Highlights of Hong Kong leader John Lee's fourth policy address

HONG KONG, Sept 17 (Reuters) - Hong Kong leader John Lee delivered his fourth annual policy address on Wednesday pledging to boost the financial hub's economy and enhance people's livelihoods.

Some of the highlights include:

ECONOMY

- This year's economic growth is projected at 2% – 3%, compared with 2.5% in 2024.

- To accelerate development of Northern Metropolis Area close to mainland China borders.

- "We will also introduce dedicated legislation to accelerate the development of the Northern Metropolis."

- To promote the development of AI+ with strong emphasis on safety risk prevention.

- To formulate preferential policy packages to attract more enterprises.

- The government will explore the establishment of a more flexible mechanism to introduce tax incentives that comply with international standards.

- To attract more top-notch international and mainland pharmaceutical companies to set up operations in Hong Kong.

- To promote the development of the new energy industry, and Hong Kong is working to achieve carbon neutrality before 2050.

- To construct Hong Kong's first large-scale electric vehicle (EV) battery recycling facility, which is expected to commence operation in the first half of 2026.

- To set up task force on supporting mainland China enterprises in going global and to encourage mainland enterprises to use Hong Kong in expanding their businesses overseas.

- To optimise the regimes for listing on the Main Board and issuing structured products, consider enhancements to the listing requirements for companies with weighted voting right structures.

- To press ahead with the inclusion of an yuan trading counter under Stock Connect's Southbound trading for Hong Kong stocks.

- To promote Hong Kong as international gold trading market.

- To support the Airport Authority Hong Kong and financial institutions to establish Hong Kong's gold storage facilities, with a target gold storing capacity of over 2,000 tonnes in three years, propelling Hong Kong into a regional gold reserve hub.

- To explore signing of new investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru.

- To invite expressions of interest in development of a yacht bay and its ancillary facilities early next year. The facilities will be completed in phases, starting in 2028.

- "Hong Kong is well-positioned to become a yacht hub in Asia. We will enhance amenities for the yacht industry and promote prime yacht tourism."

- To promote development of insurance products.

- To build Hong Kong into a global premium arts trading hub, attracting more international auction houses, galleries to establish presence in the city.

- To develop "mega events + tourism" to attract visitors and to offer tailor-made luxury tours for high-spending visitors.

- Three areas will be approved this year for autonomous vehicles trials to accelerate development of driverless autonomous driving in Hong Kong, facilitating industry's expansion to right-hand-drive markets overseas.

- To launch licence for pet-friendly restaurants

POLITICS/NATIONAL SECURITY

- The government will continue to steadfastly safeguard national sovereignty, security and development interests

- "We will continue to enhance the legal system and enforcement mechanism for safeguarding national security ... so as to prevent, suppress and impose punishment for acts and activities endangering national security."

TALENT

- To build an international education hub, accelerating construction of the Northern Metropolis University Town.

- To increase quota of non-local students attending universities from 40% to 50%

LIVELIHOOD

- Safeguarding the basic housing needs of people of Hong Kong is the top priority.

- "We will increase the supply of flats under the Home Ownership Scheme and the Green Form Subsidised Home Ownership Scheme, optimise the sale and alienation restriction arrangements..."

- To facilitate Hong Kong elderly recipients retiring in Guangdong and Fujian Provinces.

- To implement further measures to promote fertility.

- Taxpayers can claim a total of HK$260,000 allowance for each child in the first two years following childbirth.

($1 = 7.7789 Hong Kong dollars)