https://www.scmp.com/rss/525308/feed Financial Secretary Paul Chan is set to deliver his budget address in February, during which he will lay out the Hong Kong government’s spending plans for the new financial year. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com SCMP Editorial SCMP Editorial Setting the right direction has never been more essential as Hong Kong navigates a critical and transformative stage under the country’s new five-year development plan. In this regard, Financial Secretary Paul Chan Mo-po delivered a timely and vital reassurance that the city positions itself as a key driver for the country’s development, far more than just a testing ground for experimental initiatives. Hong Kong’s strong economic fundamentals and international connectivity give it an edge in... https://www.scmp.com/opinion/comment/article/3346071/hong-kong-has-much-gain-aligning-chinas-national-plan?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3346071/hong-kong-has-much-gain-aligning-chinas-national-plan?utm_source=rss_feed Tue, 10 Mar 2026 23:15:07 +0000 Connor Mycroft Connor Mycroft Hong Kong is not merely China’s testing ground but also a key driver of the country’s development, the finance chief has said, underscoring the city’s role as the nation’s international financial centre. Financial Secretary Paul Chan Mo-po also said on Monday that Hong Kong must move swiftly to embrace artificial intelligence (AI) and “get empowered” in its use, as the opportunities it brought outweighed potential job losses. Speaking at the “Redefining Hong Kong 2026: Budget Edition” conference... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345948/hong-kong-more-chinas-financial-sandbox-paul-chan-says?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345948/hong-kong-more-chinas-financial-sandbox-paul-chan-says?utm_source=rss_feed Mon, 09 Mar 2026 07:22:42 +0000 Connor Mycroft Connor Mycroft Hong Kong has adequate safeguards to prevent any misuse of the Exchange Fund, according to the economist known as the “father of the city’s dollar peg”, who called concerns over the government’s decision to draw from the de facto sovereign wealth fund “a little overblown”. John Greenwood said the government’s plan to transfer HK$150 billion (US$19.1 billion) from the fund – which plays an essential role in defending the Hong Kong dollar’s peg to the US dollar – would have no effect on the... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345886/fears-over-exchange-fund-discipline-overblown-hong-kongs-dollar-peg-architect?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345886/fears-over-exchange-fund-discipline-overblown-hong-kongs-dollar-peg-architect?utm_source=rss_feed Mon, 09 Mar 2026 00:00:28 +0000 Mike Rowse Mike Rowse I am not sure everyone in Hong Kong has taken fully on board the breadth and depth of the city’s intended role in the future economic development of the nation. It is right there in the budget speech delivered by Financial Secretary Paul Chan Mo-po, and it is being fleshed out in the 15th five-year plan now under discussion in Beijing. Sometimes the things that are presented most prominently are the ones most easily overlooked. In an early part of the speech, Chan stated that the government’s... https://www.scmp.com/opinion/hong-kong-opinion/article/3345672/hong-kong-doubles-down-innovation-hongkongers-must-too?utm_source=rss_feed https://www.scmp.com/opinion/hong-kong-opinion/article/3345672/hong-kong-doubles-down-innovation-hongkongers-must-too?utm_source=rss_feed Sun, 08 Mar 2026 08:30:08 +0000 Regina Ip Regina Ip Financial Secretary Paul Chan Mo-po delivered his latest budget on February 25. Over the past decade, under his stewardship, Hong Kong has weathered multiple economic shocks and recently returned to a respectable growth rate of 3.5 per cent. Yet the tasks ahead are formidable: addressing a structural fiscal deficit in the city’s capital account while ensuring sufficient resources for future growth, all against an increasingly volatile and dangerous global backdrop. Article 107 of Hong Kong’s... https://www.scmp.com/opinion/hong-kong-opinion/article/3345682/paul-chan-must-deliver-fiscal-discipline-hong-kong-needs?utm_source=rss_feed https://www.scmp.com/opinion/hong-kong-opinion/article/3345682/paul-chan-must-deliver-fiscal-discipline-hong-kong-needs?utm_source=rss_feed Sat, 07 Mar 2026 21:30:08 +0000 SCMP Editorial SCMP Editorial The dazzling “Symphony of Lights” that has mesmerised the Hong Kong public and visitors every evening for more than two decades will conclude later this year. But the city’s tourism outlook remains promising as authorities double down on new experience-driven tourism initiatives and mega-events to strengthen one of the city’s economic pillars in a competitive global market. Like a spirited overture to a harbourfront concert, the nightly ritual of synchronised laser beams and music across Hong... https://www.scmp.com/opinion/comment/article/3345371/symphony-lights-bowing-out-clears-stage-new-attractions?