HKICPA responds to HK’s first Five-Year Plan and Policy Address; Fully aligning with national development strategies to consolidate Hong Kong's status as an IFC
The Hong Kong Institute of Certified Public Accountants (HKICPA) welcomes the Chief Executive’s announcement today of the First Five-Year Plan for the Economic and Social Development of the Hong Kong Special Administrative Region (Hong Kong’s Five-Year Plan), together with the delivery of the Policy Address. HKICPA believes that Hong Kong’s first Five-Year Plan provides a forward-looking, medium-to-long-term blueprint for the city’s future development. It will also help Hong Kong proactively align with the National 15th Five-Year Plan and better integrate into and serve the overall national development.
HKICPA is pleased to note that a number of measures set out in the Hong Kong Five-Year Plan and the Policy Address aligned closely with the recommendations it submitted to the Government earlier this year. These include fostering the development of the intellectual property (IP) sector, strengthening artificial intelligence (AI) adoption and risk governance, promoting green finance, building a professional services platform to support enterprises going global, optimising measures for corporate treasury centres, in-depth participation in the high-quality development of the Belt and Road Initiative, expediting the development of the Northern Metropolis, further developing Hong Kong’s capital markets to facilitate corporate financing, strengthening offshore Renminbi (RMB) business, developing a commodity trading ecosystem, and further expanding market access under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA).
Stephen Law, President of the HKICPA said, “We welcome the Government’s formulation of Hong Kong’s first Five-Year Plan. The Plan enables Hong Kong to align more proactively with the National 15th Five-Year Plan and, working in tandem with the Policy Address, upholds our fundamentals while pursuing innovation, broadening horizons for the accounting profession. The accounting profession is a vital cornerstone in maintaining market confidence, facilitating capital flows and supporting business development. Hong Kong’s accounting profession will support the implementation of Hong Kong’s Five-Year Plan and the Policy Address, fully leveraging the profession’s diverse professional services strengths to reinforce Hong Kong’s position as an international financial centre and a hub for high value-added professional services, while contributing to national development.
The accounting profession is an important pillar of Hong Kong's business and financial system. The Institute sets out its response in the following seven areas, together with recommendations on the implementation of the relevant policies:
Cross-sectoral collaboration to advance IP economy for economic transformation
The Policy Address proposes establishing the “Strategy Committee on Intellectual Property Trading Development” and promoting IP valuation and financing. The Institute agrees with this policy direction, which is consistent with its earlier recommendations, and believes these measures will help advance Hong Kong’s IP market and open up additional financing channels for innovation and technology (I&T) enterprises. The Institute recommends that the Government include representatives of the accounting profession in the Strategy Committee, so that the profession’s experience in valuation, financial reporting, corporate finance and risk management can contribute to the development of Hong Kong's IP and emerging industries.
HKICPA further recommends that the Government promote the professionalization of valuer qualifications, thereby enhancing the credibility and transparency of the valuation profession and helping I&T enterprises translate intangible assets and technological achievements into asset values that command market recognition, in support of their sustainable development.
Expediting the Northern Metropolis development for a high-end professional services hub
HKICPA considers it an appropriate direction that Hong Kong's Five-Year Plan and the Policy Address expedite the development of the Northern Metropolis, with Hung Shui Kiu / Ha Tsuen and Lau Fau Shan clearly positioned as a high-end professional services hub, attracting local and multinational enterprises providing high-end professional services, including financial and accounting services, to establish a presence in the area.
HKICPA expects demand for high-end professional services in the area to increase significantly as high value-added industries progressively move in. The high-end professional services cluster in Hung Shui Kiu also provides a tangible base for the Institute's proposed "Hong Kong Accountancy Park", which would bring together accounting, auditing, taxation, valuation and other related professional services to provide one-stop professional support for enterprises operating in the area.
Supporting enterprises in going global through Hong Kong and deepening the development of modern services in Qianhai
Hong Kong’s Five-Year Plan proposes enhancing Hong Kong's function as a platform for going global, and connecting professional services across the financial, legal, accounting and logistics sectors to establish a two-way services platform, enabling overseas enterprises to enter the Chinese Mainland market through Hong Kong, as well as Chinese Mainland enterprises expanding into overseas markets through Hong Kong.
HKICPA will support these developments by further consolidating the cross-boundary professional services capabilities of its members and practices, providing Chinese Mainland enterprises going global with high value-added professional support in areas including financial compliance, cross-boundary taxation, treasury and financing, corporate governance and intellectual property. The Institute also supports deepening co-operation on modern services between Shenzhen and Hong Kong in Qianhai, and encourages internationalized professional services in areas such as taxation and accounting, consultancy and valuation to establish a presence in Qianhai and tap into the Chinese Mainland market.
