2021 POLICY ADDRESS HIGHLIGHT ON THE HONG KONG ECONOMY

Hong Kong leader Carrie Lam Cheng Yuet-Ngor delivered her policy address on 6th October, 2021 highlighted on the Hong Kong economy. The cores of Policy Address are focusing on housing and land supply, as well as the vision for the future Hong Kong. For the prospectus of Hong Kong, she proposes new impetus to the Economy: the integration into the National Development. 

New Impetus to the Hong Kong Economy

Further the 14th Five-Year Plan, the Central Government has reiterated support for Hong Kong as a  Financial Market access with the Mainland. The Hong Kong Government will step up efforts in the following 5 areas: 

  1. Supporting the Hong Kong Exchange and Clearing Limited (HKEX) to further enhance our listing regime. And to establish a listing regime for special purpose acquisition companies in Hong Kong after consulting the market;
  2. Expanding further the channels for the two‑way flow of cross-boundary RMB funds and developing offshore RMB products and tools. Including looking into specific measures to enhance demand for the issuance and trading of RMB securities. And allow stocks traded via the southbound trading under Stock Connect to be denominated in RMB;
  3. Further attracting family offices to establish a presence in Hong Kong by considering the provision of tax concessions. Thereby enhancing Hong Kong’s status as an international asset and wealth management centre.
  4. Supporting the HKEX to promote co‑operation with the Guangzhou Futures Exchange. Develop financial product related to the areas of carbon emission trading. Assessing the feasibility of developing Hong Kong into a regional carbon trading centre. Strengthening Hong Kong as a regional green and sustainable finance hub.
  5. Promoting cross‑border financial technologies (Fintech) and actively exploring with the Mainland. Formation of a one‑stop sandbox network to facilitate financial institutions. Information and technology companies from Guangdong, Hong Kong and Macao to test cross‑border Fintech applications.

Developing into an International Innovation and Technology Hub to support the Hong Kong economy

The Science Park expansion is being carried out in full swing so that more space can be provided for technology enterprises and start‑ups. To prepare for future needs, the Government immediately explore expanding the Science Park’s capacity. In this regard, the Government will revive the Ma Liu Shui reclamation project which, together with the land to be vacated by the relocation of the Sha Tin Sewage Treatment Works to caverns, will provide a total of 88 hectares of new land. The newly provided land should be mainly for I&T development rather than the originally suggested residential use. So as to strengthen the development of the Eastern Corridor with I&T as a major economic function. 

Construction of the Hong Kong‑Shenzhen Innovation and Technology Park (HSITP) in the Lok Ma Chau Loop (the Loop) to expedite the Hong Kong economy

  • The Government accepted in principle the proposals of the University of Hong Kong (HKU) and The Chinese University of Hong Kong (CUHK) to provide the two universities with land for research use
  • Invited the HKSTPC to start planning for the construction of the second Advanced Manufacturing Centre.
  • Setting up of an InnoLife Healthtech Hub in the HSITP in the Loop
  • consolidated to form the San Tin Technopole, together with the Shenzhen I&T zone, will form the Shenzhen‑Hong Kong I&T Co‑operation Zone of approximately 540 hectares
  • Plan to revive the Copyright Ordinance amendment exercise. The target of introducing a bill to amend the Copyright Ordinance in the next term of the LegCo.

For further information, please contact us. 

You may want to read: THE 2021-2022 BUDGET TARGETS ON REVIVING THE ECONOMY

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