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3345371/symphony-lights-bowing-out-clears-stage-new-attractions?utm_source=rss_feed Wed, 04 Mar 2026 23:15:14 +0000 Letters Letters Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words The financial secretary’s 2026-27 budget, reporting a surplus of HK$2.9 billion in the consolidated account, provides a prime opportunity to prioritise targeted poverty alleviation for the city’s most vulnerable. While the government celebrates a return to fiscal health, our... https://www.scmp.com/opinion/letters/article/3345247/why-hong-kong-should-invest-food-recovery?utm_source=rss_feed https://www.scmp.com/opinion/letters/article/3345247/why-hong-kong-should-invest-food-recovery?utm_source=rss_feed Wed, 04 Mar 2026 03:30:08 +0000 Peggy Ye Peggy Ye Hong Kong’s government-backed investment fund is being redeployed to support the city’s sluggish commercial property sector, signaling authorities’ growing willingness to use public funds as a policy tool to steady office valuations and align real estate investment with the city’s industrial ambitions. Attracting foreign institutions, however, might prove challenging. The city’s elevated vacancy rates, looming new completions and uncertain rental recovery have kept global funds on the sidelines,... https://www.scmp.com/business/banking-finance/article/3345175/hong-kongs-strategy-hkic-prop-citys-office-market-seen-challenging?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3345175/hong-kongs-strategy-hkic-prop-citys-office-market-seen-challenging?utm_source=rss_feed Tue, 03 Mar 2026 00:30:08 +0000 Jess Ma Jess Ma Fines worth HK$2.1 billion (US$268.39 million) flowed into Hong Kong’s coffers in 2025‑26, nearly 26 per cent more than initially forecast, following an increase in cigarette penalties and a surge in forfeitures. According to budget estimates analysed by the South China Morning Post, the HK$2.1 billion income amounted to 0.3 per cent of the government’s total revenue. The funds were primarily from court fines and forfeiture orders, statute penalties, forfeitures from breaches of contracts and... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345050/fines-penalties-and-forfeitures-pump-hk21-billion-government-coffers?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345050/fines-penalties-and-forfeitures-pump-hk21-billion-government-coffers?utm_source=rss_feed Mon, 02 Mar 2026 01:00:19 +0000 SCMP Editorial SCMP Editorial For eight years, the “One-for-One Replacement Scheme” has been a powerful driver of Hong Kong’s transition to green transport. Shifting gears from an era of heavy subsidies for private electric vehicles (EVs) is understandable as market forces take over. The authorities, car industry and motorists must keep up the momentum. The policy change confirmed by Financial Secretary Paul Chan Mo-po during his budget speech on Wednesday signalled that the city’s EV market has matured. When the scheme was... https://www.scmp.com/opinion/comment/article/3344871/evs-hong-kong-must-compete-their-own-merits?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3344871/evs-hong-kong-must-compete-their-own-merits?utm_source=rss_feed Sun, 01 Mar 2026 22:45:11 +0000 Emily Hung,Fiona Chow Emily Hung,Fiona Chow A “relatively flexible” legal framework for Hong Kong’s Northern Metropolis will be introduced to the Legislative Council later this month to fast-track the megaproject’s development, a minister has said. Secretary for Development Bernadette Linn Hon-ho shared the update on the planned framework on Sunday, days after the city’s latest budget sought to allocate HK$30 billion (US$3.8 billion) for the megaproject set to span 30,000 hectares (74,130 acres) in the New Territories. Authorities will... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345048/legal-framework-northern-metropolis-be-tabled-legco-late-march?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345048/legal-framework-northern-metropolis-be-tabled-legco-late-march?utm_source=rss_feed Sun, 01 Mar 2026 13:16:32 +0000 Fiona Chow,Emily Hung Fiona Chow,Emily Hung Hong Kong aims to host fairs on robotics, yachts and small jets – events never before held in the city – to cement its status as an international exhibition hub and attract big spenders, the commerce minister has said. Secretary for Commerce and Economic Development Algernon Yau Ying-wah on Sunday said the push was in response to the HK$100 million (US$12.78 million) budgeted to “attract large international exhibitions with new elements to Hong Kong”. Yau said the government was brainstorming... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345043/robots-jets-and-yachts-hong-kong-eyes-new-fairs-woo-big-spenders?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345043/robots-jets-and-yachts-hong-kong-eyes-new-fairs-woo-big-spenders?utm_source=rss_feed Sun, 01 Mar 2026 12:46:12 +0000 Lam Ka-sing Lam Ka-sing Hong Kong does not plan to make another transfer from its Exchange Fund in the next five years, the finance chief has said, citing a new medium-range forecast that explains why the rare move will not be repeated. Financial Secretary Paul Chan Mo-po elaborated on his plan on Saturday, after his budget announcement that he would withdraw HK$150 billion (US$19.2 billion) from the government’s main investment arm and de facto sovereign wealth fund sparked concerns about the city’s financial... