Hong Kong’s First Five-Year Plan: Building Economic and Transport Hubs to Boost Global Competitiveness

Full text of the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) (2)

Part 2

Strengthen the Four Centres, Develop the Hub for High calibre Talent, Consolidate and Enhance Our Edge in Global Competition

2.1 To ensure Hong Kong's long term prosperity and stability, we must fully leverage our city's existing advantages while expediting development and enhancing new quality productive forces. By consolidating and enhancing Hong Kong's status as international financial, maritime and trade centres, and developing Hong Kong into an international I&T centre and a global hub for high calibre talent, we will further sharpen our city's competitive edge. Advancing the development of the "four centres and one hub" at full steam will help drive and sustain Hong Kong's economic development. The arising development dividends will improve people's livelihood, continuously enhancing social well being. Meanwhile, deepening the development of the international legal and dispute resolution services centre, the regional intellectual property trading centre, and the East meets West centre for international cultural exchange, among others, will provide staunch support for the development of the "four centres and one hub", fostering the promotion of scientific research and innovation as well as industry development, and fully leveraging Hong Kong's unique strengths of connecting with the Mainland and the world under "one country, two systems" and its world city status. With this, we shall further sharpen our edge amid global competition.

Hong Kong, Photo source: reference image

Chapter 6 International Financial Centre

2.2 Finance is Hong Kong's pivotal and crowning strength. Hong Kong, as an international financial centre, must firmly demonstrate its international positioning by leveraging its open financial markets to attract global capital, talent, and financial enterprises. We must seek growth through stability and in turn reinforce stability through growth, a principle anchoring resilient underpinning, stable structures, robust capabilities, and manageable risks, as we move forward with various initiatives. These include fully leveraging the core function of propelling the real economy with finance; forging secure and highly effective financial infrastructure; and systemically developing a diverse capital market. With efforts to drive in depth integration with Mainland and overseas markets, we strive to actively consolidate Hong Kong's status as a hub connecting global financial markets, facilitating international capital to seize the development opportunities available in our country and in Asia, while assisting Mainland enterprises and capital in pursuing high quality global expansion. Meanwhile, we will strive to assume a more prominent role in the global financial governance system.

Section 1 Strengthen Our Roles as Global Offshore

Renminbi Business Hub, International Asset and Wealth Management Centre, and International Risk Management Centre

2.3 We shall strengthen Hong Kong's role as the world's largest offshore RMB business hub. We will strive for a comprehensive scale up and continuous refinement of Hong Kong's offshore RMB business and ecosystem respectively. We will strengthen RMB liquidity support and establish a Hong Kong offshore RMB liquidity provision mechanism, while accelerating the innovation and diversification of offshore RMB products. As we develop a comprehensive, multi-layered cross-boundary RMB circulation network, we will improve the stability of offshore RMB financing. In the meantime, we will actively promote the use of RMB to settle government expenditure, and further enhance the capacity of the offshore RMB market in supporting the real economy for the expansion and enabling of trade, investment, financing, and cross-boundary business dealings. We will also support the wider use of RMB in cross-boundary businesses and facilitate the exchange between RMB and other regional currencies. Our financial regulators will step up engagement with their Mainland counterparts, maintaining close communication regarding the concerted efforts to safeguard Hong Kong's financial market stability.

RMB, Photo source: AP News

Table 2 Strengthening Hong Kong's Role as a Global Offshore RMB Business Hub

1. Enhancing liquidity

• Continue to make good use of the Currency Swap Agreement with the People's Bank of China, refine the RMB Business Facility, explore measures to enhance liquidity support for Hong Kong's banks, and facilitate two-way capital flows.

2. Expanding product supply in the offshore RMB market

• The scale of RMB bond issuance will be continuously expanded, and made regular across a range of tenors.Promote regular issuance of Dim Sum bonds in Hong Kong by high-grade issuers, such as sovereign, institutional, and corporate issuers.Explore further mechanisms for the issuance and trading of RMB-denominated fixed-income instruments to support the building of offshore RMB yield curve.Broaden the application scenarios of using RMB bonds as collateral.Expand the range of liquidity management tools and risk management products available to the offshore RMB market.Actively expand the use of RMB into other areas for pricing, settlement, and investment purposes.

3. Supporting the inclusion of RMB counters under Southbound trading of Stock Connect

• Encourage Mainland and international investors to use RMB as the investment currency while incentivising more listed companies to set up RMB counters to further promote RMB internationalisation.

4. Promoting the advantages of Hong Kong's offshore RMB services to international markets

• Collaborate with the banking sector to actively deepen engagement with high-potential countries and regions, such as the Belt and Road Initiative partner countries and the Association of Southeast Asian Nations (ASEAN) countries, so as to tap into emerging markets.

5. Promoting the use of RMB for settling government expenditure

• The HKSAR Government will take the lead in actively exploring and driving more settlement of government expenditures in RMB under suitable scenarios.

2.4 We shall bolster Hong Kong's status as a world leading cross-boundary wealth management centre. We will provide quality services for global sovereign wealth funds and family offices to develop their businesses in Hong Kong, and strengthen our city's functions in asset allocation and wealth management for Mainland and global investors. We aim to encourage more international and Mainland family capital and long term capital to establish and expand their operations in Hong Kong through enhancing the regulatory and market infrastructure, enriching the professional services ecosystem, promoting the development of family offices, and enhancing the tax regimes for funds, single family offices, as well as carried interest. We are also committed to promoting the development of our fund market by diversifying the range of asset classes under management and product offerings, including diversified asset management instruments such as alternative asset funds and real estate investment trusts, thereby deepening and broadening our overall asset and wealth management capabilities.

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2.5 We shall strengthen Hong Kong's role as an international risk management centre. We endeavour to deepen regulatory co-operation with the Mainland and overseas markets, and fully leverage our competitive edge in the international insurance, reinsurance, and capital markets to advance the synergised development of traditional insurance and non traditional risk management tools. These will enable us to unleash the synergy effect of multi layered risk transfer and pooling mechanisms through insurance linked securities, captive insurers, and a marine specialty risk pool, consolidating our strategic role as a regional and global catastrophe and specialty risk management hub. In the meantime, we will strengthen the insurance industry's risk based capital regime, promote the investment of insurance capital in infrastructure projects in Hong Kong and the Mainland, and enhance the industry's risk prevention and control capabilities as well as risk management culture.

Section 2 Enhance Equity and Bond Markets

2.6 We will continue to enhance the market regime design and product ecosystem for the equity and bond markets. We will enhance the markets in terms of depth, breadth, and liquidity to assist Mainland enterprises to go global and bring in international capital. We will play our part as the testing ground for the financial opening up of our country, striving for a greater say and broader influence as an international financial centre.

