The 2026 Policy Address: five takeaways for investors, families and businesses

Context

The 2026 Policy Address was delivered alongside Hong Kong's first five-year plan, aligned with the national 15th Five-Year Plan. Its financial chapter builds on a year of strong markets: a record offshore renminbi lending figure of RMB 935 billion in 2025, a recovering IPO market and Hong Kong's description of itself as the world's largest cross-boundary wealth management centre.

The address contains hundreds of measures. For investors, families and business owners, five themes stand out.

1. Wealth and asset management

The address notes the passage of the bill enhancing preferential tax regimes for funds, single family offices and carried interest, and says promotion will be stepped up. It adds several measures aimed at products and capital flows:

• A bill this year to allow the privatisation or restructuring of real estate investment trusts, and another in the first half of 2027 to waive stamp duty when non-residential property is injected into REITs seeking to list.
• Promoting investment by mainland insurance funds in Hong Kong ETFs through mutual market access, and widening the range of eligible ETFs.
• Lifting the total investment limit on eligible index-tracking ETFs by MPF funds.
• Continued efforts to include REITs in mutual market access.

2. Gold and commodities

The gold agenda launched in July continues. The address commits to the official launch of the central clearing and settlement system in the first quarter of 2027, and says HKEX will announce details of new renminbi-denominated, physically settled gold futures this year. The HKMA is exploring whether to increase the Exchange Fund's gold holdings and gradually move physical holdings to designated vaults. A dedicated Gold Hotline will support mainland and overseas traders.

On tax, the government will implement a half-rate concession for physical commodity trading and explore tax concessions for qualifying activities in the gold and commodity ecosystem, to be put to the Legislative Council for consultation next year.

3. Listings and capital markets

IPO funds raised exceeded HK$340 billion by the end of August, already above the 2025 total. Following the July listing reforms, the address announces:

• A second-stage consultation on listing competitiveness in the third quarter, covering notifiable transactions, connected transactions and spin-offs.
• A consultation in the first half of 2027 on specialist technology (Chapter 18C) listings, including the market capitalisation threshold.
• An SFC consultation in 2027 on streamlining prospectus disclosure for overseas issuers.
• Work to add qualifying exchanges in Kazakhstan to the list of recognised stock exchanges.

4. Corporate tax and transparency

For groups considering Hong Kong as a regional base, the address confirms that a bill on corporate treasury centres will be introduced in the first half of 2027, following the summer consultation. It also says a tax concession of 5% or half-rate may be offered under preferential policy packages, depending on an enterprise's investment plan and contribution to Hong Kong, to attract headquarters managing supply chain and sourcing businesses.

Less noticed but important for families: the Financial Services and the Treasury Bureau will consult this year on enhancing beneficial ownership transparency for companies and express trusts, to implement the latest international anti-money laundering standards. Trustees and families using trusts should watch the proposals closely.

5. Talent and families

The government will consider adding more AI application categories to the Talent List, which currently covers 60 professions, and will relax extension-of-stay requirements under the Top Talent Pass Scheme for technology start-up founders supported by designated public bodies.

For families, the IRD's summary of tax measures for individuals states that the child allowance for a second or later child born on or after 16 September 2026 will rise from HK$140,000 to HK$160,000, from the 2026/27 year of assessment, with a stamp duty waiver of up to HK$20,000 on certain residential purchases by eligible families with a newborn, subject to legislation.

Implications for investors, families and businesses

For family offices, the passage of the fund and FIHV bill is the most important change, and the beneficial ownership consultation is the one to watch.

For investors, more ETF channels, REIT reforms and gold infrastructure point to broader product choice and deeper liquidity in Hong Kong.

For businesses, the CTC bill and headquarters packages offer tangible tax incentives, though eligibility and conditions will matter.

For families relocating, talent and family measures add to Hong Kong's offer.

Questions to consider

• How does the passed fund and family office bill change our structure or plans?
• Would REIT, ETF or gold measures create new opportunities in our portfolio?
• Could our group qualify for the CTC regime or a preferential headquarters package?
• If we use trusts, how might beneficial ownership transparency rules affect us?
• Do talent or family measures change our relocation planning?

Closing

The 2026 Policy Address is incremental rather than dramatic, but its direction is consistent: deepen markets, add infrastructure and use targeted tax incentives. Many measures depend on legislation over the next 12 to 18 months, so the details will matter more than the headlines.