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344962/no-exchange-fund-transfers-planned-next-5-years-hong-kongs-paul-chan-says?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344962/no-exchange-fund-transfers-planned-next-5-years-hong-kongs-paul-chan-says?utm_source=rss_feed Sat, 28 Feb 2026 05:49:01 +0000 Lo Hoi-ying Lo Hoi-ying Hong Kong environmental groups have urged the government to focus on accelerating the commercial use of electric vehicles and enhancing green infrastructure, after scrapping a tax concession scheme for private cars that has cost HK$30 billion over the past decade. Green groups said on Friday that they supported the government’s decision to end the first registration tax (FRT) concessions for private electric cars, including the “One-for-One Replacement Scheme”. The move was announced by... https://www.scmp.com/news/hong-kong/transport/article/3344934/commercial-ev-use-needs-boost-after-car-owner-tax-break-ends-green-groups-say?utm_source=rss_feed https://www.scmp.com/news/hong-kong/transport/article/3344934/commercial-ev-use-needs-boost-after-car-owner-tax-break-ends-green-groups-say?utm_source=rss_feed Sat, 28 Feb 2026 04:00:16 +0000 Kenny Shui,Pascal Siu,Katie Ho Kenny Shui,Pascal Siu,Katie Ho Following a challenging cycle, Financial Secretary Paul Chan Mo-po has delivered a budget returning Hong Kong to the black. After consecutive operating deficits, the operating account has returned to profit. Simultaneously, the consolidated account records a HK$2.9 billion (US$370.6 million) surplus for 2025/26, signalling stability. This turnaround is driven largely by a buoyant stock market and a stabilising property sector, reviving stamp duty revenues and investment income. This provides... https://www.scmp.com/opinion/hong-kong-opinion/article/3344819/after-celebrating-its-surplus-hong-kong-must-work-sustaining-it?utm_source=rss_feed https://www.scmp.com/opinion/hong-kong-opinion/article/3344819/after-celebrating-its-surplus-hong-kong-must-work-sustaining-it?utm_source=rss_feed Sat, 28 Feb 2026 01:30:07 +0000 SCMP Editorial SCMP Editorial The Exchange Fund has had a stellar investment year, and the government has returned to a consolidated budget surplus after several years in the red. With a revived economy, Hong Kong has recovered its financial mojo. Now is the time to go full steam ahead with Northern Metropolis, the megaproject that will significantly expand the city’s residential space and its business, financial and technological links with Shenzhen, the nation’s tech powerhouse. In a rare move, to help finance the massive... https://www.scmp.com/opinion/comment/article/3344860/hong-kongs-economy-recovers-it-must-drive-northern-metropolis?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3344860/hong-kongs-economy-recovers-it-must-drive-northern-metropolis?utm_source=rss_feed Fri, 27 Feb 2026 23:15:12 +0000 Vivian Au Vivian Au Hong Kong will offer nine residential sites to developers under the government’s land sale programme for the coming financial year, providing about 6,650 flats, after authorities said in the latest budget that the property market had stabilised. Combined with other land sources, such as urban redevelopment, private development and projects linked to railway properties, the potential supply of new flats is estimated to reach an eight-year high of about 22,580 in the 2026-27 financial year. The... https://www.scmp.com/news/hong-kong/society/article/3344926/hong-kong-land-sale-scheme-offer-9-residential-sites-developers-2026-27?utm_source=rss_feed https://www.scmp.com/news/hong-kong/society/article/3344926/hong-kong-land-sale-scheme-offer-9-residential-sites-developers-2026-27?utm_source=rss_feed Fri, 27 Feb 2026 13:40:30 +0000 Ng Kang-chung Ng Kang-chung Hong Kong authorities have defended a controversial subsidy cut for the kindergarten sector for the coming financial year, saying the low birth rate and resultant shrinking pupil population have prompted a reassessment of education policy priorities. Secretary for Education Christine Choi Yuk-lin said on Friday that the government would channel more resources towards promoting “high-quality education” and adopt a more targeted approach to helping pupils in need. According to the 2026-27 budget,... https://www.scmp.com/news/hong-kong/education/article/3344918/hong-kong-budget-2026-27-minister-defends-cuts-kindergarten-subsidy?utm_source=rss_feed https://www.scmp.com/news/hong-kong/education/article/3344918/hong-kong-budget-2026-27-minister-defends-cuts-kindergarten-subsidy?utm_source=rss_feed Fri, 27 Feb 2026 12:04:20 +0000 William Yiu William Yiu Hong Kong’s finance chief has assured the public that the city can manage its debt after proposing the issuance of more bonds to accelerate the development of the Northern Metropolis, expressing confidence in the long-term investment returns from the megaproject. Financial Secretary Paul Chan Mo-po sought to reassure the public during a radio programme on Friday after a university student voiced concerns that his generation might suffer if the city failed to repay the growing number of bonds... https://www.scmp.com/news/hong-kong/education/article/3344852/paul-chan-vows-hong-kong-can-handle-debt-bond-driven-growth?utm_source=rss_feed https://www.scmp.com/news/hong-kong/education/article/3344852/paul-chan-vows-hong-kong-can-handle-debt-bond-driven-growth?utm_source=rss_feed Fri, 27 Feb 2026 07:29:53 +0000 Kevin Li,Wynna Wong Kevin Li,Wynna Wong Hong Kong is expected to record 53.8 million visitor arrivals this year, an 8 per cent rise over 2025, the tourism minister has revealed. Secretary for Culture, Sports and Tourism Rosanna Law Shuk-pui also said on Friday that a new light show replacing the 22-year-old “A Symphony of Lights” would be launched in key sightseeing spots, such as The Peak, as early as the second half of this year. The projected 53.8 million arrivals represents an 8 per cent year-on-year increase over the 49.9 million... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344826/new-show-replace-symphony-lights-tourist-spots-second-half-year?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344826/new-show-replace-symphony-lights-tourist-spots-second-half-year?utm_source=rss_feed Fri, 27 Feb 2026 05:15:49 +0000 Matthew Cheng Matthew Cheng Hong Kong’s innovation and technology (I&T), intellectual property and investment promotion departments will receive budget increases of at least 10 per cent in the coming financial year, even as the government moves to curb recurrent spending, while the environmental branch and public broadcaster face sharp cuts of 70 and 28 per cent, respectively. The Home and Youth Affairs Bureau will expand its civil service workforce by 16 per cent in 2026-27 – the largest increase among all departments –... https://www.scmp.com/news/hong-kong/politics/article/3344722/which-hong-kong-government-departments-get-budget-boosts-while-others-face-cuts?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/3344722/which-hong-kong-government-departments-get-budget-boosts-while-others-face-cuts?utm_source=rss_feed Fri, 27 Feb 2026 01:00:15 +0000 Lam Ka-sing Lam Ka-sing A combination of a strong initial public offering (IPO) market and bond sales has helped put Hong Kong’s financial health back in the black sooner than expected, with analysts expecting a robust pipeline of listings to be key to sustaining the city’s surplus. In his budget speech on Wednesday, Financial Secretary Paul Chan Mo-po said the city was previously expected to record a HK$67 billion deficit for the 2025-26 financial year, which ends on March 31, but emerged with an estimated HK$2.9... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344776/hong-kong-records-hk29-billion-consolidated-surplus-2025-26-heres-how?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344776/hong-kong-records-hk29-billion-consolidated-surplus-2025-26-heres-how?utm_source=rss_feed Thu, 26 Feb 2026 14:01:20 +0000 Matthew Cheng Matthew Cheng Hong Kong authorities are open to supporting universities in issuing bonds to fund the development of the proposed University Town in the Northern Metropolis, with lawmakers calling for a dedicated approval and credit rating mechanism. Financial Secretary Paul Chan Mo-po told a meeting of the Legislative Council’s Finance Committee on Thursday the issuance of a “tertiary education bond” to support the University Town’s construction would be considered. The University Town, which will include the... https://www.scmp.com/news/hong-kong/education/article/3344766/authorities-open-backing-universities-issuing-bonds-fund-megaproject-campuses?utm_source=rss_feed https://www.scmp.com/news/hong-kong/education/article/3344766/authorities-open-backing-universities-issuing-bonds-fund-megaproject-campuses?utm_source=rss_feed Thu, 26 Feb 2026 12:43:54 +0000 Theodora Yu Theodora Yu Hong Kong’s decision to end tax breaks for private electric cars has sparked a rush to the showrooms, with some residents even selling their eligibility for the incentive scheme. A car dealer told the South China Morning Post on Thursday that sales had surged by a factor of 17, adding that one customer broke into tears just after midnight, fearing he had missed the registration deadline. “Last night there were many people … there was a queue at one point,” said Eric Wong Ngai-lik, the Hong Kong... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344754/hongkongers-rush-showrooms-ev-tax-breaks-end-quotas-sell-hk60000?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344754/hongkongers-rush-showrooms-ev-tax-breaks-end-quotas-sell-hk60000?utm_source=rss_feed Thu, 26 Feb 2026 11:02:22 +0000 Kevin Li,Lo Hoi-ying Kevin Li,Lo Hoi-ying A proposed high-level committee that will focus on artificial intelligence (AI) could help tech start-ups in Hong Kong mitigate legal and geopolitical challenges, as well as gain access to important databases for model training, market leaders have said. But the experts also told the South China Morning Post on Thursday that the committee, which was proposed in the latest budget and will be led by the city’s finance chief, would need to involve a diverse panel of experts and be “action-driven”... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344748/ai-committee-can-help-hong-kong-start-ups-tackle-legal-geopolitical-hurdles?