Hong Kong Policy Address Highlights: John Lee’s Key Initiatives

Key Reforms from John Lee’s Third Policy Address

Hong Kong’s leader John Lee Ka-chiu has rolled out a raft of “reforms” in his midterm policy blueprint at a time when the city is facing economic headwinds and uncertainties arising from continuing geopolitical tensions. Over 2½ hours, Lee relaxed mortgage lending restrictions and introduced new rules to eradicate substandard subdivided flats and liquor tax cuts. Here are the 14 key policies you need to know from Lee’s third policy address delivered at the Legislative Council on Wednesday.

1. Eased Mortgage Limits

To inject life into the high-end property market, the ratio of mortgages for all residential properties will be eased to 70 per cent of their value, compared with the previous rule of 50 or 60 per cent.

2. Attract More IPOs

• The government will implement new measures to enhance market efficiency and reduce transaction costs to reverse the slowdown in Hong Kong’s initial public offering (IPO) proceeds.
• The Securities and Futures Commission and the Hong Kong stock exchange will streamline vetting processes.

3. Extend Loan Support for SMEs

• SMEs that borrowed money under government-backed loan schemes will be allowed to apply for a principal moratorium for up to 12 months.
• HK$1 billion will be injected into the Dedicated Fund on Branding, Upgrading, and Domestic Sales (BUD Fund).

4. More Yuan Business

To consolidate the city’s international financial centre status, the government will expand the fixed-income market infrastructure.

5. Regulate Subdivided Flats

A new law will regulate substandard subdivided flats, ensuring they meet requirements.

6. Support for Young Homebuyers

Young families and solo applicants under 40 will have a higher chance to buy government-subsidised flats.

7. Tax Benefits for Maritime and Family Offices

The government will provide tax exemptions for ship leasing businesses, among other concessions.

8. Attract Mainland, Middle East, and ASEAN Tourists

Lee mentioned new measures to cater to the needs of tourists from various backgrounds.

9. Expand Talent Schemes

The New Capital Investment Entrant Scheme will allow real estate investments.

10. ‘Controversial’ Liquor Tax Cut

The duty for liquor with an import price above HK$200 will be reduced from 100% to 10%.

11. Over HK$10 Billion in Fresh Investments for I&T

Lee announced a HK$10 billion I&T industry-oriented fund to boost targeted sectors.

12. New Working Group on ‘Low-Altitude Economy’

New strategies will be formulated for drone usage in various sectors.

13. The ‘Study in Hong Kong’ Brand

Authorities will promote the city as a top destination for international students.

14. A Hub for Mega Sports Events

Measures will be taken to build Hong Kong into a centre for international sports events.