The Hong Kong government plans to introduce legislative changes in early 2026 to enhance preferential tax regimes and attract more funds, family offices, and carried interest, reinforcing its role as a global financial hub.
Hong Kong’s Chief Executive, John Lee Ka-chiu, delivered the Hong Kong Chief Executive’s 2025 Policy Address on 17 September 2025. Among the highlights, the government announced plans to propose legislative changes in the first half of 2026 aimed at strengthening Hong Kong’s position as a global financial hub.
These proposals include further enhancing the preferential tax regimes for funds, single-family offices and carried interest to attract more funds to establish a presence in Hong Kong.
Real Estate Investment Trusts and Qualified Foreign Limited Partnerships
The Securities and Futures Commission (SFC) will actively promote the inclusion of real estate investment trusts (REITs) under mutual market access to increase the liquidity of REITs in the Mainland and Hong Kong. They will also facilitate the enhancement of the Qualified Foreign Limited Partnerships (QFLP) mechanism, in particular by collaborating with Qianhai and Shanghai to attract more foreign capital to the Mainland’s private capital market.
HKIC support for local private equity and hedge funds
The Hong Kong Investment Corporation Limited (HKIC) will nurture local private equity and hedge fund institutions with good potential through direct or co-investment.
Review and enhancement of corporate treasury centre tax concessions
A review of the existing tax concessions for Corporate Treasury Centres, along with recommendations for their enhancement, is scheduled for completion in the first half of 2026.
Opportunities for mainland enterprises in Hong Kong
Mainland enterprises going global can establish Corporate Treasury Centres (CTCs) and regional headquarters in Hong Kong for cross-boundary settlement, remittance, financing and related functions. They can also tap Hong Kong’s professional high value-added supply chain services in fields such as accounting and law to help them explore overseas markets.
Strategic enterprise tax incentives
The government plans to attract high-value enterprises in advanced manufacturing, new energy, life and health technology, and AI by offering customised tax packages. A new mechanism will enable the Chief Executive and Financial Secretary to introduce targeted, internationally compliant tax incentives.
Capital Investment Entrant Scheme (CIES)
The government plans to enhance the Capital Investment Entrant Scheme (CIES). Currently, applicants of the New Capital Investment Entrant Scheme are required to invest at least KKD 30 million in Hong Kong. Among such investments, the maximum amount of investment in real estate (both residential and non-residential) to be counted towards the scheme is HKD 10 million.
The scheme will be enhanced, raising the maximum amount of investment to be counted from HKD 10 million to HKD 15 million for the purchase of non-residential properties with no transaction price threshold; as for the purchase of residential properties, the investment to be counted will continue to be capped at HKD 10 million, but the transaction price threshold will be lowered from HKD 50 million to HKD 30 million.
Commodity trading tax concessions
The government plans to provide half-rate (50%) tax concessions for commodity traders to set up businesses in Hong Kong, driving demand for shipping and professional maritime services. Legislative amendments will be made in the first half of 2026.
Digital economy
The government plans to strengthen international tax cooperation to tackle cross-border tax evasion in digital asset markets. The government is implementing a regime for stablecoin issuers and formulating legislative proposals regarding licensing regimes for digital asset dealing and custodian service providers. The Securities and Futures Commission (SFC) is studying the possibility of offering a wider range of digital asset products and services to professional investors with the prerequisite of sufficient investor protection in place.
The SFC will also step up international tax co-operation to tackle cross-border tax evasion. The SFC will also introduce automated reporting and data surveillance tools to build a line of defence against risks associated with digital assets in Hong Kong.
Carbon trading and sustainable finance
The Hong Kong government will deepen pilot co-operation with the Greater Bay Area (GBA) carbon market, testing the means of cross-border trade settlement, and jointly building a regional carbon market ecosystem. The government will also be working with the relevant Mainland regulatory departments and authorities and studying issues surrounding the country’s participation in the international carbon market, including the formulation of voluntary carbon credit standards and methods, as well as the registration, trading and settlement of carbon emission reduction.