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344748/ai-committee-can-help-hong-kong-start-ups-tackle-legal-geopolitical-hurdles?utm_source=rss_feed Thu, 26 Feb 2026 10:38:36 +0000 Edith Lin,Kevin Li Edith Lin,Kevin Li Hong Kong’s finance chief has defended his budget against public criticism over the lack of “sweeteners”, stressing the government must balance its finances with long-term investments for the city’s benefit. Financial Secretary Paul Chan Mo-po said during a radio forum on Thursday he would brief credit-rating agencies and the International Monetary Fund next month on his budget, including a proposed HK$150 billion (US$19.2 billion) transfer from the Exchange Fund to support infrastructure... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344698/long-term-gains-worthwhile-paul-chan-says-hongkongers-slam-lack-budget-sweeteners?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344698/long-term-gains-worthwhile-paul-chan-says-hongkongers-slam-lack-budget-sweeteners?utm_source=rss_feed Thu, 26 Feb 2026 05:58:26 +0000 William Yiu William Yiu Hong Kong’s early childhood education sector will receive its lowest level of subsidy in more than a decade as the number of preschools falls to a 13-year low, with the government cancelling two grants for kindergartens in the new school year. According to the annual budget announced on Wednesday, the early childhood sector will receive only HK$4.5 billion (US$575 million) from the government in the 2026–27 financial year, representing a 6.6 per cent drop from the current year. “This is mainly... https://www.scmp.com/news/hong-kong/education/article/3344697/worst-yet-come-hong-kongs-early-childhood-sector-hit-hard-funding-cuts?utm_source=rss_feed https://www.scmp.com/news/hong-kong/education/article/3344697/worst-yet-come-hong-kongs-early-childhood-sector-hit-hard-funding-cuts?utm_source=rss_feed Thu, 26 Feb 2026 05:51:23 +0000 SCMP SCMP We have put together stories from our coverage of Hong Kong’s 2026-27 budget. If you would like to see more of our reporting, please consider subscribing. 1. Budget reveal: government turns matchmaker with stronger hand in shaping economy Hong Kong’s finance chief on Wednesday lived up to his credentials as a chartered accountant when he produced a surprisingly robust budget, flush with surpluses and full of initiatives to be funded through substantial means at his disposal. 2. Here is how you... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344674/hong-kong-budget-everything-you-need-know-tax-breaks-big-bet-ai?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344674/hong-kong-budget-everything-you-need-know-tax-breaks-big-bet-ai?utm_source=rss_feed Thu, 26 Feb 2026 03:57:37 +0000 Wynna Wong,William Yiu,Harvey Kong Wynna Wong,William Yiu,Harvey Kong Hong Kong will cancel the two-decade-old “A Symphony of Lights” within the year, with the South China Morning Post learning that the fixture will be replaced with immersive projections across various districts to upgrade the city’s offerings. The revamp is among a raft of new tourism measures announced in finance chief Paul Chan Mo-po’s latest budget, with others including a push for Hong Kong to become a destination for study tours and a HK$200 million (US$25.6 million) fund to revitalise rural... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344644/hong-kong-2026-27-budget-symphony-lights-go-dark-under-tourism-revamp?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344644/hong-kong-2026-27-budget-symphony-lights-go-dark-under-tourism-revamp?utm_source=rss_feed Thu, 26 Feb 2026 01:30:22 +0000 Olga Wong Olga Wong Hong Kong’s finance chief on Wednesday lived up to his credentials as a chartered accountant when he produced a surprisingly robust budget, flush with surpluses and full of initiatives to be funded through substantial means at his disposal. One significant initiative is a rare move to dip into the Exchange Fund, the government’s main investment arm and de facto sovereign wealth fund, traditionally used to defend the currency peg to the US dollar, to finance infrastructure development. The... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344650/budget-reveal-government-turns-matchmaker-stronger-hand-shaping-economy?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344650/budget-reveal-government-turns-matchmaker-stronger-hand-shaping-economy?utm_source=rss_feed Thu, 26 Feb 2026 00:00:16 +0000 SCMP Editorial SCMP Editorial The Hong Kong government’s annual budget is always a delicate and difficult balancing act. From investing in the future and aligning with national development to caring for the disadvantaged and supporting the middle class, Financial Secretary Paul Chan Mo-po has more room to juggle this year as the economy and public finances continue to improve. But the volatile economic and global environment means the city is not out of the woods yet. If the focus in previous budgets was on stimulating... https://www.scmp.com/opinion/comment/article/3344630/budget-sets-hong-kong-its-next-phase-growth?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3344630/budget-sets-hong-kong-its-next-phase-growth?utm_source=rss_feed Wed, 25 Feb 2026 23:15:10 +0000 Lam Ka-sing Lam Ka-sing The Hong Kong government has produced a consolidated surplus earlier than expected, its first in four years, ahead of a rare transfer into coffers from the Exchange Fund and other sources. Wednesday’s budget pointed to fund transfers of HK$127.83 billion (US$16.35 billion) and an 11.1 per cent jump in government revenues contributing to another surplus for 2026-27, on top of the one for the 2025-26 financial year. “We will bring back about HK$15.8 billion from funds established outside the... