Hong Kong is putting its next five years on paper, and the direction is clear. The Hong Kong Five-Year Plan 2026 sets out the city’s priorities until 2030. It was put on the table for a two-month public consultation, with the final version expected in the third quarter of this year.
It covers a lot of ground. Technology and innovation get a bigger push, financial services remain a major focus, and green development also gets attention. For you, the real value comes when these priorities move off the page and into practice. The next five years will put new rules, programmes, and support measures into play for companies setting up or investing in Hong Kong.
This article takes a closer look at what is being proposed, where the biggest opportunities could sit, and what you need to know before the final plan takes shape.
What are the Key Pillars of Hong Kong’s Five-Year Plan?
Hong Kong’s first Five-Year Plan has six main focus areas. A government spokesperson summed up the scope of the plan: “It will cover areas such as the economy, industries, spatial planning, infrastructure, green transformation, as well as livelihood aspects including healthcare, education, housing, welfare, and elderly care, providing clear directions for Hong Kong’s economic and social development in the coming five years to create a vision for the future that citizens can look forward to.”Source
Let’s now see what each pillar brings into focus.
Pillar #1: The Northern Metropolis and Housing Plans
The Northern Metropolis takes up a large share of the plan’s first pillar. The government has a lot planned for the area. A few of the important proposals are:
- The region is set to add more than 70,000 housing units over the next five years. The plan also includes around 1 million square meters of economic floor space.
- It also brings R&D, testing, manufacturing, and new technology closer to the market. AI, biotechnology, advanced manufacturing, microelectronics, and data technology all feature in the proposals.
- The University Town also plays a bigger role. The plan calls for more post-secondary institutions, research centres, and related facilities in the area, helping build the Northern Metropolis tech hub.
Housing space is also on the list. Public housing would gradually see changes in the range of unit sizes offered. Also, new private residential projects would face higher minimum size requirements.
Pillar #2: Finance, trade, maritime and aviation
If you’re looking at Hong Kong for your next business move, the second pillar gives you several areas to keep tabs on. Here are some of the important discussion points:
- Finance stays high on the list. The plan covers equity and bonds, along with asset and wealth management. Sectors like Fintech, green finance, and commodities trading also make the cut.
- The plan also covers shipping. Hong Kong wants greener shipping and smarter ports. It also plans to build up services such as ship leasing, management, and insurance. Maritime law and arbitration are part of it too.
- You’ll also see proposals for more flight connections with the Middle East, Africa, Central Asia, and South America. Aircraft leasing and parts will help keep the industry moving, while aviation training and other services fill out the picture.
Pillar #3: Technology and industry development
Research can move closer to real-world use, with AI and new products getting room to grow. The proposals also cover businesses, talent, and legal support for new ideas. Here are some of the main points:
- The government wants to move R&D beyond the lab. I&T parks, labs, testing facilities, and data infrastructure can help turn research results into products and services.
- AI also gets a major role. The government wants more AI research to move into different industries like advanced manufacturing, microelectronics, and data science.
- Traditional industries are getting a technology upgrade. The proposals look at helping these businesses update the way they work, improve their products, and reach new markets. Chinese medicine, cultural and creative industries, and medical products are specifically named.
Pillar #4 People’s Livelihood and Social Development
- The fourth pillar shifts the focus to everyday life. The government has put forward a set of ideas for public discussion, with changes planned over the next five years. Let’s see the key plans discussed.
- Education would give you more choices as you move from school into work. The measures cover stronger basic skills, more vocational training, and closer links between universities, businesses, and research groups.
- Work and support for older people and families also get a place. You’d see more training and retraining as jobs change, along with better workplace protection. For older people, the proposals support staying active in the community, while families would get more childcare and after-school support.
- Healthcare would put more weight on prevention and early care. The plan includes more community health services, better use of health technology, and greater capacity in public healthcare.
Pillar #5: Development of regional co-operation
Hong Kong can help you put your business within reach of the Mainland and overseas markets. This pillar talks more about it. It mainly says:
- The Greater Bay Area is becoming more connected. HK plans to work more closely with cities across the GBA on I&T, manufacturing, moving new technology from research into use, and logistics.
- Qianhai, Nansha, and Hetao can give your business a stronger foothold in the Mainland. The focus runs across I&T, talent exchange, education, and maritime services.
