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Ningrong Liu

Hong Kong’s first five-year plan is expected to guide the city’s future development. Never before has the city attempted a comprehensive plan in the style of mainland China, signalling a major shift in how it approaches long‑term growth.
The real question is not why a laissez‑faire economy must adopt a new model but how this transformation will unfold. This exercise is unprecedented on multiple fronts.
First, it departs from Hong Kong’s long-standing reliance on market forces and incremental policy adjustments rather than centralised planning. Second, it expands the policy scope to cover not only economic growth but also innovation, housing, education and integration with national strategies.
Third, it represents strategic repositioning. Hong Kong is not simply aligning with mainland governance models; it is seeking to capitalise on the best of two worlds, preserving its open, international identity while learning from the mainland’s experience in long‑term planning and development.
Hong Kong’s five-year plan is part of China’s broader strategy to transform the city from its traditional role as a superconnector into a super strategic hub, serving the nation more effectively in the midst of rapidly changing geopolitics. Without a deep understanding of this role shift, Hong Kong will not meet Beijing’s expectations and may also disappoint its own citizens.
The operative words now are innovation and experimentation. Hong Kong should both preserve its established advantages and reposition itself at the frontier of China’s national priorities. Two areas illustrate this transformation: Hong Kong’s future as China’s financial power accelerator and its emergence as China’s global research hub. Together, these roles can enable Hong Kong to evolve from a connector of global capital into a driver of China’s ascent as both a financial and technological superpower.


Positioned under the new five-year plan, Hong Kong is no longer merely a global financial centre but a dynamic accelerator of China’s rise as a global financial superpower. Historically a gateway for cross-border capital flows, the city is now evolving beyond this traditional role to actively shape China’s global financial influence.
Its resurgence as the world’s top initial public offering venue, driven by mainland tech, new energy and biotech firms, channels global capital into China’s most innovative sectors. In 2025 alone, Hong Kong raised more than HK$280 billion (US$35.7 billion) through 119 new listings, consolidating its position as the premier fundraising hub for Chinese companies.
Hong Kong’s growing role in gold reserves and international gold trading strengthens its financial resilience against geopolitical risks. There are plans to expand the city’s gold holdings to more than 2,000 tonnes. In reducing its reliance on US Treasury bonds, China has expanded its gold holdings to diversify exchange-rate risks and hedge against potential sanctions.
Equally critical is Hong Kong’s role in renminbi internationalisation. Handling more than 70 per cent of global offshore yuan payments, the city is indispensable to China’s effort to reduce US dollar dependence and build a multipolar financial order. Early adoption of the digital yuan and the development of yuan‑denominated commodity pricing will enhance China’s monetary sovereignty.


Finally, Hong Kong’s unique strategy under “one country, two systems” allows it to pioneer digital asset innovation while the mainland restricts such activities to safeguard stability. Acting as a regulatory sandbox, Hong Kong can test stablecoins and real‑world asset tokenisation, attracting global Web3 firms while ensuring systemic security.
In sum, Hong Kong’s alignment with the mainland’s reforms cements its role as both an innovator and a stabiliser, an indispensable nexus in China’s financial ascent under the national five-year plan.
In line with the plan’s emphasis on innovation and technological self‑reliance, Hong Kong must move beyond its role as an education hub to position itself as a strategic node in China’s innovation architecture. Its strengths in basic research and global connectivity should be leveraged to build a truly international academic ecosystem that supports China’s long‑term goal of technological self-sufficiency.
The Northern Metropolis is pivotal to this transformation. To complement rather than be eclipsed by Shenzhen, Hong Kong must cultivate a dual identity of Boston’s depth in scientific discovery combined with Silicon Valley’s culture of commercialisation. It should integrate universities, corporate laboratories and venture capital in a dense ecosystem. Without such a concentrated collaboration, the city risks remaining fragmented and peripheral rather than driving sustained, large-scale innovation.




Talent is the decisive factor. While Hong Kong’s universities already attract scholars from around the world, the exodus of scientists of Chinese origin from the US presents a rare strategic opening. To seize it, Hong Kong must encourage mainland companies to establish global research hubs in the city, creating platforms that draw and retain top talent.
Crucially, this requires a funding model that combines public investment from the city government with private capital from major corporations. Without dual support, Hong Kong risks being a secondary player; with it, the city can rapidly strengthen frontier research and close gaps where China still lags global competitors.
Equally critical is diversity. Mainland students will remain the largest non‑local group, but Hong Kong must broaden recruitment to build a genuinely international ecosystem. Diversity is not symbolic – it is the foundation for originality, disruptive thinking and global leadership.
Hong Kong’s five-year plan must target key areas with vision and clarity, offering both direction and renewal. It should serve national priorities while giving the city a blueprint for transformation. Hong Kong is being redefined as China’s strategic hub for global influence, moving beyond its traditional role to actively drive the nation’s financial and innovation future.


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Opinion

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Hong Kong

Hong Kong Economy

The city is moving beyond its traditional role to drive the nation’s financial and innovation future


The city is moving beyond its traditional role to drive the nation’s financial and innovation future.


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Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


How China is transforming Hong Kong into a strategic hub

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The city is moving beyond its traditional role to drive the nation’s financial and innovation future