The Budget speech, delivered by Financial Secretary Paul Chan Mo-po on Wednesday, is an unequivocal rebuttal to the many egregious naysayers about the Hong Kong Special Administrative Region’s alleged economic decline.

Contrary to the recurring misinformation aimed at belittling us and diminishing our international standing, Chan presented irrefutable data on our robust economic performance.

Despite global political and economic turbulence triggered by US President Donald Trump’s erratic tariff assaults against various countries in early 2024, Hong Kong’s economy remained vibrant throughout 2025. The economy expanded by 3.5 percent for the year, marking the third consecutive year of growth. Total goods exports increased by 12 percent in real terms, while services exports grew by 6.3 percent. Visitor arrivals surged by 12 percent. The unemployment rate held steady at 3.8 percent, with employment earnings rising 4.2 percent year-on-year. This economic vigor also boosted tax revenues. For the first time since the 2019 social unrest and the COVID-19 pandemic, the government has delivered a surplus budget for its operational account.

The estimated total revenue for the HKSAR government in 2025 is HK$688.8 billion ($88.0 billion), with total expenditures amounting to HK$789.2 billion. Such fiscal health is the envy of most Western cities, particularly in the United Kingdom, where many local councils have declared bankruptcy.

This budget underscores Hong Kong’s standing as a world-class city and solidifies its international status. As a global financial hub, Hong Kong continues to thrive, with sustained growth in cross-boundary financial services and traffic. The Hang Seng Index rose by 28 percent over the year, while average daily turnover soared by 90 percent to a historic high of nearly HK$250 billion. Funds raised through initial public offerings more than doubled compared to 2024, exceeding HK$280 billion and ranking first globally. In his Budget, the financial secretary unveiled a series of initiatives to strengthen Hong Kong’s role as an international financial center, including advancing renminbi internationalization, developing the bond market, enhancing securities market efficiency, attracting listings, reinforcing Hong Kong’s position as an asset and wealth management hub, promoting the real estate investment trust market, and fostering fintech and digital-asset infrastructure.

The budget also continues to reinforce Hong Kong’s roles as an international trade center, aviation hub, maritime center, and a developer of new quality productive forces. Leveraging our unique advantage of close connectivity with the mainland — particularly the Guangdong-Hong Kong-Macao Greater Bay Area — and the rest of the world, alongside our deep pool of talent, we will secure a bright and prosperous future for Hong Kong as a truly international city

Additionally, the Asian Infrastructure Investment Bank announced late last year its intention to establish an office in Hong Kong, with the government actively facilitating the plan. Hong Kong will also host the Asia-Pacific Economic Cooperation Finance Ministers’ Meeting for the first time this year. The government will continue to organize major financial events, including the Global Financial Leaders’ Investment Summit, the Wealth for Good in Hong Kong Summit, and the Hong Kong FinTech Week x StartmeupHK Festival. The Asian Financial Forum will celebrate its 20th anniversary next year, placing Hong Kong’s financial sector firmly under the global spotlight.

Themed “Driving High-quality, Inclusive Growth with Innovation and Finance”, the Budget outlines substantial investments to secure Hong Kong’s position at the forefront of global innovation and technology. The government will inject HK$10 billion into the park company to accelerate development of the Hetao Hong Kong Park and allocate another HK$10 billion as seed capital for the San Tin Technopole. A HK$10 billion Innovation and Technology Industry-Oriented Fund has been introduced to channel market investment into strategically important emerging fields, such as life and health technology, artificial intelligence and robotics, and future industries. The HK$3 billion AI Subsidy Scheme has already approved about 30 research and development proposals in areas such as large language models, new materials, and biomedicine, thereby enhancing local AI research standards and applications. The InnoHK Research Cluster has funded 16 laboratories focused on AI and robotics technologies.

The Hong Kong Artificial Intelligence R&D Institute Co Ltd will commence operations in the second half of this year, aiming to promote AI+ development and facilitate the commercialization of research-and-development outcomes. Tender arrangements for the data facility cluster at Sandy Ridge, offering a gross floor area of 250,000 square meters and significantly enhancing Hong Kong’s overall computing capacity, will be announced shortly. This cluster will provide crucial support for the data and computing demands of AI applications. Life and Health Technology Research Institutes will be established at the Hetao Hong Kong Park and three university branches. The government also established the Real-World Study and Application Centre late last year to support pharmaceutical firms and accelerate the launch of innovative drugs and medical devices in the Chinese mainland and international markets, thereby strengthening mainland drug regulatory science. A HK$500 million injection into the Chinese Medicine Development Fund will support strategic research, training, and international promotion.

The government is committed to implementing the Co-operation Agreement on the Development of New Quality Productive Forces and the Promotion of New Industrialization, signed with the Ministry of Industry and Information Technology, fostering industrial collaboration. Approximately HK$220 million will be allocated to establish Hong Kong’s first national manufacturing innovation center outside the mainland. The New Industrialization Acceleration Scheme has already supported two enterprises developing semiconductor chip technology and equipment, with total investments exceeding HK$1.5 billion. Hong Kong has also welcomed the establishment of the Hong Kong Space Robotics and Energy Centre. Moreover, the Innovation and Technology Fund has allocated over HK$100 million to support six university R&D projects.

The budget also continues to reinforce Hong Kong’s roles as an international trade center, aviation hub, maritime center, and a developer of new quality productive forces. Leveraging our unique advantage of close connectivity with the mainland — particularly the Guangdong-Hong Kong-Macao Greater Bay Area — and the rest of the world, alongside our deep pool of talent, we will secure a bright and prosperous future for Hong Kong as a truly international city.

The author is an honorary fellow of HKU Space and Hong Kong Metropolitan University. He is an adviser with Our Hong Kong Foundation and a council member of the Chinese Association of Hong Kong and Macao Studies.

The views do not necessarily reflect those of China Daily.