Submission of views for the public consultation on Hong Kong’s Five-Year Plan
Release Date: 2026-06-15
| Constitutional and Mainland Affairs Bureau, | By email |
| 12/F, East Wing, Central Government Offices, | hk5yplan@cmab.gov.hk |
| 2 Tim Mei Avenue, Tamar, | |
| Hong Kong |
Submission of views for the public consultation on Hong Kong’s Five-Year Plan
Date: 15th June 2026
Dear Ms. Janice TSE Siu-wa, GBS, JP, Secretary for Constitutional and Mainland Affairs
Make Good Use of the First Five-Year Plan to Comprehensively Enhance Hong Kong's Financial Competitiveness
For the first time, the Hong Kong SAR Government has formulated a five-year plan tailored to Hong Kong. In the latest Budget, it explicitly proposes proactively aligning with the national “15th Five-Year Plan,” introducing the “Finance+” concept to accelerate mutual empowerment between finance and technology. These initiatives respond positively to industry voices and demonstrate the government's clear vision for consolidating Hong Kong's status as an international financial centre. I believe that Hong Kong must recognise its shortcomings, boldly pursue reforms, and enhance its competitiveness across multiple dimensions.
1. Recognise Shortcomings and Take Proactive Action
As an international financial, shipping, trade centre and aviation hub, Hong Kong boasts advantages such as a sound legal system, a free port, and free capital flows, but its shortcomings are equally evident. Cross-border business compliance costs are high, and pressures from anti-money laundering and sanctions risk management are growing. The institutional differences arising from “one country, two systems, three customs territories, and three jurisdictions” create difficulties in aligning financial rules. Development strategies should include accelerating fintech adoption, leveraging artificial intelligence to enhance regulatory compliance and risk early warning, and establishing joint supervision and information-sharing mechanisms. The Budget's promotion of “AI+” and AI training for all, along with the launch of the second phase of the sandbox test by the Hong Kong Monetary Authority and Cyberport to explore “using AI to combat AI,” provide critical support.
2. Expand the Asset, Wealth and Risk Management Industry
Hong Kong has a strong foundation in asset management, family offices, and retirement finance. We should actively develop cross-border asset allocation, improve legal and tax supporting measures, and introduce products such as intellectual property securitisation and special bonds for technology enterprises. The Budget implements a roadmap for fixed income market development, broadens the definition of funds to include digital assets as eligible investments for tax concessions, and launches an electronic bond trading platform – all of which help attract international capital. In risk management, we should promote the launch of more Renminbi-denominated futures, options, and over-the-counter derivatives. Moreover, Islamic finance represents an underdeveloped blue ocean. Hong Kong should study the introduction of Shariah-compliant financial products, such as expanding Islamic bonds and funds in the Northern Metropolis, and strengthen financial cooperation with Middle Eastern and ASEAN countries to tap new sources of emerging market funds and diversify geopolitical risks. Most importantly, the government should promptly implement sponsorship of Islamic finance training.
3. Deepen Connectivity and Renminbi Internationalisation
Strengthening the connectivity of financial markets with the mainland cannot stop at Stock Connect and Bond Connect. This council recommends promoting pilot cross-border derivatives connectivity covering interest rates, exchange rates, and commodities; establishing a mutual recognition mechanism for cross-border venture capital and private equity funds; and including insurance and reinsurance products within the connectivity scope. The Budget's proposal to accelerate the implementation of treasury bond futures and include Real Estate Investment Trusts (REITs) and RMB trading counters in the connectivity schemes is an important step. On Renminbi internationalisation, the Budget doubles the total Renminbi funding arrangements to RMB 200 billion and issues RMB bonds of various maturities regularly, helping to refine the offshore yield curve. We should further promote pilot projects for e-CNY in cross-border payments and securities settlement, positioning Hong Kong as the world's premier offshore Renminbi business hub.
4. Address the Shortcomings in Commodity Trading
The Budget outlines three directions for establishing an international gold trading market: tax concessions, forming an industry association, and emphasising talent training. This council recommends further utilising idle land at the Kwai Chung Container Terminals and storage resources in the Greater Bay Area to set up spot delivery venues and bonded warehouses, aligning with the London Metal Exchange to promote futures products such as metals, rare earths, and carbon emission allowances. Meanwhile, we should collaborate with universities to offer master's programmes in commodity futures, attract international commodity giants to set up Asia-Pacific trading centres in Hong Kong, and truly build a commodity pricing platform for the Asian time zone.
5. Support Enterprises Going Global and High-Value-Added Supply Chains
Hong Kong's platform advantages lie in being a “super connector” and a “super value-adder.” This council can assist local and mainland enterprises in going global by lowering internationalisation barriers through intellectual property securitisation, international legal and risk management services, and cross-border VC/PE cooperation mechanisms. For high-value-added supply chain services, we recommend promoting green finance standard alignment and cross-border regulatory sandboxes, developing carbon finance and green supply chain finance products, and strengthening professional training in ESG, digital assets, cross-border compliance, and other fields to attract top international talent to Hong Kong.
6. Enhance Stock Market Competitiveness
The effective stamp duty rate on Hong Kong stocks is higher than that of Singapore and the UK. This council recommends a phased reduction, with the long-term goal of abolition. The Budget's proposals to reform board lot sizes and introduce a scripless securities market system address this council's core demands. The coverage rate of stock options is below 6%, far lower than the US market. A fast-track inclusion mechanism must be established to bring actively traded and volatile stocks into the options series. Furthermore, establishing a shared blacklist database among brokers to combat cross-institutional financial fraud, optimising the warning mechanism for high shareholding concentration to avoid permanent “stigmatization” affecting corporate financing, and allowing delisted companies to enter over-the-counter trading markets with a pathway to relisting are truly necessary to revitalise the market ecosystem.
7. Support Small and Medium Enterprises (SMEs) and Boost Consumption
To support SME financing, we recommend optimising the GEM board, introducing differentiated listing standards and a “Green Technology Growth Board.” Government-guaranteed bonds could be issued, with chambers of commerce recommending eligible SMEs to access cash flow at preferential interest rates. To boost local consumption, besides enhancing electronic payment convenience, we should develop retirement finance and wealth management to strengthen residents' consumption confidence, use tax incentives to encourage local spending, and promote digital Hong Kong dollar and cross-border payment scenarios to attract tourist spending.
8. Green Finance and ESG
Hong Kong should mandate corporate compliance with the Task Force on Climate-related Financial Disclosures (TCFD) framework, establish a green infrastructure fund, issue tokenised green bonds, and work with the Greater Bay Area to build a unified carbon market. Through these measures, Hong Kong can become a leading sustainable finance hub in Asia.
The first five-year plan and the Budget have charted a clear direction for Hong Kong. The industry is willing to join hands with the government and regulatory authorities to make concerted efforts across multiple dimensions – including the stock market, asset management, commodities, green finance, and Islamic finance – to collectively seize the opportunities of the “15th Five-Year Plan” and consolidate and enhance Hong Kong's status as an international financial centre.
For any inquiries regarding this letter, please feel free to contact me (Tel: / Email: ).
Your sincerely,
[Signature] [Chop]
Mofiz Chan
Chairman
Hong Kong Securities & Futures Professionals Association