to gain a more direct understanding of the direction and priority areas of the country's development, as well as its underlying rationale and considerations. This provides important guidance and reference for our work to better align Hong Kong with national development strategies, integrate into and serve the overall national development, and in turn achieve high-quality development for Hong Kong. The Director of the Hong Kong and Macao Work Office of the Communist Party of China (CPC) Central Committee and the Hong Kong and Macao Affairs Office of the State Council, Mr Xia Baolong, has shown great care and support for Hong Kong's development. He has also provided important guidance on Hong Kong's efforts to proactively align with the 15th Five-Year Plan. Central ministries and financial regulators have attached great importance to Hong Kong's unique functions and positive roles in contributing to the nation's vision of becoming a financial powerhouse, and have consistently offered strong support. We have been deeply impressed by the care, understanding and support for […]

The National Two Sessions concluded successfully in Beijing last week. At the Fourth Session of the 14th National People's Congress, the "Outline of the 15th Five-Year Plan for National Economic and Social Development of the People's Republic of China" (the "National 15th Five-Year Plan") was adopted, providing an extensive blueprint and action agenda for the nation's social and economic development over the next five years. Spanning more than 70,000 words, the National 15th Five-Year Plan offers sharp insights into the trends and developments in the evolving international macroeconomic landscape. With notable clarity, it sets out the direction and pathways for building a modernised industrial system and advancing high-level self-reliance and strength in science and technology. It also provides clear guidance on supporting Hong Kong in solidifying and enhancing its competitive advantages, as well as better integrating into and contributing to overall national development. Taking the development of a modernised industrial system as an example, the Plan clearly sets out directions such as upgrading traditional industries, fostering emerging industries, planning ahead for future industries, and promoting high-quality and efficient development of the service sector. It also underscores the importance of advancing original innovation and achieving breakthroughs in core technologies in key fields, thereby accelerating self-reliance and strengthening science and technology […]

The "Two Sessions" of our country are being held in Beijing. Deputies and members have gathered to engage in active discussions on the draft outline of the National 15th Five-Year Plan and its core elements. From building a modern industrial system to developing a robust domestic market, and from expanding high-level opening-up to solidly advancing rural revitalisation across the board, the 15th Five-Year Plan maps out a panoramic blueprint for high-quality development. While holding profound significance to the building of a great country through Chinese modernisation and the great cause of national rejuvenation, it serves as important ideological guidance for Hong Kong in seizing new development opportunities and opening up new horizons. The current international landscape is fraught with turbulence and uncertainties, with geopolitics becoming increasingly complex and volatile, and global economic momentum slowing down. That said, under the strong leadership of the Central Government, our country has stood up to external challenges and pressure, maintained overall economic stability and progress. The outlook of our country, which always focuses on managing our own affairs well, remains highly promising in terms of policy consistency, technological innovation and integrated sustainability. The intricate global landscape, compounded by regional conflicts, underscores an important message: to safeguard its strategic initiative amid accelerating changes unseen in a century, […]

Over the past few days, my colleagues and I have been making use of various channels to brief the public in greater depth on the newly released Budget, including its key contents, measures and underlying considerations. The theme of this year’s Budget is “Driving High-quality, Inclusive Growth with Innovation and Finance”. At its core, the Budget responds to a period in which great changes unseen in a century are accelerating and geopolitical uncertainties are intensifying. The question we must answer is how Hong Kong can seize opportunities to leverage its unique advantages and inject fresh momentum into our future growth, thereby making development more resilient and inclusive. A major focus of this Budget is to press ahead with the synergistic development of “AI+” and “Finance+”. We are now at a pivotal juncture in technological innovation. Artificial intelligence (AI) is not only a core technology for the future, but also a transformative force capable of reshaping every sector and industry. Accelerating “AI+” development is, in practice, about transforming and upgrading our industries with competitive edge and scaling up emerging ones. As an international financial centre, Hong Kong must deeply integrate cutting-edge AI technologies into its services. This will expand and strengthen our financial services while extending AI technologies into a wider range of application scenarios, with a view to achieving two-way empowerment and positive interaction. […]