2.7 We will enhance securities market efficiency. We will strive to enhance the competitiveness of our listing regime and operating efficiency of the securities market infrastructure, and support Mainland and overseas leading enterprises and quality enterprises from emerging industries to list in Hong Kong. Alongside other measures, the Hong Kong Exchanges and Clearing Limited and the Qianhai Equity Exchange will deepen their collaboration and connect more quality Mainland enterprises to the international capital market through Hong Kong's listing platform with more efficient listing services. Through broadening the mutual access mechanism for financial markets, expanding emerging market fields, and leveraging our functions as an investment and financing platform, we will foster collaborations with the Belt and Road Initiative partner countries, the Global South, and other emerging economies in trade, finance, and infrastructure.

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2.8 We will enhance our international bond market. With well co-ordinated efforts, we will boost issuance in primary market, enhance liquidity in secondary market, expand offshore RMB business, and develop fixed income and currency infrastructure. Southbound Bond Connect will be refined to expand and enhance different aspects including investment scale, investor scope, products, and trading arrangements. We will encourage more Mainland institutions to invest in Hong Kong's bond market, expanding the channels and trading volumes in respect of Stock Connect, Bond Connect, Wealth Management Connect, and Private Equity Connect. We will develop a diverse range of financial products and risk management tools, while considering the establishment of a central counterparty for clearing repo transactions and enhancing the regulation of over the counter derivative products. We will also steadily regularise the issuance of digital Government bonds and enhance relevant legal framework and market infrastructure in order to promote the wider adoption of digital bonds. To expedite the commercialisation, internationalisation, and modernisation of the Central Moneymarkets Unit, and to enhance the connectivity and interoperability of the local central securities depositories for stocks and bonds, we will establish an electronic fixed income and currency trading platform catering for the local markets and RMB internationalisation and develop our Central Moneymarkets Unit into a leading central securities depository in the region.

2.9 We will strive to attract international financial institutions to establish regional headquarters or offices in Hong Kong and support them in anchoring regional bases in our city. We are staunchly committed to supporting multilateral development institutions such as the Asian Infrastructure Investment Bank in capitalising on Hong Kong's full fledged capital market for project financing, bond issuance, investment, and financial management, and will actively support the needs of the Asian Infrastructure Investment Bank's office in Hong Kong. We will step up our efforts in nurturing and attracting international financial talent, while optimising professional qualification alignments and enhancing practical training and cross-boundary exchange mechanisms. These measures will serve to enrich our financial talent pool comprising professionals with international perspectives and expertise.

2.10 We will step up the development of financial institutions and the pursuit of international financial engagement and collaboration. We will undertake in depth engagement in regional and global financial development. We will support major Mainland financial institutions in making use of Hong Kong as a platform to elevate their overall service quality, bringing in more capital investment, and setting up their international headquarters in our city for overseas business expansion. We will give full play to the role of Hong Kong offices of major Mainland financial institutions as the risk management centre and operational base for their parent groups, and serve as a springboard for Mainland banks and insurance companies, especially internationalised reinsurers, to expand into global markets. As for the Hong Kong offices of other Mainland financial institutions, our city will serve as a window for them to connect their operations to the international market given Hong Kong's position as the launchpad for Mainland enterprises to go global. We will organise premier financial events to deepen international exchange and practical collaboration.

2.11 We will facilitate company re domiciliation to Hong Kong. We will channel well capitalised, well governed overseas enterprises with substantive operations, especially financial institutions, to re domicile to Hong Kong in an orderly manner, enhancing the quality and soundness of Hong Kong based financial entities.

Section 3 Develop a Commodity Trading Ecosystem

2.12 We shall develop a commodity trading ecosystem with gold as an entry point. Under our co-ordinated efforts, we will drive the development of the clearing system, storage, supply, and infrastructure related to gold trading to fully leverage the role of gold as a strategic asset, with a view to benchmarking other major international gold trading centres in the long run while developing hardware and software simultaneously. Along with expediting the development of infrastructure to provide efficient and reliable services for international standards gold trading, to achieve capacity expansion, we will offer all rounded support for more gold traders and financial institutions to establish their presence in Hong Kong. We will also increase the city's overall gold storage capacity and refining capability, step up training for local talent, and explore further preferential policies for enterprises related to the gold industry. Collaboration between the gold markets of Hong Kong and the Mainland will be deepened through a range of proactive initiatives to spearhead mutual market access and develop a one-stop gold storage, trading, clearing, and service hub, hence an integrated gold trading ecosystem. We will also explore the development of RMB-denominated gold and commodity markets, strengthen co-operation with Mainland exchanges including the Shanghai Gold Exchange and the Shanghai Futures Exchange, step up efforts to attract international investors, and increase the variety of RMB-denominated products.

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2.13 We will co-ordinate efforts to achieve innovation and breakthroughs for commodity trading in the offshore RMB market. We will leverage Hong Kong's unique advantages as an approved delivery point within the London Metal Exchange's global warehousing network to drive the synergised development of more commodities related trading, risk management, and financing businesses. We will also explore new channels to tap into the demand for other investment instruments, and develop an efficient and open commodity trading ecosystem, so as to further enrich the variety of RMB-denominated and settled commodity futures and options traded in Hong Kong, while encouraging and supporting the use of RMB for pricing and settlement in spot commodity transactions. We will develop RMB-denominated commodity trading and pursue differentiated and complementary development with the Mainland market, including collaboration with the Qianhai Mercantile Exchange.

Section 4 Take Forward "Finance+" to Serve the Real Economy

2.14 On promoting "Finance + Technological Innovation", we will promote patient capital and venture capital investments in technological and industry innovations. We will widen the financing channels to enhance the listing regime for technology enterprises. By facilitating the acceleration of fintech development, we will support the expansion and strengthening of financing services for I&T enterprises. Moving forward with digital finance, we comprehensively enhance financial institutions' service efficiency as well as risk prevention and control capabilities, while exploring the in depth application of digital finance infrastructure. As guided by the principle of "same activity, same risks, same regulation", we will establish a world leading licensing and regulatory regime for digital assets, thereby improving their liquidity and promoting market innovation. We will attract various financial resources into the technological innovation fields through market oriented means, and strengthen the development of frontier technological research of post secondary institutions, commercialisation and industrialisation of technological achievements, and emerging industries, providing whole life cycle support for the commercialisation and transformation of scientific research outcomes.On "Finance + Trade", we will focus on strengthening trade finance, supply chain finance, settlement and clearing, and risk management services, with a view to stepping up support for small and medium enterprises (SMEs) and cross border trade. As for "Finance + Green Development", we will make a resolute push for the expedited development of green and sustainable finance. We will advance an international carbon market, with a view to contributing to our country's low carbon transition in key areas such as industries, transportation, and energy, while supporting green enterprises in going global in an orderly manner. To advance "Finance + Intellectual Property (IP)", with the use of the IP Financing Sandbox, we will integrate IP into the financial services system in support of IP value transformation, further unleashing the potential of IP as a new economic development impetus. Regarding "Finance + Maritime", to cater for the financing needs arising from the green transformation of the international maritime industry and align with the national strategy on commodity trading, we will help shipping enterprises diversify their financing channels and expand development frontiers. On "Finance + Livelihood", financial inclusiveness will be further developed by extending the scope and accessibility of financial services and enhancing the financial services system that is available to all walks of life.

