Chief Executive’s 2024 Policy Address

The Chief Executive of the Hong Kong Special Administrative Region (HKSAR), Mr John Lee, announced his annual Policy Address on 16 October, entitled 'Reform for Enhancing Development and Building Our Future Together';. It sets out a range of new or reinforced initiatives to enhance Hong Kong's status as an international financial, shipping and trade centre while developing new quality productive forces to embrace changes in an innovative and flexible way.

Highlights of initiatives which would be of interests to our European friends who live, work, invest and run businesses in Hong Kong are as follows, where you may find the right opportunities and facilitation needed:

(1) Building an international gold trading market

Hong Kong ranks among the world's largest import and export markets for gold by volume. Riding on our city's security and stability, the Government will promote the development of world-class gold storage facilities to facilitate the storage and delivery of spot gold by users and investors in Hong Kong, which help develop the related industry chain, ranging from investment transactions, derivatives, insurance, storage, to trading and logistic services.

(2) Creating a commodity trading ecosystem

Commodities including metals and minerals account for more than half of the global shipping trade volume. The Government will explore the introduction of tax concessions and support measures to attract international commodity exchanges to set up accredited warehouses in Hong Kong so as to boost our maritime industry, and also demand for related financial and professional services such as hedging activities of related futures products, conducive to consolidating and enhancing Hong Kong's position as an international financial, shipping and trade centre.

(3) Promoting liquor trade

At present, Hong Kong imposes a duty of 100% on the import price of liquor (with alcoholic strength of more than 30%). To promote liquor trade and boost the development of high value added industries including logistics and storage, tourism as well as high end food and beverage consumption, Hong Kong reduces the duty rate for liquor with an import price of over HKD 200 (about EUR 24) from 100% to 10% for the portion above HKD 200 (about EUR 24) with effect from 16 October 2024.

(4) Boosting green, innovation and technology industries

(4.1) The Government will continue to increase investment for research and innovation and technology (I&T) industries, for example setting up a HKD 10 billion (about EUR 1.2 billion) I&T Industry-Oriented Fund to form a fund-of-funds to channel more market capital to invest in specified emerging and future industries of strategic importance; launching a new round of HKD 1.5 billion (about EUR 176 million) Research Matching Grant Scheme to support research endeavours, among others.

(4.2) The Government will formulate low-altitude economy development strategies to help drive development in areas such as telecommunication technologies, AI and the digital industry. Low-altitude economy refers to economic activities in airspace below 1 000 metres. Unlocking the low-altitude airspace, a new production factor for our economy, would present a wide array of application scenarios including rescues, surveys and delivery of goods and passengers.

(4.3) The Government will go on promoting digital economy by expediting development of digital trade and establishing a new fintech innovation ecosystem. In particular on enhancing our green finance ecosystem, the relevant authority will roll out the Sustainable Finance Action Agenda and will launch a roadmap on the full adoption of the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) this year.

(5) Furthering the development of a 'Headquarters Economy';

The Government will step up efforts to bring in strategic enterprises to set up headquarters or corporate divisions in Hong Kong, including proposing legislative amendments to introduce a facilitating company re-domiciliation mechanism. Besides, the validity period of multiple-entry visas for foreign staff of companies registered in Hong Kong, including non-permanent residents, will be extended to a maximum of five years to facilitate their visit to the Mainland, and their applications will enjoy priority processing.

(6) Enhancing the New Capital Investment Entrant Scheme

With effect from 16 October 2024, the New Capital Investment Entrant Scheme is enhanced by allowing the purchase of high-end residential properties, provided that the transaction price of the single residential property concerned is no less than HKD 50 million (about EUR 5.9 million), with the amount of real estate investment to be counted towards the total capital investment capped at HKD 10 million (about EUR 1.2 million). In addition, investments made through an eligible private company wholly owned by an applicant will be counted towards the applicant's eligible investment with effect from 1 March 2025.

In short, Hong Kong strives to consolidate our advantages and steers to develop high value-added professional services in areas of finance, maritime, trading, legal, etc. We will also promote integrated development of culture, sports and tourism, and foster economic diversification, aimed to build our city into a vibrant international hub for strategic enterprises and high calibre talents.

For related information and key initiatives of the Policy Address, please visit https://www.policyaddress.gov.hk/2024/en/.

Check out our extra newsletter on the Policy Address in bullet points with extracts of items related to Hong Kong's international ambitions or connected to international trade, logistics, innovation and technology, education, finance and much more. Here is the summary

Read also the full press release