Deloitte highlights strategic recommendations for Hong Kong's Five-Year Plan and 2026 Policy Address

With the implementation of the national 15th Five-Year Plan, Hong Kong is accelerating economic diversification and industrial upgrading by strengthening its role as a bridge between the Chinese mainland and global markets and advancing its "Ten Centres, Two Hubs, One Ecosystem, One Metropolis, One Highland" positioning to nurture new industries, expand into new economies, and attract global capital and talent. As the HKSAR government formulates the city's first Five-Year Plan, this year's Policy Address is poised to align with the blueprint and inject fresh momentum into economic and social development.

Deloitte China Southern Region Managing Partner Edward Au says, "Despite major shifts in the global landscape in recent years, Hong Kong's capital markets, innovation and technology (I&T), and regional cooperation have continued to demonstrate influence. Development in the Northern Metropolis is gathering pace, the I&T ecosystem is flourishing, and the city's position as an international financial and trading centre remains solid. At the same time, Hong Kong is playing an increasingly important role in advancing the Greater Bay Area (GBA) and the Belt and Road Initiative.

As Hong Kong stands at a pivotal moment of transformation and innovation, it must consolidate its traditional strengths in finance while accelerating innovation‑driven growth to capture opportunities from the nation’s high‑level opening‑up and enhance long‑term competitiveness. In line with the 15th Five‑Year Plan, Deloitte has set out policy recommendations for Hong Kong’s first Five‑Year Plan and the upcoming Policy Address, focusing on four areas: the Northern Metropolis (NM), I&T, international financial centre development, and regional cooperation."

Accelerating Northern Metropolis development

The 15th Five‑Year Plan calls for accelerating the development of the NM, now moving from blueprint to implementation. With the establishment of park companies, the focus is shifting from construction to turning space into industrial vitality.

Deloitte China Strategy and Economic Advisory Partner Alvis Kong says, "Looking ahead to the next five years, the NM should be positioned as a strategic base for two-way global expansion—helping Chinese mainland tech firms go global and attracting overseas firms into the GBA. This period represents a critical window to pivot from infrastructure construction to industrial momentum. Success must be measured by 'industrial value density × industry momentum' (value output per hectare and sustained growth), rather than just floor area committed. We recommend upgrading public-private partnerships, with the government leading an industry fund to catalyse private capital. This fund should invest in the global expansion cluster, covering pilot-scale testing platforms and cross-border data hubs, while project companies can use equity, bonds, and land to attract market funds.

Park companies can evolve from developers to ecosystem enablers, empowered to drive policy innovation and pioneer cross-border breakthroughs by building clusters, providing one-stop services for compliance, certification and market access, and enabling seamless global expansion. As the NM's competitive edge lies in its potential to break barriers, we should pilot cross-border flows of people, goods, capital and data – including biological samples and research data – making it the only I&T cluster with direct cross-border advantages. We should also fast‑track the first phase of the university town to build an integrated ecosystem that brings together government, industry, academia, research and investment.

Ultimately, the government's role can shift from planner to enabler. By building platforms and removing barriers, it allows market forces to drive growth and position the NM as a hub for the free flow of cross‑border talent, capital, and data."

Building an international I&T hub and driving industrial upgrading

Deloitte China Hong Kong Government & Public Services Industry Leader Robert Lui says, "The 15th Five‑Year Plan highlights 'AI+' as a strategic priority, with success requiring practical application to integrate the digital and real economies. Hong Kong, with its strong research base, international capital and diverse application scenarios, could take the next step by issuing industry compliance guidelines to promote wider adoption and by incorporating data centres into urban and energy planning. Building on existing cooperation frameworks, the government could also expand GBA cross‑border data flows to include scientific research and industry data, while advancing unified data classification and circulation rules to provide a more systematic foundation for AI development."

To advance the new industrialisation transition, Deloitte believes that alongside upgrading traditional industries and accelerating growth of future industries, the focus should be on strengthening producer services including testing and certification, standards setting, and technology financing. As emerging sectors such as life sciences, microelectronics, AI, and robotics are set to become Hong Kong's future growth drivers, the government could concentrate resources on supporting enterprise pilot testing, certification and commercialisation, and leverage the GBA's manufacturing and supply chain strengths to accelerate technology adoption.

"Hong Kong could foster closer industry‑academia‑research collaboration between local universities and GBA enterprises by enhancing the 'Mainland–Hong Kong Technology Cooperation Funding Scheme' to provide greater support for cross‑border projects with clear commercialisation pathways. Adjusting public R&D funding evaluation mechanisms to raise the share of enterprise‑led projects would also guide research institutions to prioritise practical application needs, helping to build a demand‑driven innovation ecosystem," adds Robert Lui.