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Table 3 Finance+

1. Finance + Technological Innovation

• Set up an Innovation and Technology Industry-Oriented Fund with a provision of $10 billion for five thematic areas covering life and health technology, AI and robotics, semi-conductors and smart devices, digitalisation, upgrading and transformation, as well as future and sustainable development.The fund size, expected to reach at least $40 billion, will comprise contributions from the Government and the market at a ratio of 1 to at least 3.

• Roll out the Innovation and Technology Venture Fund Enhanced Scheme with a provision of up to $2.5 billion for jointly setting up a matching fund with the market to invest in start-ups of strategic industries.At least $7.5 billion of market capital is expected to be raised under the scheme.

• Spearhead co-investment in hard and core technology, biotechnology, new energy and green technology, and related applications through patient capital deployment by the wholly government-owned Hong Kong Investment Corporation Limited.

• Advance fintech development steadily across four pillars, namely, data and payment infrastructure, AI, resilience enhancement, and tokenisation of finance.

• Promote further practical applications regarding applying tokenisation technology across a diverse set of asset classes and use cases through the Project Ensemble launched by the Hong Kong Monetary Authority.

• Advance the development of emerging digital assets, such as the Central Bank Digital Currency, stablecoins, tokenised deposits, tokenised bonds and tokenised securities products in a rigorous manner.

• Deepen the application and expand the coverage of supervisory sandboxes in financial services to strike a dynamic balance between financial innovation and regulation.

2. Finance + Trade

• Continue to take forward Project Cargo to integrate the cargo and trade data platforms, facilitate trade document digitalisation and cross-border data exchange, and promote adoption of electronic authentication in the digitalisation of trade documents.

• Enhance tax concessions and other measures to boost our attractiveness to Mainland and overseas enterprises for setting up Corporate Treasury Centres in Hong Kong.

3. Finance + Green Development

• Advance the development of an international carbon market to channel funds into sustainable investment.

• Enhance our sustainable finance-related information disclosure framework and sustainable finance ecosystem to strengthen the market's capabilities and professional standards in relation to green finance and transition finance.

• Promote cross-border market collaboration and innovation to facilitate effective matching of green and sustainable projects with international capital, thereby contributing to the global sustainable development goals.

4. Finance + IP

• Strengthen financing support for innovative enterprises to better meet their practical needs in areas of capital operation, R&D, business expansion, etc.

5. Finance + Maritime

• Support the development of diversified products pertaining to maritime finance, insurance, trade financing, and value-added services.

• Support green and digital upgrading and transformation of the maritime industry, and foster the development of new energy vessels, clean energy transportation, and low-carbon operation models.

• Promote cross-border RMB settlement in the maritime industry.

• Support the expedited development of protection and indemnity clubs, and promote training in maritime insurance.

6. Finance + Livelihood

• Promote the enhancement and upgrading of the pension finance system and continue to diversify pension finance product offerings.

• Strive to facilitate the public and businesses by continuously upgrading Payment Connect.

• Provide strong support for the growth of SMEs, including strengthened financial support and fnancial incentives for digital transformation.

Section 5 Strengthen Financial Risk Prevention

2.15 We will safeguard our financial security, improve long term mechanisms, and enhance our capabilities in financial risk monitoring, early warning, and prevention response. We will also improve the cross market and cross agency joint prevention and control mechanism. In the meantime, we will strengthen our risk monitoring in key areas, while enhancing financial infrastructure and the data security protection system, thereby fortifying cybersecurity and consolidating our capabilities in fintech regulation and anti-money laundering.

Chapter 7 International Maritime Centre andAviation Hub

2.16 To consolidate and enhance Hong Kong's status as an international maritime centre, we will stabilise our container throughput, add value, and strengthen synergy. Guided by the shift of focus from volume based to value driven development, we will drive a "volume to value" transformation of the Hong Kong Port. We will strive to facilitate the development of modern maritime services, build a diversified and resilient system of international transportation corridors, promote the healthy and orderly development of international air freight and low-altitude economy (LAE), and expedite the implementation of sea-air intermodal transhipment. With these efforts, we are committed to comprehensively enhancing Hong Kong's function as a hub amid the modern transport network of our country.

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Section 1 Advance the Digitalisation, Smart Transition, and Green Transformation of Hong Kong's Maritime Industry

2.17 We will promote the development of a smart and green port, and enhance the interconnection of logistics data. We will strive to lead port operators to expedite smart transition of the Kwai Tsing Container Terminals. With our efforts to continuously unleash the development potential of the Port Community System for in depth integration with the Global Shipping Business Network, we endeavour to provide one-stop sea-, land-, and air-logistics and supply chain data, as well as value-added services such as One Data Multiple Declarations for local logistics and trading companies. We will expedite the development of a green maritime fuel bunkering and trading centre while also deepening our collaboration with the Pan-Pearl River Delta cities to develop Hong Kong centric green energy corridors, and study the co-development of a complete green and low-carbon industrial chain and supply chain for new energy vessels, with a view to creating a new model of "production, storage, and transport in South China; bunkering and trading in Hong Kong; servicing global shipping" for the establishment of an end-to-end low-carbon regional green maritime fuel supply chain system.

Table 4 Advancing the Green Transformation of the Maritime Industry

1. Proportion of green maritime fuel used

• The proportion of Hong Kong-registered vessels taking up green maritime fuels reaches 7% in 2030.

2. Reducing carbon emissions

• Reduce carbon emissions from the Kwai Tsing Container Terminals by 30% in 2030 as compared to 2021.

3. Establishing Green Energy Corridors

• Establish five Green Energy Corridors by 2030 to help develop Hong Kong into a green maritime fuel bunkering and trading centre.

2.18 We will promote high quality collaborative development among ports and deepen co-operation with Mainland and international shipping ports. We will strengthen our status as an international transhipment hub and strive to integrate into the country's logistics hub network, thereby contributing to the country's efforts in increasing its competitiveness and influence in the international shipping landscape. Through co-operation and leveraging the complementary advantages of the Southeast Asia routes of both ports, Hong Kong and Yangpu Ports can establish a "dual-hub" model, which will facilitate the export of cargoes through either port. By making good use of the comparative advantages that Hong Kong enjoys in terms of Central and South America routes, we will collaborate with national key cold chain logistics bases in other Guangdong-Hong Kong-Macao Greater Bay Area cities to develop Hong Kong into an international centre of cold chain trade in South China, thereby contributing to the country's development of an international cold chain logistics corridor between South China and South America. We will continue to develop a comprehensive "rail-sea-land-river" intermodal transport system. By pursuing cross-province operation of and licensing regime reform for cross-boundary goods vehicles, as well as the mutual recognition of commercial vehicle driving licences issued by Guangdong, Hong Kong and Macao, we strive to reduce the cost of cargo transhipment via Hong Kong and achieve the goal of stabilising container throughput.

