Deloitte welcomes 2025 Policy Address to consolidate Hong Kong's status as an international hub and drive industrial upgrading

The HKSAR Chief Executive John Lee today delivered his fourth Policy Address, unveiling an ambitious blueprint that builds on his administration's philosophy of "striving for advancement and transformation". The latest Policy Address introduces strategic measures designed to drive economic transformation and unlock new growth potential, while capitalising on Hong Kong's bridging role between the mainland and the rest of the world. By closely aligning with national development strategies and meeting international market demands, these initiatives can strengthen Hong Kong's standing as a global hub.

Deloitte China Southern Region Managing Partner Edward Au says, "Despite macro headwinds, Hong Kong's economy continues to demonstrate remarkable resilience. This year's Policy Address provides a clear roadmap for capitalising on growth opportunities across multiple sectors. In financial services, the government will continue to proactively attract global capital and businesses to Hong Kong, and to support mainland enterprises in their overseas expansion through Hong Kong’s platform. The innovation and technology (I&T) sector receives significant support through accelerated artificial intelligence (AI) development and enhanced ecosystem building, continuously strengthening our competitive position. Addressing Northern Metropolis development challenges, the government has introduced concrete measures to 'accelerate pace and enhance efficiency', with improved coordination mechanisms to ensure smooth project delivery.

"At this pivotal moment of transformation, Hong Kong’s unique role as the 'Super Connector' and 'Super Value-Adder' linking the mainland with international markets serves as the foundation of the city’s future success. By leveraging our distinctive advantages to serve national priorities, and by embracing continuous innovation, Hong Kong stands ready to enter an exciting new chapter of development."

Enhancing Capital Market Competitiveness to Capture the Eastward Shift of Global Wealth

Deloitte welcomes the proposals in the Policy Address to consolidate Hong Kong's status as an international financial centre, especially measures to continuously strengthen the stock market. We particularly appreciate proposals to enhance listing requirements for companies with weighted voting rights (WVR) structures, encourage more overseas enterprises to seek secondary listings in Hong Kong, and deepening cooperation between Hong Kong Exchanges and Clearing (HKEX) Limited and Southeast Asian exchanges. These reflect recommendations put forward by Deloitte and will diversify the cohort of innovative and WVR companies in Hong Kong, broaden market participation, and open-up capital flows from fast growing economies.

Edward Au says, "These proposals meet the development needs of Hong Kong's capital market, while aligning with global trends towards more efficient and diversified capital markets. They also capture the momentum of major geographical shifts in global wealth and economic growth, further boosting Hong Kong's position as an international financial centre and mobilising capital flows between mainland and global capital markets."

Deloitte also recommends that the government consider four key proposals previously submitted for this year's Policy Address to deepen capital markets and boost stock market liquidity. These are (i) extending stock trading hours through a phased approach; (ii) providing temporary stamp duty relief for renminbi (RMB) counter trading through southbound stock connect to enhance Hong Kong's appeal to RMB investors; (iii) launching a dedicated listing channels for overseas companies, particularly those from ASEAN and in high growth markets; and (iv) providing tax incentives to attract dual listings of international companies.

If these recommendations can be integrated with the Policy Address measures, they will further enhance the liquidity and global appeal of Hong Kong's stock market, improve the capital market ecosystem, and better serve national development priorities, reinforcing the city's strategic value amid a changing global economic landscape.

Building a Bond Market from "Asia's Leader" to "Global Leader"

As the largest hub for arranging Asian international bond issuance, Hong Kong recorded over USD130 billion in international bond issuance and RMB1.07 trillion in offshore RMB bond issuance in 2024. At the same time, it ranked first in Asia for green and sustainable bond issuance for a seventh consecutive years (USD43 billion, accounting for 45% of the regional total), demonstrating its absolute strength in the offshore bond market.

The initiatives proposed in the Policy Address, including the upgrading of financial infrastructure, product innovation, mutual market access mechanism, and deepening of the RMB ecosystem, precisely match the core needs of the market. They will not only boost the efficiency of global capital flows but also attract more international investors to allocate RMB assets through deeper access and integration with the mainland market, further consolidating Hong Kong’s position as the world’s largest offshore RMB business hub.

