"It's great to have Lee back in the side - he hasn't played since picking up an injury over Christmas and he will take over the captaincy from James Davies," said Wales Sevens head coach Gareth Williams.
"His experience is unparalleled in the squad and the quality he brings will hopefully spur the boys on this weekend in what is an extremely tough pool with Fiji, Kenya and Sri Lanka.
"Owen is obviously very disappointed to miss out, especially after the five-week block he has put in. His attitude has been superb and he performed well in Tokyo but we had to go for some balance in the side and Will [Thomas] gives us that as he is a natural outside half who can slot into centre as cover."
Williams said the squad have gained a lot of confidence after narrowly missing out on a quarter-final in Japan and finishing the second day of action undefeated.
"It was pleasing in Tokyo as we were very close to making a quarter-final - only a draw against Canada prevented us from doing that. The three games unbeaten on the Sunday showed a lot of character from the boys as we put ourselves under pressure but came through with flying colours.
"The boys go into this weekend with plenty of confidence. We are all aware Friday's opening game against Fiji is crucial. It's a late kick-off (9.26pm Hong Kong time) but we just have to focus on that one game. If we can come away with a result it sets us up nicely for the next two games against Kenya and Sri Lanka on Saturday," he added.
Wales Sevens squad for Hong Kong
Lee Williams (Capt - Carmarthen Quins)
James Davies (Carmarthen Quins)
Jason Harries (Carmarthen Quins)
Sam Cross (Cardiff Met)
Iolo Evans(Carmarthen Quins)
Craig Price (Scarlets)
Tom Williams (Pontypridd)
Ross Jones (Bridgend)
Will Price (Aberavon)
Will Thomas (Cardiff)
Alex Webber (Pontypridd)
Luke Morgan (Bridgend)