Pay attention to the blue word, don't get lost~
On 19 October, the Chief Executive of the Hong Kong Special Administrative Region, John Lee, delivered the Chief Executive's 2022 Policy Address, the first policy address delivered by John Lee since taking office. In his Policy Address, Lee proposed policies and measures on economic development and improvement of people's livelihood, covering topics such as talent competition, enhancing Hong Kong's competitiveness, and technological innovation and development.
Establishment of Hong Kong Investment Management Company Make good use of financial reserves
In his policy address, Lee announced that he would set up the Hong Kong Investment Management Company Limited to further make good use of financial reserves to promote industrial and economic development.
Mr Lee said that he had instructed the Financial Secretary to set up Hong Kong Investment Management Company Limited to integrate the Hong Kong Growth Portfolio, Greater Bay Area Investment Fund, Strategic Innovation and Technology Fund and Co-investment Fund established under the Future Fund in recent years, pooling resources for the Government to take the lead in investing in strategic industries and attracting and helping more enterprises to develop in Hong Kong. It plans to allocate $30 billion from the Future Fund to set up a co-investment fund to introduce and invest in enterprises established in Hong Kong.
The establishment of Hong Kong Investment Management Co., Ltd. is one of the important measures that Li Jiachao will take to improve the governance system and improve the level of governance in different fields. Other initiatives include the establishment of a Chief Executive Policy Unit and the strengthening of civil service management.
Comprehensively enhance the competitiveness of Hong Kong's financial services
Hong Kong is an international financial centre, the world's largest offshore RMB business centre, and the world's leading biotechnology financing centre. Financial services is also the largest pillar industry in Hong Kong, accounting for more than one-fifth of GDP.
Mr Lee said that the current HKSAR Government will enhance the competitiveness of Hong Kong's financial services in six aspects: enhancing the internationalization of financing platforms, strengthening the advantages of the largest offshore RMB business center, strengthening connectivity, developing green and sustainable finance, strengthening asset and risk management, and fintech.
In terms of enhancing the internationalization of financing platforms, HKEX will amend the Main Board listing rules next year to facilitate the financing of advanced technology enterprises that do not yet have profit or performance support; At the same time, the revitalization of GEM (formerly known as GEM) is conceived to provide a more effective financing platform for small and medium-sized enterprises and start-ups.
Hong Kong currently handles about 75% of the world's offshore RMB settlement, and the HKSAR Government will promote the market to provide more RMB-denominated investment vehicles, as well as stable and efficient treasury services such as foreign exchange, exchange rate risk and interest rate risk management, and optimize market infrastructure to strengthen the advantages of the largest offshore RMB business center.
Mr Lee also said that he would promote Hong Kong as the preferred financing platform for Mainland and overseas governments and green enterprises, as well as build an international carbon market in Hong Kong, and support HKEX to continue to promote cooperation with Guangzhou financial institutions and other carbon market development.
Family offices are a key growth area for the asset and wealth management industry, with Hong Kong managing this sector and private trust clients with assets exceeding HK$1.7 trillion last year.
Mr Lee said that the HKSAR Government would introduce a bill within this year to provide tax concessions for eligible family offices, with the aim of promoting the establishment or expansion of no less than 200 family offices in Hong Kong by the end of 2025.
In addition, the implementation of a risk-based capital regime for the insurance industry in 2024 to closely align with international standards and a public consultation on the proposal to establish a policyholders' protection scheme will be launched within this year.
In terms of strengthening connectivity, Mr Lee said that he would implement a series of Stock Connect arrangements announced earlier by the CSRC, including submitting a bill this year to waive stamp duty on stock trading by market makers in the dual-currency stock market to optimize the RMB stock trading mechanism, and complete preparations for the Northbound Stock Connect as soon as possible.
"We will also explore the enhancement of Southbound Bond Connect to facilitate more diversified Dim Sum bond issuance and trading, and continue to discuss more connectivity expansion options with the Mainland." In addition, we will strive to set up insurance after-sales service centers in Nansha and Qianhai in the near future to support GBA residents holding Hong Kong insurance policies, and also take an important step towards the interconnection of the GBA insurance market. Li Jiachao said.
