--- title: "Hong Kong Financial Secretary: Introducing assistance to boost industrial upgrading with a target of 130 smart production lines by 2027" type: "News" locale: "en" url: "https://longbridge.com/en/news/228807788.md" description: "The Deputy Secretary for Financial Services and the Treasury of Hong Kong, Huang Weilun, stated in the Legislative Council that the government has launched the \"New Industrialization Funding Scheme,\" aimed at funding manufacturers to establish new smart production lines in Hong Kong, with a target of increasing to at least 130 by 2027. Since December 2022, the Office for Attracting Strategic Enterprises has introduced 66 key enterprises, which is expected to bring approximately HKD 42 billion in investment to Hong Kong and create over 17,000 jobs in the future. The scheme will assist in upgrading Hong Kong's industries and consolidating its position as an international business center" datetime: "2025-02-19T06:58:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/228807788.md) - [en](https://longbridge.com/en/news/228807788.md) - [zh-HK](https://longbridge.com/zh-HK/news/228807788.md) --- # Hong Kong Financial Secretary: Introducing assistance to boost industrial upgrading with a target of 130 smart production lines by 2027 According to the Zhitong Finance APP, today, the Deputy Secretary for Financial Services and the Treasury, Huang Weilun, provided a written response to Legislative Council member Yan Jian regarding questions about the Office for Attracting Key Enterprises (Attracting Office) during a meeting. The Attracting Office is responsible for attracting enterprises with significant strategic value to Hong Kong, including identifying target key enterprises, understanding their needs, and providing special support measures and one-stop services for key enterprises settling in Hong Kong. **The government also provides funding to further promote new industrialization. The "New Industrialization Funding Program" aims to fund manufacturers to establish new smart production lines in Hong Kong, with a target of increasing the number of smart production lines under the program to at least 130 by 2027.** (1) Since its operation began in December 2022, the Attracting Office has actively engaged with high-potential and representative enterprises from around the world. Despite the complex and changing economic environment in recent years, the work of the Attracting Office has progressed well over the past two years, having attracted 66 key enterprises to date, which come from four strategic industries: life and health technology, artificial intelligence and data science, financial technology, and advanced manufacturing and new energy technology. **Among them, about 80% of the key enterprises have already established or plan to establish international or regional headquarters in Hong Kong, which is expected to bring approximately HKD 42 billion in investment to Hong Kong and create over 17,000 jobs in the coming years.** The Attracting Office also continues to follow up on the development and needs of the key enterprises that have settled in Hong Kong, assisting and accelerating their use of Hong Kong as a base to enter the mainland market or expand overseas business, thereby catalyzing the diversification and transformation of Hong Kong's industries, while consolidating Hong Kong's role as a "super connector" and "super value creator," attracting more overseas enterprises to use Hong Kong as a base to explore the mainland market, and assisting mainland enterprises in "going out" to overseas markets through Hong Kong. (2) According to the information from the Attracting Office, among the 66 key enterprises that have been attracted, 12 belong to the advanced manufacturing and new energy technology industry category, many of which have a market capitalization or valuation exceeding HKD 10 billion and possess cutting-edge technologies in the industry. They have already established or plan to establish R&D centers and/or production bases locally, with 75% planning to establish international or regional headquarters in Hong Kong. The Attracting Office has been closely following the development and needs of these enterprises, providing tailored support services, including a series of matching activities with innovation and technology parks, universities and research institutions, chambers of commerce, and professional organizations to accelerate their business operations in Hong Kong. In the coming years, based on the aforementioned advanced manufacturing enterprises alone, they are expected to invest approximately HKD 5.6 billion in Hong Kong and create over 1,800 job opportunities. The settlement and further expansion of advanced manufacturing key enterprises in Hong Kong will also help attract their upstream, midstream, and downstream companies to Hong Kong, promote the accelerated development of the advanced manufacturing industry, and assist in the upgrading and transformation of traditional manufacturing, building a more vibrant industrial ecosystem while creating more quality job opportunities. In fact, the government has been committed to encouraging the manufacturing industry (including advanced manufacturing) to utilize innovation and technology for upgrading and transformation, promoting the new industrial development of Hong Kong through various measures. The implementation progress of these measures is in line with expectations. **In terms of taxation, the government provides tax incentives for enterprises conducting R&D activities in Hong Kong, allowing eligible R&D expenditure to enjoy additional tax deductions, with the first HKD 2 million of the total amount eligible for a 300% tax deduction.