Lee unveils Hong Kong’s growth-security plan

Hong Kong — Hong Kong leader John Lee delivered his second annual policy address on Wednesday, mapping out his priorities for stimulating the economy and strengthening national security in the former British colony, which returned to Chinese rule in 1997.

Some of the highlights include:

Economy

The economy is expected to grow 4%-5% this year.

• The government will reinforce Hong Kong’s competitive edge, with the Northern Metropolis — a large-scale property development project on the border with China — as a new engine for growth.
• The government will collaborate with China’s Guangdong provincial government to develop a “Digital Bay Area”.

Politics and national security

The government will enact additional national security laws, known as “Article 23”, by the end of 2024, partly in response to what Lee called continued meddling in Hong Kong affairs by “external forces” and a complex geopolitical environment.

• “We must guard against those seeking to provoke conflict, misinform or spread rumours through different channels, and remain alert to acts of ‘soft resistance’ in different forms that can undermine the governance of our country and the HKSAR [Hong Kong Special Administrative Region].”
• The government will roll out patriotic education to enhance national identity.
• Cybersecurity legislation to be introduced for critical infrastructure in 2024.
• An investment agreement is to be signed with Turkey, and a free-trade agreement negotiated with Peru, plus investment agreements with Bahrain, Bangladesh and Saudi Arabia.

Housing

Public housing demand for the next 10 years is 308,000 units, and the government has identified sufficient land to develop about 410,000 public housing units.

• To shorten the applicable period of the Special Stamp Duty (SSD) to two years from three years, so a property owner will no longer need to pay the SSD, which amounts to 10% of the property price, two years after purchase.
• To reduce buyer’s stamp duty (BSD) to 7.5% from 15% with immediate effect. 
• To introduce a stamp duty suspension arrangement for incoming talents’ purchase of residential properties.

Financial markets

• To reduce stamp duty on stock transactions to 0.1% from 0.13%.
• To reduce market data fees later this year, Hong Kong Exchanges (HKEX) will review the fee structure of its real-time data services.
• To promote the listing of overseas issuers, facilitating issuers’ share repurchase.
• To strengthen Hong Kong’s position as an offshore yuan centre.

Overseas talent and enterprises

The government will introduce a mechanism to facilitate companies domiciled overseas to redomicile in Hong Kong.

• The government will introduce a Capital Investment Entrant Scheme, under which eligible investors who make investments of 30-million Hong Kong dollars or above in assets such as stocks, funds, bonds, and so on (excluding real estate) can apply for entry into Hong Kong.
• The government will relax the visa policy for Vietnamese talent. 

Reuters