Hong Kong budget 2026-27: what’s holding back the city’s tech and talent schemes?
South China Morning Post
by Natalie WongFebruary 22, 2026
AI-Generated Deep Dive Summary
Hong Kong’s upcoming 2026-27 budget is expected to tackle critical challenges in technology and talent attraction, as officials work to align with Beijing’s 15th five-year plan recommendations. The budget, set to be delivered by Financial Secretary Paul Chan Mo-po, is seen as a pivotal test of Hong Kong’s commitment to reform and innovation following the national strategy outlined earlier this year. This plan emphasizes technological self-reliance, new productive forces, and boosting domestic consumption, with a focus on transforming Hong Kong into a global innovation hub and talent magnet.
The framework highlights Beijing’s vision for consolidating Hong Kong’s role as an international financial, aviation, and trade center. While Chief Executive John Lee Ka-chiu has announced plans to develop a “Hong Kong five-year plan” this year, Chan has hinted at measures in the budget to support mainland Chinese tech firms expanding globally and clustering key businesses in the city. However, observers stress that addressing Hong Kong’s own tech ecosystem challenges is crucial, as the slowdown in its startup environment impacts not only local competitiveness but also the broader Greater Bay Area, which includes Macau and nine mainland cities.
Hong Kong’s tech sector faces significant hurdles, including funding shortages, regulatory uncertainty, and limited access to talent. These issues have led to a lack of direction for the city’s startup ecosystem, further complicating efforts to establish itself as a global innovation hub. As geopolitical tensions persist, the success of Hong Kong’s reform initiatives will be closely watched, not only by local stakeholders but also by international observers interested in its potential to serve as a bridge between China and the world.
The budget’s focus on fostering innovation and attracting top talent aligns with Beijing’s broader goals for economic transformation and self-reliance. By addressing these challenges, Hong Kong could strengthen its position as a global financial and technological powerhouse, while
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Originally published on South China Morning Post on 2/22/2026