New boost for HK economy

October 6, 2021

Voiceover:
Integration into national development is the Government’s top priority. 

Chief Executive Carrie Lam made the statement when delivering her Policy Address, saying Hong Kong can give full play to its unique strengths by leveraging the central government’s policies in support of Hong Kong. This will in turn bring continuous impetus to the economy.

Mrs Lam said the implementation of the National Security Law and the improvement to the city’s electoral system have restored safety and stability in society. Hong Kong is now ready again for a new start for economic development.  

The Government will step up efforts in five areas to enhance the city’s status as an international financial centre, including improving the listing regime, expanding offshore RMB business, attracting family offices to establish a presence in Hong Kong by considering the provision of tax cuts, growing a green and sustainable financial sector as well as promoting cross border financial technologies. 

To boost the city’s role as a global transportation centre, the Government will explore in collaboration with the port industry to drive the development of a Smart Port, grow a high value-added logistics and maritime business, and improve connectivity with the Greater Bay Area and beyond.

In addition, the Government will extend the Convention & Exhibition Industry Subsidy Scheme to the end of next year, and expand facilities. 

Mrs Lam pointed out that the 14th Five-Year Plan stated for the first time the support for Hong Kong to develop into a regional intellectual property trading centre. 

The Government will implement a series of initiatives to promote the development of intellectual property trading in Hong Kong, such as promoting and developing the original grant patent system by building up the Intellectual Property Department’s examination capability.

The Government also plans to revive the Copyright Ordinance amendment exercise to gauge public views on modernising the copyright regime in the light of the digital environment.

It aims to introduce an amendment bill to the next-term Legislative Council. 

On safeguarding Hong Kong’s business environment, Mrs Lam said the Government has been maintaining communication with local and foreign chambers of commerce and addressing their concerns. 

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

It can be seen that the business environment has not been undermined by the impact of the COVID-19 pandemic and biased reports of Hong Kong’s situation by certain Western media, she added.

(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.