Dr Jonathan CHOI Koon-shum (Chairman of the 53rd terms of office) March 2024
It is a delight to see that the new Budget has adopted a number of recommendations by CGCC to address these issues, including the removal of the “harsh measures” for the property market, the expansion of the scope of government bonds, and concrete measures in other areas such as to rebuild business confidence.
During his seven-day inspection visit in Hong Kong last month, Director Xia Baolong listened to opinions from different sectors on promoting Hong Kong’s economic and social developments. His trip demonstrated the high importance that the Central Government places on Hong Kong. Meanwhile, the new Budget has presented various financial measures to propel economic development, boost economic recovery, and enhance growth impetus and competitiveness. The business sector will give the government its full support in implementing these measures, especially enhancing Hong Kong’s valuable connections with the Mainland and the rest of the world through stepping up the development of industries with an edge, and deepening regional cooperation and exchange.
Focusing on the South-North dual-engine development plan
Hong Kong is susceptible to fluctuations in the external environment. Last year, the significant decline in Hong Kong’s stock market and the unoptimistic outlook for the local property market had undoubtedly dampened business and investment sentiments. It is therefore a delight to see that the new Budget has adopted a number of recommendations by CGCC to address these issues, including the removal of the “harsh measures” for the property market, the expansion of the scope of government bonds, and concrete measures in other areas such as to rebuild business confidence.
The development of a green economy and green finance is a top priority in the new Budget. In my opinion, by optimizing the operation mechanism of the financial market, Hong Kong can look into providing mid- and long-term fundraising channels for green investments, and developing a set of green credit rating standards appropriate for the city’s financial institutions. We also support the Budget’s proposed measures for further growing Hong Kong’s offshore RMB businesses. We hope the authorities will actively expand Hong Kong’s diverse RMB businesses in relevant markets, and support the creation of a “Belt & Road segment” in the city’s stock market as well as provide fundraising channels to promote the internationalization of the RMB.
As trade ties grow closer between the Mainland and the Association of Southeast Asian Nations (ASEAN) and the Middle East, the HKSAR Government can find ways to attract more capital and enterprises from the two regions to Hong Kong, and provide professional services catering for regional trade. In addition, the Hong Kong authorities should consider increasing resources to offer greater support that will allow Hong Kong to fully thrive as a financial center.
Hong Kong should also deepen cooperation with the Mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area) to develop the innovation and technology (I&T) industry. While accelerating the development of the Hong Kong-Shenzhen Innovation and Technology Park, the alignment of the planning and projects in the Hong Kong Park and the Shenzhen Park should be strengthened. Hong Kong should also lobby for the Central Government’s support to establish a high-end state laboratory in the Hong Kong Park. In addition, through amping up the mutual flow and interaction of talents and I&T resources, in light of the Northern Metropolis’ development, the cities can work together to promote industry-academia-research cooperation and result conversion, and create a first-rate talent and I&T center in the Greater Bay Area.
Increasing people flow and interaction
To truly realize Hong Kong’s role as a connector between the Mainland and the rest of the world, it is necessary to increase the efficiency of people circulation and interaction between the Greater Bay Area cities. Recently, the Central Government has announced the expansion of the coverage of Hong Kong’s and Macao’s Individual Visit Schemes to include more Mainland cities. This is expected to not only create new business opportunities for Hong Kong’s tourism and related industries, thus promoting the city’s economic development, but also promote people flow between the Mainland and Hong Kong. We thus hope that the Central Government will expand the scope of the scheme even further. The governments of Guangdong Province, Hong Kong and Macao can also consider launching a “Greater Bay Area card” that will allow top talents in the Greater Bay Area to travel more easily across borders to work and live, which can draw more talents and resources from both the Mainland and overseas to the area.
Last but not certainly least, we fully support the HKSAR Government in completing the legislative exercise relating to Article 23 of the Basic Law as soon as possible to improve the legal system and enforcement mechanisms for safeguarding national security, so that the business sector can focus its efforts on promoting economic growth and integrating into the national development.