Strengthening Hong Kong as an international financial and trade centre

Edward Au says, "While Hong Kong has abundant private capital and a mature listing market, gaps remain in the I&T funding chain, creating the risk of draining some high‑potential enterprises to other markets. We propose that the city establish an Asian Capital Marketplace by offering regional enterprises an integrated, multi-tiered capital ecosystem spanning private capital raising, secondary trading of private shares, a growth companies board, Main Board listings and bond financing. The core lies in activating a private capital market driven by professional investors and establishing regulated, transparent, and digitised equity trading and financing mechanisms to serve pre‑IPO technology and high‑growth enterprises."

Deloitte emphasizes that by attracting more long‑term capital from private investors, family offices and venture capital, and effectively bridging private capital with the I&T sector, Hong Kong can forge a seamless funding chain spanning research commercialization, startup financing, growth scaling, and public listings, thereby enhancing price discovery, equity liquidity, and incentive structures.

"To reinforce GEM's positioning as a fundraising platform for Asian growth companies, Deloitte recommends exploring cooperation mechanisms with Beijing Stock Exchange, including launching a pilot programme for Asian growth enterprises and a 'Beijing–Hong Kong Growth Connect' to link Chinese mainland's specialised and sophisticated enterprises and Asian growth firms with international capital as regulatory and market conditions mature. Moreover, to tackle post‑listing challenges such as limited visibility, weak turnover, and subdued valuations, Deloitte suggests introducing a tiered liquidity mechanism, reducing transaction fees, and strengthening investor relations disclosure. These measures would encourage greater participation from market intermediaries and help ensure commercial sustainability," adds Edward Au.

To deepen capital market cooperation with the Chinese mainland, ASEAN, Central Asia, and the Middle East, Deloitte proposes a series of measures including establishing strategic recognised stock exchanges and mutual disclosure mechanisms, expanding cross‑listing of products such as exchange traded funds (ETFs) and real estate investment trusts (REITs), supporting secondary and dual primary listings, and promoting integrated development that combines headquarters, listing, and treasury functions.

As the world's largest cross‑border wealth management centre, Hong Kong manages more than HKD35 trillion in assets. The number of single family offices has grown by 25% in the past two years to surpass 3,380, reflecting sustained global capital inflows and a steadily maturing family office ecosystem. To build on this advantage, Deloitte recommends supporting family offices in integrating more deeply into the local economy and society, and advancing professional standardisation across the industry.

Deloitte China Hong Kong Tax & Business Advisory Leader Anthony Lau says, "With the rise in family offices, the capital strength and economic influence of the underlying family enterprises are increasingly significant. We recommend that the government proactively help founders and asset owners of established family offices connect with local industry leaders and professionals, so their capital can generate greater impact. For example, they could become a source of 'patient capital' that backs start-ups, channels funding into technological innovation to foster growth, or support education, healthcare and environmental initiatives through philanthropy. At the same time, Hong Kong could introduce a 'Family Office Accreditation' framework and develop a clear 'Talent Development Roadmap' to guide practitioners in enhancing their professional capabilities, and further consolidate the city’s position as a leading international asset and wealth management centre."

Deepening regional cooperation to support the nation's high-level opening-up

Hong Kong plays a unique role in national high-level opening-up, serving both to develop the GBA into a world-class city cluster and as a vital gateway for the Belt and Road Initiative. Beyond strengthening physical connectivity through infrastructure, the city should also deepen institutional and professional connectivity by advancing services and regulatory alignment. Leveraging strengths in finance, law and accounting, Hong Kong can support Chinese mainland enterprises to go global while promoting rules and standards convergence to foster deeper integration across the GBA.

Robert Lui says, "Chinese mainland enterprises face diverse regulatory, technical, and localisation requirements when expanding overseas. We suggest that the Task Force on Supporting Mainland Enterprises in Going Global develop tailored industry packages for sectors such as new energy, technology and finance, helping firms navigate cross‑border financing, compliance, and supply chain management. In addition to strengthening referral mechanisms with the Ministry of Commerce, provincial governments and industry associations, Hong Kong could also deepen cooperation with major international arbitration institutions, promoting contract templates with 'Hong Kong Arbitration' clauses so that the city’s judicial strengths serve as a solid foundation for enterprises entering global markets."

To reinforce rules and standards alignment across the GBA, Deloitte recommends developing additional mutual recognition standards in emerging fields such as fintech, green building and new energy, and advancing systematic data‑sharing arrangements in areas like compliance checks and financial settlement. These measures would reduce administrative burdens from redundant filings and streamline cross-border operations, highlighting Hong Kong's institutional advantages and professional value.