18 September, 2025, Hong Kong (SAR), China ("Hong Kong") - KPMG welcomes the array of policy measures proposed in the 2025 Policy Address, believing that these initiatives will stimulate new economic momentum and reinforce Hong Kong's status as an international financial centre. This marks a significant step for Hong Kong in exploring new growth opportunities.
Ivy Cheung, Senior Partner in Hong Kong SAR and Vice Chairman of KPMG China, stated that Hong Kong is at a critical juncture in its economic transition. Amid rapid changes in the global market environment and intensifying regional competition, the Policy Address sets out a clear direction and strategic blueprint for Hong Kong's future development. The initiatives proposed not only reinforce Hong Kong's institutional strengths but also enhance its competitiveness within the global economic system. This further solidifies its multifaceted role as an international hub for finance, trade, shipping, aviation and legal dispute resolution, injecting sustained and far-reaching momentum into both the local and regional economies.
The government has introduced several policies to attract more enterprises. KPMG supports these measures to draw in key businesses and welcomes the authorisation granted to relevant departments to negotiate flexibly, with final decisions resting with the Financial Secretary. Ivy Cheung commented, "We suggest that the government consider offering preferential tax rates or accelerated depreciation to attract potential enterprises to establish operations in Hong Kong. Additionally, policies should set out clear criteria, such as minimum local headcount and expenditure thresholds. This clarity will help businesses understand the policy direction while supporting and safeguarding local economic development."
In support of Hong Kong's development as an international trade centre, KPMG endorses the government's efforts to build a commodity trading ecosystem through tax incentives and to promote local shipping and maritime professional services. Stanley Ho, Tax Partner, KPMG China, noted that if policies require the use of local suppliers, a more flexible approach should be considered to accommodate the operational needs of enterprises in their early stages. For instance, during the initial setup, businesses may need to rely on overseas suppliers due to commercial reasons.
KPMG also welcomes the government's enhancement of the New Capital Investment Entrant Scheme, including the relaxation of the transaction price threshold for residential properties and the broader eligibility of non-residential properties. Stanley Ho noted that, with interest rates expected to decline, these measures are likely to attract more overseas investors to Hong Kong's real estate market, injecting fresh momentum into the local economy.
Amid a volatile and complex economic landscape, Hong Kong faces both challenges and opportunities. Backed by the Chinese Mainland – the world's second-largest economy – and its strong global connectivity, Hong Kong holds a distinct advantage in capturing international opportunities. KPMG believes that Hong Kong will continue to demonstrate its strengths as an international hub, embracing its role as a "super connector" and contributing to the steady advancement of the local economy.
