On Wednesday, John Lee, Chief Executive of China's Hong Kong Special Administrative Region (HKSAR), delivered his third policy address to the Legislative Council. This comprehensive address outlined Hong Kong's development vision, goals, key measures, and performance indicators, marking his first policy address since the completion of the legislation of the Basic Law Article 23.
Over the past months, Lee conducted extensive consultations, holding over 40 sessions and visiting communities to gather feedback and ideas. He received more than 9,500 submissions through letters, emails, and social media, reflecting a broad spectrum of public opinion.
Fostering the Maritime Industry
One of the key highlights of the policy address is the establishment of the \"Hong Kong Maritime and Port Development Board\", a high-level advisory body aimed at formulating policies and long-term strategies for the maritime sector. Chaired by a non-official member and comprising mainly industry representatives, the board seeks to enhance policy implementation and promote sustainable development in Hong Kong's maritime industry.
Additional funding will be allocated to boost research capabilities, enhance promotional efforts in the Chinese mainland and overseas, and improve manpower training. The board will be reconstituted from the existing Hong Kong Maritime and Port Board, signifying a strategic move to strengthen the maritime sector.
Lee emphasized Hong Kong's ambition to become a green maritime center. An Action Plan on Green Maritime Fuel Bunkering is set to be announced by the end of the year, focusing on emissions reduction and the promotion of green fuels.
To cultivate a commodity trading ecosystem, the HKSAR government will explore tax concessions and support measures to attract businesses from the Chinese mainland and abroad. A new port community system will be installed by next year, offering features such as shipment tracking and real-time transport information. Additionally, four quality logistics sites will be released for the development of modern, high-end logistics facilities to expand high-value-added logistics services.
Enhancing the Capital Investment Entrant Scheme
The policy address also unveiled changes to the Capital Investment Entrant Scheme, which will now include residential property investments, effective immediately. Under this enhancement, investments in residential properties priced at a minimum of HK$50 million (approximately US$6.4 million) will be eligible, with a cap of HK$10 million counting toward the total investment.
Starting March 1 next year, investments made through an eligible private company wholly owned by the applicant will also be considered part of their eligible investment. Since its launch in March, the scheme has attracted over 550 applications, indicating strong interest from high-net-worth individuals.
To further solidify Hong Kong's position as an international asset and wealth management center, the government plans to collaborate with sovereign wealth funds along the Belt and Road Initiative, particularly in the Middle East, to set up funds for investing in assets in the Chinese mainland and beyond. Currently, Hong Kong hosts around 2,700 single-family offices and is projected to become the world's largest cross-border wealth management center by 2028.
Reducing Liquor Duty Rate
Effective immediately, the duty rate for liquor with an import price over HK$200 (about US$25.7) will be reduced from 100 percent to 10 percent for the portion above HK$200. The duty rate for the portion of HK$200 and below, as well as liquor with an import price of HK$200 or below, will remain unchanged.
This move aims to promote the liquor trade and boost the development of high-value-added industries, including logistics and storage, tourism, and high-end food and beverage consumption.
Developing an International Gold Trading Center
Recognizing Hong Kong's status as one of the world's largest import and export markets for gold by volume, Lee announced plans to build an international gold trading center. The current geopolitical complexities underscore Hong Kong's advantages in security and stability, making it an attractive location for investors for gold storage, which can spur activities such as gold trading, settlement, and delivery.
The government will promote the development of world-class gold storage facilities, facilitating the storage and delivery of spot gold by users and investors. This initiative is expected to drive demand for related services such as collateral and loan businesses, opening up new growth areas for the financial sector.
The Financial Services and the Treasury Bureau will set up a working group to advance the establishment of the international gold trading center. This will include strengthening the trading mechanism and regulatory framework, promoting the application of cutting-edge financial technology, and actively exploring with authorities on the Chinese mainland the inclusion of gold-related products in the mutual market access program.
Attracting Overseas Students and Talent
Lee highlighted measures to attract more overseas students, especially from ASEAN and other Belt and Road countries and regions, to study in Hong Kong. Creating the \"Study in Hong Kong\" brand is part of the efforts to develop the city into an international hub for post-secondary education. The government will offer scholarships and other incentives, host international education conferences and exhibitions, and encourage local institutions to enhance global collaborations and exchanges.
Since the implementation of a new talent admission regime in late 2022, more than 380,000 applications have been received, and around 160,000 talents have arrived in Hong Kong with their families. To build a quality talent pool, the government will reform various aspects of the talent admission regime, including expanding the list of universities under the Top Talent Pass Scheme to 198 universities by adding 13 top mainland and overseas universities, and extending the validity period of the first visa of high-income talents under the scheme from two years to three years.
Lee's policy address reflects a strategic vision to enhance Hong Kong's economic growth, international competitiveness, and position as a global hub for maritime activities, wealth management, education, and trade.
Reference(s):
cgtn.com
