CE's speech in delivering "The Chief Executive's 2025 Policy Address" to LegCo (5)
Chapter V
Integrate into the Overall National Development
77. As the world's second-largest economy, our country contributes more than one-third of global economic growth, representing the greatest opportunity for Hong Kong's development. We will fully integrate into the overall national development, capitalising on national strategies such as the GBA and high-quality co-operation under the B&R Initiative. In addition, this year is the preparatory year for the national 15th Five-Year Plan. Leveraging Hong Kong's unique advantages, we will contribute to the national development, and deepen international exchanges and co-operation by connecting with the Mainland and the world. We will also attract more enterprises to use Hong Kong to expand overseas, thereby creating business opportunities and economic returns.
(A) "Bringing in and Going Global": Hong Kong as a Platform for Overseas Expansion
78. China's external direct investment exceeded RMB 1 trillion last year, underscoring the growing global demand for "Made in China" products. Mainland enterprises are accelerating their pace to "go global".
79. With a shift in strategic focus, Mainland enterprises are proactively exploring emerging markets. The Government will capitalise on the advantages of Hong Kong as an export platform to unlock new areas for economic growth. Mainland enterprises going global can establish Corporate Treasury Centres (CTCs) and regional headquarters in Hong Kong for cross-boundary settlement, remittance, financing and related functions. They can also tap Hong Kong's professional high value-added supply chain services in fields such as accounting and law to help them explore overseas markets. In addition, they can leverage Hong Kong's strengths in marketing to connect with global buyers and build international brands.
80. In last year's Policy Address, I announced that we would develop Hong Kong into a high value-added supply chain service centre, attracting more enterprises to establish a presence in Hong Kong and expanding our headquarters economy. In 2024, Hong Kong was home to more than 1 400 regional headquarters of non-local enterprises, over 300 of which were from the Mainland.
81. I will establish a one-stop platform by mobilising Hong Kong's overseas offices, including those under InvestHK and the Hong Kong Trade Development Council (HKTDC), as well as Hong Kong offices in the Mainland, and set up the Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) to encourage Mainland enterprises to use Hong Kong in expanding their businesses overseas. The Secretary for Commerce and Economic Development will steer the work of GoGlobal Task Force and co-ordinate various bureaux, departments and agencies in formulating proposals for enterprises looking to go global. Details are as follows:
(i) The HKMA will encourage the banking sector, especially banks in the Mainland, to establish regional headquarters in Hong Kong, where Hong Kong's strengths can help them expand into markets such as Southeast Asia and the Middle East, thereby providing more comprehensive cross-boundary financial solutions.
(ii) To attract more Mainland enterprises to establish CTCs in Hong Kong, we will complete a study on tax concessionary measures to be further enhanced in the first half of 2026.
(iii) The HKMA has signed a memorandum of understanding with the Public Investment Fund of Saudi Arabia to establish a US$1 billion new investment fund, catering to enterprises in Hong Kong and other GBA cities looking to expand into Saudi Arabia.
(iv) The HKMA will collaborate with organisations such as the Hong Kong Association of Banks, the Hong Kong General Chamber of Commerce and the Federation of Hong Kong Industries to lead delegations of banking representatives and SMEs to explore business opportunities in Southeast Asian markets such as Vietnam, pooling industry strengths to support the "going global" platform.
(v) The Government will leverage the strengths of Hong Kong's exhibition industry and consolidate our position as the ideal platform for Mainland brands to "go global" and for "bringing in" brands from around the world. We will also support the trade to organise more events conducive to brand development.
(vi) We will promote the development of carbon audit services to assist enterprises going global to meet international requirements and standards on green trade in respect of carbon emission reduction.
82. The Government will assist the local media to expand their network beyond Hong Kong, telling the good stories of Hong Kong.
(B) Deepen International Exchanges and Co-operation
83. We will actively invite the Asian Infrastructure Investment Bank to set up an office in Hong Kong. The Hong Kong Exchanges and Clearing Limited (HKEX) will also deepen co-operation with Southeast Asian exchanges, attracting Southeast Asian issuers to seek secondary listings in Hong Kong and encouraging asset management companies to issue products in their local markets, thereby spurring asset allocation in our market.
84. The Belt and Road Office will co-ordinate local public organisations and institutes to help train the personnel of B&R countries. It will also strive for more opportunities to match commercial projects in B&R markets with Hong Kong professional service sectors.