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Table 5 Promoting High-Quality Collaborative Development among Ports

1. Continuous development of a comprehensive "rail-sea-land-river" intermodal transport system

• Expand cargo sources, develop Hong Kong Port into a transhipment hub for high-value goods, and expand our footprint in new markets, such as Central and South America and Oceania, etc. Explore the establishment of a business and trading zone for re-export to facilitate the flow of goods transhipped via Hong Kong within the Guangdong-Hong Kong-Macao Greater Bay Area.By driving the formulation of management guidelines and standards for high value-added logistics services in collaboration with other Guangdong-Hong Kong-Macao Greater Bay Area cities, a cluster of international integrated transport and logistics hubs in the Guangdong-Hong Kong-Macao Greater Bay Area will be developed in a co-ordinated manner.Explore innovations in financial and insurance services for "single cargo manifest" based on multimodal transport documents.

2. In-depth participation in the development of a world-class port cluster in the Guangdong-Hong Kong-Macao Greater Bay Area

• Promote the successful experience of the differentiated development of Hong Kong's Kwai Tsing Port and Shenzhen's Yantian Port to encourage the differentiated development and effective collaboration between Hong Kong and other ports in the Guangdong-Hong Kong-Macao Greater Bay Area to achieve synergy effect, and attract goods to be shipped between Central and South America and the Guangdong-Hong Kong-Macao Greater Bay Area to be centrally handled in Hong Kong.Revitalise the feeder network between Hong Kong and other ports within the Guangdong-Hong Kong-Macao Greater Bay Area. Commence international maritime collaboration and port co-operation with Shenzhen and Huizhou to explore new modes of transportation for the Hong Kong-Shenzhen cross-boundary container cargoes as well as the river-sea through cargo operation on specific routes.

3. Active participation in the scenario incubation for the development of a smart and green logistics model using "water-to-water transhipment"

• Create a favourable operating environment for the use of autonomous ships in Hong Kong and the entire Guangdong-Hong Kong-Macao Greater Bay Area, thereby promotin maritime digitalisation in the Guangdong-Hong Kong-Macao Greater Bay Area.

Section 2 Develop a High Value-added Maritime Services Ecosystem

2.19 We will strengthen high value-added maritime services. By further enhancing Hong Kong's ship registration regime, we aim to enhance Hong Kong's competitiveness as a premier registry for international shipowners and attract more vessels to register in Hong Kong, thus broadening the scale of the Hong Kong registered fleet. We will also uphold quality enhancement as the major direction to support the upgrading and development of the high value-added maritime services cluster, while fully leveraging Hong Kong's strengths in maritime services such as ship management, ship financing, marine insurance, maritime arbitration services, etc. We will assist enterprises from the Belt and Road Initiative partner countries in developing the Mainland and Asian markets. Through driving industry stakeholders and training institutions to collaborate in further developing a systematic training framework that consolidates existing resources and professional strengths, we seek to build a stable talent pool for the high value-added maritime services.

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Table 6 Elevating the International Reputation and Competitiveness of Hong Kong's High Value-added Maritime Services

1. Implementing the half-rate tax concession for commodity trading

• Implement the half-rate tax concession for commodity trading to incentivise Mainland and international commodity traders to set up international/regional headquarters or operational centres in Hong Kong, as a supportive measure for creating a thriving commodity trading ecosystem and spurring the demand for high value-added maritime services.

2. Establishing collaboration mechanism with Mainland maritime training institutions

• Establish a regular collaboration mechanism with Mainland maritime training institutions to foster exchanges, co-operation opportunities, and mutual visits between local and overseas professional teaching personnel, while encouraging local maritime enterprises and industry organisations to join the collaboration mechanism to further enrich Hong Kong's pool of maritime service talent, advancing the sustainable development of high value-added maritime services of our city.Engage Mainland maritime educational institutions to jointly provide education services with a view to establishing a top-tier composite system for nurturing maritime talent.

3. Supporting the Advanced Maritime Technology Institute in establishing presence in Hong Kong

• Support the Institute in establishing a R&D and collaboration platform in Hong Kong on R&D in frontier and disruptive technologies relevant to the critical segments of the maritime industry chain.Enhance industry-academia-research collaboration with scientific research institutes and technology enterprises to foster the transformation and commercialisation of R&D outcomes, contributing to Hong Kong's development into a "Global Maritime Capital".

4. Reforming the Hong Kong ship registration regime

• Revamp the Hong Kong ship registration regime by permitting arrangements such as dual registration and continuously exploring improvement measures.Support the enhanced access to the Mainland market by Hong Kong-registered vessels.Step up promotion efforts locally and overseas and implement various incentive schemes to attract more shipowners to register their vessels in Hong Kong.

5. Leveraging the strategic collaboration established through the partner port initiative

• Make use of the strategic relationships forged through partner ports to assist enterprises of the Belt and Road Initiative partner countries to tap into the Mainland and Asian markets.

Section 3 Enhance Hong Kong's Status as anInternational Aviation Hub

2.20 We will strive to enhance Hong Kong's competitive edge as an international aviation hub by continuously launching new routes, strategically attracting local and non-local airlines to develop new destinations and increase flight frequencies, and strengthening Hong Kong's long haul network, particularly connections with the Belt and Road Initiative partner countries. We will also deepen international co-operation by actively participating in international civil aviation conferences and proactively reach out to aviation partners to negotiate new air services agreements or expansion of traffic rights, with priority focus on regions with further development potential and new growth areas, such as South America, Central Asia, Africa, and the Middle East. We will press ahead with the development of the "Airport City" to drive high end commercial and tourism activities, and to strengthen the appeal of the Hong Kong International Airport as a transit hub.

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Table 7 Development of the International Aviation Hub

Expanding the international air network

• Explore with 10 or more aviation partners each year between 2026 and 2030 the strengthening of civil aviation links, at least 40% of which will be the Belt and Road Initiative partner countries.

• Increase the global destinations of the Hong Kong International Airport from 220 to 240 within five years.

2.21 We will deeply engage in the development of the national aviation network. Building on the existing highly internationalised network, we will proactively align with the national aviation network development strategy by fully leveraging Hong Kong's advantages of connecting the Mainland and the world, and actively integrating into the country's "one circle, six corridors, and five channels" development. In doing so, we will support and serve our country in enhancing the global reach of the aviation network to strengthen the resilience and connectivity of the national aviation network as a whole, allowing us to be better prepared for the reshaping of the global aviation network landscape. We will strengthen co-operation with the airport cluster in the Guangdong-Hong Kong-Macao Greater Bay Area in terms of operational co-ordination, airspace optimisation, intermodal arrangement, and other aspects. By promoting resource sharing and complementary functions within the airport cluster, we will enhance our overall operational efficiency and service quality, thereby boosting the global competitiveness of the Guangdong-Hong Kong-Macao Greater Bay Area airport cluster.

