Hong Kong’s first 5-year plan aims to boost innovation, offshore RMB role

The Hong Kong Special Administrative Region recently unveiled its first five-year plan. Echoing the state-led, longer-term planning model seen elsewhere in China, this industrial policy initiative aims to strengthen the city’s position as an international financial and trade hub and bolster local innovation to catch up with clusters in the Chinese mainland.

A key objective of the 2026-30 plan is to raise spending on research and development to 3% of GDP, with particular focus on life and health sciences, AI and robotics, and microelectronics.

The “Northern Metropolis” megaproject will integrate educational hubs, research institutions and corporates in a development just a short distance from Shenzhen.

The push into innovation is supported by Hong Kong’s evolving trade structure. High-technology products (including electronics, computers and aerospace equipment) have grown to 80% of the city’s goods exports.

This reflects Hong Kong’s growing role as an entrepot connecting China’s advanced manufacturing sector and broader Asian supply chains with global markets.