Hong Kong focuses on AI, finance in new budget

The HKSAR government unveiled its budget for the 2026/27 fiscal year, aligning with China’s 15th five-year plan (2026–2030) and focusing on AI and finance development.

The HKSAR government expects a HK$2.9 billion (US$370.8 million) surplus for 2025/26, a turnaround from an originally forecast HK$67 billion (US$8.6 billion) deficit.

The budget promotes Hong Kong as an international innovation and technology hub, emphasizing AI-driven industrialization and the Northern Metropolis development.

Lawmakers like Duncan Chiu noted the inclusion of cutting-edge sectors such as aerospace technology and embodied intelligence in the development blueprint.

The Hong Kong Academy of Sciences and the Hong Kong Young Academy of Sciences said the budget will attract global R&D talent, while Duncan Chiu highlighted AI’s role in urban competitiveness.

Financial market reforms aim to strengthen Hong Kong’s global status, according to HKEX and SFC, while Northern Metropolis infrastructure improvements were noted by Yiu Ming.

🔗 Source: Xinhua

🧠 Food for thought

Implications, context, and why it matters.

The budget’s tech plans rest on new funding and capital market tweaks

Northern Metropolis spending includes the HKSAR government seeking HK$20 billion more for San Tin Technopole and the Hetao Hong Kong Park 1.
A separate step moves HK$150 billion from Hong Kong’s Exchange Fund (the city’s reserve fund) for the first time in 42 years to pay for the Northern Metropolis plus other large infrastructure works 2.
Tech finance goals run into a hurdle. Hong Kong’s listing rules for specialist technology companies, Main Board Chapter 18C, drew a “lukewarm response,” with two companies listing under the regime since it began on 31 March 2023 3.
Regulators then temporarily cut the minimum initial market capitalisation for Pre-Commercial (pre-revenue) Specialist Technology Companies to HK$8 billion from HK$10 billion to draw more applicants 4.

Hong Kong is framed as a gateway for China’s tech push

These measures aim past local growth, with Hong Kong cast as a bridge for mainland China’s technology sector to expand overseas.
Plans include hosting the first national manufacturing innovation centre outside the mainland 5 plus an academy that helps enable the Chinese mainland’s biomedicine technology to go global 6.
Stock exchange rule changes, including lower listing requirements for specialist tech firms 4, seek to make Hong Kong a more appealing place to list for these companies.
The approach ties Hong Kong’s financial system to China’s national goals in the 15th Five-Year Plan (2026–2030) 6.