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344651/rare-move-take-income-out-exchange-fund-pay-northern-metropolis-other-big-projects?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344651/rare-move-take-income-out-exchange-fund-pay-northern-metropolis-other-big-projects?utm_source=rss_feed Wed, 25 Feb 2026 17:12:55 +0000 Natalie Wong,Lam Ka-sing Natalie Wong,Lam Ka-sing A new government committee tasked with reviewing Hong Kong’s tax policies will consider updating them to allow for levies on the virtual asset sector and selected emerging industries, while providing incentives to attract business and investment, the South China Morning Post has learned. The SCMP learned of the development on Wednesday as experts called for Financial Secretary Paul Chan Mo-po to regard the new Advisory Committee on Tax Policy, which he will chair, as an opportunity to conduct a... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344648/hong-kongs-virtual-asset-sector-considered-taxation-under-policy-review?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344648/hong-kongs-virtual-asset-sector-considered-taxation-under-policy-review?utm_source=rss_feed Wed, 25 Feb 2026 15:12:25 +0000 Vivian Au Vivian Au Hong Kong will establish the first national manufacturing innovation centre outside mainland China and a high-level steering committee to spearhead AI development, the finance chief has said, as the city seeks to align with the country’s 15th five-year plan. Financial Secretary Paul Chan Mo-po also unveiled a citywide artificial intelligence (AI) literacy drive in Wednesday’s budget, earmarking funds for various organisations to set up courses on the technology. “We must embrace the 15th... https://www.scmp.com/news/hong-kong/society/article/3344645/hong-kong-set-first-national-innovation-centre-outside-mainland-china?utm_source=rss_feed https://www.scmp.com/news/hong-kong/society/article/3344645/hong-kong-set-first-national-innovation-centre-outside-mainland-china?utm_source=rss_feed Wed, 25 Feb 2026 14:51:53 +0000 Denise Tsang Denise Tsang Hong Kong is betting big on innovation, artificial intelligence and redoubling its focus on its international financial centre role as it aligns its economic future with the country’s development goals, the financial secretary has said while unveiling a budget allocating billions of dollars to these sectors. Paul Chan Mo-po on Wednesday spotlighted the development of the Northern Metropolis megaproject and San Tin Technopole as the cornerstones of Hong Kong’s innovation and technology (I&T)... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344642/hong-kong-bets-big-innovation-ai-and-finance-line-national-goals?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344642/hong-kong-bets-big-innovation-ai-and-finance-line-national-goals?utm_source=rss_feed Wed, 25 Feb 2026 14:24:43 +0000 Ng Kang-chung Ng Kang-chung Hong Kong’s government investment agency will take on a bigger role in attracting commercial property investment while advancing the establishment of an alliance focused on Chinese-developed RISC-V chips, as the financial secretary pledged additional funding to the corporation in Wednesday’s budget speech. The Hong Kong Investment Corporation (HKIC), which manages HK$62 billion (US$8 billion) in government funds, described its new role as a means to ‘encourage businesses to take root’ in the... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344641/hong-kong-boosts-investment-bodys-role-property-sector-tech-investment-drive?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344641/hong-kong-boosts-investment-bodys-role-property-sector-tech-investment-drive?utm_source=rss_feed Wed, 25 Feb 2026 13:24:50 +0000 Aileen Chuang,Emily Hung Aileen Chuang,Emily Hung Hong Kong is aiming to sharpen its competitive edge as an offshore yuan hub, an asset and wealth management base, and a digital-asset front runner under Financial Secretary Paul Chan Mo-po’s budget released on Wednesday. Market participants largely welcomed Hong Kong’s renewed push to strengthen its position as an international financial centre, after Chan highlighted the city’s unique role in driving the yuan’s internationalisation and capital account opening. The initiative comes as Beijing... https://www.scmp.com/news/hong-kong/article/3344634/hong-kong-seeks-hone-edge-offshore-yuan-hub-digital-asset-front-runner?utm_source=rss_feed https://www.scmp.com/news/hong-kong/article/3344634/hong-kong-seeks-hone-edge-offshore-yuan-hub-digital-asset-front-runner?utm_source=rss_feed Wed, 25 Feb 2026 12:23:24 +0000 Oscar Liu Oscar Liu Hong Kong’s finance chief has set aside HK$30 billion (US$3.8 billion) to kick-start the Northern Metropolis in his latest budget, aiming to accelerate the megaproject through the government’s partnership with developers and tech enterprises. Financial Secretary Paul Chan Mo-po announced on Wednesday that three companies overseeing the Hetao Hong Kong Park, the San Tin Technopole and the Hung Shui Kiu Industrial Park, all part of the megaproject, would each receive HK$10 billion, using... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344632/paul-chans-new-budget-sets-aside-hk30-billion-kick-start-northern-metropolis?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344632/paul-chans-new-budget-sets-aside-hk30-billion-kick-start-northern-metropolis?utm_source=rss_feed Wed, 25 Feb 2026 11:45:57 +0000 Enoch Yiu Enoch Yiu Hong Kong will consider shortening the stock trading settlement cycle to one day after the transaction, as well as attracting more international firms to have secondary listings in the city, to strengthen the city’s status as an international financial centre, according to Financial Secretary Paul Chan Mo-po’s budget speech on Wednesday. Chan said the bourse operator, Hong Kong Exchanges and Clearing (HKEX), would in the first half of this year make proposals in a market consultation on how to... https://www.scmp.com/business/article/3344629/hong-kong-speed-stock-settlement-time-catch-west-and-mainland?utm_source=rss_feed https://www.scmp.com/business/article/3344629/hong-kong-speed-stock-settlement-time-catch-west-and-mainland?utm_source=rss_feed Wed, 25 Feb 2026 11:36:34 +0000 Edith Lin Edith Lin Hong Kong authorities will offer sweeteners of about HK$22 billion (US$2.8 billion) to residents and businesses, up from HK$7.8 billion last year, as public coffers are set to pivot from a deficit to a surplus. Financial Secretary Paul Chan Mo-po on Wednesday announced a raft of tax concessions and allowances in his annual budget, almost three times what was offered last year. “Hong Kong’s economy shows steady and stable progress, but there are still imbalances and insufficiencies during... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344602/hong-kong-budget-sweeteners-residents-and-businesses-climb-hk22-billion?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344602/hong-kong-budget-sweeteners-residents-and-businesses-climb-hk22-billion?utm_source=rss_feed Wed, 25 Feb 2026 09:33:05 +0000 Neil Denslow,Raymond Ma Neil Denslow,Raymond Ma Hong Kong raised its economic growth forecast to between 2.5 per cent and 3.5 per cent this year, as Financial Secretary Paul Chan delivered a budget speech focused on diversifying growth and boosting innovation. The city also will end deficits ahead of schedule, aided by economic growth and stronger stock trading, with an expected consolidated surplus of HK$2.9 billion for the financial year ending next month, Chan said on Wednesday. The government initially predicted expansion of 2 per cent to... https://www.scmp.com/plus/news/hong-kong/hong-kong-economy/article/3344588/steady-she-goes-hong-kong-bids-farewell-deficits?utm_source=rss_feed https://www.scmp.com/plus/news/hong-kong/hong-kong-economy/article/3344588/steady-she-goes-hong-kong-bids-farewell-deficits?utm_source=rss_feed Wed, 25 Feb 2026 09:02:07 +0000 Natalie Wong Natalie Wong Financial Secretary Paul Chan Mo-po has announced an array of industry spending and relief measures in Hong Kong’s budget, in response to the city’s quicker-than-expected return to a surplus of HK$2.9 billion (US$370.8 million) in its consolidated account. In a two-hour address to the Legislative Council on Wednesday, Chan pledged substantial government support and investment in major development projects and key industries, such as the artificial intelligence (AI), intellectual property (IP)... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344584/surpluses-investments-tax-breaks-whats-it-you-hong-kongs-budget-2026-27?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344584/surpluses-investments-tax-breaks-whats-it-you-hong-kongs-budget-2026-27?utm_source=rss_feed Wed, 25 Feb 2026 08:40:12 +0000 SCMP Reporters SCMP Reporters This story has been made freely available as a public service to our readers. Please consider supporting SCMP’s journalism by subscribing. Hong Kong finance chief Paul Chan Mo-po unveiled his latest budget on Wednesday, revealing an earlier-than-expected operating surplus after three years of deficits. While the improved fiscal position – driven by a stock market boom – had sparked calls for more sweeteners in this year’s financial blueprint, Chan had sought to manage public expectations by... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344514/budget-2026-27-what-can-hongkongers-expect-paul-chans-financial-plans?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344514/budget-2026-27-what-can-hongkongers-expect-paul-chans-financial-plans?utm_source=rss_feed Wed, 25 Feb 2026 02:45:36 +0000 Jeffie Lam Jeffie Lam All eyes on Wednesday will be on how the government plans to give a big push to its latest investment darling, the Hong Kong Investment Corporation, its three-year-old vehicle that has yielded impressive early gains. Sources told the South China Morning Post that HKIC would come up as a key highlight in Financial Secretary Paul Chan Mo-po’s budget statement to be delivered on Wednesday. It will be tasked to work closely with regional and international long-term capital to “guide investment... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344529/hong-kong-investment-company-hkic-get-expanded-remit-after-early-gains?