On October 16, 2024, Hong Kong Chief Executive John Lee delivered the annual policy address titled "Reform for Enhancing Development and Building Our Future Together." Lee emphasised leveraging Hong Kong’s institutional advantages under the “One Country, Two Systems” framework to strengthen its role as a global financial, shipping, and trade centre. The address highlighted initiatives to position Hong Kong as a hub for high-calibre talent, enhance its contribution to China’s international engagement, and deepen integration within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
On the same day, Hong Kong topped the 2024 ‘Economic Freedom of the World’ report by Canada’s Fraser Institute, which assessed 165 jurisdictions globally. The report evaluated areas such as international trade, regulation, governance, property rights, and access to sound money. Hong Kong scored 8.58, slightly ahead of Singapore (8.55) and Switzerland (8.43). Other major economies ranked as follows: Japan (11), the UK (12), and mainland China (104). The report linked economic freedom with higher well-being, productivity, and reduced corruption.
Key Policy Address Highlights
Financial Services Development
Wealth Management
Partnering with sovereign wealth funds to invest in assets related to China’s Belt and Road initiative.
Exploring tax concessions for qualifying transactions involving funds and single-family offices.
Securities Market
Launching exchange-traded funds (ETFs) for Hong Kong stock indices targeting the Middle East.
Encouraging Mainland enterprises to list in Hong Kong and strengthening mutual access with Mainland financial markets.
Streamlining the listing process through the Securities and Futures Commission (SFC) and the Hong Kong Stock Exchange (HKEX).
Gold Industry
Establishing a global gold trading marketplace and developing gold storage facilities to create new business opportunities.
Insurance Sector
Reviewing capital requirements for infrastructure investments to diversify insurance companies’ portfolios.
Talent Attraction and Housing
Talent Initiatives
Expanding the Top Talent Pass Scheme to include graduates from 13 additional universities.
Offering scholarships and incentives to attract students from the GBA and beyond.
Housing Measures
Increasing quotas for young families to purchase flats under the Home Ownership Scheme via the White Form Secondary Market Scheme.
Research, Innovation, and Technology
Research and Development (R&D)
Allocating HKD 1.5 billion to a Research Matching Grant Scheme.
Launching a HKD 10 billion fund to invest in strategic industries, such as AI, robotics, and new energy.
Start-Up Support
Introducing a HKD 1.5 billion fund for start-ups in strategic sectors.
Establishing an IT Accelerator Pilot Scheme with a funding pool of HKD 180 million.
Intellectual Property (IP)
Updating the Copyright Ordinance to protect AI technology development.
Introducing AI-assisted trademark search tools.
Immigration and Capital Investment
Enhancing the New Capital Investment Entrant Scheme to include residential properties valued at HKD 50 million or more.
Allowing investments through private companies to qualify under the scheme starting March 1, 2025.
Fintech Ecosystem Expansion
Central Bank Digital Currencies (CBDCs)
Expanding CBDC applications for cross-border trade and settlement through the mBridge platform.
Virtual Assets (VAs)
Developing a regulatory framework for over-the-counter VA trading and VA custodial services.
Advancing tokenisation initiatives through Project Ensemble and launching the Digital Bond Grant Scheme.
AI in Financial Services
Issuing a policy statement on AI applications in finance.
Driving Innovation and Global Collaboration
Hong Kong’s 2024 policy initiatives aim to position the city as a leading hub for innovation, technology, and global finance. Alan Fong, Managing Director of Sovereign Trust (Hong Kong), highlighted the city’s adaptability in overcoming challenges and its dynamic environment for international business.
The combination of top rankings in economic freedom and government-led initiatives underscores Hong Kong’s commitment to strengthening its global role while fostering growth, innovation, and collaboration in its economic sectors.
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