- The Belt and Road Initiative can make overseas opportunities easier to tap into. You can draw on capital, projects, talent, technology and professional services linked to participating countries and enterprises.
Pillar #6: Integrated development of culture, sports, and tourism and more
Some of the changes planned for Hong Kong will show up in the places you work, travel, and build your business. The 6th pillar covers that. A few of the important takeaways are:
- Hong Kong wants to bring more big events to the city. Sports, concerts, and cultural activities can draw visitors and create business around them, with Kai Tak Sports Park and other large venues playing a bigger part.
- Green technology will get more attention in the years ahead. You’ll see the focus move through greener buildings, better energy use, environmental monitoring and waste management.
- The city is making space for cleaner ways to get around. Electric vehicles, charging stations and new energy transport are part of the plan. Self-driving vehicles are also coming into the picture to support smart mobility.
Startupregistry experts say: The Five-Year Plan gives you plenty to think about when choosing Hong Kong as your base. From our experience helping companies set up in I&T, AI, fintech and manufacturing, there’s another point founders often look at once they start running the numbers: Hong Kong’s territorial tax system. The city generally taxes profits that arise in or are derived from it. So before you choose your setup, you need to look at where your income-generating activities will actually take place. The answer can affect how Hong Kong’s tax rules apply to your company.
What Existing Support is Available for Entrepreneurs?
Hong Kong Five-Year Plan is for the future. The city already has several programmes that can help you get funding and bring the right people into your business. Here are a few of them.
Innovation and Technology Venture Fund (ITVF)
The ITVF can give your startup a bigger pot of private funding to work with. The government is putting HK$1.5 billion into funds raised with private investors. If you’re building in AI and data science, advanced manufacturing and new energy, or life and health technology, your startup could get a leg up from this financing.
The government and private investors each contribute to these funds. For every HK$3 a fund manager raises from the market, the public side adds HK$1. Each fund can receive between HK$150 million and HK$250 million in government funding.
If your startup receives an investment under the scheme, at least 50% of that money needs to stay in your Hong Kong operations. You can use it to hire people or buy goods and services, keeping a good chunk of the investment in your local business.
What is the Innovation and Technology Venture Fund Corporation (ITVFC)?
The ITVF can also invest directly in eligible I&T startups with selected VC funds. It does this through the ITVFC and the VC funds are called Co-investment Partners (CPs).
If a selected VC partner finances your startup, the ITVF can join that investment. It puts in about HK$1 for every HK$2 the VC partner provides, with its total value in your startup capped at HK$50 million.
For each deal, there is another limit. The ITVF can invest no more than 40% of the amount you originally wanted to raise or HK$30 million, whichever is lower.
- Your business needs a base in Hong Kong. Your headquarters, regional office, main operations, or senior leadership team needs to be located here.
- Your team needs to stay below 250 people. The count covers everyone working across your Hong Kong, Mainland, and overseas offices.
- Your I&T work needs a Hong Kong link. Your company or its subsidiaries must carry out part of the R&D or production work in HK.
A selected VC partner has to put your startup into the ITVF’s investment pipeline. Once the CP sends in your proposal, the ITVF Secretariat reviews it with the Steering Committee before the investment can move ahead.
Technology Talent Admission Scheme (TechTAS)
If you’re doing business in Hong Kong in 2026, TechTAS can stretch your search for R&D talent beyond the city’s borders. Under this scheme, you can apply for a quota and then sponsor non-local technology talent to carry out the approved work.
To use TechTAS, your company needs to clear a few important checks:
- The person you sponsor must mainly work in a field covered by the scheme. The list ranges from AI and biotechnology to cybersecurity, data analytics, fintech, green technology, and more.
- The employee should have a STEM degree from a well-recognized university.
- The role must match your approved quota, and the pay cannot fall below the market rate for a similar job in Hong Kong.
What’s Next?
Hong Kong’s Five-Year Plan gives you a clearer sense of what the city is building between 2026 and 2030. The current tax setup gives you another practical point to consider.
The city uses a territorial tax system, has no VAT, and maintains relatively low, simple corporate tax rates. You also have free capital movement and a common law system that differs from that of mainland China. All of this can make the place a strong base for your company.
To get the most from these advantages, you need the right help from the start. If you’re planning to incorporate a company in Hong Kong, Startupregistry can help with business registration, bank account opening, filing, and ongoing compliance. Contact our experts to learn more about our services.