At present, there are more than 600 fintech enterprises in Hong Kong, and enhancing the competitiveness of fintech is also an important direction for Hong Kong to build itself into an international financial center.
Li Jiachao said that the next step will be to vigorously promote fintech, including encouraging more fintech services and products to conduct proof-of-concept testing, promoting cross-border fintech projects, and cultivating fintech talents. The "Business Data Connect" will be launched this year, providing a one-stop platform for enterprises to share operational data, allowing banks to accurately evaluate the situation of enterprises and improve the chances of SMEs being approved for loans.
On virtual assets, the HKSAR Government has submitted a Bill to propose the introduction of a statutory licensing regime for service suppliers. The Hong Kong Monetary Authority (HKMA) is studying the market's views on regulating stablecoins to ensure that the regulatory regime is in line with international regulatory recommendations and appropriate to local circumstances. In addition, the HKMA has commenced preparations for the "e-HKD" and is working with Mainland organisations to expand the testing of the "digital RMB" as a cross-border payment instrument in Hong Kong.
"Grabbing enterprises" and "grabbing talents"
Mr Lee said that Hong Kong is one of the most competitive economies in the world and an important window for the mainland to connect with the international market. The SAR government must be more active and enterprising in "grabbing enterprises" and "grabbing talent." The HKSAR Government will launch the High-end Talent Pass Scheme to attract high-end talent to Hong Kong.
He said that the SAR government will build a new system and introduce a series of new measures to attract investment and talents and strengthen competitiveness. The measures include the establishment within this year of the "Office for the Introduction of Key Enterprises", led by the Financial Secretary of the HKSAR Government, to provide special supporting measures and one-stop services to key enterprises in the Mainland and overseas for the introduction into Hong Kong; Establish a "Talent Service Window" headed by the Chief Secretary for Administration of the HKSAR Government to formulate and co-ordinate strategies and work for attracting Mainland and overseas talent, as well as to provide one-stop support to talents arriving in Hong Kong.
Regarding measures to attract talents, Lee Ka-chiu said that in addition to actively cultivating and retaining local talents, the HKSAR Government will be more aggressive in attracting foreign talents.
He introduced that the SAR Government will launch the "High-end Talent Pass Scheme" for a period of two years. Eligible talents include those with an annual salary of HK$2.5 million or above in the past year, as well as those who have graduated from top 100 universities in the world and have accumulated 3 or more years of working experience in the past 5 years. These two categories of persons can be issued a two-year permit to enter Hong Kong for development without quota. Passes are also issued to graduates of the world's top 100 universities who do not meet the work experience requirements but have graduated within the last 5 years, up to a maximum of 10,000 per year. The scheme will be reviewed one year after its launch. In addition, the HKSAR Government has also optimized a number of existing talent import schemes, such as the "General Employment Policy" and the "Mainland Talent Admission Scheme", to enhance their attractiveness.
Mr Lee also said that more visitors to Hong Kong for short-term activities would not be required to apply for work visas, and that more categories would be covered in addition to the existing designated sectors such as technology professionals and professional athletes.
Mr Lee pointed out that many industries in Hong Kong are facing manpower shortages, and the relevant bureaux of the HKSAR Government will listen to the opinions of the industries and propose solutions to the situation of different industries. The Labour and Welfare Bureau of the HKSAR Government will launch a new round of manpower estimation to enable the HKSAR Government to formulate appropriate strategies for overall manpower demand. The HKSAR Government will also enhance the estimation methodology, including shortening the estimation period from 10 years to 5 years, so as to better follow economic and labour market trends. The main analysis of the projections will be completed in 2024.
Development of the "Northern Metropolis" to start a new engine
In his policy address, Lee stressed that Hong Kong should integrate into the overall development of the country, enhance development momentum, develop the "northern metropolis", and launch a new engine to drive Hong Kong to reach new heights.
Mr Lee said that the national 14th Five-Year Plan, the development of the Greater Bay Area and the Belt and Road Initiative have injected a steady stream of development momentum into Hong Kong. The Government will set up a "Steering Group on Integration into the Overall Development of the Country", headed by the Chief Executive and headed by three Secretaries-General as deputy chairs, to promote and supervise cross-bureau work from a strategic and macro perspective, strengthen communication with Mainland organisations, and hold regular national policy interpretation activities. The Steering Group will formulate strategic plans for Hong Kong's alignment with the National 14th Five-Year Plan and the development of the Greater Bay Area, and actively promote development collaboration. Formulate work plans to further open up the flow of people, logistics, capital and information in the Greater Bay Area.