** The balance can also receive a 200% deduction. \*\* There is no upper limit on the relevant deduction amount, applicable to all eligible enterprises. The tax authority is currently processing the tax returns for the 2023/2024 tax year and conducting assessment work. In terms of profits tax assessment, the tax authority has not made further statistical classifications based on traditional or advanced manufacturing models, and therefore cannot provide relevant tax statistical data. The government also provides funding to further promote new industrialization. As of January 2025, 63 applications have been supported by the "New Industrial Review Committee" (Review Committee), involving more than 100 production lines, with satisfactory progress. In addition, the government will launch a HKD 10 billion "New Industrial Acceleration Program" ("Acceleration Program") in September 2024, providing more funding in a matching form for enterprises in advanced manufacturing, new energy technology, and other strategic industries. The first project under this program received support from the Review Committee in early 2025, with a total budget of approximately HKD 600 million, and the expected funding amount from the "Acceleration Program" is about HKD 200 million. The government is pleased to see enterprises actively participating in both programs, utilizing innovative technology to achieve intelligent manufacturing and enhance competitiveness. **At the same time, the government is also actively leading market funds to increase investment in the innovation and technology industry.** For example, the 2024 Policy Address proposed the establishment of a HKD 10 billion "Innovation and Technology Industry Guidance Fund," which will establish a mother fund to strengthen the guidance of market funds to invest in designated strategic emerging and future industries, covering areas such as advanced manufacturing, to systematically build an innovation and technology industry ecosystem. In addition, the Policy Address also proposed optimizing the "Innovation and Technology Venture Fund," allocating up to HKD 1.5 billion to establish a joint fund with the industry in a matching form, investing in startups in strategic industries including advanced manufacturing and new energy technology, to improve the construction of Hong Kong's startup ecosystem. (3) Hong Kong's higher education institutions can flexibly offer courses that meet market needs and maintain communication with relevant industry stakeholders to timely adjust the teaching content of relevant courses to enhance students' learning experience. The Education Bureau has also been supporting different policy bureaus/departments in addressing the manpower and training needs in relevant policy areas. To cultivate relevant local talent, the Innovation and Technology Fund launched the "New Industrialization and Technology Training Program" in August 2018, funding local enterprises to provide high-end technology training for their employees in a 2 (government): 1 (enterprise) matching manner, especially for training related to new industrialization. The Talent Development Office has been actively promoting and encouraging key enterprises settling in Hong Kong to consider participating in the government’s talent training programs to support their talent cultivation. At the same time, the Talent Development Office has also been promoting and encouraging these key enterprises to engage with universities and research institutions to explore research cooperation and talent development, to comprehensively cultivate the talent needed by enterprises ### Related Stocks - [600355.CN](https://longbridge.com/en/quote/600355.CN.md) - [300166.CN](https://longbridge.com/en/quote/300166.CN.md) - [C76.SG](https://longbridge.com/en/quote/C76.SG.md) ## Related News & Research - [Exploring Three Undiscovered Gems in the Middle East Market](https://longbridge.com/en/news/286881831.md) - [The Gulf needs carbon taxes, not just capture, to reach net zero](https://longbridge.com/en/news/287138239.md) - [Israeli air strikes reported across southern Lebanon](https://longbridge.com/en/news/287173183.md) - [China Telecom's Shares Rise After Becoming Last of Country's Big Three Telcos to Roll Out Token Plans](https://longbridge.com/en/news/286859736.md) - [Roger Stone allegedly threatened political retribution against Cuomo brothers, others in text messages](https://longbridge.com/en/news/286942036.md)