Today is the sixth day of the Chinese New Year. I wish you good health, vitality, prosperity, and success in all endeavours in the year ahead. The 2026-27 Budget will be delivered this Wednesday. I would like to express my sincere gratitude to members of the public, as well as businesses and organisations from various sectors and backgrounds, for their valuable views and suggestions submitted during this period. We share a common aspiration for Hong Kong’s continued progress and enhanced support for different communities. The current-term Government has been making great strides to drive the economy forward and improve people’s livelihood, responding to the aspirations of the community. However, the strategies and pathways for achieving our goals – and the allocation of resources – are often shaped and constrained by current realities. We must set priorities, and difficult choices may have to be made. We have listened carefully to views and ideas from the community, and have adopted a holistic approach in preparing the Budget. In our proposals, we have sought to strike an appropriate balance among competing needs and considerations. Building on the sustained economic growth recorded last year, Hong Kong has made a good start this year. Nevertheless, amid a volatile external environment and uncertainties arising from economic transformation, we must exercise fiscal prudence. We will take into account the needs of our society in the short, medium and long term, while […]

As the Chinese New Year draws near, we warmly welcome the Year of the Horse with optimism, warmth and heartfelt blessings. I sincerely wish everyone a year filled with success, energy and prosperity. Today marks the 28th day of the 12th lunar month, and the city is alive with festive preparations. Taking the opportunity during the year-end, I extended early New Year greetings to members of the public. Yesterday, together with my colleagues, I visited two families and toured the Lunar New Year Fair at Victoria Park, where we shared our best wishes with the community. The Food and Environmental Hygiene Department has set up 14 Lunar New Year Fairs across various districts, each with unique local characteristics. Among them, the Victoria Park Fair remains the largest and most vibrant. Visitors were seen carefully selecting orchids, while others were drawn to the beauty of peach blossoms. The knowledgeable guidance of stallholders helped us choose and take care of festive flowers. While speaking with several stall operators, many shared that this year's fair felt livelier and more vibrant than the last one. Notably, some stalls were run by tertiary and secondary school students, who brought fresh energy and creativity to the event. These young entrepreneurs designed a range of horse-themed festive products and catchy slogans, blending seasonal charm with inventive ideas. From warming mugs and cushions to decorative items and handwritten couplets, their creations were not only […]

This year marks the beginning of the national 15th Five-Year Plan. As the most significant guiding framework for the nation's socio-economic development over the next five years, the Plan has drawn considerable attention both domestically and internationally, with many seeking to gain a more comprehensive understanding of the country's future development directions and the opportunities it brings. The Plan also charts a clear course for Hong Kong to speed up and scale up its development in the future. Last week, together with Mr Michael Wong, Deputy Financial Secretary, Secretaries from five bureaux, and colleagues from the civil service, I engaged in an interactive exchange session with legislators in the Legislative Council's Ante Chamber on proactively aligning with the Plan. We all agreed that Hong Kong possesses unique strengths in various areas such as finance, trade, innovation and technology (I&T), etc. and that many emerging fields and new dimensions are rich with opportunities. In fact, institutions and organisations across different sectors have shown keen interest in how Hong Kong can better seize the opportunities arising from the 15th Five-Year Plan. They have been organising different forums and seminars, exploring ways to align with and contribute to the national development strategies more proactively while seeking broader development prospects for their respective industries. Recently, I attended a forum organised by the Hong Kong Productivity […]

Entering 2026, global market conditions remain highly volatile, driven by escalating geopolitical instability and persistent uncertainty. These dynamics have triggered rapid and unpredictable cross-border capital flows. Even traditionally safe-haven assets have undergone sharp corrections after repeatedly reaching record highs. Gold is a notable example: after rising steadily over the past four years, its price surged by nearly 30% in January, approaching a historic high of US$5,600. However, in recent days, it experienced a significant pullback, at one point falling more than 12% from its peak. Commodities have also rotated as market leaders, contributing to short-term rallies. In the foreign exchange market, the United States (US) dollar index dropped to a near four-year low, while the Japanese yen came under renewed pressure. Even some previously strong US technology stocks have registered notable sell-offs. Looking back at January, Hong Kong stocks delivered a strong performance. The Hang Seng Index closed at 27,387 points last Friday, marking a monthly gain of nearly 7%. Average daily turnover exceeded HK$272 billion, representing a year-on-year increase of 90%. Despite heightened external volatility, Hong Kong’s financial system remained robust and functioned smoothly, with total bank deposits surpassing HK$19 trillion. The developments in January have further reinforced market expectations that global financial conditions will remain turbulent this year. In […]

