PwC has expressed its support for the Hong Kong SAR Government's release of the city's first Five-Year Plan and the 2026 Policy Address on September 16. Edward Lee, PwC China Vice Chairman and Managing Partner, stated that the initial five-year plan is both pragmatic and forward-looking, with a clear vision to bolster Hong Kong's integration into and service of the nation's development objectives. The plan aids in reinforcing Hong Kong's traditional strengths as a hub for finance, shipping, trade, and legal services, while also nurturing growth in emerging sectors such as innovation technology and artificial intelligence. It accelerates cross-border collaboration and development in areas like the Northern Metropolis and the Greater Bay Area, adopting a multi-pronged strategy to enhance Hong Kong's competitiveness in the global market.

PwC particularly commends the government's steadfast dedication to ensuring the free flow of capital, talent, goods, and data, which fully harnesses the flexibility and advantages of Hong Kong's capitalist market to seize future opportunities. The Policy Address introduces a range of measures, including various tax incentives and stimulus schemes aimed at fostering further financial and economic advancement. These initiatives will effectively support the orderly implementation of the five-year plan and sustain Hong Kong's prosperity and stability. PwC is committed to supporting the government in successfully executing these policy actions and collaborating with all sectors of society to contribute to Hong Kong's well-being.

Innovation Ecosystem

Gordon Ng, PwC Cybersecurity, Data, and Technology Risk Consulting Partner, voiced support for the government's acceleration of the Northern Metropolis development, positioning it as a key growth engine for higher education and innovation technology. Through the coordinated development of industrial parks, universities, and research institutions, this initiative aims to build Hong Kong's innovation ecosystem, advance its status as an international innovation and technology hub, and attract global high-caliber talent. PwC also welcomes the government's proactive approach to integrating artificial intelligence applications and risk governance, expanding use cases, and playing a leading role in encouraging the market to adopt innovative technologies to boost business efficiency and international competitiveness.

Capital Markets

Wilson Kwong, PwC Capital Markets Leader, expressed appreciation for the measures proposed in the Policy Address to optimize the securities market. These include consultations on streamlining prospectus disclosure requirements, enhancing the competitiveness of the listing regime, revising listing rules for specialty technology companies, and simplifying procedures to attract quality real estate investment trusts (REITs) for dual listings in Hong Kong. PwC believes these initiatives will encourage more mainland and overseas enterprises to list in Hong Kong, attract greater global investor participation, and improve overall market liquidity. This will provide more comprehensive financing channels for companies at various stages of development, reinforcing Hong Kong's pivotal role in the nation's drive to build financial strength and its position as a key international financial hub connecting businesses and investors worldwide.

Asset and Wealth Management

Billy Kwan, PwC Asset and Wealth Management Industry Leader, noted that the first five-year plan and Policy Address introduce a series of forward-thinking measures to boost Hong Kong's competitiveness, deepen connectivity with the mainland, and create new opportunities for global capital to be managed, allocated, and invested through Hong Kong. Combined with earlier regulatory and policy enhancements, such as improved tax regimes for funds, single-family offices, and carried interest, these measures will significantly increase Hong Kong's appeal to international asset managers, investment funds, and family offices, solidifying its status as a cross-border wealth management hub and leading asset management center. The Policy Address's focus on exchange-traded fund (ETF) development is particularly encouraging. ETFs are among the fastest-growing segments in asset management, and initiatives like the "ETF Connect" to encourage mainland insurance funds to invest in Hong Kong-listed ETFs, expand the range of eligible products, and promote cross-border and cross-market listings will effectively enhance market liquidity, attract fresh capital inflows, broaden the investor base, and strengthen Hong Kong's position as Asia's leading ETF hub.

Regional Collaboration and Global Partnerships

Shirley Wong, PwC China Southern Markets Leader, welcomed the dedicated chapter in the first five-year plan on deepening Greater Bay Area development, focusing on advancing infrastructure "hard connectivity" and institutional "soft connectivity" through rules and mechanism alignment. This aligns closely with PwC's long-standing advocacy. The government has adopted several of PwC's earlier recommendations, such as deepening GBA integration through institutional and standards innovation. The five-year plan proposes introducing Hong Kong's standards and management models to the GBA in areas like arbitration and mediation, low-altitude economy industries, information infrastructure, and cross-boundary data flows. It also seeks to deepen the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and achieve higher-level opening-up in the GBA through pilot programs. These measures will facilitate Hong Kong professionals and services firms in expanding into mainland GBA cities, working with local enterprises to develop mutually compatible market standards and create broader cooperation opportunities, with pilot experiences potentially extending to other mainland cities in the long run. The Policy Address also introduces several long-anticipated tax incentives, including preferential treatment for eligible activities in the gold and commodity trading ecosystem and a 5% or half-tax concession for enterprises in key industries such as finance, innovation technology R&D, headquarters operations, and supply chain management. These will further elevate Hong Kong's competitiveness as a global trade and investment center.