Can Paul Chan’s budget help Hong Kong’s economy strike a purple patch?
South China Morning Post
by Matthew ChengFebruary 24, 2026
AI-Generated Deep Dive Summary
Hong Kong Financial Secretary Paul Chan Mo-po is set to present his annual budget, a pivotal moment aimed at reviving the city’s economic recovery amid rising geopolitical tensions and external volatility. This year’s budget, featuring a symbolic purple cover, seeks to address challenges such as US tariffs and align Hong Kong with mainland China’s 15th five-year plan. The government faces pressure to balance short-term relief measures with long-term investments in sectors like intellectual property, while managing public finances carefully.
The budget also reflects the growing importance of IP in Hong Kong’s economy. Sources indicate plans to establish a dedicated academy to nurture professionals in this field, signaling a shift toward fostering innovation and growth. However, economists caution against over-reliance on large-scale relief measures, urging strategic investments in sustainable growth engines instead.
While critics argue for more immediate relief, the government is expected to focus on long-term initiatives that align with Beijing’s broader economic goals. The budget will also likely touch on social spending and infrastructure development, aiming to strike a balance between fiscal prudence and addressing public needs.
Ultimately, Chan’s budget will serve as a critical test of Hong Kong’s ability to navigate global economic uncertainties while maintaining its position as a financial hub. Its success could have far-reaching implications not just for Hong Kong but also for the wider region and global markets.
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Originally published on South China Morning Post on 2/24/2026