Lee pointed out that the "Northern Metropolis" is a strategic development base for the future and a new engine to drive Hong Kong to new heights. The current SAR Government will make every effort to promote the construction of the "Northern Metropolis". A number of large-scale development projects have been carried out in the district, which will increase the volume, speed, efficiency and quality of different links, turning large-scale projects from "raw land" to "ripe land", which has greatly reduced the time by half of the past ten years.
To strengthen the governance system for the Northern Metropolis, the Policy Address clarified that the HKSAR Government will establish the Northern Metropolis Steering Committee and the Northern Metropolis Advisory Committee, the former headed by the Chief Executive for high-level policy guidance and supervision, and the Financial Secretary chaired by the Financial Secretary and composed of experts and members of the community to provide advice on the development of the Northern Metropolis. The HKSAR Government will work closely with the Guangdong Provincial Government to allow the "Northern Metropolis" to transcend geographical boundaries and create synergies with Guangdong Province, Shenzhen and the Greater Bay Area. Next year, a department dedicated to the development of the "Northern Metropolis" will be set up to lead and coordinate various departments to promote construction with innovative development models, with the goal of formulating a specific plan and action plan for the "Northern Metropolis" within the next year.
Li Jiachao said that after completion, the "Northern Metropolis" will take "International Innovation and Technology New City" as the theme, integrating quality life, emerging economy and cultural leisure, promoting work-life balance and green living with innovative urban design, and coexisting with development and conservation.
Build an international innovation and technology center
Mr Lee said that Hong Kong's Innovation and Technology Development Blueprint will be launched this year, and policies will be formulated in four aspects: improving the I&T ecosystem and achieving re-industrialization, expanding the talent pool, building a smart Hong Kong, and integrating into the overall development of the country, leading Hong Kong to become an international I&T hub.
In his policy address, Lee proposed to set up a $10 billion "Industry-University-Research 1+ Plan" to fund at least 100 university R&D teams with potential to become start-ups in a matching form from next year to promote the transformation of scientific research achievements and industrial development. Under the plan, the R&D team will complete the project in two phases, first transforming the scientific research results into implementation within three years, and then commercializing the scientific research results within the following two years.
To promote the development of the technology industry, the Government will work with the introduction of key enterprise offices, the $5 billion Strategic Innovation and Technology Fund, and the I&T land and space provided by the Hong Kong-Shenzhen Innovation and Technology Park in Lok Ma Chau Loop from 2024 onwards to attract outstanding enterprises and talents from life and health technology, artificial intelligence and data science, advanced manufacturing and new energy technology to settle in Hong Kong.
Mr Lee said he hoped to attract at least 100 promising or representative I&T enterprises to set up or expand their business in Hong Kong in the next five years, including at least 20 leading I&T enterprises, with a view to bringing investment of over $10 billion and creating thousands of local jobs to Hong Kong.
To promote re-industrialisation, the Policy Address proposed the establishment of a Commissioner for Industry to co-ordinate and supervise re-industrialisation strategies to assist the manufacturing industry in upgrading, using innovation and technology. In addition to exploring the construction of a second Advanced Manufacturing Centre at the Tai Po Innovation Park, the Government will also subsidise the establishment of more smart production lines in Hong Kong through the Re-industrialisation Subsidy Scheme, with the aim of increasing the current number of production lines from about 30 to over 130 within five years, and strengthening collaboration with the Productivity Council to support enterprises in switching to smart production.
As for I&T infrastructure, the Government will make every effort to implement the construction of the Hong Kong-Shenzhen I&T Park and accelerate the development of San Tin Technopolis in the Northern Metropolis. Starting from 2025, the expansion of Science Park and Cyberport will be completed in phases, providing a total of about 100,000 square metres of additional floor space. The planned East Rail Science Park/Pak Shek Kok Station is expected to open in 2033 or sooner.
Editor-in-charge: Zhu Yumeng
Proofreader: Tao Qian
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