HONG KONG (Reuters) – Hong Kong leader John Lee delivered his fourth annual policy address on Wednesday pledging to boost the financial hub’s economy and enhance people’s livelihoods.
Some of the highlights include:
ECONOMY
– This year’s economic growth is projected at 2% – 3%, compared with 2.5% in 2024.
– To accelerate development of Northern Metropolis Area close to mainland China borders.
– “We will also introduce dedicated legislation to accelerate the development of the Northern Metropolis.”
– To promote the development of AI+ with strong emphasis on safety risk prevention.
– To formulate preferential policy packages to attract more enterprises.
– The government will explore the establishment of a more flexible mechanism to introduce tax incentives that comply with international standards.
– To attract more top-notch international and mainland pharmaceutical companies to set up operations in Hong Kong.
– To promote the development of the new energy industry, and Hong Kong is working to achieve carbon neutrality before 2050.
– To construct Hong Kong’s first large-scale electric vehicle (EV) battery recycling facility, which is expected to commence operation in the first half of 2026.
– To set up task force on supporting mainland China enterprises in going global and to encourage mainland enterprises to use Hong Kong in expanding their businesses overseas.
– To optimise the regimes for listing on the Main Board and issuing structured products, consider enhancements to the listing requirements for companies with weighted voting right structures.
– To press ahead with the inclusion of an yuan trading counter under Stock Connect’s Southbound trading for Hong Kong stocks.
– To promote Hong Kong as international gold trading market.
– To support the Airport Authority Hong Kong and financial institutions to establish Hong Kong’s gold storage facilities, with a target gold storing capacity of over 2,000 tonnes in three years, propelling Hong Kong into a regional gold reserve hub.
– To explore signing of new investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru.
– To invite expressions of interest in development of a yacht bay and its ancillary facilities early next year. The facilities will be completed in phases, starting in 2028.
– “Hong Kong is well-positioned to become a yacht hub in Asia. We will enhance amenities for the yacht industry and promote prime yacht tourism.”
– To promote development of insurance products.
– To build Hong Kong into a global premium arts trading hub, attracting more international auction houses, galleries to establish presence in the city.
– To develop “mega events + tourism” to attract visitors and to offer tailor-made luxury tours for high-spending visitors.
– Three areas will be approved this year for autonomous vehicles trials to accelerate development of driverless autonomous driving in Hong Kong, facilitating industry’s expansion to right-hand-drive markets overseas.
– To launch licence for pet-friendly restaurants
POLITICS/NATIONAL SECURITY
– The government will continue to steadfastly safeguard national sovereignty, security and development interests
– “We will continue to enhance the legal system and enforcement mechanism for safeguarding national security … so as to prevent, suppress and impose punishment for acts and activities endangering national security.”
TALENT
– To build an international education hub, accelerating construction of the Northern Metropolis University Town.
– To increase quota of non-local students attending universities from 40% to 50%
LIVELIHOOD
– Safeguarding the basic housing needs of people of Hong Kong is the top priority.
– “We will increase the supply of flats under the Home Ownership Scheme and the Green Form Subsidised Home Ownership Scheme, optimise the sale and alienation restriction arrangements…”
– To facilitate Hong Kong elderly recipients retiring in Guangdong and Fujian Provinces.
– To implement further measures to promote fertility.
– Taxpayers can claim a total of HK$260,000 allowance for each child in the first two years following childbirth.
($1 = 7.7789 Hong Kong dollars)
(Reporting by Donny Kwok; Editing by Kim Coghill)
