Hong Kong is embarking on ambitious economic development initiatives aimed at leveraging technology and attracting foreign investment. During the 2025-26 Budget Speech, Financial Secretary Paul Chan revealed plans to allocate HK$1 billion for the establishment of the Hong Kong Artificial Intelligence Research and Development Institute (AI R&D Institute). This institute is set to spearhead research and development as well as industrial applications of artificial intelligence, guided by the South China city’s Digital Policy Office.
Chan articulated the vision for this new institution, stating, "We aim to position Hong Kong as a leading hub for AI technology. The AI R&D Institute will form the backbone of our strategies to innovate with tech and boost our economy." The Hong Kong Cyberport’s AI Supercomputing Centre also aims to achieve 3,000 petaFLOPS computing power by 2025, underscoring the city’s focus on becoming a tech powerhouse.
Further cementing its commitment to economic growth, Hong Kong has seen promising developments from the Office for Attracting Strategic Enterprises (OASES). Chan announced plans for over 10 “strategic” enterprises to invest around $50 billion, which could lead to the creation of more than 20,000 new jobs over the next few years. "These enterprises are expected to bring in direct investment of over $67.7 billion," Chan explained, highlighting the significant impact these investments could have on the local economy.
Since its inception in 2022, OASES has attracted 66 enterprises, many of which are high-tech companies boasting market valuations exceeding $10 billion. Remarkably, over 80% of these companies are establishing or planning to establish their global or regional headquarters within Hong Kong. This strategy presents Hong Kong as not only a business hub but also as a focal point for tech innovation.
To expand its investment appeal, Hong Kong has been actively reaching out to ASEAN countries, with several enterprises from this region applying for listings on the Hong Kong Stock Exchange. Chan noted, "The companies cover various sectors including biotechnology, integrated logistics, and mining, reflecting our goal to diversify our economic activities." The local bourse operator is ramping up promotions within the ASEAN and Middle Eastern markets, aiming to enrich investment products and boost capital flows.
To facilitate listing for more private equity funds, the Securities and Futures Commission has clarified relevant regulatory requirements. The objective is to encourage alternative asset funds to raise capital, which could contribute to Hong Kong’s financial dynamism and attractiveness as an investment destination.
Chan expressed the government’s desire to not only lean on local investments but also to attract global capitals, stating, "We are following up actively with the governments of Malaysia and Saudi Arabia on the establishment of Economic and Trade Offices. This is part of our broader strategy to connect with markets across the Global South." Consultant offices have already been set up in countries like Egypt and Türkiye and are proving instrumental as Hong Kong seeks to strengthen ties with Belt and Road Initiative countries.
Looking forward, Chan revealed continued negotiations on investment agreements with key nations including Saudi Arabia, Bangladesh, Egypt, and Peru. The aim is to establish Comprehensive Avoidance of Double Taxation Agreements with 17 countries, bolstering Hong Kong's status as economically viable for international investments.
Summing up the government’s efforts, Chan stated, "The Hong Kong Trade Development Council will strengthen B&R project matching, particularly on green development and innovation technology." This aligns with the city’s commitment to not only enhancing its economic framework but also promoting sustainability and technological advancement.
With the initiatives outlined, Hong Kong is set to not only attract strategic enterprises and investments but also innovate through advancements like the AI Research Institute. Combined with proactive policies for economic collaboration, the city could very well redefine its economic future as it strives for growth and competitiveness on the global stage. This forward-thinking approach reflects the overall ambition of transforming Hong Kong’s economy and enhancing its role as leading business and technology hub.