What analysts have to say about Hong Kong 2025-26 Budget

PwC and KPMG commend efforts to bolster AI and asset management sectors in Hong Kong.

Hong Kong’s 2025/26 Budget, projected to face a deficit of $87.2b, focuses on boosting the city’s asset management and innovation sectors through expanded tax incentives for family offices, digital assets, and AI development.

Analysts are praising the government's efforts to attract international investors and enhance Hong Kong’s competitiveness as a global financial hub.

PwC’s Agnes Wong and KPMG’s Alice Leung both highlight the expansion of tax exemptions to include fine arts and collectibles, which could draw more overseas family offices to the city.

Additionally, KPMG’s John Timpany sees Hong Kong’s emphasis on artificial intelligence as a key growth driver, with major projects like the Hong Kong Artificial Intelligence Research and Development Institute set to align scientific research with industry needs. These measures aim to inject vitality into Hong Kong's financial sector while creating new growth opportunities in emerging technologies.

Analysts are also urging the government to further enhance Hong Kong’s appeal by continuing to foster innovation.

Timpany noted that the AI initiatives, particularly those tied to Cyberport’s AI Supercomputing Centre and the upcoming AI research institutes, demonstrate the city’s ambition to become a global AI hub.

At the same time, Leung’s comments underscore the government's drive to attract more family offices with favourable tax regimes, a move expected to generate jobs and increase demand for professional services.

Both firms also said the budget gave significant emphasis on infrastructure development and talent acquisition to drive long-term economic growth.

The government plans large-scale investments in projects like the Northern Metropolis development and has introduced new initiatives to attract skilled professionals, especially those with technical expertise.

KPMG’s Stanley Ho backs the strategy of raising capital through government bonds for infrastructure, whilst PwC’s Agnes Wong advocates for expanding talent schemes to make Hong Kong more attractive to global professionals. Both analysts stress that these measures aim to bolster the city’s global competitiveness amid ongoing fiscal challenges.

KPMG’s Chi Sum Li also highlighted the importance of integrating innovation and technology into infrastructure development, noting that the Northern Metropolis plan focuses on key industries such as high-end professional services and modern logistics.

PwC’s Wong echoed this sentiment, pointing out the need to create a welcoming environment for global professionals through enhanced immigration policies. These efforts are expected to stimulate both job creation and talent retention, ensuring Hong Kong’s position as a leading global business hub.