Edward Au notes that as the roadmap for fixed income and currencies takes shape, Hong Kong is poised to evolve from Asia's leading bond market into a global leader. This advancement will serve as a key driver in strengthening the city's position as an international financial centre, enabling Hong Kong to remain indispensable as a business hub amid shifting global wealth and the internationalisation of the RMB.

Supporting Enterprises to Go Global and Driving Northern Metropolis Development

Deloitte China Hong Kong Government & Public Services Industry Leader Gary Wu says, "We are pleased that the government continues to strengthen Hong Kong's role as a super connector between mainland and global markets. We welcome the establishment of a cross-departmental 'GoGlobal' Task Force to facilitate mainland enterprises in expanding their businesses overseas. The government will encourage banks, particularly those from the mainland, to set up regional headquarters in Hong Kong. This initiative will enhance efficiency in securing funding or financing for mainland enterprises going global and provide cross-border financial solutions which can be tailored for their needs."

To accelerate development of the Northern Metropolis, the Policy Address proposes the formation of three working groups to expedite decision making and approval, with a focus on industry-led long-term growth. With the Chief Executive reiterating that industry is the core of the Northern Metropolis, attracting industries is key to driving sustainable development. Deloitte agrees with this vision and welcomes the use of preferential policies including land grants, land premiums, financial subsidies, and tax incentives to attract high value-added industries and high-potential enterprises to establish in Hong Kong.

Deloitte China Strategy and Economic Advisory Partner Alvis Kong says, "Deloitte welcomes the innovative directions in the Policy Address for the Northern Metropolis. We support unlocking extra land value with advanced land disposal model and international land value capture mechanisms to establish collaborative frameworks between industry leaders, government, and developers. This will promote industry-oriented growth and accelerate regional progress.”

Deloitte also advocates for synergising mainland and Hong Kong public-private partnership (PPP) models, leveraging mainland enterprises’ strengths in supply chains, technology and financing to expedite infrastructure development in the Northern Metropolis and ease fiscal pressure. In addition, the firm supports the government’s efforts to harmonise construction standards across the Greater Bay Area (GBA) and adopt advanced building technologies. Harnessing supply chain scale and technological innovation can reduce costs and shorten construction timelines.

Optimising CIES to Build a Global Family Office Hub

Deloitte China Hong Kong Financial Services Tax Leader & International Tax Partner Roy Phan says, "In terms of asset and wealth management, we are pleased that the Policy Address has adopted our earlier recommendations by proposing further enhancements to the Capital Investment Entrant Scheme (CIES), which include reducing the single residential property transaction price threshold under CIES from HKD50 million to HKD30 million, and raising the cap for total investment amount in non-residential property from HKD10 million to HKD15 million. As one of the eight key policy measures under the government’s 'Policy Statement on Developing Family Office Businesses in Hong Kong', the CIES plays a crucial role in establishing Hong Kong as a global hub for developing a vibrant ecosystem for global family offices and asset owners."

Deloitte recommends that the government further unlock the potential of the scheme by broadening the investment scope to include digital assets and art pieces. Additionally, building on the existing mutual market access mechanism with the mainland, the government could explore establishing a "CIES Connect" and "Family Office Connect" investment channel in consultation with mainland authorities, providing high-net-worth individuals and single family offices with a dedicated cross-border investment channel that mirrors the closed-loop fund flow arrangement under the Cross-boundary Wealth Management Connect Scheme, so as to further expand cross-boundary investment opportunities.

Driving AI Development and Accelerating Innovation Adoption

Deloitte China Hong Kong Business Managing Partner Allen Wong says, "The government is making great strides in promoting the development of AI to benefit all citizens and various industries. Deloitte participates in many of the key AI initiatives driven by the government, including through the Deloitte AI Research Institute at Hong Kong Science Park, where we aim to be a proactive leader in the field of innovative technology and support departments and organisations in formulating and implementing their AI strategies."