Table 8 Active Integration Into the National Aviation Development Strategy of "Trunk-Branch Connectivity, Whole-Network Linkage"

Introducing more flights connecting Mainland airports

• Encourage local airlines to launch more flights connecting Mainland airports.By means of intermodal arrangements and code sharing, airlines can expand their customer base and network coverage.With the core idea of "Linking the Trunk and Branch, Connecting Urban and Remote" being embodied by through check-in flights and convenient transit services, enhance the connectivity between Mainland cities and international destinations via Hong Kong's network as an iternational aviation hub, so as to realise the two-way convergence of domestic and international dual-circulation.

Section 4 Develop a New Ecosystem for the Aviation Industry

2.22 We shall develop an aviation industry ecosystem with a global edge. We will strive to develop an aircraft parts processing and trading industry ecosystem to establish a "front shop, back factory" industry cluster and Asia's first aircraft parts processing and trading centre. We will actively participate in the R&D and certification of home developed aircraft and leverage our bridging role to help home developed aircraft tap into the global market through Hong Kong. By leveraging Hong Kong's Sustainable Aviation Fuel (SAF) production base in Dongguan, we will advance SAF value chain development in the Guangdong Hong Kong Macao Greater Bay Area (including the construction of an SAF blending facility in Hong Kong), thereby supporting our country's SAF development.

Table 9 Developing an Aviation Industry Ecosystem witha Global Edge

Facilitating SAF industry development

• Develop an internationally competitive SAF value chain.Establish a Hong Kong SAF value chain in the Guangdong-Hong Kong-Macao Greater Bay Area to jointly develop a demonstration project in the circular economy, with a view to fostering the growth of new energy industry in the aviation sector and nurturing the SAF industry into a globally competitive green industry.The production base is expected to commence operation by 2030.

• Achieve an SAF consumption ratio of 1% to 3% for flights departing from the Hong Kong International Airport in 2030.

2.23 We shall develop Hong Kong into the Asia-Pacific hub for innovative low-altitude applications. We will formulate and implement the Action Plan on Developing Low-Altitude Economy. We will enhance the regulatory regime, set standards, and develop infrastructure, while proactively enhancing R&D, talent nurturing and alignment with international standards in LAE-related fields. We will give full play to our roles as a leader, connector, and illustrator and explore developing a demonstration and compliance base for LAE to go global, on the basis of strengthening effective alignment with the Mainland's regulatory framework. We will also study jointly advocating for the establishment of an international LAE co-operation organisation with the Mainland.

2.24 We will advance the development of cross-boundary low-altitude logistics in the Guangdong-Hong Kong-Macao Greater Bay Area. By fully leveraging the industry foundation and geographical advantages of the Guangdong-Hong Kong-Macao Greater Bay Area and drawing on our pioneering explorative experiences of collaboration with neighbouring Mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area, we will strive to connect the key resources in Guangdong, Hong Kong and Macao to broaden application scenarios for cross-boundary low-altitude logistics in the Guangdong-Hong Kong-Macao Greater Bay Area, thereby expediting the development of an integrated and scaled cross-boundary low-altitude logistics network covering the Guangdong-Hong Kong-Macao Greater Bay Area.

Photo by Bastille Post

Table 10 Developing an LAE Ecosystem

1. Improving civil aviation legislation, relevant standards, and regulatory framework

• Formulate relevant legislation for unconventional aircraft weighing over 150 kilograms.Having consolidated the implementation experience of the first batch of LAE "Regulatory Sandbox" projects, regularise the more mature projects, and formulate relevant standards.

• Promote compatibility between Mainland and Hong Kong LAE-related standards.

• Leverage Hong Kong's status in international organisations such as the International Civil Aviation Organization and the World Meteorological Organization, etc, to proactively support the country's participation in the formulation of international LAE standards.

2. Advancing the development of LAE infrastructure facilities

• Plan ahead for vertiports, air route networks, satellite positioning, three-dimensional spatial data systems, and a smart low-altitude traffic management system, etc.

3. Rolling out the advanced LAE Regulatory Sandbox X

• Test application scenarios that are more technically complex, such as cross-boundary routes, low-altitude passenger-carrying aircraft, unmanned aircraft system traffic management system, and multiple applications/users shared-platforms. Support collaboration with other Guangdong-Hong Kong-Macao Greater Bay Area cities to promote the development of cross-boundary low-altitude logistics activities.

4. Supporting R&D and talent development

• Continue to support LAE-related R&D and talent development.Support local institutions and aviation training institutes to further enhance training for various LAE professional talent in the fields of technological research, product development, system design, safety oversight, aircraft piloting, and commercial operation, etc.

5. Supporting the organisation of regional and international LAE trade fairs and exploring the establishment of a demonstration zone for LAE products to go global

• Attract more buyers from around the world to visit Hong Kong by fully leveraging Hong Kong's status as international financial and trade centres as well as a free port, and providing one-stop support services for LAE import and export trades in areas such as project financing, export credit insurance, and after-sale service, etc.

2.25 We will strive to enhance the Guangdong-Hong Kong-Macao Greater Bay Area's intermodal network. We will focus on advancing the development of the Hong Kong International Airport Dongguan Logistics Park, expediting smart and integrated collaboration for airport operations. We will also develop more intermodal transport models, continuously enhance the "Fly-Via-Zhuhai-Hong Kong" initiative, and enhance the convenience for the transport of passengers and goods in the Guangdong-Hong Kong-Macao Greater Bay Area to and from all around the world. With a view to strengthening the Hong Kong International Airport's connectivity with other Guangdong-Hong Kong-Macao Greater Bay Area cities, we will leverage the "sea-air intermodal cargo transhipment mode" at the Hong Kong International Airport Dongguan Logistics Park to enhance the connectivity of the two places, facilitate cargo flow, and strengthen the collaboration between aviation logistics and e-commerce.

2.26 We will strive to take the lead in the interactive development mode that harnesses the complementary strengths of the Guangdong-Hong Kong-Macao Greater Bay Area airport cluster. We will promote the integrated development of aviation and maritime sectors between Guangdong and Hong Kong, explore co-operation with the airports of Macao and Shenzhen to facilitate collaborative airspace management, and optimise air routes, thereby improving flight efficiency and capacity as well as strengthening co-operation in cargo, maintenance, and training.

Table 11 Optimising the Intermoda Network ofthe Guangdong-Hong Kong-Macao Greater Bay Area

1. The Hong Kong International Airport Dongguan Logistics Park

• Advance the Dongguan Logistics Park project to enhance the connectivity between Hong Kong and Dongguan and facilitate the cargo flow between the two places under the sea-air intermodal cargo transhipment mode.

2. Developing more intermodal modes

• Continue to enhance the international connecting flight transit provided through the Fly-Via-Zhuhai-HK service and the "air-land-air" mode, the "land-air" mode, and "sea-air" mode as well as air-rail intermodal transport services while developing more intermodal modes to bolster connectivity between the Hong Kong International Airport and other Guangdong-Hong Kong-Macao Greater Bay Area cities as well as other Mainland cities.

