Financial Secretary Paul Chan has unveiled his budget filled with initiatives to boost the development of innovation and high-tech industries. The proposals he announced in the Legislative Council on Wednesday also included tax concessions and allowances to ease the economic pressure on people and businesses. Wendy Wong has the details.

The Hong Kong government has posted its first budget surplus in four years thanks to what the financial secretary described as a buoyant equity market and accelerated economic growth. Paul Chan said that the government's consolidated account is expected to register a surplus of HK$2.9 billion for the 2025-26 fiscal year, instead of a deficit of about HK$67 billion as originally estimated. Chloe Feng reports.

A local accounting firm has said that the government's overall financial position "remains healthy", as the consolidated account returns to a surplus, following a surge in stamp duties and tax revenues. Speaking to RTHK, Eugene Yeung, deputy chairman of the Taxation Faculty Executive Committee at the Hong Kong Institute of Certified Public Accountants, also welcomed the government's new tax concessions and allowances to improve people's livelihoods. But he told Chloe Feng that there's still room for more sweeteners:

The government plans to transfer HK$150 billion from the Exchange Fund to support the development of the Northern Metropolis and other infrastructure projects. Paul Chan says that the fund, which stood at HK$4.1 trillion at the end of last year, has enough reserves to maintain the city's monetary and financial stability. Frank Yung reports.

The think tank, Our Hong Kong Foundation, says it considers the planned use of HK$150 billion from the Exchange Fund on building infrastructure, including those at the Northern Metropolis, as a natural move. One of its vice presidents, Ryan Ip, spoke to Damon Pang:

The financial secretary says he will head a special committee as part of efforts to ensure that all levels of society understand and make use of artificial intelligence. Natale Ching has the details.

The financial secretary says the government is committed to attracting more enterprises to set up shop in Hong Kong. In his budget speech, Paul Chan said a slew of policy tools, including land grant arrangements, financial subsidies and tax incentives, will be put in place to promote industries and investment. Priscilla Ng reports.

The government has earmarked HK$52 million to set up an "Intellectual Property Academy" as part of measures to boost the city's intellectual property - or IP - sector, according to the finance minister. Frank Yung reports.

Legislators have welcomed the establishment of the Intellectual Property Academy, though they emphasised that technical expertise, proper valuation mechanisms and legal updates will be critical to the plan's success. Legal sector representative Nick Chan said there is a need to update Hong Kong's copyright laws to support artificial intelligence development. Mr Chan also told Hailey Yip that there is a need for more patent examiners "trained in not just law, but also in other disciplines":

Another lawmaker, William Wong, says the budget's focus on IP protection and legal framework development is "very useful...in promoting the innovation and technology industry". He highlighted that valuation remains one of the most difficult hurdles in IP commercialisation. Mr Wong told Hailey Yip that the budget's proposed tax deductions for capital expenditure when purchasing IP would help by lowering transaction costs:

Paul Chan says Hong Kong will host a new light festival-themed show to replace the decades-old Symphony of Lights. The move is among a raft of events announced in his Budget to boost Hong Kong's appeal to tourists, after chalking up 12 percent more visitor arrivals last year. Natasha Ho reports.

There was a rush Wednesday night for prospective buyers of electric private cars to put down deposits at dealerships, after the government says it will not extend a concession arrangement for EVs that has been in place since 2018. As Wendy Wong reports, the subsidy will expire at the end of March.

The "One-for-One Replacement" scheme aimed to encourage the adoption of electric vehicles will expire at the end of March, eight years after it was introduced. To be eligible for the subsidy, car owners must scrap an old vehicle before they purchase a new battery-powered private car. Mark Webb Johnson, chairman of Charged Hong Kong, said the scheme has been successful in encouraging drivers to go electric. But he told Wendy Wong that EV sales are expected to slow down:

Paul Chan is also looking at various means to boost government revenue. He announced a raise in stamp duty for luxury homes, a move that is expected to generate an extra HK$1 billion each year. Damon Pang with that story.

The financial secretary says Hong Kong is poised to play a pivotal role in several key areas of national development as the city aligns itself with the goals of the nation's 15th Five-Year Plan. Hailey Yip has the details.

Major business groups have welcomed the latest budget, praising measures aimed at promoting technological advancement and supporting local enterprises. Aaron Tam reports:

DAB lawmaker Nixie Lam has welcomed a series of tax relief measures in the latest budget, saying they will directly support families and help ease their financial pressure. Aaron Tam reports:

A female police officer assigned to the patrol sub-unit of Kwun Tong district was found dead at Kwun Tong Police Station Wednesday morning. Police say her body was discovered at around 7.45am in the station's loading and unloading area. Hailey Yip reports.

President Xi Jinping has said that China and Germany need to enhance strategic communication and increase mutual trust as the world becomes more turbulent and intertwined. As Elvis Yu reports, he made the comments during a meeting with German Chancellor Friedrich Merz, who is visiting Beijing.

A southeastern Brazilian state is counting the toll of landslides and flooding caused by heavy rain. As Jamie Clarke reports, at least 46 people have been killed, while rescue workers are searching for at least 21 people who are still unaccounted for:

In Champions League football... holders Paris Saint-Germain scraped through to the last 16 following a nervy 2-2 draw against 10-men Monaco in the second leg of their play-off tie. Fifteen-time winners Real Madrid are also through after beating Benfica thanks to some late magic from Vinicius Junior. Todd Harding has more: