Mr Paul Chan, the Financial Secretary, stated in his blog that, tracing back to 2025, despite the uncertain external circumstances, the development of the local asset market has further improved, with a continuous inflow of funds, an increased number of visitors to Hong Kong, a fine manifestation of total exports and fixed capital investment, and stabilized local consumption. It's estimated that Hong Kong's economic growth will accelerate to 3.2% in 2026, the third consecutive year that the local economy has maintained a growth momentum. The good performance in exports and investment is the main driving force for boosting the economy. The simultaneous rise in both the price and transaction volume of the stock and property markets has consolidated the positive expectations of the market.
Photo source: FB of Paul Chan
Looking forward to 2026, Mr Paul Chan said that although new challenges would be inevitable, greater new development opportunities would also arise. He said that Hong Kong's economy is expected to maintain a good momentum, better integrate into the country's development continuously, and create more high-quality positions for the public. The market generally expects that the global economy can still maintain a moderate expansion even in the face of slowing growth impetus. As for the main growth engines in the next year, he expected the Chinese Mainland and Asia as a whole would be the key drivers, continuing to provide important support for Hong Kong's economy. Moreover, the cut of interest rate generally expected by the market would be beneficial to the development of local business and investment atmosphere.
Photo source: FB of Paul Chan
He said that the government would remain highly vigilant, preventing all kinds of "black swan" and "gray rhino" situations in the volatile external environment as well as balancing the two main axes of "security" and "development" to ensure that Hong Kong can continue to develop steadily in both society and economy next year.
Photo source: FB of Paul Chan
Mr Paul Chan also stated that since 2026 is the opening year of China's 15th Five-Year Plan, Hong Kong will be more proactive in aligning with national development strategies. Finance, innovation & technology, and trade will be the three key development engines for Hong Kong. Meanwhile, Hong Kong is accelerating the cultivation of artificial intelligence as a local core industry and empowering the upgrading and transformation of traditional industries with the "AI+" strategy. The development of the AI industry in Hong Kong will be promoted from six aspects: computing power, algorithms, data, application development, financial support, and talent cultivation. He said that Hong Kong will continue to play its role as a "super connector" and a "super value-adder" in the face of the new international economic and trade pattern and the reshaping of industrial and supply chains.
CREGIS, a global leader in enterprise-grade digital asset solutions, today shared its insights regarding the 2026-27 Budget. Shawn Yan, Founder and CEO of CREGIS, welcomes the government's decision to include digital assets within the scope of tax concessions and affirms the importance of the licensing regime for custody service providers in establishing market security standards. Furthermore, he believes the application of stablecoins is set to accelerate capital flow and create high-paying technical roles for professionals.
CREGIS
Optimized Tax Regime: Driving Digital Asset Allocation for Family Offices
Shawn Yan noted that the Budget’s proposal to optimize the tax system by exempting digital assets as eligible investments for family offices provides a powerful incentive for global capital to settle. "Our experience serving family offices proves that when institutional capital enters the Web3 space, the primary concerns are compliance and the security of asset sovereignty," Yan stated.
He added that underlying management strategies such as MPC and HSM (Hardware Security Modules) provided by enterprise wallets offer family office clients a more robust system, allowing them to benefit from policy dividends while mitigating non-transactional risks.
Institutionalizing the Licensing Regime: Enhancing Transparency and Security
The Budget outlined a licensing regime for digital asset custody service providers—a move Yan describes as a milestone for industry maturity. "Many clients have reflected that traditional custody models may suffer from a lack of transparency and 'Single Point of Failure' risks," Yan observed.
He believes that by institutionalizing technical benchmarks and requiring custodians to use segregated accounts, the government is aligning with the logic of "layered management" and "compliant risk control," helping to establish a universally recognized security standard.
Photo source: Design image of Getty
Stablecoin Issuance: Building an All-Weather Settlement Ecosystem
Regarding the announcement that the first batch of stablecoin licenses will be issued next month, Yan expects an enthusiastic entry of institutional-grade clients. Stablecoins are more than just payment tools; they are the "standard protocol" for financial settlement. "Stablecoins significantly accelerate capital turnover. On this track, CREGIS's infrastructure solutions help enterprises implement authorization approval flows similar to traditional banking, ensuring that stablecoin settlements remain efficient while meeting all regulatory and compliance requirements."
Empowering Talent: High-Value Technical Roles for the Next Generation
The compliance of digital assets will facilitate the entry of university students into the global FinTech industry. The licensing regime solidifies the industry’s legal status, creating high-paying roles such as Blockchain Security Auditors and Compliance Analysts. As multinational tech firms establish hubs, local youth will gain exposure to advanced Distributed Ledger Technology (DLT). CREGIS remains committed to training local talent, as a background in a compliant jurisdiction will ensure students are recognized by global enterprises.
Photo source: Design Image