3. Co-operation with the Macao International Airport in further optimising passenger flow

• Leverage the sea-air intermodal services provided at the Skypier Terminal and the dedicated bus service between the Hong Kong-Zhuhai-Macao Bridge Port and the Hong Kong International Airport (the bonded bus), etc. to enhance service efficiency.

4. The world-class airport cluster in the Guangdong-Hong Kong-Macao Greater Bay Area

• Explore the possibility of further deepening the collaboration among the world-class airport cluster in the Guangdong-Hong Kong-Macao Greater Bay Area.

• Support the efforts of the Pearl River Delta Region Air Traffic Management Planning and Implementation Tripartite Working Group to enhance the peripheral flight paths and airspace structure of the Guangdong-Hong Kong-Macao Greater Bay Area, and create a more flexible air traffic control model through enhanced data sharing and the application of new technology, thereby enhancing the efficiency in managing the air traffic flow in the region.

Photo source: reference image

Chapter 8 International Trade Centre

2.27 We shall consolidate and enhance Hong Kong's status as an international trade centre. We will expand our networks, enhance our competitive edge, and create new room for growth, while pursuing upgrades with the goal of achieving "digitalisation" and "diversification" and leveraging Hong Kong's advantages as financial and treasury centres, thereby strengthening our role as a platform for offshore trade. We will encourage manufacturing, technology, and logistics enterprises to engage in high value added activities such as taking international orders, conducting foreign exchange, trade finance, and supply chain management, etc. through Hong Kong, so as to develop our city into an integral hub serving the global industry and supply chains. We will bring together global enterprises to participate in high quality Belt and Road co-operation, while reaching out to markets around the world, so as to enhance Hong Kong's resilience and strategic significance as an international trade centre.

Section 1 Continue to Expand International Economic andTrade Network

2.28 We will continue to uphold free trade, maintain zero custom tariff, and support the rules based multilateral trading system in order to provide a business environment with transparency and high degree of certainty for our trading partners. We will continue to consolidate our ties with the European and American markets, further cultivate the ASEAN and Middle East markets, while exploring emerging markets such as Central Asia and Africa. We will actively forge free trade agreements and investment agreements with economies that are of development potential or strategic locations, and continue to seek accession to the Regional Comprehensive Economic Partnership as early as possible, with a view to further expanding Hong Kong's "circle of friends" in trade. In the meantime, we will secure better overseas market access and investment protection for Hong Kong’s trade in goods and services. These efforts will enhance two-way investment flows and promote the further development of Hong Kong's economy.

2.29 We will continue to expand our network of overseas offices, focusing on economies which have high growth potential and are under strategic partnership with Hong Kong. Coupled with the overseas networks of the Economic and Trade Offices of the HKSAR Government, Invest Hong Kong, and the Hong Kong Trade Development Council, we will deepen external ties and step up efforts in economic and trade promotion. We will proactively engage foreign governments, organisations, and enterprises in regular exchanges to promote Hong Kong's unique advantages. By deepening co-operation with various markets, we aim to attract more overseas enterprises to venture into the Greater China and Asia Pacific markets through Hong Kong, thereby bringing in overseas capital, enterprises, and talent.

2.30 We will step up efforts in attracting businesses and investment, and guide industry development at full steam. For guiding industry development, we will adopt preferential policies for industry and investment. We will speed up the attraction of industry leaders and various enterprises to establish regional or international headquarters and treasury centres in Hong Kong for managing offshore trade and supply chains. We will also target long term capital from the Middle East, ASEAN, as well as Europe and America to further strengthen Hong Kong's headquarters economy and promote family offices in Hong Kong. Focusing on key industries in the I&T field such as AI, digital economy, life and health, new industrialisation, and green development, etc, we will draw up a list of target enterprises and an annual action plan for attracting businesses and investment. We will also enhance the mechanisms for cross departmental co-ordination and project implementation, so as to provide project based services for enterprises, while strengthening the one stop co-ordination service in land, planning, immigration clearance, talent, and regulatory matters for key investment projects.

Hong Kong, Photo source: reference image

Section 2 Develop a High Value-added Supply Chain Services Centre

2.31 We will enhance Hong Kong's function as a platform for going global. Leveraging Hong Kong's advantages in internationalisation and its network, the Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) set up by the HKSAR Government in 2025 has successfully led Mainland enterprises to make use of Hong Kong as a platform to expand their business overseas. The GoGlobal Task Force will continue to expand and consolidate the functions of the Economic and Trade Offices in the Mainland and overseas, Invest Hong Kong, and the Hong Kong Trade Development Council, with a view to echoing with our country's plan to improve the comprehensive overseas services system and guide Mainland enterprises to set up their cross border industry and supply chains in a reasonable and orderly manner, thereby supporting them in tapping into international markets and taking part in the global industry, supply, and value chains. We will enhance the standard of comprehensive overseas services, providing one stop, high quality, and high value-added professional corporate services for Mainland enterprises going global. We will deepen exchanges and co-operation with relevant Mainland authorities and business organisations to support Mainland enterprises in establishing presence and expanding business overseas, and speed up efforts of the GoGlobal Task Force at comprehensive overseas service points. We will build an integrated ecosystem covering core functions such as overseas market analysis, risk management, legal and dispute resolution services, international branding, supply chain collaboration and enhancement, as well as cross-border financing to assist enterprises in effectively addressing global market challenges.

2.32 We will co-ordinate efforts among various service sectors, including finance, legal and dispute resolution, accounting, logistics, insurance, testing and certification, etc, to establish a two-way service platform that enables overseas enterprises to enter the Mainland market and Mainland enterprises to go global through Hong Kong. Leveraging Hong Kong's advantage as an international financial centre, we will assist enterprises in getting listed in Hong Kong and provide cross-border trade finance and risk management. With advantages including a common law system that is aligned with international standards, strengthening of the functions of the International Organization for Mediation's headquarters, and our international legal talent, we will offer contract management as well as cross-border legal and dispute resolution services, thereby safeguarding the interests of enterprises against international trade frictions when they expand overseas. We will enhance the standards for testing and international certification for Mainland enterprises and brands, thereby enhancing industry quality, building a strong international image, and fostering the globalisation of brands.

2.33 We will enhance the two-way platform function of the convention and exhibition industry. By fully leveraging the "international showroom" function of Hong Kong's convention and exhibition industry and its edge in brand building, we will focus on attracting more large scale international exhibition events and trade fairs to be staged in Hong Kong. We will support the inclusion of eligible Hong Kong quality brands in the list of China's leading consumer brands, foster in depth collaboration among Mainland and Hong Kong enterprises in such areas as brand cultivation, R&D and design, supply chain management, global marketing, etc, and enhance the "Mainland production + Hong Kong services" model for going global, with a view to providing the necessary platform for Mainland enterprises to tap into international markets and supporting well known Mainland brands to venture into the global scene. Meanwhile, we will attract overseas enterprises to introduce quality products and services into the Mainland market using Hong Kong as a platform for international exhibitions and a springboard for trade. We shall make use of our unique advantages as a two-way platform to further develop and consolidate Hong Kong's status as an international convention and exhibition hub.

