The Financial Services & the Treasury Bureau today confirmed that remuneration distributed by proprietary trading businesses does not qualify for tax concessions proposed under the Inland Revenue (Amendment) Bill 2026. The Government introduced the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026 into the Legislative Council (LegCo) in June. The bill aims to enhance preferential tax regimes for privately offered funds, family-owned investment holding vehicles managed by single family offices, and carried interest. A key measure involves expanding the scope of the preferential tax regime for carried interest. Beyond currently covered private equity investments, other eligible fund profits may also yield eligible carried interest, qualifying for profits tax and salaries tax concessions. Responding to media enquiries, the bureau noted that the preferential regime applies only to eligible carried interest distributed by funds as defined under the Inland Revenue Ordinance (IRO). Under the IRO, a fund must generally satisfy the requirement that participating persons do not have day-to-day control over property management. A business trading or holding assets using proprietary capital to generate profits for its own account – commonly known as proprietary trading – fails to meet this definition. Remuneration from such businesses is therefore excluded from the proposed tax […]

Secretary for Commerce & Economic Development Algernon Yau today led a business delegation to explore new economic opportunities in Malaysia. The group includes representatives from Mainland enterprises, Hong Kong chambers of commerce and other key industry organisations. The visit was organised by the Task Force on Supporting Mainland Enterprises in Going Global, which is jointly led by Mr Yau and Invest Hong Kong. The visit began with a business seminar and networking lunch hosted by Invest Hong Kong. The event provided Mainland delegates with direct networking access to potential Malaysian business partners. Delivering his opening remarks, Mr Yau highlighted Hong Kong’s strategic role as a "super connector" and a "super value-adder" that links capital and opportunities between the East and the West. “With this strategic role, coupled with the many strengths of Hong Kong, Hong Kong is prepared to serve as the ideal springboard linking the Chinese Mainland and Malaysia,” he said. On the sidelines of the seminar, Invest Hong Kong signed a memorandum of understanding (MOU) with the Malaysian Investment Development Authority to deepen bilateral co-operation. The signing was witnessed by Mr Yau and Malaysia’s Deputy Minister of Investment, Trade & Industry.  Director-General of Investment Promotion Alpha Lau described the trip as a major success in helping Mainland enterprises leverage Hong Kong to expand into Malaysia and the Association of Southeast […]

Secretary for Commerce & Economic Development Algernon Yau today officiated at the official opening ceremony of the Hong Kong Economic and Trade Office (ETO) in Kuala Lumpur during his visit to Malaysia. The opening marks a significant milestone in deepening partnerships between Hong Kong and Malaysia, and the Association of Southeast Asian Nations (ASEAN) as a whole. Addressing the opening ceremony, Mr Yau highlighted the strategic importance of this office, which is the 15th overseas ETO of the Hong Kong Special Administrative Region Government and the fourth in the ASEAN region. Mr Yau noted that ASEAN stands firmly as Hong Kong's second-largest trading partner in goods while Malaysia is the city's eighth largest trading partner. He added that the new ETO shoulders the responsibility of deepening Hong Kong's economic, trade and investment ties with this strategically important region and strengthening the city’s presence in it. The geographical coverage of the Kuala Lumpur ETO includes Malaysia, Brunei Darussalam, Laos and Pakistan. Mr Yau also led a business delegation to attend the "Think Business, Think Hong Kong" symposium and luncheon organised by the Hong Kong Trade Development Council (HKTDC). The business delegates, including representatives from Mainland enterprises looking to go global, Hong Kong chambers of commerce and other organisations, held exchange sessions with the Malaysia Digital Economy Corporation and local chambers to gain a deeper […]

The Government announced today that the launch of a new batch of its Silver Bond, offering a minimum interest rate of 4.25%.  The target issuance size of the Silver Bond is $50 billion, with each unit offered at $10,000 and a tenor of three years. Interest will be paid semi-annually. Residents who turn 60 in or before 2027 and hold a valid Hong Kong identity card are eligible for subscription. The bonds are the retail part of the Infrastructure Bond Programme. Proceeds will be credited to the Capital Works Reserve Fund for investment in infrastructure projects. The Government will publish information on the allocation of the proceeds on an annual basis. Financial Secretary Paul Chan said that the Government continues to issue Silver Bond this year, offering senior citizens a safe, steady and low-risk investment option while encouraging the financial sector to tap into the business potential of the silver economy. “Issued under the Infrastructure Bond Programme, proceeds from this batch of Silver Bond will be used to fund public works projects to push ahead Hong Kong's infrastructure and urban development, enhancing people's quality of life while enabling citizens to participate in and benefit from the city's development,” Mr Chan said. A maximum allocation of $1 million per investor is stipulated, meaning that each investor is allocated 100 units of retail bonds at most. The subscription period will start from 9am on August 21 and end at 2pm on September 4, […]

