Hong Kong 2026 Finance Plan Targets New Markets and Connectivity

Key Insights:

• Hong Kong’s 2026 plan targets capital markets, fintech, commodities, and cross-border financial connectivity.
• Authorities plan market reforms, stablecoin licensing, and expanded gold and bond infrastructure.
• The roadmap aligns with China’s 15th Five-Year Plan and boosts global financial outreach.

Hong Kong 2026 finance plan sets out a broad policy framework intended to strengthen the city’s role as an international financial center while opening new markets. The plan was presented by Christopher Hui, Secretary for Financial Services and the Treasury, at a Legislative Council policy briefing on January 30.

The roadmap aligns with China’s national 15th Five-Year Plan and focuses on market reforms, financial infrastructure, and regulatory development. Officials said the measures target capital markets, asset management, fintech, commodities, and cross-border connectivity.

Hong Kong Focuses on Capital Markets and Financial Infrastructure Reforms

Under the Hong Kong 2026 finance plan, authorities plan to strengthen stock market operations and listing mechanisms. Measures include support for mainland technology firms raising capital in Hong Kong and enhancements to the main board listing rules.

The government will also review the issuance of structured products and dual-class share arrangements. Officials confirmed discussions are underway to shorten the stock settlement cycle from T+2 to T+1.

Asset and wealth management reforms form another pillar. Legislative proposals are expected in the first half of the year to refine tax concessions for funds and single-family offices. Amendments covering real estate investment trusts will introduce clearer rules for mandatory purchases and unit buybacks.

Risk management reforms will focus on insurance participation in infrastructure financing. Authorities plan to lower capital requirements for such investments. A new shipping-specific risk pool, announced last November, is expected to begin operations this year.

In addition, bond market development remains a priority. The Securities and Futures Commission and the HK Monetary Authority previously issued a roadmap for the fixed-income market. A feasibility study on a dedicated electronic trading platform was launched in December.

New Growth Engines Under the Hong Kong 2026 Finance Plan

The 2026 finance plan also emphasizes new growth areas, including commodities and fintech. Officials aim to expand gold storage capacity to more than 2,000 tons within three years.

Hong Kong plans to position itself as a regional hub for gold reserves. Authorities are encouraging refiners to expand locally and are supporting cross-border processing cooperation with Shenzhen. A cooperation agreement with the Shanghai Gold Exchange was signed earlier this week.

Moreover, a government-owned entity will oversee the Hong Kong Gold Central Clearing System. Trial operations are expected to begin this year. Commodity trading will also expand through additional London Metal Exchange-approved warehouses.

In the fintech sector, the Stablecoin Ordinance came into force last August. The Hong Kong Monetary Authority is processing license applications from fiat-referenced stablecoin issuers.

Regulators are also advancing a licensing framework for virtual asset trading and custody providers. Draft legislation covering advisory and asset management services is expected this year.

Hong Kong also plans to adopt the OECD crypto-asset reporting framework. Automatic tax information exchange is scheduled to begin in 2028.

Connectivity, Global Outreach, and Domestic Measures

Deepening connectivity is another core element of the Hong Kong 2026 finance plan. Officials confirmed talks with mainland institutions on offshore government bond futures and expanded interest rate derivatives.

An amendment bill will propose allowing RMB payments for stock stamp duty on over-the-counter trades. Authorities also plan continued coordination under the Stock Connect programs. International outreach will intensify.

Hong Kong will host the Asia-Pacific Economic Cooperation Finance Ministers’ Meeting in October. Officials said the event will highlight Hong Kong’s role in global finance.

The Asian Infrastructure Investment Bank plans to open an office in Hong Kong. Authorities confirmed they are providing logistical support. Domestic support measures were also outlined.

The government will allocate an additional HK$30 billion for infrastructure spending over the next two to three years. Several non-residential fees will be reduced or waived for one year.