The Hong Kong Special Administrative Region has now heard the financial secretary’s Budget for 2026-27. In a year marked by global volatility, shifting capital flows, and the uncertainties of economic transformation, the Budget rightly emphasized prudence, resilience, and the careful stewardship of public reserves. These are not ordinary times, and Hong Kong must navigate them with discipline and foresight. With the Budget now set, the question is: What comes next? What can truly hit the ground running and open up our old pillars? Where can Hong Kong look for new engines of growth that align with our strengths, respect our fiscal realities, and position us for the next decade?

One promising frontier is NewSpace — the commercialization of space‑enabled technologies, data and services. Not rockets, not geopolitics, but business: logistics optimization, maritime intelligence, insurance innovation, fintech applications, and AI‑driven analytics. These are areas in which Hong Kong already has deep capabilities. Let me propose seven pathways. The following are not critiques of the Budget, nor expectations of immediate action. They are medium‑term options — ideas that Hong Kong can explore gradually, responsibly, and in alignment with the fiscal direction the government has now set.

The first pathway lies in the space commercial registry. This is a low‑cost upgrade to a proven strength in Hong Kong.

Hong Kong’s maritime registry is world‑class. Extending this expertise to satellites, space‑derived data services, and orbital assets would be a natural evolution. A space commercial registry, housed under the new office for space commerce, would attract operators seeking a trusted jurisdiction and strengthen Hong Kong’s role in global commercial space governance. This is structural, not fiscal — well-suited for the post‑Budget environment.

The second is to set up a private‑capital‑led space-tech co‑investment fund.

As single-family offices (SFOs) expand rapidly, Hong Kong can explore a co-investment fund driven primarily by private capital. Such a fund would help de‑risk early‑stage NewSpace ventures and attract global founders to base operations in Hong Kong. According to Deloitte, Hong Kong is now home to almost 4,000 SFOs, surpassing Singapore. Imagine having Hong Kong Investment Corp spearhead such ideas? This model mirrors Luxembourg and Singapore, but with Hong Kong’s own commercial neutrality and financial sophistication.

The third is to build up a space applications sandbox, built on what Hong Kong already does well.

Hong Kong’s competitive edge lies in space applications, not hardware. Our logistics, maritime, insurance, and fintech sectors generate oceans of data. A space applications sandbox, modeled on the successful sandboxes launched by the Hong Kong Monetary Authority and the Securities and Futures Commission, would allow companies to test satellite‑enabled trade finance, environmental, social, and governance verification, supply‑chain analytics, and parametric insurance. Perhaps this could fall under the remit of the NewSpace office suggested by the SAR government? This regulatory initiative aligns with the Budget’s emphasis on prudent, targeted development.

Should future Budgets create room for targeted incentives, Hong Kong could consider a tax deduction or rebate for corporate investments into Hong Kong‑domiciled NewSpace ventures. Such a measure would encourage corporates to partner with startups and strengthen Hong Kong’s role as a capital‑formation hub

The fourth is to generate corporate tax incentives for NewSpace co‑investment. This is feasible only if future fiscal space allows.

Should future Budgets create room for targeted incentives, Hong Kong could consider a tax deduction or rebate for corporate investments into Hong Kong‑domiciled NewSpace ventures. Such a measure would encourage corporates to partner with startups and strengthen Hong Kong’s role as a capital‑formation hub. The Orion Astropreneur Space Academy, a nongovernmental organization, has been working with a select few corporates to do just that. Imagine if we took things to the next level and added a space accelerator too. This is a medium‑term option, not an immediate ask.

The fifth pathway is the NewSpace insurance and catastrophe (CAT) bond agenda, a missing pillar to develop over time.

Insurance is the quiet engine of every advanced industry. Yet Hong Kong’s NewSpace insurance landscape remains comparatively underdeveloped with the development of NewSpace. Europe and the United States are already advancing CAT bonds, parametric insurance, and space‑risk underwriting. Michael Mainelli, the former Lord Mayor of London, was in Hong Kong last month promoting his space bond as a financial instrument to mitigate space debris risks.

The sixth lies in the tax incentives for family offices to support NewSpace. This is deemed to be a future option for seeding innovation.

If future Budgets open the door to philanthropic or venture‑friendly incentives, Hong Kong could consider tax benefits for family offices that invest in, or donate to, Hong Kong‑domiciled NewSpace startups. This would deepen the seed and Series A pipeline and attract global founders.

The seventh lies in tuition credits for youth and professionals for building a NewSpace‑literate workforce.

Hong Kong’s youth and professionals are talented, but most are unfamiliar with NewSpace, orbital economics, satellite applications, or the AI‑driven tools that power the industry. NewSpace is a new language — one Hong Kong must learn to speak. This is an investment in human capital that can be scaled responsibly in line with fiscal conditions.

The financial secretary has set the fiscal direction. The next step is to explore, with discipline and imagination, how Hong Kong can build new engines of growth that align with that direction. The above seven pathways are post‑Budget options, not pre‑Budget expectations — ideas that can complement the government’s strategy when the timing is right.

Hong Kong has always thrived when it looks outward, builds bridges, and embraces new industries. NewSpace may be one of the next frontiers where Hong Kong can lead — not by spending heavily, but by doing what it does best: connecting, convening, and commercializing.

The author is an astropreneur, a visiting professor at the Laboratory for Space Research at the University of Hong Kong, and a co-founder of Orion Astropreneur Space Academy.

The views do not necessarily reflect those of China Daily.