Hong Kong, Photo source: reference image

It refers to an intermodal transhipment mode in which import and export goods are wholly or partially transported and transhipped using water transportation service, such as river transport and riversea transhipment.

It refers to deepening the development of Southeast Asia and Northeast Asia markets and steadily expanding into the West Asia, Central Asia, and South Asia markets to construct an aviation transport network with the neighbouring countries, with a view to boosting the capacity for the international market. An orderly approach will be adopted in enhancing the air route network connectivity of the six major economic corridors established under the Belt and Road Initiative for international co-operation, namely the new Eurasian Land Bridge and China-Mongolia-Russia, China-Central Asia-West Asia, China-Indochina Peninsula, China-Pakistan, and Bangladesh-China-India-Myanmar economic corridors. Furthermore, it seeks to establish five major aviation transport channels connecting regions such as Europe, North America, Latin America, the South Pacific, the Indian Ocean, and Africa, thereby expanding overall network coverage.

The "Fly-Via-Zhuhai-Hong-Kong" passenger service allows Mainland and international travellers to travel between Zhuhai and Hong Kong via the Hong Kong-Zhuhai-Macao Bridge using an "air-land-air" model, connecting Mainland and the rest of the world through Zhuhai Airport and the Hong Kong International Airport.

Full text of "The Chief Executive's 2026 Policy Address" (10)

(E) Enhance Transport and Commuting Convenience

Transport Infrastructure

335. The Central Kowloon Bypass (Kowloon Bay Section) project will be completed this year, marking the full commissioning of Route 6 (including the Central Kowloon Bypass and Tseung Kwan O-Lam Tin Tunnel). It is anticipated that the journey time between Tseung Kwan O and Yau Ma Tei during peak hours will be substantially reduced from about 65 minutes before the commissioning of Route 6, to about 12 minutes.

336. The implementation milestones of smart and green mass transit systems are to:

(i) Award the contract for the Kai Tak project this year for completion in 2031.

(ii) Award the contract for the Hung Shui Kiu/Ha Tsuen NDA project next year for first-phase completion in 2031.

(iii) Award the contract for the East Kowloon project next year for completion by 2033.

Regulatory Regime for Ride-hailing Services

337. The current-term Government has successfully introduced the regulatory regime for ride-hailing services, with most of the legal provisions coming into effect on August 3 this year. The Government is now inviting applications for ride-hailing service licences, and will issue driving permits to drivers and vehicles beginning from the fourth quarter this year, providing the public with safe and compliant ride-hailing services. The TD is pressing ahead with the development of a ride hailing vehicle data management system to monitor the compliance of operation, and comprehensively safeguard data security. We will also oversee market development and collect relevant data for the dynamic assessment of supply and demand to enhance personalised, point-to-point transport service.

Promote the Use of Automated Parking Systems

338. With a view to expanding the use of automated parking systems, the TD will establish a one-stop co-ordination office to co-ordinate the efforts of relevant departments in expediting the approval of automated parking-system applications submitted by operators of short-term tenancy car parks.

(F) Deepen the Integrated Development of Culture, Sports and Tourism

339. The Culture, Sports and Tourism Bureau (CSTB) is pressing ahead with the integrated and synergised development of culture, sports and tourism. It fosters sports development by promoting sports in the community, supporting elite sports, maintaining Hong Kong as a centre for major international sports events, advancing professionalism in sports and developing sports as an industry. In building facilities, implementing system reform, optimising resource allocation, nurturing talent and hosting mega events, the CSTB is deepening the integration of culture, sports and tourism to drive economic development.

Shape Tourism with Cultural Activities and Promote Culture through Tourism

340. Hong Kong is blessed with a unique cultural vision, shaped by both Chinese and foreign influences. We will continue to engage and collaborate with Mainland and overseas culture, arts and creative sectors to consolidate Hong Kong's role as a hub for the exchange, collaboration and promotion of culture, arts and creativity. We will also host international cultural and arts exhibitions and performances to attract visitors to Hong Kong.

Support Hong Kong's Film Industry and Promote "Film + Tourism"

341. We will conduct a comprehensive review of the Film Development Fund with a view to attracting more private investment to ensure sustainable development. We will also explore venue provision for constructing film sets to encourage local filming. The Cultural and Creative Industries Development Agency will set up the Support Unit for Non-local Film Productions, which will provide one stop services for Mainland and overseas film crews filming in Hong Kong, attracting the production of more quality films to promote Hong Kong.

342. The HKTB will offer visitors an immersive experience of Hong Kong's unique urban landscape and lifestyle, weaving together classic Hong Kong films, district characteristics and local culture, including a route in Yau Ma Tei that integrates memorable scenes and locations from classic Hong Kong police-and-crime films, complemented by authentic local night markets and dining experiences.

Sports Development

Support the Kai Tak Sports Park to Promote "Sports + Mega Events"

343. The KTSP has substantially expanded Hong Kong's capacity to host international mega events. To date, more than 170 sessions of international and local sports and cultural entertainment mega events have been held there, attracting over 2.6 million spectators. In 2025, the KTSP's main stadium achieved the highest gross revenue and ticket sales in Asia.

344. To strengthen the promotion of "sports + mega events", we will explore the redevelopment of Victoria Park Centre Court and other ancillary facilities into an iconic all-weather, multi-purpose venue for holding larger-scale and higher-level sports events, as well as performance activities as required.

Training for Sports Executives

345. The Hong Kong Sports Institute will introduce a new three-year Sports Executive Training Programme. The programme will provide transformation opportunities for and expand the career ladder of retired athletes, while helping train professional management for the sports sector.

Promote Sports for All

346. To encourage the general public to exercise regularly, the Government will enhance outdoor basketball facilities and the content of the Hong Kong Games.

Participate in Our Country's Sports Events and Boost Co-operation and Exchanges

347. We will continue to send delegations and teams to participate in our country's sports events and promote sports exchange within the GBA, including supporting NSAs in the organisation of GBA leagues.

Strengthen the Governance of National Sports Associations

348. Early next year, the Sports Federation and Olympic Committee of Hong Kong, China will, taking into account NSAs' implementation of the Code of Governance promulgated earlier, issue certificates of compliance to NSAs meeting the governance standards. Future government funding will be linked to the compliance status to establish a fairer, more impartial and more transparent system for promoting sports development.

Tourism Development

349. Hong Kong's tourism industry is performing well. In 2025, the total number of visitor arrivals reached 49.9 million, a 12% year on year increase. Total tourism expenditure associated with inbound tourism is estimated at $238.1 billion this year, an increase of about 10% over last year.

