(To watch the 2022 Policy Address speech with sign language interpretation, click here.)

The Government is committed to enhancing Hong Kong’s position as an international hub for finance, trade, shipping, aviation and legal services. In his Policy Address, Chief Executive John Lee outlined his strategy to making that vision a reality.

International financial centre
Hong Kong is an international financial centre, the world’s largest offshore renminbi (RMB) business centre and a leading fundraising hub for biotechnology. The financial services sector is Hong Kong’s biggest pillar industry, accounting for more than one‑fifth of our gross domestic product.

To enhance the city’s position as a global fundraising platform, the Hong Kong Exchanges & Clearing Limited will revise the Main Board Listing Rules next year to facilitate fundraising of advanced technology enterprises that have yet to meet the profit and trading record requirements. It is also planning to revitalise GEM (formally known as the Growth Enterprise Market) to provide small and medium enterprises (SMEs) and start‑ups with a more effective fundraising platform.

The Government will also step up efforts to enhance the city’s position as the largest offshore RMB business centre in the world. This includes promoting the launch of more RMB-denominated investment tools and the provision of stable and highly efficient treasury services.

Mr Lee also said the city will speed up the implementation of a series of mutual market access arrangements supported by the China Securities Regulatory Commission, including introducing a bill within this year to exempt the stamp duty payable for transactions conducted by dual‑counter market makers, with a view to enhancing the RMB stock trading mechanism.

Steps will also be taken to promote the development of Hong Kong as a first-class financing platform for governments and green enterprises in the Mainland and around the world.

There will also be more support for family offices as the city strives to grab a larger slice of the wealth management pie. Last year, Hong Kong managed over $1,700 billion of relevant assets, including those for private trust clients. The Government will introduce a bill within this year to offer tax concession for eligible family offices.

Mr Lee stated that the Government will vigorously promote fintech by encouraging more fintech services and products to undergo proof‑of‑concept trials, taking forward cross‑boundary fintech projects and nurturing fintech talent. The Commercial Data Interchange will be launched within this year to provide a one‑stop platform for enterprises to share operational data, enabling banks to make accurate assessments on the operating condition of enterprises and providing SMEs with a better chance of securing loans. On virtual assets, the Government has introduced a bill to propose establishing a statutory licensing regime for virtual asset service providers.

International trade centre
Mr Lee noted that Hong Kong is the world’s sixth largest commodity trading centre which is actively pursuing accession to the Regional Comprehensive Economic Partnership which covers 15 countries, a population of 2.2 billion and accounts for nearly 30% of the global trade volume. He added that the city will strive to support the convention and exhibition industry.

The Convention & Exhibition Industry Subsidy Scheme will be extended to 30 June 2023 while a new $1.4 billion scheme will be launched thereafter to subsidise more than 200 exhibitions to be staged in Hong Kong over three years.

To consolidate Hong Kong’s status as a premier venue for large‑scale international convention and exhibition activities, Mr Lee said the Government will take forward the AsiaWorld‑Expo Phase 2 project, together with the Wan Chai North redevelopment project near the Convention & Exhibition Centre.

Then there was a further pledge for more support for SMEs. To assist SMEs in developing markets outside Hong Kong, the cumulative funding ceiling per enterprise under the Dedicated Fund on Branding, Upgrading & Domestic Sales will be raised from $6 million to $7 million. To assist SMEs in developing markets outside Hong Kong, the cumulative funding ceiling per enterprise under the SME Export Marketing Fund will be raised from $0.8 million to $1 million.

International shipping hub
The Hong Kong port is one of the world’s busiest and the Policy Address outlined steps to consolidate the port's position including the implementation of tax concession measures to attract more high value‑added maritime enterprises to establish a presence in Hong Kong.

The Policy Address also outlined plans to upgrade the infrastructure of land boundary control points (BCPs). This includes rationalising the land BCPs and clearance arrangement under the “East in East out, West in West out” strategy for cross‑boundary goods movement, and adopting the co‑location arrangement and collaborative inspection and joint clearance mode for planning the redevelopment of the Sha Tau Kok Port, Hong Kong‑Shenzhen Western Rail Link and bifurcation of the Northern Link.

Aviation centre
Mr Lee pledged that the Government is working with the Airport Authority to realise the “Airport City” vision. With the Third Runway commencing operation in July 2022, the three Runway System is expected to be completed in 2024 and will substantially increase the overall capacity and competitiveness of the airport. Additionally, the Hong Kong International Aviation Academy will work with aviation training institutions in the Mainland to send young people to the airports on each side for internship starting from the first half of 2023.

Legal hub
Last year, Hong Kong was ranked the third most preferred seat for arbitration globally. Mr Lee said the city will attract more international dispute resolution institutions to set up offices in Hong Kong, and will consolidate our strengths as an international legal services platform for deal making and dispute resolution. Some of the ways this will be done include stepping up promotion to showcase the city’s diversified legal and dispute resolution services; giving legal support to emerging industries with the help of the Department of Justice; and enhancing interaction with the Greater Bay Area.

Regional intellectual property trading centre
Finally, Mr Lee also said in his address that the Government will develop Hong Kong into a regional intellectual property (IP) trading centre by leveraging the institutional advantages of Hong Kong’s legal and IP protection system.