New Boost For HK Economy

(To watch the 2021 Policy Address speech with sign language interpretation, click here.)

The Government plans to improve its listing regime, expand its offshore RMB business and grow green finance.

Delivering her Policy Address, Chief Executive Carrie Lam said Hong Kong is ready for a new start for economic development as the implementation of the National Security Law has restored stability in society.

“We shall leverage the central government’s support to enhance our competitiveness as the eight international centres or hubs charted in the 14th Five‑Year Plan with a view to building a brighter future for Hong Kong.”

She said despite the unprecedented challenges over the past two years, Hong Kong’s financial system has remained stable and business has been vibrant.

HK’s role more significant

Hong Kong’s role as a bridge for international investors to access the Mainland market and Mainland funds reaching out to the international market will be all the more significant.

Mrs Lam said the central government has reiterated support for Hong Kong to further promote mutual financial market access with the Mainland, develop offshore RMB business, strengthen its position as an international asset management centre and develop into a green finance centre in the Greater Bay Area.

In this connection, the Government will step up its efforts in enhancing the city’s listing regime. It will also assess the feasibility of developing Hong Kong into a regional carbon trading centre.

As for RMB business, the Government will expand the channels for the two-way flow of cross-boundary RMB funds and develop offshore RMB products. Tax cuts will be considered for luring family offices to establish a presence in Hong Kong.

To boost Hong Kong’s status as an international transportation centre, the Government will develop a Smart Port and promote wider application of digital technology in maritime and port operations.

Turning to the convention and exhibition industry which was negatively impacted by the COVID-19 pandemic, Mrs Lam said the Convention & Exhibition Industry Subsidy Scheme will be extended to the end of next year.

Noting that for the first time, the 14th Five-Year-Plan has stated support to develop Hong Kong into a regional intellectual property trading centre, the Chief Executive said a series of initiatives will be implemented to promote the development of IP trading in Hong Kong.

The Government also plans to revive the Copyright Ordinance amendment exercise and consult the public on modernising the copyright regime in the light of the digital environment, aiming to introduce an amendment bill in the next term of the Legislative Council.

Safeguarding business environment

Mrs Lam said Hong Kong is a free, open and diversified economy and a metropolis that attracts talent and organisations from all over the world.

Following the implementation of the National Security Law for a period of time, it appears initial concerns of foreign businesses have significantly subsided.

In the latest annual surveys, both the number of business operations in Hong Kong with parent companies overseas or on the Mainland and the number of startups reached an all-time high of 9,049 and 3,755 this year.

“It can be seen that our business environment has not been underminded by the impact of the pandemic and the biased reports of Hong Kong’s situation by certain Western media,” she added.