What Changed
- The 'Easy BUD' application ceiling under the BUD Fund is raised to $150,000, with funding scope expanded to AI projects, Uzbekistan, and Qatar.
- New IP framework mechanisms were announced, including an Intellectual Property Financing Sandbox and the Pilot Patent Valuation Support Scheme.
- The Policy Address introduced 10 measures aimed at supporting SME transformation, digitalisation, and international supply chain integration.
The Secretary for Commerce and Economic Development (CEDB) of the Hong Kong Special Administrative Region (HKSAR), Mr Algernon Yau, briefed the Trade and Industry Advisory Board on economic and trade initiatives contained in the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026–2030) and the Chief Executive's 2026 Policy Address.
**Who Is Affected**
The initiatives primarily impact small and medium-sized enterprises (SMEs)—which constitute 98 per cent of all enterprises in Hong Kong—as well as legal, financial, and trade professionals involved in international supply chains, regional intellectual property (IP) trading, and cross-border commercial expansion.
**Key Policy Initiatives and Developments**
To reinforce Hong Kong's positioning as an international trade centre and regional IP hub, the government outlined the following measures:
- **SME Support and BUD Fund Enhancements:** As part of 10 support measures for SMEs, the funding ceiling for "Easy BUD" applications under the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) is increased to $150,000. Targeted funding is allocated for AI projects, and the fund's geographical scope is expanded to include Uzbekistan and Qatar. The Trade and Industry Department will coordinate with the "Four-in-One" Integrated Services of SME Centres, while the Hong Kong Trade Development Council will expand its E-Commerce Express services.
- **IP Ecosystem Advancement:** Aligned with the National 15th Five-Year Plan, measures include launching an Intellectual Property Financing Sandbox, introducing a Pilot Patent Valuation Support Scheme, establishing the Hong Kong Intellectual Property Academy, and setting up the Strategy Committee on Intellectual Property Trading Development.
- **Supply Chain and Trade Upgrades:** The HKSAR Government is pursuing trade upgrades focused on "digitalisation" and "diversification" to develop Hong Kong into a high value-added supply chain service centre and advance the Northern Metropolis project.
**Dates and Legal Status**
The briefing took place on October 12, 2026. Specific entry-into-force or application dates for individual funding and regulatory schemes were not provided in the source release.
Who May Be Affected
Hong Kong SMEs, commercial trade sectors, foreign enterprises utilizing Hong Kong's IP trading ecosystem, and businesses expanding trade into Uzbekistan and Qatar.
Cross-Border Context
Deepens Hong Kong's role as a 'super connector' for Mainland enterprises expanding globally and connects regional IP trading with international markets including Uzbekistan and Qatar.
What to check next
- Official circulars and implementation guidelines from the Trade and Industry Department regarding updated BUD Fund rules.
- Operational framework and eligibility details for the Intellectual Property Financing Sandbox released by relevant HKSAR authorities.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.