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344529/hong-kong-investment-company-hkic-get-expanded-remit-after-early-gains?utm_source=rss_feed Wed, 25 Feb 2026 02:15:35 +0000 Olga Wong,Matthew Cheng,Theodora Yu Olga Wong,Matthew Cheng,Theodora Yu Hong Kong’s finance chief will earmark substantial funds for a new innovation hub near the border with mainland China and include incentives to attract more aerospace players to the city in his budget, government sources have said. Highlighting innovation as a key theme of Financial Secretary Paul Chan Mo-po’s budget speech to be delivered on Wednesday, the insiders told the South China Morning Post that the blueprint would provide significant impetus to the new San Tin Technopole. The... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344512/huge-funds-tech-hub-incentives-aerospace-sector-hong-kong-budget-sources?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344512/huge-funds-tech-hub-incentives-aerospace-sector-hong-kong-budget-sources?utm_source=rss_feed Wed, 25 Feb 2026 00:00:32 +0000 Matthew Cheng Matthew Cheng Hong Kong Financial Secretary Paul Chan Mo-po will deliver his annual budget on Wednesday, unveiling measures to accelerate the city’s economic recovery after balancing the books, amid mounting expectations for more “sweeteners” in the blueprint. The 2026-27 budget also marks the government’s first major test in aligning the city with mainland China’s 15th five-year plan and unveiling long-term growth initiatives. The South China Morning Post examines how political and economic factors will... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344469/ips-superyachts-and-more-can-budget-spark-hong-kongs-purple-patch?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344469/ips-superyachts-and-more-can-budget-spark-hong-kongs-purple-patch?utm_source=rss_feed Tue, 24 Feb 2026 23:30:08 +0000 Olga Wong Olga Wong Hong Kong’s finance chief will unveil new measures in his budget to strengthen the city’s growing intellectual property (IP) economy, focusing on nurturing top-tier talent and helping local tech firms evaluate their patents, the South China Morning Post has learned. The initiatives, expected to be announced on Wednesday, come as Financial Secretary Paul Chan Mo-po faces mounting expectations to make strategic use of the city’s earlier-than-expected operating surplus while investing in long-term... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344370/hong-kong-boost-ip-economy-new-academy-patent-evaluation-support?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344370/hong-kong-boost-ip-economy-new-academy-patent-evaluation-support?utm_source=rss_feed Tue, 24 Feb 2026 00:30:08 +0000 Sylvia Ma Sylvia Ma With Hong Kong set to unveil its annual budget, economists have said the city should strengthen its role in pushing the internationalisation of the Chinese yuan as Beijing presses ahead with financial opening while keeping stability firmly in view. From expanding offshore yuan products to using its stablecoin regulations as a sandbox for potential cross-border payment channels, the experts said that Hong Kong could help realise the nation’s vision of becoming a “financial powerhouse”, especially... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344264/should-hong-kongs-next-budget-make-room-taking-yuan-global-experts-weigh?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344264/should-hong-kongs-next-budget-make-room-taking-yuan-global-experts-weigh?utm_source=rss_feed Mon, 23 Feb 2026 00:00:30 +0000 SCMP Editorial SCMP Editorial With the Hong Kong government budget coming shortly after Lunar New Year this year, Financial Secretary Paul Chan Mo-po needs no reminder that people’s hopes – as numerous as the wishes hanging on the Lam Tsuen Wishing Tree – are riding on his annual plan. Equally important is the goal to help Hong Kong weather challenges and achieve robust growth in the Year of the Horse. How to capitalise on the opportunities ahead and enable more people to enjoy the fruits of economic success is the test... https://www.scmp.com/opinion/comment/article/3344123/clearer-skies-allow-hong-kong-budget-go-beyond-balancing-books?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3344123/clearer-skies-allow-hong-kong-budget-go-beyond-balancing-books?utm_source=rss_feed Sun, 22 Feb 2026 23:15:13 +0000 Alice Wu Alice Wu Maybe it’s because we are riding on the euphoria of good fortune and luck that is associated with the celebration of the Lunar New Year that there hasn’t been much of the noise that we usually hear ahead of the annual budget speech. Typically, the weeks leading up to the speech are filled with groups petitioning and suggesting how the government should be spending its money. Could it be because the start of the Lenten season is coinciding with that of Ramadan? Are we tempered to be less selfish... https://www.scmp.com/opinion/hong-kong-opinion/article/3344158/hong-kongs-budget-must-help-those-who-need-it-most?utm_source=rss_feed https://www.scmp.com/opinion/hong-kong-opinion/article/3344158/hong-kongs-budget-must-help-those-who-need-it-most?utm_source=rss_feed Sun, 22 Feb 2026 21:30:08 +0000