The Financial Secretary has given directions to terminate the investigation into the affairs of Next Digital Limited (NDL), and the inspector’s term of office expired on July 27. The Financial Secretary noted today that the Court of First Instance of the High Court granted a winding-up order against NDL on December 15, 2021, and the relevant liquidation is now underway. In addition, the listing of NDL’s shares was cancelled by the Stock Exchange of Hong Kong on January 12, 2023. A number of former senior officers of NDL were convicted of offences endangering national security and sentenced to imprisonment by the Court of First Instance on December 15, 2025 and February 9, 2026. Three subsidiaries of NDL were convicted and fined by the Court of First Instance in the above criminal case. On March 24, 2026, the Chief Executive-in-Council, pursuant to the Hong Kong National Security Law and the Companies (Winding Up and Miscellaneous Provisions) Ordinance, ordered them to be struck off the Companies Register, and the three subsidiaries were dissolved forthwith. Having carefully reviewed these circumstances and all relevant factors, the Financial Secretary considered that it was no longer necessary to continue the investigation into the affairs of NDL and hence directed the inspector to terminate the investigation pursuant to the Companies Ordinance. The Financial Secretary emphasised that as an international financial centre, Hong Kong possesses a corporate governance […]

The total value of retail sales in June, provisionally estimated at $31.5 billion, was up 4.6% compared with the same month a year earlier, the Census & Statistics Department said 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 2.3% year-on-year increase. Online sales accounted for 9.4% of the total retail sales value in June. Provisionally estimated at $3 billion, the value of this segment rose 11.6% from the same month a year earlier. The value of sales of jewellery, watches and clocks, and valuable gifts increased 20.1% in June 2026 compared with the same period a year earlier. There were also increases in the following categories: consumer goods “not elsewhere classified” (up 9.3%); food, alcoholic drinks and tobacco (up 2.5%); clothing (up 0.8%); medicines and cosmetics (up 0.6%); electrical goods and other consumer durable goods not elsewhere classified (up 11.3%); furniture and fixtures (up 5.1%); books, newspapers, stationery and gifts (up 2.6%); and optical items (up 2.1%). Meanwhile, the value of sales of commodities in supermarkets dropped 1.1% in June compared with the same month in the previous year. This was followed by sales of commodities in department stores (down 4.2%); motor vehicles and parts (down 4.3%); fuels (down 15.3%); footwear, allied products and other clothing accessories (down 1.4%); and Chinese drugs and herbs (down 4.9%). The […]

The Hong Kong Special Administrative Region Government warmly welcomes new measures to deepen market co-operation and co-ordinated development between Hong Kong and the Mainland. The series of new measures, announced today by the China Securities Regulatory Commission and the Securities & Futures Commission, aim to consolidate and enhance Hong Kong’s status as an international financial centre. Chief Executive John Lee said the measures will support enterprise development and cross-boundary financing. They will also promote market connectivity by deepening co-operation in indices, futures and exchange traded funds (ETFs). “Under ‘One Country, Two Systems’, Hong Kong enjoys the unique advantage of having strong support from the motherland while being closely connected to the world,” he said. “As an important bridge in our country’s financial system, Hong Kong will continue to leverage its role in ‘bringing in and going global’, better integrating into and serving the overall development of our country,” Mr Lee added. “Hong Kong is proactively aligning with the National 15th Five Year Plan and is working at full speed to formulate our first five-year plan, fostering high quality market development by promoting renminbi internationalisation and cross-boundary capital flows. “I sincerely thank the Central People’s Government and relevant authorities for their staunch support for Hong Kong all along. The Hong Kong SAR Government will continue to […]

