Hong Kong Budget pivots to AI after surplus swing

Financial Secretary Paul Chan pledges $10b for future industries.

Measures to accelerate artificial intelligence (AI), innovation and technology (I&T), and international business development were introduced by Financial Secretary Paul Chan Mo‑po in the Hong Kong SAR Government’s 2026–27 Budget speech.

The Hong Kong Generative AI Research & Development Center (HKGAI) welcomed the Budget’s plans to establish a Committee on AI+ and Industry Development Strategy, expand AI training, and invest in computing infrastructure.

HKGAI will align with the national 15th Five-Year Plan, support AI commercialisation, and apply AI across sectors.

Its existing platforms, including the HKGAI V1 language model and AI assistant HKChat, serve over 700,000 registered users, while AI tools like HKPilot, HKMeeting, and HKEcoLink are being trialled in government departments to improve efficiency.

PwC Hong Kong highlighted the Budget’s fiscal improvements, noting a shift from a projected $67b deficit to a $2.9b surplus, and welcomed measures supporting R&D, AI adoption, family offices, REITs, gold trading, corporate treasury centres, and digital assets.

PwC said these steps position Hong Kong as a “super connector” linking mainland China with global markets.

The Hong Kong Trade Development Council (HKTDC) noted that the Budget strengthens support for SMEs, global expansion, and digital transformation, including $200m for the BUD Fund, expanded exhibitions and conferences, and business-matching services, while integrating I&T into HKTDC events to foster cross-industry collaboration.

The Budget aims to drive AI industrialisation, enhance innovation, strengthen global trade links, and improve Hong Kong’s competitiveness in strategic sectors.