Hong Kong maps growth path for pillar industries

Hong Kong has unveiled a multi-year plan to bolster its key economic sectors while cultivating new growth opportunities through 2030. The government's 2026 Policy Address and inaugural Five-Year Plan for Economic and Social Development outline initiatives in finance, trade, shipping, aviation, innovation, and technology, alongside measures to attract capital, companies, and skilled professionals. The strategy aims to bolster Hong Kong's global standing and fuel long-term economic growth.

A core component of the plan is establishing Hong Kong as a hub for gold trading, with the city set to launch a central clearing and settlement system for the precious metal in the first quarter of 2027. The system, which will support market standards and interlinking of clearing, settlement, storage, and physical delivery, will be administered by the Hong Kong Exchanges and Clearing. The government will also explore tax incentives for related activities, with proposals to be discussed with the Legislative Council.

The Monetary Authority is evaluating whether the Exchange Fund should expand its gold reserves and engage in local spot and futures markets. Existing gold inventories could be gradually moved to designated vaults managed by the Hong Kong Precious Metals Central Clearing Company. Storage infrastructure will also be expanded, with more London Metal Exchange-approved warehouses planned for Hong Kong.

In addition to gold, the plan focuses on fostering a diverse range of industries, including life sciences, microelectronics, advanced manufacturing, aerospace technology, marine technology, and quantum technology. A proposed Innovation and Technology Industry-Oriented Fund, backed by HK$10 billion in government funding, will aim to raise at least HK$40 billion, with priorities in life and health technology, artificial intelligence, robotics, semiconductors, and sustainable development.

The strategy also seeks to enhance Hong Kong's role as an offshore renminbi business center and international center for asset and risk management, while promoting green and digital finance, technology company financing, and trade, supply-chain, and risk management services.