The Chief Executive’s 2024 Policy Address: How It Will Affect Your Hong Kong Business

Hong Kong has long been recognised as a global financial hub and a strategic gateway to Mainland China. With the release of the Chief Executive’s 2024 Policy Address, a new wave of reforms is set to propel the city forward, creating unprecedented opportunities for businesses to expand, innovate, and thrive in a competitive global marketplace. 

These policy changes, focusing on finance, technology, talent, and sustainability, provide actionable pathways for companies to leverage Hong Kong’s unique strengths. Here’s how businesses can align their strategies with the 2024 reforms and unlock new growth potential.

Boosting Global Competitiveness Through Economic Reforms

Hong Kong’s 2024 Policy Address emphasises the city’s leading international financial, trade, and shipping centre role. This presents a golden opportunity for businesses to expand their reach in global markets.

Expansion of Offshore Renminbi Business

Hong Kong is already the largest offshore Renminbi (RMB) business hub, and the city is doubling down on its strengths in this area. The government plans to deepen mutual market access and enhance RMB liquidity, making cross-border transactions more efficient.

For businesses engaged in international trade, this means easier access to RMB-denominated investment products and smoother financial operations with Mainland China. This strategic focus on RMB internationalisation is especially beneficial for businesses looking to streamline cross-border transactions and improve their operational efficiency.

New Growth in Gold and Commodity Trading

Hong Kong’s vision to become a global gold trading centre opens up new opportunities for companies in the finance and commodities sectors. The city is positioning itself as a hub for international commodity trading by establishing accredited warehouses and providing tax incentives.

Businesses involved in metals, logistics, and risk management can now consider Hong Kong as a primary location for trading, storage, and delivery of commodities, unlocking new revenue streams and growth areas.

Tax Incentives for High-Value Industries

Hong Kong’s preferential tax regimes, particularly for shipping, logistics, and insurance, create a favourable environment for businesses to establish a presence in the city.

Companies can benefit from lower tax rates on specific sectors, helping them optimise costs while positioning themselves in a high-growth region with strong international connections.

Innovation and Technology: A New Frontier for Business Expansion

Innovation and technology (I&T) are central themes in Hong Kong’s 2024 reforms as the city strives to become a global hub for emerging technologies. This shift opens up significant growth opportunities for companies involved in technology, research, and development.

Government-Backed I&T Investment

The government is investing heavily in Hong Kong’s I&T ecosystem, setting up a $10 billion Industry-Oriented Fund to attract capital into sectors like artificial intelligence (AI), biotech, and robotics. This presents an opportunity for businesses in these fields to secure funding, collaborate with local research institutions, and scale their operations in a rapidly growing market. Companies can also benefit from Hong Kong’s enhanced infrastructure for research and development (R&D), with initiatives like the establishment of a third InnoHK research cluster focused on advanced manufacturing and sustainable development.

Opportunities in Green Technology

Sustainability is a priority for Hong Kong, and businesses involved in green finance, sustainable energy, and environmental technology stand to gain significantly. With a focus on green maritime fuel and sustainable aviation, companies that align with Hong Kong’s green transformation initiatives can access government incentives and position themselves as leaders in the transition to a low-carbon economy.

Digital Transformation

Hong Kong’s digital economy is set to grow, with reforms to integrate the real economy and digital innovation. Businesses in fintech, LawTech, and e-commerce logistics can leverage these reforms to enhance their operations and improve customer experiences. The government’s focus on smart infrastructure, including blockchain and AI, will also help companies optimise their digital transformation strategies, improving efficiency and reducing operational costs.

Tapping into a Talented Workforce for Sustained Business Growth

A strong, skilled workforce is essential for business success, and Hong Kong’s talent-focused policies are designed to attract and retain top global talent. Companies can capitalise on this influx of skilled professionals to drive innovation and growth.

Talent Attraction Schemes

Hong Kong has introduced several talent attraction schemes, including the Top Talent Pass Scheme, which grants visas to professionals from leading global universities. Businesses in need of specialised talent, particularly in tech, finance, and innovation, can tap into this expanding talent pool to strengthen their teams. Furthermore, reforms to the Quality Migrant Admission Scheme and visa policies for Mainland professionals will provide businesses with greater access to skilled workers in critical industries facing labour shortages.

Post-Secondary Education and Innovation

Hong Kong’s educational reforms, particularly the development of the Northern Metropolis University Town, provide businesses with the opportunity to collaborate on R&D projects and recruit high-calibre graduates. This strengthens the talent pipeline and encourages innovation, giving businesses access to cutting-edge research and fresh perspectives in emerging fields such as AI and life sciences.

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Capitalising on Greater Bay Area (GBA) Collaboration for Business Expansion

Hong Kong’s deepening integration with the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) creates tremendous opportunities for businesses to expand into Mainland China while benefiting from Hong Kong’s regulatory and financial infrastructure.

Opportunities in the GBA Logistics and Trade Networks

Hong Kong is developing smart ports and high-value logistics services, which will enhance efficiency for businesses involved in shipping, manufacturing, and cross-border trade. The city’s strategic position within the GBA offers companies access to a vast consumer base while providing seamless connectivity to global markets.

Cross-Boundary E-Commerce

The government’s focus on cross-boundary e-commerce logistics presents an opportunity for businesses to enhance their supply chain capabilities. By streamlining customs clearance and implementing digital trade infrastructure, companies can optimise their distribution channels and reduce delays, improving competitiveness in the global e-commerce landscape.

Mainland-Hong Kong Synergy

Companies can leverage Hong Kong’s role as a gateway to Mainland China’s markets by utilising the city’s robust free trade agreements, professional services, and financial expertise. Whether through joint ventures, investment opportunities, or strategic partnerships, businesses can tap into the synergies created by Hong Kong’s integration with the GBA.

Sustainability and Corporate Responsibility: Building for the Future

As businesses around the world are increasingly prioritising environmental, social, and governance (ESG) factors, Hong Kong’s commitment to sustainability and green finance provides a unique opportunity for companies to enhance their corporate social responsibility (CSR) profiles.

Green Finance and ESG Alignment

Hong Kong is a leader in green finance, with initiatives such as the international carbon market and sustainable finance action plans. Businesses that align their operations with ESG principles can access funding through green bonds and sustainability-linked loans, positioning themselves as forward-thinking leaders in the transition to a greener economy.

Sustainable Infrastructure and Energy

Government-backed initiatives to promote sustainable aviation fuel and green maritime fuels create new opportunities for businesses in the energy and transportation sectors. By adopting these sustainable practices, companies can reduce their carbon footprint and attract ESG-conscious investors and customers.

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Where To Next?

The Chief Executive’s 2024 Policy Address sets the stage for a wealth of new business opportunities, particularly in areas such as financial growth, technological innovation, talent development, and sustainability. However, navigating these reforms and leveraging the available incentives requires a clear understanding of Hong Kong’s regulatory and business landscape.

This is where InCorp Hong Kong comes in. As a trusted corporate services provider, InCorp Hong Kong is equipped to help businesses of all sizes—from startups to multinational corporations—tap into the benefits of these policy reforms. Whether you are looking to expand into new markets, secure tax incentives, or capitalise on the Greater Bay Area’s integration, InCorp Hong Kong can provide the expert guidance you need.