A host of financial and infrastructural enhancements will be key in taking Hong Kong's economic growth into the future, Chief Executive Donald Tsang says.

They topped a host of strategies outlined in his Policy Address today, which included opening a new Hong Kong economic and trade office focusing on promotion in eastern Europe, and tabling a Securities & Futures (Amendment) Bill aimed at strengthening the regulation of listed companies.

"Helping the economy power ahead at full steam means we must augment our efforts in all areas where Hong Kong has a comparative advantage. We will strive to consolidate the existing pillar industries. At the same time, we will closely follow changes in the market and respond promptly to the demands of the business sector in new growth areas. We will actively help open up new business opportunities by providing policy support, regulatory control and infrastructure," he said.

RMB business

The Central Government has given in-principle approval to extend the scope of RMB business in Hong Kong. This includes raising the exchange limit between RMB and Hong Kong dollar per person per transaction; lifting the credit limit of RMB cards issued by banks in Hong Kong; relaxing the RMB remittance limit imposed on Hong Kong residents; extending RMB settlement to designated merchants in more sectors; and permitting designated merchants in Hong Kong to open RMB cash deposits accounts and exchange the RMB deposits one-way into Hong Kong dollars.

The Central Government has also endorsed in principle the operation of a new RMB business in Hong Kong, which will allow Hong Kong people to issue RMB cheques for a limited amount exclusively for consumer spending within Guangdong. The arrangements will soon be finalised.

"I believe these new measures will definitely be an important impetus to the comprehensive development of the financial sector in Hong Kong," he said.

CEPA III

The Government is working with Mainland authorities to implement part three of the Closer Economic Partnership Arrangement, giving more Hong Kong products tariff-free access to the Mainland.

The scope of liberalisation in the existing CEPA services sectors will be further extended, and there will also be more measures to facilitate investment and trade.

"We will strengthen co-operation with Mainland authorities to publicise extensively the specific contents of CEPA and the strengths of our professional services. We will also strive to help local professions participate in Mainland construction works and other projects."

Connectivity

The Individual Visit Scheme for Mainland residents to visit Hong Kong will be extended to four more Mainland cities - Chengdu, Jinan, Shenyang and Dalian. The next stage will see it extend to Pan-Pearl River Delta provincial capitals not yet covered by the scheme.

Mr Tsang added the Government will work to achieve full connectivity of air, sea and land transport in the PRD region, including the construction of a new cruise terminal.

"We have also enhanced our communication with the Shenzhen Municipal Government on issues such as border control point development and public order. We will work particularly closely with Shenzhen in infrastructural planning, food safety and ecological improvements."

The closed area bordering Hong Kong and Shenzhen will be reduced significantly. The limits of the new closed area will be redrawn and suitable land use will be studied. The Government will next year launch a planning study, consult the public, and draw up statutory plans.

Mainland talent

A new admission scheme for Mainland talent will be implemented in 2006. A certain number of talented people from the Mainland and overseas who meet specific eligibility criteria will be allowed to stay in Hong Kong for a certain period of time, without having to secure local employment beforehand.

During their stay, they can decide whether they want to develop their career in Hong Kong on a long-term basis.

"We strongly believe that a larger pool of talent will increase our competitiveness, make Hong Kong more prosperous, attract more capital and create more jobs. This new blood will turn Hong Kong into an even more vibrant society," Mr Tsang said.

Creative industries

A film development board will be formed to take stock of the present state, opportunities and challenges of the local film industry before charting a development course and drawing up a clear action plan. A creative arts centre will be developed at a vacant factory building in Shek Kip Mei.

"In the long term, Hong Kong must conduct in-depth studies on the major issues pertaining to the development of cultural and creative industries. The Government encourages the cultural sector and community organisations to actively study the relevant issues. We are prepared to consider helping them set up a cultural and creative think tank to gather and groom more talent and experts in cultural and creative studies, who can work with the Government to promote the development of cultural and creative industries."