The Policy Address reaffirms the government's commitment to investing in AI and innovation, particularly through the provision of supporting infrastructure and R&D funding. "We see that local and multinational companies have immense potential to leverage funding support, computational and data resources, and a growing talent pool in AI, to position Hong Kong as a hub for AI innovation. In fact, we have already assisted many clients in establishing AI centres and obtaining government incentives for technology investments in Hong Kong, which are contributing to their revenues and profits," adds Allen Wong.

Deloitte is encouraged by the development direction for AI in Hong Kong presented in the Policy Address and looks forward to continuing our support for the government and our clients in further applications of AI and innovation, particularly in areas that emphasise risk prevention and enhance social efficiency for the benefit of the entire Hong Kong community.

Promoting Adoption of Tokenisation with a Trusted Regulatory Regime

Tokenisation of real-world assets (RWAs) is rapidly becoming one of the most promising application areas in digital assets. The Policy Address states that the Hong Kong Monetary Authority will continue to advance Project Ensemble and regularise tokenised bond issuance, underscoring the government’s push to make tokenisation mainstream.

Deloitte China Hong Kong Digital Asset Leader Robert Lui notes that using tokenised deposits to settle tokenised money market funds can enable enterprises to achieve faster settlement, lower costs, and greater transparency in treasury management. Tokenised products can also attract a broader base of investors, enhancing the efficiency and coverage of Hong Kong’s financial market infrastructure and further consolidating its position as an international financial centre.

"We welcome the government’s commitment to promoting innovation, while using the supervisory sandbox to encourage banks to strengthen risk management, establishing licensing regimes for digital assets dealing and custodian services, and introducing automated data surveillance tools. These measures balance innovation and prudence, and support Hong Kong in building a trusted and innovative digital asset ecosystem. As tokenised bonds become more common, the next step will be to explore additional application scenarios in the sandbox, including trade finance and fund distribution. This will further position Hong Kong as a pioneering market in the global wave of RWA tokenisation and help to deepen and diversify capital markets," says Robert Lui.

Accelerating Technological Collaboration and Industry Transformation

Deloitte China Southern Region TMT Leader Bong Chan says, "In the Policy Address, the government proposes expediting development of the third InnoHK research cluster, focusing on sustainable development, energy, advanced manufacturing and materials. These R&D centres will facilitate collaboration among top universities, research institutions and industry, promote the application of advanced technology and drive local growth. We will continuously leverage the advantages and expertise of Deloitte’s office in the Hong Kong Science Park to commercialise innovations and provide end-to-end services."

Deloitte also welcomes the lowering of the New Industrialisation Acceleration Scheme’s minimum project cost from HKD300 million to HKD150 million. Since its launch, many manufacturers have transitioned to smart manufacturing with funding support. Bong Chan notes that Deloitte has actively assisted enterprises in applying for subsidies and believes this measure will benefit more enterprises, accelerate technology adoption on production lines, and foster Hong Kong’s economic growth. Moreover, the government will channel market capital into emerging industries via the I&T Industry-Oriented Fund in 2026-27, further bolstering Hong Kong’s I&T ecosystem.

Scaling the Low-Altitude Economy Through Regulatory Infrastructure and Applied Innovation

The Policy Address marks a pivotal step for Hong Kong’s low altitude economy (LAE). A standards-based regulatory pathway, smart traffic management, regulatory testbeds, and core data infrastructure will move LAE from trials to scaled services—driving faster logistics, safer inspections, greener mobility, and broader citizen services.

Deloitte China Hong Kong Strategy and Business Design Leader Falcon Chan says, "Deloitte supports initiatives such as Sandbox X to streamline certifications and strengthen operational safety. Fit-for-purpose vertiport planning, 3D geospatial mapping, and clear operating standards are essential for integration into Hong Kong’s dense urban environment and around critical infrastructure. Cross-boundary operations across the GBA can unlock high value use cases in logistics, inspection, emergency response and medical delivery."

Falcon Chan adds that translating policy into investable growth will hinge on key enablers. Priorities include outcome-based regulatory milestones, interoperable data standards, PPPs, and tailored risk frameworks—underpinned by strong talent pipelines. With coordinated action across government, industry, and academia, Hong Kong can establish a safe, smart LAE and position as a regional innovation hub.