Hong Kong’s 2026–27 Budget sets out a series of measures aimed at reinforcing the city’s role as a global hub for shipping and maritime finance. The initiatives focus on three core areas—tax policy, green shipping incentives, and regulatory reform of vessel registration—while also expanding Hong Kong’s international maritime engagement.

Together, the proposals reflect a strategic effort to deepen the integration of shipping, commodity trading and financial services within the city’s broader maritime ecosystem.

Tax Incentives to Strengthen the Maritime Value Chain

A central element of the Budget is a proposal to introduce legislation in the first half of the year that expands existing tax concessions for maritime services and introduces a half-rate profits tax concession for eligible commodity trading companies.

Commodity trading and shipping are closely linked: many of the world’s largest commodity traders operate extensive shipping fleets or charter large numbers of vessels to support global trade flows. By offering tax incentives to commodity traders, Hong Kong aims to attract more trading houses to establish regional or global headquarters in the city.

Policymakers expect this move to generate spillover demand across the maritime services sector, particularly in:

• ship finance

• marine insurance

• vessel leasing

• trade finance and logistics services

Strengthening this ecosystem would reinforce Hong Kong’s ambition to position itself not only as a shipping centre but also as a global maritime financial hub.

Incentives to Accelerate Green Shipping

The Budget also places significant emphasis on maritime decarbonisation. Authorities plan to introduce several incentives designed to support the transition to low-carbon shipping.

Key proposals include:

• Reduced port charges for vessels powered by green fuels or carrying green fuel cargo

• Expanded anchorage capacity for green fuel bunkering, enabled through legislative amendments

• A new incentive scheme for Hong Kong-registered vessels using green fuels

These measures are designed to align with decarbonisation targets promoted by the International Maritime Organization (IMO) while encouraging shipowners to adopt cleaner propulsion technologies.

Transitioning to green vessels requires substantial capital investment, whether through the construction of new ships or the retrofitting of existing fleets. Hong Kong’s established position in sustainable finance—including active issuance of green and sustainability-linked bonds and the development of sustainability disclosure frameworks—could make the city an important financing centre for green vessel investment.

Dual Ship Registration Proposed

One of the most significant structural reforms in the Budget is a proposal to introduce a dual ship registration system, which would require legislative amendments later this year.

Hong Kong’s ship registry is already regarded as attractive to shipowners due to several factors:

• the territory’s common law legal framework, which provides strong protection for vessel ownership and ship mortgage interests

• a solid port state control record, reducing the likelihood of inspections or detentions

• tax concessions that allow certain international shipping operations involving Hong Kong-registered vessels to qualify for profits tax exemptions

Currently, however, vessels must choose between Hong Kong registration and another flag state. A dual registration framework would allow ships to maintain registration in two jurisdictions simultaneously.

Under a possible structure:

• shipowners could register vessels in Hong Kong as legal owners, while bareboat charterers operate the ships under another jurisdiction; or

• vessels registered elsewhere by owners could be temporarily registered in Hong Kong by operators under bareboat charter arrangements.

This flexibility could allow shipowners and operators to benefit from the legal and tax advantages of the Hong Kong flag while maintaining registrations that suit operational requirements in specific trade routes or regulatory environments.

Expanding Hong Kong’s Global Maritime Profile

The Budget also emphasizes Hong Kong’s role as a platform for international maritime dialogue. This year marks the 10th anniversary of Hong Kong Maritime Week, and authorities plan to organize additional global forums and industry events in collaboration with international maritime organisations.

Such events bring together shipowners, financiers, insurers and regulators, creating opportunities for networking, policy dialogue and industry cooperation.

By strengthening its role as a convening hub for maritime stakeholders, Hong Kong aims to enhance its visibility and influence in global shipping governance and finance.

A Broader Strategy for Maritime Competitiveness

The initiatives outlined in the Budget form part of a broader strategy to reinforce Hong Kong’s position in the global maritime economy. Alongside government measures, industry groups are also working to support the sector’s long-term development. For example, the Hong Kong Shipowners Association has launched initiatives to cultivate maritime talent and attract younger professionals to the industry.

Taken together, the policy package signals a coordinated effort to strengthen Hong Kong’s maritime ecosystem—linking shipping operations, commodity trading, legal services and financial markets into a more integrated international maritime platform.