2024 Hong Kong Policy Address Summary

Hong Kong Chief Executive Lee Ka-chiu released the third Policy Address during his term of office on October 16. He said the policy is citizen-centered, with economic construction as the main axis, development and improvement of people's livelihood, resistance to internal and external negative forces, and boosting morale.

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1. Consolidating Economic Position

1.1 Update of "New Capital Entry Scheme"

The scheme now permits investment in residential properties valued at over HK$ 50 million, with real estate investment eligible to be counted up to HK$ 10 million toward the total investment cap.

1.2 International Gold Trading Market

Establish an international gold trading market & storage facilities, explore with the mainland to include gold products in the "Interconnection" mechanism.

1.3 Investment Products Denominated In RMB

Hong Kong will Provide more RMB-denominated investment products, including expanding the scale of "Bond Connect" (Southbound Connect), supporting the issuance of more green & sustainable offshore RMB bonds.

1.4 Strengthen Risk Management Position

Increase the statutory maximum compensation ratio of the Hong Kong Export Credit Insurance Corporation to 95% & promote China Sinosure to enter Hong Kong.

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2. Enhance Trade Advantages

2.1 Reduce Taxes On Spirits

The tax rate for the import price above HK$200 is reduced from 100% to 10%, while the tax rate for the import price HK$200 & below remains unchanged.

2.2 Expand Ocean Shipping Services

To enhance Hong Kong's shipping services, the Council will optimize tax incentives & promote key maritime insurance businesses in Hong Kong, expanding the range of maritime insurance products available.

2.3 Commodity Trading Ecosystem

Tax incentives & supporting facilities to attract relevant domestic, overseas enterprises to settle in Hong Kong & build a commodity trading ecosystem.

2.4 Cross-Border Payment System Connectivity

Hong Kong's Faster Payment System (FPS) will be connected with Mainland China's Interbank Payment System (IBPS) to enable small-value real-time cross-border payments for residents of both regions. Additionally, local Hong Kong banks will be encouraged to issue bank cards through their Mainland branches, facilitating cross-border financial services.

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3. Promoting Enterprise Development

3.1 Repay Interest But Not Principal

Allow borrowing companies to apply for "interest repayment without principal repayment" for up to 12 months to reduce the financial pressure on small & medium-sized enterprises.

3.2 Corporate Migration Mechanism

A streamlined corporate migration mechanism will be established, allowing companies interested in relocating to Hong Kong to retain their corporate identity without liquidating in their original registration location, enabling uninterrupted operations and cost savings.

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4. Recruiting Talents

4.1 Expansion of the "Top Talent Pass Scheme"

The list of top universities under the scheme will be expanded by adding 13 leading universities, raising the total to 198. Additionally, the initial visa term for high-income talents under the scheme will be extended from 2 to 3 years.

4.2 New Scholarship Programs

The "Hong Kong Future Talent Advanced Study Scholarship Scheme" will be launched, providing scholarships annually to up to 1,200 local students enrolled in designated postgraduate programs, encouraging further academic advancement among local students.

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5. Enhancing Convenience for Entry to Hong Kong

5.1 Streamlining Individual Visit Visa Endorsements

An application has been submitted to the central government to restore Shenzhen's "Multiple Entry Individual Visit Endorsement" & expand the trial program for "One Trip per Week" individual visits to more cities.

5.2 Elimination of Arrival/Departure Declaration Forms

The requirement for travelers to submit arrival or departure declaration forms will be eliminated, further simplifying the travel process.

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6. Conclusion

These policy measures not only enhance Hong Kong's competitiveness in the international market but also offer more opportunities & support for local residents & businesses, promising long-term economic growth & social progress. We will publish more interesting articles in the future, so stay tuned.