Hong Kong introduced its first policy guidelines on AI in finance and floated a tax break for virtual assets, aiming to bolster its position as Asia’s financial hub. Officials outlined a framework for regulators to craft AI policies and announced plans to extend tax breaks on digital assets, including cryptocurrencies, with legislation expected by year-end. The city seeks to attract investors amid US-China tensions by embracing technologies like AI and crypto. Financial regulators will issue circulars governing AI use, while Hong Kong University of Science and Technology will offer a local AI model, InvestLM, for financial services.