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 The Chief Executive of the Hong Kong Special Administrative Region (HKSAR), Mr John Lee, delivered his annual Policy Address on 25 October 2023.  With the Government being committed to upholding “One Country, Two Systems”, strengthening the economy and improving people’s livelihood, the Policy Address outlines measures to enhance the competitiveness of Hong Kong by reinforcing traditional sectors and developing emerging strategic areas like innovation and technology, creative industries, pharmaceutical research and development, Chinese medicine and new energy transport.  The economy will be boosted through the creation of infrastructure and land and transport development projects, with the Northern Metropolis in particular providing an engine for growth.  Efforts to attract and retain foreign companies and talents will continue.

Details

Reinforce our advantages and build a diversified economy
·        Reinforce our status as international financial centre – expand offshore Renminbi business, deepen GBA collaboration and venture into green finance
·        Strengthen the Competitiveness of the Stock Market - Enhance stock market liquidity.  Reduce stamp duty on stock transfer from the current 0.13% to 0.1% of the consideration or value of each transaction payable by buyers and sellers respectively.  Review stock trading spread to facilitate the market prices of those liquid but spread-constrained stocks to better reflect market circumstances and reduce bid-ask spreads.  Reduce market data fees.  Reform GEM – streamline the transfer mechanism to the Main Board and add a new listing route for R&D-focused companies. The HKEX will implement revised Listing Rules in the first quarter of next year.

·        Expand our global economic and trade networks and our reach to new markets; set up more consultant offices to attract businesses and investment

·        Publish the Action Plan on Modern Logistics Development to promote smart development, modernisation, green and sustainability, internationalisation and facilitation of logistics
·        Strengthen support to SMEs by providing flexible repayment arrangements, tapping into e-commerce, expediting digital transformation, and reinforcing export credit insurance
·        Publish the Action Plan on Maritime and Port Development Strategy to develop Hong Kong into a leading international maritime centre, promote high value-added maritime services and facilitate GBA maritime collaboration
·        Formulate the Development Blueprint for Hong Kong's Tourism Industry 2.0, develop signature tourism products, and enhance development of cruise tourism economy
·        Promote new energy transport – develop bunkering of green maritime fuel and supply of sustainable aviation fuel, formulate strategy for hydrogen development, and promote green transformation of public land transport
 
Accelerate growth of the innovation and technology (I&T) ecosystem
·        Set up the New Industrialisation Development Office to support development of strategic enterprises, facilitate upgrading and transformation of manufacturing sector and assist start-ups
·        Establish the Hong Kong Microelectronics Research and Development (R&D) Institute and commission the Microelectronics Centre to facilitate R&D of microelectronics and industry development
·        Expedite establishment of a supercomputing centre to foster development of artificial intelligence
·        Set up a HK$10 billion (EUR 1.20 billion) New Industrialisation Acceleration Scheme to provide matching fund for promoting downstream development of new industrialisation
·        Establish a third InnoHK cluster focusing on advanced manufacturing, materials, energy and sustainable development, adding to the two existing InnoHK research clusters which focus on healthcare technologies and AI.

