How markets will test Hong Kong’s new economic model

AdvertisementHong Kong politicsOpinionHong Kong OpinionRegina IpOpinionHow markets will test Hong Kong’s new economic modelIndustrial policy can guide and catalyse but it cannot substitute for a genuine competitive advantage3-MIN READ3-MIN ListenRegina IpPublished: 9:30am, 19 Apr 2026For the first time in its history – and in a striking departure from its long-standing doctrine of minimal economic intervention – Hong Kong is preparing to draw up a five-year plan.Chief Executive John Lee Ka-chiu has asked all policy bureaus to help draft proposals by the end of the year. To lead the exercise, veteran civil servant Janice Tse Siu-wah has come out of retirement.

The Legislative Council, not to be left out, has formed a committee supported by six coordinating groups spanning nearly every major policy domain.This is more than an administrative exercise. It marks a fundamental shift in Hong Kong’s economic philosophy.AdvertisementFor decades, the city has prided itself on low taxes, light regulation and market-led growth. Now it is moving – cautiously but unmistakably – towards a model more aligned with mainland China’s state-led development strategy.Conventional economic thinking has long held that markets are best at allocating resources and driving innovation. Yet mainland China’s rise has challenged this orthodoxy. Through long-term planning, policy coordination and targeted investment, it has become the world’s second-largest economy and a formidable technological power.AdvertisementThis model is not simply about central control. It combines top-level strategic direction with broad consultation and coordinated execution. The result is an ability to mobilise resources at scale towards national priorities.AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x