Doing business in Hong Kong goes beyond low taxes and legal certainty. A new opportunity is now adding to that list. It’s the Hung Shui Kiu (HSK) pilot area, one of the first major projects under the Northern Metropolis. Covering 10.5 hectares, it offers a first look at one of Hong Kong’s newest business districts.
The development already points to two clear advantages: its proximity to Shenzhen and an Enterprise & Technology Park expected to support industrial, commercial, and logistics activities. This means, if you’re planning to set up in Hong Kong, you’ll be closer to suppliers, research partners, and manufacturing networks. You’ll also be entering a district planned for long-term economic activity and cross-border collaboration. This article gives you more details about this tender, its future potential, and what it could mean for your incorporation plans in Hong Kong.
How Does the Hung Shui Kiu Pilot Tender Work?
The Development Bureau launched the HSK pilot tender on 29 December 2025, giving developers about six months to submit their proposals. The application period officially closed on 3 July 2026, and the Government received two bids. They are:
- Henderson Land Development and
- A consortium including China Overseas Land & Investment, China Resources Land (Overseas), China Merchants Land, CTG Investment Management, Sino Land and JD.com.
How is this tender different?
The HSK pilot tender followed a large-scale land disposal approach. Instead of selling individual plots, the Government grouped residential sites, Enterprise & Technology Park sites, and public facilities into a single integrated development.
The successful bidder will:
- Develop the residential sites.
- Develop and operate at least one E&TP site (can opt for more).
- Complete public infrastructure, including open space, pedestrian streets, and footpaths before handing them back to the Government.
Following this will allow the consortium or individual developers to plan and develop the district as a single project.
Ms Bernadette Linn, the Secretary of Development, said:“These serve to increase the project’s financial attractiveness, facilitate investments from different backgrounds to form consortiums, and alleviate the cash flow pressure of developers.” Source
The Government also introduced a flexible payment arrangement. The winning bidder must pay 25% of the land premium within 28 days of the land grant and pay the remaining 75% over the following 3 years without interest. It gives them more flexibility to manage project costs during the development period.
How were the bids evaluated?
The tender used a ‘two-envelope approach’. One envelope contained the bidder’s land premium (30%). The other had a non-premium proposal explaining the development plans for Enterprise & Technology Park (70%).
The Government assessed the bidding based on:
- Strategic industries proposed for the Enterprise & Technology Park
- Plans to attract leading enterprises
- Investment scale
- Development speed and
- Employment opportunities.
What does the 70:30 approach tell you?
The 70:30 evaluation approach shows you how the Government plans to develop HSK. It scored each proposal against a range of business and development criteria before selecting the successful bidder.
If you’re considering HSK for your business, that means the district you’ll eventually move into has already gone through a much wider planning process before construction begins.
How Does the Enterprise & Technology Park Support Business Growth?
The pilot area also includes 3 Hung Shui Kiu Enterprise & Technology Park (E&TP) sites. It will provide about 280,000 square metres of floor area for future technology and industrial development.
What businesses can operate here?
The E&TP can accommodate:
- Technology companies
- Industrial and commercial businesses
- Modern logistics
- Other industrial uses.
By planning these businesses in the same area, the Government expects companies to work more closely with one another and make better use of shared services and infrastructure.
Why does this location work for your business?
If you set up your business in the Enterprise & Technology Park, you’ll be close to Shenzhen’s Nanshan District and the Qianhai Cooperation Zone. This puts you within one of southern China’s largest technology and innovation corridors. If your business depends on suppliers, manufacturers, research partners, or customers across the border, you’ll be much closer to the people you work with.
You’ll also benefit from planned transport links. By 2030, the Smart and Green Mass Transit System will connect the Enterprise & Technology Park to Hung Shui Kiu Station in about 3 minutes. From there, you’ll be able to access the Tuen Ma Line.
Around 2035, the planned Hong Kong-Shenzhen Western Rail Link will connect Hung Shui Kiu with Qianhai. The planned Hong Kong Island West-Hung Shui Kiu Rail Link will also give you another way to travel across Hong Kong. Also, the location gives you direct road access to Shenzhen Bay and southbound access to Hong Kong International Airport, making it easier to move people and goods across the Greater Bay Area. For your business, this means more than having office or industrial space. You’ll be setting up in a district that keeps suppliers, transport links, and business partners much closer.
Startupr expert says:“Based on our experience helping businesses incorporate in Hong Kong, many founders begin by comparing tax rates, registration costs, and incorporation timelines. Those are good starting points. Before making a final decision, compare the different business districts Hong Kong has to offer. Consider how each location supports your day-to-day operations, your access to suppliers and customers, your transport connections, and your long-term growth plans. Looking at the bigger picture before you incorporate can help you choose a place that continues to support your business as it grows.”
Wrapping Up
If you’re planning to incorporate a company in Hong Kong, you’ll benefit from low taxes, a common law legal system, and access to one of Asia’s busiest business centres. The Hung Shui Kiu development helps make an even stronger case for choosing the city.
The project is still underway, but that doesn’t mean you have to delay your plans. Early incorporation gives you time to build the right corporate structure and prepare for new opportunities as districts like HSK continue to develop.
Whether you’re starting a new business or expanding into Hong Kong, Startupregistry can help with company registration and ongoing compliance, so you can focus on running your business. Talk to our experts to learn more.