85. We support our country to promote the participation in green co-operation with B&R countries by, among other things, jointly setting up a B&R Green Development Co-operation Platform in Hong Kong with the B&R Initiative International Green Development Coalition. The Environmental Protection Department will set up a B&R sustainable green development training centre in Hong Kong in 2026, providing training courses for the personnel of B&R countries. The Hong Kong Jockey Club (HKJC) will support the initiative with funding of $100 million. In addition, we will support local professional organisations⁵ to promote green building assessment tools among B&R countries.
86. The Government will invite members of the Silk Road Maritime Association⁶ to hold a summit during Hong Kong Maritime Week next year, promoting its participation in the B&R shipping brand.
87. This year and next, we will organise the World Internet Conference Asia-Pacific Summit and InnoEX; the inaugural Hong Kong Fixed Income and Currency Forum; the INTERPOL General Assembly; the GBA Conference on Inheritance, Innovation and Development of Traditional Chinese Medicine; the Association of National Olympic Committees General Assembly; the Asia-Pacific Association for International Education Conference and Exhibition; and the first Research Summit of the Research Grants Council. We will also establish the Hong Kong International Correctional Services Response Tactics Training Academy to enhance international exchanges and professional training. The Government will support local universities and professional organisations in their bids to host more international academic and professional conferences and publish influential academic journals. The Government will also participate in and promote I&T collaboration with various international and regional organisations, such as the International Organization for Standardization.
(C) Development of the Greater Bay Area
88. As one of its core cities, Hong Kong plays a vital role in driving the GBA's development. It also plays an irreplaceable part in our country's reform and opening up. The Government will continue to lead the entire community to dovetail with national strategies and integrate into the country's overall development in a more proactive manner. We will also strengthen mutually beneficial co-operation with Guangdong and Macao and deepen co-ordinated development.
89. We will continue to deepen our co-operation with Guangdong and Macao, forging closer convergence of our respective rules and mechanisms to enhance the flow of people, goods, data and capital. Relevant measures include:
(i) Develop the HKIA Dongguan Logistics Park. Upon security screening and cargo acceptance in Dongguan, Mainland cargo can be transported directly to the HKIA for transhipment, significantly reducing operating costs. This is the most successful model of GBA co-operation. Phase 1 development's permanent facilities will be completed in stages, starting from the end of this year. The preliminary study for Phase 2 development is also set to commence this year, including the introduction of more high value-added logistics and cross-boundary e-commerce facilities.
(ii) Promote a panel of GBA arbitrators and a platform for GBA commercial mediation and arbitration to lower enterprises' costs of cross-boundary dispute resolution.
(iii) Extend cross-boundary ambulance transfer arrangements with the governments of Guangdong and Macao, including two-way ambulance transfers and expansion to cover designated hospitals in Zhuhai and Nansha.
(iv) Enhance Cross-boundary Credit Referencing and the Shenzhen-Hong Kong cross-boundary data validation platform to facilitate Hong Kong banks' credit assessment of Mainland residents and enterprises in Hong Kong.
(v) Continuously enhance the Payment Connect, expanding to use cases for remittance related to people's livelihood. The Government will improve disbursement arrangements for portable cash assistance next year, so that Hong Kong elderly recipients retiring in Guangdong and Fujian Provinces may opt to receive Government assistance directly through their bank accounts with designated Mainland banks.
(vi) Work with exchanges in the GBA to develop commodity trading, carbon trading and other businesses. The HKEX, a controlling shareholder of the Qianhai Mercantile Exchange, will continue to strengthen mutual co-operation for the development of the offshore spot soybean market. Core Climate, the carbon marketplace of the HKEX, will collaborate with pilot carbon markets in the GBA to explore cross-boundary trade settlements on a trial basis.
(vii) Boost collaboration between the HKIC and the Guangdong Government to help Hong Kong's enterprises with high technology content, such as biotech and health tech start-ups, to strengthen cross-border industry chain development. Nansha will be the key base for the first phase.
(viii) The Financial Services and the Treasury Bureau (FSTB) is working with Shenzhen and Qianhai to promote digital finance development and support deeper integration of technology and finance between Shenzhen and Hong Kong. Measures are expected to be announced later this year.
⁵The Hong Kong Green Building Council and the BEAM Society.
⁶The Silk Road Maritime Association was co-founded in 2018 by three large enterprises, the China COSCO Shipping Group, the Fujian Provincial Communication Transportation Group and the Xiamen Port Holding Group. The association aims to build an international integrated logistics service focused on shipping and foster economic and trade co-operation and development of countries and regions along the Maritime Silk Road. To date, the association has more than 330 members, including shipping companies, port enterprises, logistics companies and trade establishments, as well as members from upstream and downstream industries such as finance, insurance and technology.
(To be continued.)
