Hong Kong's Secretary for Commerce and Economic Development, Algernon Yau, stated at a special meeting of the Legislative Council Finance Committee on April 15 that according to the latest report from the World Trade Organization, Hong Kong ranks as the world's fifth-largest merchandise trading economy in 2025, with total merchandise trade reaching US$1.585 trillion, accounting for 3% of the global total. In response to rapidly changing international trade dynamics, while maintaining ties with traditional markets, the Commerce and Economic Development Bureau will continue efforts to expand Hong Kong's economic and trade network and strengthen connections with promising economies, particularly emerging markets. In this regard, the Hong Kong Economic and Trade Office in Kuala Lumpur was established in December last year and is gradually becoming operational. Yau noted that Hong Kong has so far signed nine free trade agreements involving 21 economies, along with 24 investment agreements with 33 economies, and pledged to actively advance this work. In terms of investment promotion, the total number of mainland and overseas companies based in Hong Kong reached a record high of 11,070 last year. Riding on this positive momentum, Invest Hong Kong will intensify efforts to attract investment, aiming to bring at least 1,200 mainland or overseas companies to set up or expand operations in Hong Kong by 2026–2027, generating at least HK$120 billion in direct investment and creating at least 12,000 jobs. Yau emphasized that Hong Kong will continue to strengthen its role as a functional platform for the Belt and Road Initiative. Initiatives include hosting the annual flagship Belt and Road Summit, proactively engaging with project authorities in relevant countries and regions, organizing overseas delegations for inspections, holding Belt and Road Cross-Professional Forum roadshows, arranging business and project matching events, and encouraging and assisting foreign institutions to conduct roadshows in Hong Kong. These efforts aim to promote Hong Kong’s diverse, professional, and international services, securing more project matching opportunities for local businesses and professionals, and exploring new business prospects in Belt and Road markets. Yau further indicated that to align with the national 15th Five-Year Plan, Hong Kong will actively leverage its role as a regional intellectual property trading hub. This year’s Budget announced that Hong Kong will improve tax and regulatory frameworks, nurture talent, and capitalize on professional services to promote IP transactions and financing, thereby boosting economic development. Regarding tax and system improvements, the Bureau recently concluded industry consultations on tax deductions for capital expenditure on acquiring IP or its usage rights and plans to submit amendment bills within the year. Additionally, an IP financing sandbox was launched at the end of last year to help pilot industries, especially technology, utilize IP for financing. The Bureau has also allocated HK$28 million to enable the Technology and Innovation Support Centre to provide patent quality analysis based on national standards for innovation and technology firms, and to implement a two-year pilot patent valuation support scheme to help these firms assess the value of patent assets. In talent development and professional services, the Intellectual Property Department is collaborating with the Vocational Training Council on a two-year pilot program to establish an IP academy offering qualifications framework-linked on-the-job training, scheduled to launch by year-end, with HK$52 million reserved for this purpose. The IP Department will also expand its patent examination team to enhance independent review capabilities, providing stronger legal protection for scientific research outcomes. Meanwhile, the department will partner with the mainland to organize industry participation in commercial matching projects by mid-year, promoting Hong Kong’s IP professional services and offering comprehensive support to mainland enterprises. Rapidly changing global conditions and uncertainties during economic transformation pose challenges for SMEs. Yau stated that the Hong Kong government will continue to provide credit guarantees through the SME Financing Guarantee Scheme. The application period for the 80% guarantee product has been extended to the end of March 2028, while the “principal moratorium” arrangement has been extended to mid-November this year, with an additional HK$20 billion in total credit guarantee commitment under the scheme. In export credit insurance, to help SMEs explore new business, the Hong Kong Export Credit Insurance Corporation will launch a pilot “Easy-SME Protection” scheme, offering coverage for export transactions with higher-risk buyers. The Hong Kong government has consistently supported the meetings and exhibitions industry through diverse measures, allocating over HK$3.1 billion since 2020 for various support initiatives. As previously announced support programs concluded successfully this month, the Budget has reserved HK$100 million to focus on attracting large international exhibitions with innovative Hong Kong elements, positioning the city as the preferred platform for showcasing mainland and international brands and driving high value-added economic activities.