---
title: "Budget 2026-27: Paul Chan to lead tax policy review as incentives unveiled"
description: "Hong Kong's Financial Secretary Paul Chan will lead a tax policy review as part of the 2026-27 budget. He noted that a stock market boom has led to a surplus in the government's operating account for "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276832181.md"
published_at: "2026-02-25T04:36:58.000Z"
---

# Budget 2026-27: Paul Chan to lead tax policy review as incentives unveiled

> Hong Kong's Financial Secretary Paul Chan will lead a tax policy review as part of the 2026-27 budget. He noted that a stock market boom has led to a surplus in the government's operating account for the 2025-26 financial year, estimated at HK$500 million (US$64 million). However, Chan emphasized the need for prudence in maintaining cash reserves to address geopolitical uncertainties and support long-term growth, cautioning against potential market speculations.

Chan previously said a stock market boom had helped the government’s operating account return to surplus in the 2025-26 financial year – a year earlier than projected. The surplus could reach about HK$500 million (US$64 million), according to estimates by some accounting firms. Even so, Chan had said Hong Kong must maintain cash reserves to cope with geopolitical shocks and support long-term growth, warning speculators could “launch assaults” on the city amid the “complicated” geopolitical context. He reiterated on Sunday that the city had to exercise prudence, carefully weighing social needs while maintaining adequate reserves to guard against unforeseen circumstances.

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|-------|-------------|-----|
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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.