On corporate treasury centres, the Policy Address proposes completing the review of the related tax concession measures, providing additional tax benefits and flexibility for pre-approved corporate treasury centres and their associated companies, and using investment promotion incentives to attract high value-added enterprises to establish supply chain management and procurement headquarters in Hong Kong. The Institute considers that this direction echoes its earlier recommendations to enhance the corporate treasury centre regime, introduce a pre-approval mechanism and strengthen professional treasury management capabilities. It also reflects the importance the Government attaches to enhancing tax certainty and Hong Kong's treasury management function, which will help Hong Kong leverage its international financial and professional services strengths to serve enterprises in their global capital allocation and risk management.
On the Belt and Road Initiative, HKICPA supports the Policy Address in deepening Hong Kong's participation through business and trade delegations, overseas project platforms, capacity building, green technology and carbon markets. This direction echoes the Institute's recommendation to formulate a professional services action plan for the Belt and Road. Through the professional networks of its members and practices, the Institute will support the relevant work and provide professional support to Mainland and Hong Kong enterprises participating in Belt and Road projects in areas such as financial compliance, cross-boundary taxation, sustainability, risk management and professional training.
Promoting AI adoption and strengthening risk governance
HKICPA notes that the Government has dedicated a complete policy section to "AI adoption and risk governance", promoting industry application, supporting the upgrading and transformation of SMEs, providing training for the whole community, and enhancing risk governance. This direction echoes the Institute's earlier recommendations to integrate AI into accounting education, develop AI governance assurance capabilities, and support the digital transformation of small and medium-sized practices.
The development of AI will not simply replace accountants; rather, it is reshaping the way accountants work. The profession must make good use of AI to enhance efficiency and quality, while also understanding its data sources, key assumptions, methodologies and limitations, so as to identify bias, safeguard data security and take responsibility for professional judgement. The Institute will continue to enhance the relevant training and practical support in response to the profession's needs, helping members strike an appropriate balance between innovation and prudent governance.
Promoting green finance and enhancing the sustainability assurance framework
Hong Kong’s Five-Year Plan and the Policy Address further advance green and sustainable finance. These include developing an international carbon market, and exploring collaboration in green finance, sustainable investment and financial technology. These measures align with the Institute’s earlier recommendations to establish carbon credit trading and accreditation mechanisms, enhance the sustainability disclosure and assurance framework, and develop Hong Kong into an international compliance and assurance hub. The initiatives will help broaden and deepen Hong Kong’s green finance market, attract more international and Chinese Mainland capital to green and transition projects, and further consolidate Hong Kong’s leading position as an international green finance centre.
HKICPA looks forward to the Government continuing to advance, in line with the Roadmap on Sustainability Disclosure in Hong Kong, the market's steady adoption of sustainability disclosure requirements aligned with international standards, and to enhance the regulatory framework for sustainability assurance. Providing investors with transparent, credible and comparable sustainability disclosure information will help mitigate greenwashing risks. As the sustainability disclosure standard setter in Hong Kong, the HKICPA will continue to support the profession by providing training, technical guidance and practical support, contributing to the development of a robust sustainability disclosure ecosystem.
Developing diversified capital markets
On capital markets, Hong Kong's Five-Year Plan proposes expanding the channels and business volumes of Stock Connect, Bond Connect, Wealth Management Connect and Private Equity Connect. The Policy Address proposes advancing amendments to the listing regime for specialist technology companies, encouraging enterprises from Southeast Asia and Belt and Road countries to list in Hong Kong, building a commodity trading ecosystem that includes gold trading, and advancing RMB internationalization.
The Institute supports the Policy Address proposal to introduce, within 2026, a bill to facilitate the privatization or restructuring of real estate investment trusts (REITs), and to seek the early inclusion of REITs under mutual market access, and believes these measures will help enhance market liquidity. The Institute also recommends measures to optimize the market function of the Growth Enterprise Market (GEM), so that it is better suited as a platform for growth and I&T enterprises to raise capital, and the introduction of an "IPO Connect" arrangement to allow Mainland institutional investors to participate in Hong Kong initial public offerings, thereby further enhancing the liquidity of Hong Kong's capital markets.
Enhancing social well-being and building a diverse and inclusive community
In addition, the Policy Address devotes a dedicated chapter to advancing social well-being. In recent years, the Institute has actively harnessed the strengths of the accounting profession to provide financial literacy education for students and people in need, while enhancing their awareness of fraud prevention, delivering targeted support where it is needed most.
To further demonstrate the accounting profession’s commitment to serving the community, the Institute formally established the “HKICPA Volunteer Team” this year. The Volunteer Team actively engages in cross-sector collaboration, working with a range of social welfare organizations to deliver diverse volunteer services. Its areas of service include supporting the “Community Living Room” initiative, caring for elderly and children, assisting underprivileged families, and promoting ecological conservation. Through these initiatives, the Institute seeks to work alongside all sectors of the community to build an equitable, caring, diverse and inclusive society.
Looking ahead, Hong Kong’s accounting profession will continue to uphold the highest standards of professionalism, leverage its professional services strengths, and work closely with the Government and all sectors to contribute to a more resilient and sustainable development for Hong Kong.
The Chief Executive announced today the Hong Kong Five-Year Plan and delivered the Policy Address, providing a forward-looking, medium-to-long-term blueprint for Hong Kong’s future development.