The World Economic Forum (WEF) Annual Meeting held in Davos, Switzerland, has just been concluded. The Annual Meeting brought together about 3 000 political and business leaders from different countries and regions. Through intensive meetings, participants exchanged perspectives and ideas, hoping to better grasp macro trends and the pulse of development at this pivotal historical juncture. Over the past year or so, we have all witnessed and experienced the intensification of unilateralism and hegemonism, now reaching a critical point where choices must be made. Against this backdrop, this year's meeting exhibited a distinct yet more profound tension compared with previous ones: given the severe disruption to the existing international order, leaders from around the world raised many questions about where the world is heading and what direction it should take, while also putting forward their own proposals. Whether advocating for Europe's strategic independence or calling for "middle powers" to act together, these voices all point toward diversifying economic relationships — and even security relationships — in order to strengthen strategic resilience. Indeed, fragmentation and divisions in the international community were more pronounced at this Annual Meeting. However, for the vast majority of countries and regions, the world must not revert to the "law of the jungle" where the strong prey on the weak; instead, mutual respect, seeking common ground amid differences, […]

Tonight, I will depart for Davos, Switzerland, to attend the Annual Meeting of the World Economic Forum. This year’s Meeting will bring together around 3,000 political and business leaders, as well as representatives from think tanks, non-governmental organisations and academia from over 100 countries and regions to discuss the challenges currently facing the international community. During the Meeting, I will engage with political and business leaders from around the world to exchange views on the global economy, deliver public speeches and participate in thematic discussions. I will also take the opportunity to promote the new opportunities that Hong Kong will embrace under the national 15th Five-Year Plan. The theme of this year’s Meeting is “A Spirit of Dialogue”, which resonates deeply with the current international climate. Since the beginning of 2026, we have witnessed a troubling rise in unilateralism, protectionism and hegemonism, with some countries even flagrantly infringing on the sovereignty of others to pursue their own economic interests, severely undermining international norms. These actions have seriously eroded mutual trust, and will inevitably have far-reaching implications for the global economy and trade landscape. How to rebuild co-operation through dialogue is an urgent task that political and business leaders worldwide must address immediately. The Meeting will also focus on the paradigm shifts brought by innovative technologies such as […]

The upcoming Budget will be delivered on 25 February, and the public consultation has been underway for nearly a month. During this period, we have actively been engaging with representatives from various sectors and industries, as well as with organisations and members of the public, to listen to their views and suggestions. Yesterday, I participated in RTHK's programme "Voices from the Hall", where I engaged directly with residents from diverse backgrounds to gain a more comprehensive understanding of their concerns and ideas. We also had open and candid discussions on the current internal and external environment, as well as the challenges facing Hong Kong. In fact, feedback from various consultation sessions reflects a general consensus that, from a macro perspective, Hong Kong's economy has been developing steadily in the years following the pandemic. One notable example is the financial sector, which accounts for 26% of our GDP and remains one of our largest industries. The local financial market performed strongly last year, boosting market demand and fostering positive expectations for the sector. On the other hand, the trade sector, which contributes 15% of our GDP, benefited from robust export performance, providing solid support to the overall economy. In addition, a series of mega events attracted more visitors to Hong Kong, injecting energy into the city and creating a vibrant, dynamic atmosphere. However, geopolitical tensions around the world are […]

As we entered 2026, the Hang Seng Index saw a strong start on the first trading day, surging over 700 points – or 2.8% – marking its best opening performance since 2013. Innovation and technology (I&T) companies led the market rally, with the Hang Seng TECH Index climbing by 4%. Many artificial intelligence (AI)-related stocks continued to attract strong investor interest. On the first trading day of the year, a strategic enterprise – among the first batch of such companies attracted to Hong Kong – was listed on the Hong Kong Stock Exchange. Recognised as one of the "Four Little Dragons of Domestic GPUs (Graphics Processing Units)", the company is also Hong Kong's first listed GPU stock. As China advances towards high-level self-reliance and strength in science and technology, Hong Kong's open and international financial market is well-positioned to provide strong funding support for Mainland frontier tech enterprises. In recent years, we have continuously pushed forward stock market reforms, including the introduction of Chapters 18A and 18C, as well as the Technology Enterprises Channel (TECH) announced in last year's Budget. These initiatives have accelerated the optimisation of Hong Kong's stock market structure in line with the rise of new quality productive forces, while also meeting growing demand from both domestic and international investors for access to cutting-edge technology sectors. As of the end of last year, more than 400 new economy companies […]