East-meets-West Centre for International Cultural Exchange

·        Establish the Cultural and Creative Industries Development Agency to promote the arts, culture and creative sectors as industries
·        Inject HK$4.3 billion (EUR 520 million into the Film Development Fund and the CreateSmart Initiative
·        Launch the Signature Performing Arts Programme Scheme to fund and nurture representative and large-scale major performing arts productions to be staged as long-run performances
·        Organise the Hong Kong Fashion Design Week as a flagship initiative to promote Hong Kong's fashion and textile design brands
·        Launch the Hong Kong-Europe-Asian Film Collaboration Funding Scheme to sponsor film projects co-produced by Hong Kong filmmakers and their Asian and European counterparts in order to enhance international exchanges and nurture talent
Trawl for enterprises, attract and retain talents
·        Develop a "Headquarters Economy" to attract enterprises from outside Hong Kong to set up headquarters and/or corporate divisions in Hong Kong; attract companies to re-domicile to Hong Kong
·        Expatriates, including foreign staff of companies in Hong Kong, can travel to the Mainland on "multiple-entry visas", with priority visa processing; entries of Vietnamese, Laotian and Nepalese talents are relaxed
·        Establish the office of Hong Kong Talent Engage, expand the coverage of universities under the Top Talent Pass Scheme.
·        Implement the Capital Investment Entrant Scheme under which eligible investors who make investments of HK$30 million (EUR 3.62 million) or above in assets such as stocks, funds, bonds, etc. can apply for entry into Hong Kong.
·        Establish the Hong Kong International Legal Talents Training Academy and the Hong Kong International Academy Against Corruption, developing Hong Kong into a talent nurturing base
·        Expand the coverage of universities under the Top Talent Pass Scheme by adding eight top institutions from the Mainland and overseas to the list of eligible universities under the scheme, bringing the total to 184 institutions.
Build a liveable and vibrant city
·        Generate more land and housing at a quicker pace and more efficiently, speed up urban renewal and unleash development potential
·        Build about 410 000 public housing units in the next decade, far exceeding the demand
·        Enhance energy conservation and decarbonisation of buildings, and expand scope for resources recovery and recycling
Publish by the end of the year the Hong Kong Major Transport Infrastructure Development Blueprint
·        Commission the Kai Tak Sports Park, increase resources to upgrade the Hong Kong Sports Institute, enhance professional training and internship opportunities for coaches, and promote wider public participation in sports
·        Launch the "Shining City Project" to enhance the beautification work of our city
Adjusting Stamp Duty on Residential Properties
·        Shorten the applicable period of the Special Stamp Duty (SSD) from three years to two years.  If the property should be disposed of two years after acquisition, the owner will no longer need to pay the SSD, which amounts to 10% of the property price

·        Reduce the respective rates of the Buyer's Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) by half, from 15% to 7.5%. This will help alleviate the financial burden on Hong Kong Permanent Residents (HKPRs) who have already owned residential properties in their acquisition of another residential property, as well as reduce the costs of non-HKPRs in their acquisition of residential properties

·        Introduce a stamp duty suspension arrangement for incoming talents’ acquisition of residential properties.

Build an international hub for post-secondary education and promote diversified youth development
·        Double the admission quota of non-local students by Government-funded post-secondary institutions to 40%, and strengthen scholarship and related support to attract more overseas and Mainland students to further education in Hong Kong
·        Develop the Northern Metropolis University Town, and encourage post-secondary institutions to strengthen co-operation with renowned Mainland and overseas institutions
·        Facilitate establishment of universities of applied sciences to upgrade vocational and professional education and training to university level, providing an alternative path to success for young people aspiring to pursue a career in technical professions
·        Establish the Hong Kong Institute of Information Technology to nurture local talents in the information technology sector
·        Establish the Alliance of Hong Kong Youth Innovation and Entrepreneurial Bases in the Greater Bay Area as a one-stop information, publicity and exchange platform

 

Healthy Hong Kong
·        Set up a preparatory office for the Hong Kong Centre for Medical Products Regulation, moving towards the adoption of the "primary evaluation" approach in registration approval of new drugs and medical devices, with a view to accelerating launching of new drugs and promoting industry development
·        Establish the GBA International Clinical Trial Institute in the Hetao Co-operation Zone to provide a one-stop clinical trial support platform for medical research institutions to expedite R&D of new drugs
·        Roll out the eHealth+ to deposit personalised digital health records and allow users to check and carry electronic health records and appointments on mobile phones anytime
·        Update the registration regimes to provide new pathways for admitting qualified non-locally trained dentists and nurses to alleviate the shortage
·        Promote the development of Chinese medicine (CM), develop a digitalised CM drug information platform, and formulate a Chinese Medicine Development Blueprint

For details of the Chief Executive’s 2023 Policy Address, please see: https://www.policyaddress.gov.hk/2023/en/policy.html



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This message is issued by the Hong Kong Economic and Trade Office, Rue d’Arlon 118, 1040 Brussels, Tel + 32 2775 00 88, www.hongkong-eu.org.  Any comments or queries on the contents can be addressed to the editor, Linda Sansbury (linda_sansbury@hongkong-eu.org).