PwC’s comments on the Policy Address 2025
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Hong Kong, 17 September 2025 – PwC Hong Kong is pleased to acknowledge the release of the 2025 Policy Address, which aligns closely with the recommendations we submitted to the Hong Kong SAR Government earlier this year. In August, PwC emphasised the importance of strengthening Hong Kong’s role as a global and regional connector, driving new growth engines in Innovation & Technology, optimising financial markets for sustainable growth, and advancing Hong Kong’s appeal as a destination of choice. We are gratified to see these priorities reflected in the government’s roadmap. The Policy Address represents a tangible commitment to realising these objectives, and PwC anticipates its implementation will actively promote economic reforms across various sectors, steering Hong Kong towards greater prosperity.
Charles Lee, PwC China Vice Chair and Managing Partner, said, “PwC fully supports the government’s commitment to strive for a vibrant economy, giving its full play to strengthen the city as a leading international hub. We commend the Chief Executive for formulating a highly precise and effective policy, which is set to propel Hong Kong to new heights and aligning it with the overall national development. These initiatives focus on leveraging Hong Kong’s unique advantages to attract overseas businesses and supporting Chinese Mainland firms’ global expansion, with the Northern Metropolis as a key economic driver. Moving forward, we encourage the government to maintain open dialogues with stakeholders for effective policy execution. Continuous refinement to meet businesses’ and citizens’ evolving needs is crucial for realising the vision outlined in the Address. Through collaboration, we are excited to see Hong Kong grow as a global center for innovation, finance, and international exchange.”
PwC’s comments
1. Northern Metropolis
Davis Cho, PwC Hong Kong Hotel and Hospitality Assurance Leader, said, “We welcome the formation of the Northern Metropolis Development Committee and its three working groups. The new Fast Track Processing System and phased development will remove barriers and restrictions. We recommend clear performance metrics and timeline, a unified digital platform for cross-boundary talent and data flow, and new financing tools for international capital attraction. The innovation ecosystem - integrating technology, health, and smart city development - should leverage Hong Kong’s legal and tax advantages to attract Chinese Mainland and international corporations to establish their headquarters, promote medical collaboration, and foster green, low-density urbanisation. Focusing on AI and new energy and rail integration, maximise global impact.”
2. Tax
Jeremy Ngai, PwC China South and Hong Kong Tax Leader, said, “Chinese Mainland’s outbound activities will remain strong. Due to geopolitical tensions, there may be a shift from the prior focus on the US and European markets to the Belt and Road (B&R) countries. The Chief Executive’s proposal to establish the “GoGlobal Task Force” to proactively attract Chinese Mainland enterprises to make use of Hong Kong as an outbound investment platform, the proposed establishment of an Economic and Trade Office in Kuala Lumpur, as well as the continued efforts striving for early participation in RCEP, ensure Hong Kong is perfectly positioned to further extend the trend of Chinese Mainland enterprise outbound activities. Regions particularly well poised to benefit from the focus in B&R markets include Southeast Asia, the Middle East, Latin America, Eastern Europe and Africa.”
Kenneth Wong, PwC Hong Kong Tax Controversy Services Leader, said, “We commend the Chief Executive’s emphasis on the importance of utilising a range of enhanced measures, including tax concessions, to drive industry development and attract Chinese Mainland and foreign investments. We particularly appreciate the Government’s response to our ongoing appeal for a review of the corporate treasury centre tax concession. Introducing effective and competitive tax concessions could encourage Chinese Mainland and foreign enterprises, including but not limited to banks, to establish regional headquarters in Hong Kong. Further, we anticipate a positive impact from the proposed mechanisms that enable the Chief Executive and Financial Secretary to introduce tax incentives with greater flexibility. Equally, we are optimistic about the role of the Office for Attracting Strategic Enterprises and Invest Hong Kong in successfully utilising policy packages for even more constructive negotiations.”
Agnes Wong, PwC South Private Clients and Family Office Tax Leader, said, “The proposed enhancements to the New Capital Investment Entrant Scheme are poised to further boost Hong Kong’s asset and wealth management sector. The lowering of the transaction price threshold for the purchase of residential properties from HK$50 million to HK$30 million should be welcomed by potential investors. The Chief Executive also proposed raising the maximum amount of investment to be counted from HK$10 million to HK$15 million for the purchase of non-residential properties with no transaction price threshold. We hope that the Government will consider extending this relaxation to residential properties as well. Following exciting news that the Government has already met the target of attracting the establishment of over 200 family offices ahead of schedule, we continue to recommend including artworks and collectibles in the Government’s proposed enhancement of existing tax concessions. This also aligns with the strategy to build Hong Kong into a global premium arts trading hub.”
3. Capital market
Eddie Wong, PwC Hong Kong Capital Markets Leader, said, “We are encouraged by the government’s ongoing commitment to solidify Hong Kong’s position as a premier international financial centre. Key measures, including strengthening the stock market, supporting Chinese Mainland technology companies’ capital raising in Hong Kong, shortening the stock settlement cycle, and promoting RMB southbound trading of Hong Kong stocks, will enhance market openness and competitiveness, while facilitating cross-border capital flows and investment diversification. We also support the government’s efforts to encourage overseas companies’ secondary listings, optimise market mechanisms and support China concept stocks returning to Hong Kong as their preferred listing venue. Combined, these measures will drive stable and sustainable growth and reinforce Hong Kong’s status as a leading global financial hub and foster deeper international integration.”
4. Financial services
Josephine Kwan, PwC Hong Kong Asset & Wealth Management Industry Leader, said, “Hong Kong is actively reinforcing its position as the world’s leading cross-boundary wealth management centre. This policy address proposes a number of critical initiatives that will further unlock new pathways for capital to flow productively into Hong Kong, including improvements to tax regimes for funds, single-family offices, and carried interest, planned strategic collaborations with Qianhai and Shanghai to strengthen the Qualified Foreign Limited Partnerships (QFLP) mechanism, and the enhancement of the Capital Investment Entrants Scheme. With the Hong Kong Investment Corporation’s ongoing support for local private equity and hedge funds, and further innovations under Project Ensemble - including tokenised assets - Hong Kong will become a dynamic, innovative, and forward-looking International Finance Centre.”
Michelle Taylor, Partner at Tiang & Partners, said, “The Chief Executive’s policy on building a world-leading bond market marks a pivotal step for the city’s financial future. By enhancing infrastructure, promoting electronic bond trading and expanding cross-border connectivity, market liquidity and efficiency will receive a significant boost. The focus on centralised management, innovative platforms and broader product offerings will attract a diverse range of issuers and investors, both regionally and globally. This comprehensive approach will strengthen Hong Kong’s position as a premier bond market hub. It will also support the city’s role as a gateway for international capital, driving sustainable growth and innovation in the financial sector.”
5. Digital assets
Peter Brewin, PwC Hong Kong Digital Assets Leader, added, “Regarding digital assets, the Chief Executive re-confirmed commitments to many of the existing initiatives that are run by the FSTB and regulators, such as SFC and HKMA. These include both virtual assets (VA) dealing and VA custody. Particular reference was made to new initiatives that combat cross border tax evasion via the introduction of the OECD’s Crypto Asset Tax Reporting Framework (CARF), as well as additional endeavours focusing on automated reporting and market surveillance for Hong Kong’s VA sector. Therefore, we are confident that a supportive ecosystem for VA development will be built, driving robust and orderly growth.”
