Hong Kong: new initiatives in technology and trade

Hong Kong authorities have announced a series of initiatives to boost promising industries and strengthen the region’s position as an international financial hub.

Establishment of an AI research institute

In February 2025, Hong Kong Financial Secretary Paul Chan Mo-po announced the allocation of HK$1 billion (around US$130 million) to establish an AI research institute. The government aims to develop AI as a key industry and turn Hong Kong into an international hub for cooperation in this field.

The money has since moved. The Legislative Council approved the HK$1 billion funding for the Hong Kong AI Research and Development Institute, which the Digital Policy Office is setting up and which the government plans to establish in 2026. Its remit runs from upstream research to turning results into products and finding application scenarios in finance, healthcare and public services.

Simplification of Listing Procedures on the Local Exchange

The proposal was to make it easier for foreign companies to list on the Hong Kong Stock Exchange, which would increase its attractiveness and the diversity of companies listed on it.

It has become rules. Revised HKEX Listing Rules took effect on 24 July 2026: the market-capitalisation thresholds for secondary listings were cut roughly in half — to HK$20 billion for companies with weighted voting rights and, under the alternative test, HK$6 billion in market capitalisation combined with at least HK$600 million of revenue — and every IPO applicant may now file non-publicly instead of publishing an application proof at the outset. Technology and biotech candidates have had their own Technology Enterprises Channel since May 2025. A further package of measures for overseas issuers was deferred to a second phase of the review.

International Gold Trading Platform

The plan was to create a platform that would strengthen Hong Kong's role in the global precious metals market and attract international investors.

The plan is being built. A government-owned central clearing and settlement system for gold began trial operation on 7 July 2026, alongside a push to expand the city's gold storage capacity to more than 2,000 tonnes within three years and to explore tax concessions for institutions trading and settling gold in Hong Kong.

Development of high-income maritime services

The initiatives are aimed at strengthening Hong Kong's position as a leading hub for maritime transportation and logistics, including support for shipping companies and the development of port infrastructure.

Here too the tax code is catching up. In June 2026 the government gazetted the Inland Revenue (Amendment) (Tax Concessions for Shipping-related Activities and Physical Commodity Trading) Bill 2026, which enhances the concessions for maritime services, adds a half-rate profits tax concession for physical commodity traders, and gives shipping companies the option of a 15% concessionary rate to stay aligned with the OECD global minimum tax.

"Investing heavily in AI and other advanced technologies can attract international companies and talent, creating high-skilled jobs and boosting economic growth."

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