Hong Kong Advances as Regional Hub for Intellectual Property Trading with Strategic Initiatives

Hong Kong is making significant strides toward becoming a leading regional centre for intellectual property (IP) trading, leveraging support from China’s National 14th Five-Year Plan. This commitment was underscored by Chief Secretary Chan Kwok-ki during his remarks at the Business Intellectual Property Asia Forum on December 5.

Highlighting a tangible example of Hong Kong’s IP ecosystem in action, Chan pointed to a local startup specializing in electricity-free cooling technology. This company recently secured nearly $100 million in its Series A financing round, capitalizing on Hong Kong’s strong IP protection framework and extensive distribution networks. The startup collaborates with both local and international partners to advance research and development (R&D), broaden its product offerings, and expand its technology’s global reach.

Such success stories exemplify how effective IP rights management can drive business growth and economic development. To further support innovators, Hong Kong plans to establish a World Intellectual Property Organization (WIPO) Technology & Innovation Support Centre, expected to begin operations as early as next year. This centre will provide critical services to help entrepreneurs and businesses protect and commercialize their innovations.

In addition to infrastructure support, the government is facilitating smoother transitions from product concept to market launch by offering expert guidance, resources, and support tailored to innovators’ needs.

A key fiscal incentive introduced in July is the "patent box" tax scheme, which reduces the tax rate on qualifying IP profits from 16.5% to 5%. This measure is designed to encourage increased R&D investment and stimulate IP trading activities within the region.

Hong Kong’s IP strategy rests on two foundational pillars. The first is enhancing IP infrastructure. Planned legislative updates include revisions to the Copyright Ordinance and reforms to the registered design regime to better meet current and future demands. Additionally, amendments will be proposed to streamline IP litigation processes, enabling courts to handle such cases more efficiently.

The second pillar focuses on cultivating an IP-savvy workforce. The Intellectual Property Department is collaborating with the Qualifications Framework Secretariat to develop IP training materials across 23 industries. Furthermore, plans are underway to introduce regulatory frameworks for local patent agents, strengthening professional standards and services.

Hong Kong’s evolving IP strategy is framed within a global context. As an international financial, trade, and logistics hub, the city emphasizes collaboration and knowledge sharing. Engagement with ASEAN countries and Belt & Road partners remains a priority to exchange best practices and maintain leadership in emerging IP trends.

These comprehensive initiatives reflect Hong Kong’s ambition to solidify its position as a regional IP trading leader, fostering innovation, economic growth, and job creation across Southeast Asia and beyond.