Hong Kong Signs First Protocol Amending ASEAN Investment Agreement

Hong Kong signed the First Protocol to Amend the ASEAN–Hong Kong Investment Agreement on 20 September 2026. For businesses assessing an investment or regional presence across the 10 ASEAN member states, the signing is a development to monitor—not confirmation that the amended arrangements are already in force.

What the Protocol changes

The Protocol mainly incorporates schedules of reservations into the Investment Agreement so that its Article 3 on national treatment and Article 4 on most-favoured-nation treatment can take effect. These provisions concern non-discriminatory treatment for enterprises and investments, but that treatment remains subject to the measures reserved in the schedules.

For non-services sectors, the relevant national-treatment and most-favoured-nation treatment will apply only after the reservations incorporated through the Protocol enter into force. The signing itself should therefore not be treated as present access to those treatments.

The arrangement complements the ASEAN–Hong Kong Free Trade Agreement, under which national-treatment commitments already apply to services and service suppliers in specified sectors, including through commercial presence.

Why it matters for regional planning

ASEAN has been Hong Kong’s third-largest outward direct investment destination for four consecutive years, with an investment stock of HK$671.2 billion. The Protocol may become relevant to businesses comparing locations, structures and activities across ASEAN, but it does not mean that all sectors are covered, market access is guaranteed or legal protections are automatically available.

Questions for a business review

Before changing an investment plan or regional structure, businesses should consider at a high level:

• Destination and jurisdiction: Which ASEAN member state is being assessed, and which local rules apply?
• Sector and reservations: Does the proposed sector or activity fall within a reserved measure or other limitation?
• Investment vehicle and activity: What entity, ownership arrangement and commercial activity are proposed?
• Implementation timing: Have the relevant Protocol provisions and schedules entered into force for the parties concerned?
• Project assumptions and advice: Do financial, regulatory and operational assumptions remain valid after jurisdiction-specific professional review?

These questions are a framework for due diligence, not a substitute for reviewing the final schedules, applicable local law and professional advice.

Status at publication: Signed on 20 September 2026; not established by the source as currently in force. Reserved measures apply.

Source: Hong Kong SAR Government press release, 20 September 2026

Disclaimer: This article provides general business information only. It is not legal, investment, tax or other professional advice and does not confirm that any treaty treatment or protection is available for a particular investment. Businesses should obtain advice appropriate to the relevant jurisdiction, sector, structure and facts.

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