Chief Executive John Lee and his governing team today attend a district forum at South Tuen Mun Government Secondary School to hear views from members of the public in relation to Hong Kong's Five-Year Plan and the 2026 Policy Address. The two-hour forum, attended by about 130 people, consisted of two sessions.  In the first, Mr Lee and principal officials listened to participants’ views on topics including the accelerating development of the Northern Metropolis and the advancement of spatial planning in other areas; the economy, finance and trade; innovation, technology and industrial development; livelihoods and social development; regional co-operation; the integrated development of culture, sports, tourism and green living; and more. In the second session, participants were divided into four groups to engage in exchanges with Mr Lee and his officials, with a focus on two themes: "pursuing development and economic growth" and "improving people's livelihood and building our future together".  Mr Lee interacted with each group in turn and listened to a variety of views. He said: "The district forum is an important platform for members of the public to express their views.  “We listened to views of the public on Hong Kong's current and long-term economic and social development, which will help the Government formulate Hong Kong's Five-Year Plan and the Policy Address, devise the overall development blueprint, and set priorities for key policy initiatives, with a […]

Chief Executive John Lee today met Chairman of the China Securities Regulatory Commission Wu Qing at Government House to discuss deepening the mutual access between Hong Kong and Mainland financial markets. Welcoming Mr Wu and his delegation to Hong Kong, Mr Lee said that city enjoys the unique advantage of having the motherland's strong support while being closely connected to the world under the "one country, two systems" principle, and possesses a highly internationalised market environment and mature financial infrastructure. Mr Lee highlighted that the National 15th Five-Year Plan supports Hong Kong in consolidating and enhancing its status as an international financial centre, strengthening its functions as a global offshore renminbi (RMB) business hub, an international asset and wealth management centre, and an international risk management centre.  He outlined that the Hong Kong Special Administrative Region Government is pressing ahead with preparing Hong Kong's own first Five-Year Plan, and is fully committed seizing the opportunities brought by national development, advancing the high-quality development of Hong Kong as an international financial centre, and supporting the high-level opening up of the Mainland's financial markets. Mr Lee said that global demand for RMB in trade finance, investment and reserves is steadily rising. Hong Kong, as a hub for global offshore RMB transactions and financial activities, has the world's largest offshore pool of RMB […]

Hong Kong's economy in the second quarter grew 4.3% year-on-year, down from a 5.9% increase in the first quarter. The Census & Statistics Department announced the figures today as it released its advance estimates of gross domestic product (GDP) for the second quarter. On a seasonally adjusted quarter-to-quarter comparison basis, real GDP decreased by 0.6%. The Government said the Hong Kong economy continued to expand robustly in the second quarter, underpinned by buoyant external trade and resilient domestic demand. Looking ahead, it said the Hong Kong economy should continue to post solid growth in the second half of 2026. Nonetheless, lingering external headwinds, particularly geopolitical tensions in the Middle East, uncertainties surrounding US monetary policy, as well as and trade protectionist measures among major advanced economies still warrant close surveillance, it added.

The Financial Services & the Treasury Bureau and the Inland Revenue Department today launched a public consultation on proposed enhancements to the tax concession regime for corporate treasury centres (CTCs). The consultation paper proposes introducing a two-tiered regime for CTC tax concessions. Under Tier 1, the Government seeks to refine existing tax concessionary measures for qualifying CTCs and intra-group financing businesses operating in Hong Kong. Tier 2 introduces a pre-approval mechanism allowing eligible CTCs and their associated corporations that meet specified conditions to access additional tax benefits or flexibilities over a five-year validity period, subject to the approval of the Inland Revenue Department. Secretary for Financial Services & the Treasury Christopher Hui highlighted the consultation as a major initiative to revamp the tax regime and a significant step towards implementing the "Action Plan to Promote the Development of CTCs in Hong Kong”. “We have been in close communication with the industry. The tiered tax regime proposed in the consultation paper is precisely designed to address the pain points of the industry in a targeted manner, providing eligible corporations with more comprehensive tax benefits, greater tax certainty, and enhanced compliance flexibility,” Mr Hui said. He added that the measures are expected to draw more multinational corporations across various sectors and regions to leverage Hong Kong's role as a […]

The Hong Kong Special Administrative Region Government, the National Development & Reform Commission (NDRC) and relevant central ministries today held the ninth Joint Conference on Advancing Hong Kong's Full Participation in & Contribution to the Belt & Road Initiative in Beijing. Secretary for Justice Paul Lam, in his capacity as chairperson of the Working Group on Belt & Road Development under the Steering Group on Integration into National Development, led a delegation to attend the conference. NDRC Vice Chairman Zhou Haibing also attended the meeting, alongside representatives from the commission, the Hong Kong & Macao Work Office of the Communist Party of China Central Committee, and the Supreme People's Court. Other attendees included representatives from the Ministry of Foreign Affairs, the Ministry of Commerce, the People's Bank of China, the State-owned Assets Supervision & Administration Commission of the State Council, the National Financial Regulatory Administration, the State Administration for Market Regulation, and the Liaison Office of the Central People's Government in the Hong Kong SAR. Addressing the conference, Mr Lam said the Hong Kong SAR Government has been taking forward Belt & Road co-operation to achieve deeper and more concrete outcomes, fully participating in and contributing to the initiative under the guidance of major national steps to support high-quality co-operation and integrate into national development. He […]

Overall consumer prices rose 2% year on year in June, the same as in May, the Census & Statistics Department announced today. Netting out the effects of the Government’s one-off relief measures, the underlying inflation rate was 1.9% in June, also the same as the figure in the previous month. Compared to June 2025, year-on-year increases in prices were recorded in the following categories: electricity; gas and water; transport; miscellaneous services; miscellaneous goods; housing; meals out and takeaway food; clothing and footwear; and alcoholic drinks and tobacco. Meanwhile, a year-on-year decrease was recorded for durable goods and basic food. The Government said that increases in prices of fuel-related items continued to accelerate, while relatively modest price pressures in other components partly offset the overall rise. Looking ahead, it noted that consumer price inflation is expected to rise in the coming months as the effect of earlier surges in international oil prices continues to ripple through the economy. While the recent moderation in international oil prices from previous peaks may provide some relief, the renewed escalation of tensions in the Middle East warrants close monitoring. Concurrently, price pressures in other areas remain largely contained, helping to keep overall inflation at a moderate level.

Tech executive Fan Yi-chen commutes from his home in Shenzhen for his job at the Hong Kong-Shenzhen Innovation & Technology Park (HSITP) each day. His cross-boundary trip takes only about half an hour, yet it bridges two complementary business landscapes. Mr Fan heads the Hong Kong operation of a Mainland technology firm specialising in artificial intelligence-driven chemical experimentation. By leveraging big data and algorithms to design experiments, and deploying robots to run them and gather feedback, the firm’s technology is drastically speeding up research and development (R&D), in fields such as pharmaceuticals, new materials and new energy. Strategic expansionWith its Mainland business increasing by three to four times over the past year, Mr Fan’s company is now eyeing the global stage. The decision to set up a base at HSITP was a strategic move to utilise Hong Kong’s edge in internationalisation and its research capabilities. “Clients have their own requirements for data compliance and patents,” Mr Fan reflected. “We believe setting up an office here helps us to expand overseas. Moreover, Hong Kong’s major universities are among the top-tier institutions in China, possessing world-class research capabilities that can help us upgrade our algorithms.” The company’s global ambitions received a major boost after it was selected for the HSITP Incubation Programme last year. The initiative unlocks up to $3 million in funding over three […]

The Legislative Council Finance Committee today approved an extra $1 billion in funding to provide long-term housing arrangements for the flat owners of Wang Chi House (Block H) at Wang Fuk Court in Tai Po. Together with $2.8 billion from the Support Fund for Wang Fuk Court in Tai Po and $4 billion earmarked under the 2026-27 Budget for the acquisition of Blocks A to G, the long-term housing plan will now cover all eight blocks of the estate. Deputy Financial Secretary Michael Wong thanked the committee for the approval, stressing that the Government will advance the acquisition work at full speed. As of yesterday, 90% of owners had submitted signed Letters of Acceptance. This includes 1,565 letters from Blocks A to G (90.1% of flats) and 221 letters from Block H (89.1% of flats). The Government has already signed Agreements for Sale & Purchase with 769 owners, representing 43% of those who submitted acceptance letters. Addressing residents’ concerns about retrieving personal belongings after transferring property titles to the Government, Mr Wong said those with special needs can make requests through the Engagement Team and the “one social worker per household” service. He explained that the general direction is to allow residents to return and collect necessary belongings to facilitate their relocation as far as possible.