350. The proportion of overseas visitors travelling onwards to the Mainland via Hong Kong has continued to rise, exceeding 20% in the first half of 2026. We will continue to capitalise on measures introduced by the Central Government to facilitate visits by foreign travellers to the Mainland, deepen collaboration with Mainland provinces and municipalities, and explore with the country additional immigration facilitation arrangements for international visitors. The HKTB will promote multi destination travel itineraries to overseas visitors, partner with airlines to roll out relevant tourism products and promotional offers, and intensify publicity overseas.

Take Forward "+ Tourism" Joint Initiatives

351. We will integrate various events with tourism to raise their appeal, aiming to extend visitor stays in Hong Kong and generate value-adding momentum:

(i) "Mega Events + Tourism": To solidify Hong Kong's reputation as the Events Capital of Asia, the HKTB will demarcate a period each year for the International Arts Season¹ (February to May), the Chinese Arts Season&su2; (June to September) and the Festive Mega Events Season³ (October to February the following year), setting a mega-event framework under these three themes to boost visitor spending and extend their stay in Hong Kong. Flagship events hosted by the HKTB attract millions of citizens and visitors each year. The Government will regularise the additional annual funding currently provided for hosting flagship events, allowing the HKTB to draw up and implement sustainable and forward-looking market promotion strategies in a more systematic manner.

(ii) "Finance + Tourism": The refurbishment of the HKEX Connect Hall and the Museum of Finance at the HKEX is scheduled for completion next year. The Government will link up key financial landmarks around Central to create an urban landmark that showcases Hong Kong's status as an international financial centre and the city's cultural appeal.

(iii) "Industrial brand + Tourism": We will continue to develop Hong Kong's industrial brand tourism routes with varying themes to promote more in depth tour experiences.

(iv) "Ecological conservation + Green tourism": The Government promotes eco-tourism that advances tourism alongside conservation, enabling the public to get close to and appreciate Hong Kong’s unique and precious scenery in the countryside. In early September this year, the Government launched a trial online reservation system for visitors going to the High Island Geo Trail-Po Pin Chau Section of the High Island Reservoir East Dam in Sai Kung during weekends and long holidays. A visitor cap is set to alleviate ecological pressure while enhancing visitor experience. The pilot reservation arrangement will continue during the Golden Week in October this year. We will review the trial outcome and develop a long-term country park management strategy.

(v) "Heritage + Tourism": The Government has opened over 200 Government-owned declared monuments and graded historic buildings to the public. It will upload more information to its websites and step up publicity, enabling the trade to develop and promote signature tourism products.

Ticket Stub Economy

352. We will promote ticket stub offers as a means of attracting visitors to extend their stay and increase their spending in Hong Kong, including announcing the calendar of mega events as soon as practicable. The HKTB will provide one-stop contact services to connect event organisers, retail and catering associations and tourism related organisations, fostering a consumption chain that extends from the event venue to the community.

353. The HKTB will enhance Discover Hong Kong's digital platform, consolidate the ticket stub discounts of mega events hosted and promoted by the HKTB and launch a new mobile application to facilitate visitor access to, and merchant provision of, ticket stub offers.

Yacht Economy

354. Last year's Policy Address put forward the development of yacht economy. A variety of new yacht berth projects are now moving ahead, including the tender for the composite development project in Aberdeen comprising a marina, recreational facilities and residential development scheduled for the first half of 2027, and the yacht bay project under the Airport City "SKYTOPIA". In addition, starting from May, Hong Kong and Macao yachts may navigate in nine GBA cities, with the requirement for guarantee exempted and under temporary ship nationality registration. The first northbound travel of yachts from Hong Kong set sail in June. The Marine Department will soon sign an MoU with the Guangdong Maritime Safety Administration for the implementation of southbound travel for yachts from Guangdong, adding impetus to cross-boundary leisure consumption.

355. Following the introduction of the Marine Department's three facilitation measures , the first batch of Mainland yacht masters completed the examination and assessment in mid June. We will extend our online, short-term training courses to overseas, enabling yacht masters of visiting yachts to obtain qualifications from abroad to navigate Hong Kong waters.

Renewal of Central

356. Phase 1 of the Lan Kwai Fong Streetscape Beautification Works will be gradually completed, beginning in October. The consultancy study for Phase 2 will start soon. We encourage private developers to participate in the renewal of Central, which will give Hong Kong's first-generation central business district a fresh face while preserving its heritage.

Muslim Tourism

357. Hong Kong's ranking as a Muslim-friendly destination has risen for two consecutive years, securing second place among non-Organisation of Islamic Co-operation destinations, according to the latest Global Muslim Travel Index. The HKTB will extend the Hong Kong Restaurants Halal Certification Funding Scheme to the end of 2027, encouraging the industry to provide more Muslim friendly food options.

Facilitate the Operation of Home-stay Lodgings on the Outlying Islands

358. To facilitate the operation of home-stay lodgings on the outlying islands, the HAD will remove barriers by exempting consideration of use restrictions on guesthouse purposes in the deeds of mutual covenant of the buildings, when processing guesthouse licence applications for buildings of three storeys or less on the outlying islands.

Enhance the Professional Standards of Tourism Practitioners

359. To increase the supply of professional tourist guides, the Travel Industry Authority has launched the "specialised tourist guide licensing programme" this year for Geopark guides and reception services. The programme will be expanded to cover other fields, such as in-depth tours focusing on history and culture at the next stage.

Enhance Passenger Clearance Experience

360. The Immigration Department will launch the Automated Transportation On-board Clearance System ("AUTOS") Pilot Scheme at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port in December. It will use AI and facial recognition technology to automatically verify the identities of registered, eligible, cross-boundary private car drivers and passengers, enabling "contactless on-board clearance".

361. The redeveloped Huanggang Port is expected to come into operation in the fourth quarter of this year, implementing the co-location arrangement and the novel "collaborative inspection and joint clearance" mode, to significantly enhance passenger clearance experience and efficiency.

¹During the International Arts Season, cultural mega events such as the Hong Kong Arts Festival, Art Basel, Art Central, the Hong Kong International Film Festival and the French May Arts Festival will be hosted, consolidating Hong Kong’s position as the East meets West centre for international cultural exchange.

²The Chinese Arts Season will cover the Chinese Culture Festival and the Hong Kong Intangible Cultural Heritage Month, promoting the sophisticated traditional Chinese culture for citizens and visitors to experience its charm.

³The Festive Mega Event Season will offer a line up of festive events such as Mid Autumn Festival and Halloween mega events, the Hong Kong Wine and Dine Festival, Hong Kong Winterfest, immersive light shows, Hong Kong New Year Countdown Celebrations and the International Chinese New Year Night Parade, showcasing Hong Kong’s festive ambiance and convergence of Chinese and international cultures to visitors from around the world.

These include enhancing the Electronic Business System to allow one stop online completion of arrival and port formalities, setting up designated anchorage areas and relaxing berthing requirements, and authorising Mainland institutions to conduct examinations and provide training for yacht masters.

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(To be continued.)

Source: AI-found images