Hong Kong Commerce and Economic Office: continue to work hard to expand Hong Kong's economic and trade networks and strengthen connections with emerging markets.

On April 15, the Secretary for Commerce and Economic Development of Hong Kong, Edward Yau, pointed out in his opening remarks at a special meeting of the Finance Committee of the Legislative Council that according to the latest report from the World Trade Organization, Hong Kong is projected to be the fifth largest trading economy in the world by 2025, with a total merchandise trade value of $1.585 trillion, accounting for 3% of the global total. Facing the rapidly changing international trade landscape, in addition to maintaining connections with traditional markets, the Commerce and Economic Development Bureau of Hong Kong will continue to expand Hong Kong's economic and trade network, strengthening ties with economies with potential, especially emerging markets. The Hong Kong Economic and Trade Office in Kuala Lumpur was established last December and has gradually begun operations. Yau mentioned that Hong Kong has signed nine free trade agreements with 21 economies, and has also signed 24 investment agreements with 33 economies. He stated that efforts will continue to promote these agreements. In terms of investment promotion, last year saw a record high of 11,070 companies from mainland China and overseas setting up in Hong Kong. Taking advantage of this positive trend, the Hong Kong Trade and Investment Promotion Department will intensify efforts to attract investment, aiming to attract at least 1,200 mainland or overseas companies to establish or expand their business in Hong Kong by 2026-2027, bringing in at least HKD 120 billion in direct investment and creating at least 12,000 job opportunities. Yau emphasized that Hong Kong will continue to strengthen its role as a platform for the Belt and Road Initiative. Annual flagship events such as the Belt and Road Summit will be held, and efforts will be made to engage project sponsors in relevant countries and regions, organize outbound missions for exploration, hold Belt and Road cross-discipline forums, facilitate business matching activities, and encourage and assist overseas institutions in conducting roadshows in Hong Kong to promote the diverse, professional, and international professional services of Hong Kong, seeking more project opportunities for Hong Kong enterprises and professional services in the Belt and Road markets. Yau further mentioned that in order to further support the national "14th Five-Year Plan", Hong Kong will continue to play an active role as a regional intellectual property trading center. The budget announced earlier this year includes plans for tax and institutional arrangements, talent cultivation, leveraging professional service advantages, promoting intellectual property trading and financing, and supporting economic development. In terms of improving tax and institutional arrangements, consultations with industries on the capital expenditure deduction arrangements for purchasing intellectual property or its usage rights have been completed, and a draft of the revised regulations is planned to be submitted within this year. The Intellectual Property Financing Sandbox was launched at the end of last year to assist pilot industries, especially in the technology sector, in using intellectual property for financing. The Commerce and Economic Development Bureau has allocated HKD 28 million for the Hong Kong Technology and Innovation Support Centre to provide patent quality analysis based on national standards, as well as implement a two-year pilot program for patent valuation support to assist tech industry companies in valuing patent assets. In terms of talent training and professional services, the Intellectual Property Department of Hong Kong is collaborating with the Vocational Training Council to implement a two-year pilot program to establish an Institute of Intellectual Property Education. The institute will provide on-the-job training linked to a qualifications framework, with the aim to launch at the end of this year, with the government allocating HKD 52 million for this purpose. The Intellectual Property Department of Hong Kong will also expand its patent examination team, strengthen its independent examination capabilities, and provide more solid legal protection for research results. At the same time, the Intellectual Property Department of Hong Kong will collaborate with mainland China to organize industry professionals to participate in business matching projects in the mainland mid-year, promoting Hong Kong's professional intellectual property services and providing comprehensive support for mainland enterprises. The rapidly changing global situation and the uncertainties during the economic transformation bring challenges to the business development of small and medium enterprises. Yau stated that the Hong Kong government will continue to provide credit guarantees for enterprises through the SME Financing Guarantee Scheme. The application period for 80% of the guarantee products has been extended until the end of March 2028, and the application period for the "interest not principal repayment" arrangement has been extended until mid-November this year, with an additional HKD 20 billion in total credit guarantee commitments planned. In terms of export credit insurance, the Hong Kong Export Credit Insurance Corporation will launch a pilot program for "SME Credit Protection" to provide protection for small and medium enterprises engaged in export transactions with higher-risk buyers. The Hong Kong government has been supporting the development of the conference and exhibition industry through various measures, with over HKD 3.1 billion allocated since 2020 for various support measures. With plans like those announced earlier ending this month, the budget has earmarked HKD 100 million to focus on attracting large international exhibitions with new elements to Hong Kong, positioning it as the preferred platform to showcase mainland and overseas brands, and driving high value-added economic activities.