Accelerating Development of Northern Metropolis for Education, Innovation, and Industry Integration

Full text of the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) (4)

Part 3 Expedite the Development of the Northern Metropolis and Spearhead Spatial Layout Optimisation

3.1 We will expedite the planning and development of the Northern Metropolis. We will guide the future spatial layout of our city with the vision of the "South North Dual Engine (Finance IT)"¹². To foster the integrated development of education, technology, and talent, the Northern Metropolis will be developed with the objectives of university town, I&T, industry, and environment suitable for living, work, and travel. We will forge ahead with the development of, among others, the Northern Metropolis University Town (NMUT), San Tin Technopole, and the Loop Hong Kong Park, for the mission of leveraging the Northern Metropolis as an important strategic vehicle for high quality post secondary education development, integration of technological and industry innovation, and attracting international high calibre talent. We also aim to develop the Northern Metropolis into a main platform for Hong Kong to deeply engage in the development of the Guangdong-Hong Kong-Macao Greater Bay Area, and to actively integrate into and serve the overall national development. It will also serve as a new engine for us to develop new quality productive forces.

Chapter 11 The Northern Metropolis University Town

3.2 As an internationalised university town that integrates talent cultivation, scientific research, transformation of outcomes, and industry development, the NMUT will drive the synergistic development among the industries, academia, and research, in a bid to achieve the integrated development of education, technology, and talent.

3.3 We will expedite the development of the NMUT, promote capacity expansion and quality enhancement for post secondary education, and foster the integration of industry development with academic sectors where Hong Kong enjoys an edge. We will, in a flexible and innovative mode, jointly organise top tier programmes, establish joint faculties and laboratories, and carry out high calibre basic research with renowned Mainland and overseas institutions. We will also step up our efforts to attract world famous institutions or first class scientific research institutes to establish presence. We will leverage the strengths of Hong Kong's internationalised post secondary education sector to spearhead global education exchanges by proactively organising and participating in international post secondary education events, and bringing together local and global education leaders to jointly explore key issues and the latest trends in post secondary education. In the meantime, we will support institutions in strengthening international exchanges and connections in areas such as research collaboration, student exchange, and talent development, etc., thereby further enhancing the international standing of our city's post secondary education sector.

Section 1 Spatial Layout and Functional Positioning Spatial Layout

3.4 There are three university towns in the NMUT, which are the San Tin University Town (located in San Tin Technopole and Ngau Tam Mei New Development Area (NDA)), the Hung Shui Kiu (HSK) University Town (located in the HSK/Ha Tsuen NDA), and the Ta Kwu Ling (TKL) University Town (located in the TKL NDA, formerly known as the "New Territories North New Town"). Developed based on the concept of "One Town, Five Elements", each uniquely positioned university town encompasses the five elements of education, technology, industry, talent, and urban development for synergised development. Through enhancing speed and capacity, pooling resources, and meticulous planning, we are steadily advancing the comprehensive development of the three university towns.

3.5 The educational facilities within the 300 hectare campus area of the university towns will be connected to the adjacent strategic industry area, distinctive conservation area, recreational, sports and cultural facilities, as well as the surrounding living community. The total area of the three towns has been expanded to over1 000 hectares.

3.6 Building on the existing foundation, we will prioritise the development of the San Tin and HSK University Towns. The Government will commence the site allocation for the HSK University Town campus area in 2026, and support institutions to move in by 2027 to 2028, with a view to creating a landmark project.

Functions and Positioning

3.7 The San Tin University Town will be positioned to focus on the development of medicine, life and health technology, AI, robotics, microelectronics, and emerging industries, serving as the core of future I&T development in Hong Kong. The technology and industry areas, encompassing the Hetao Shenzhen Hong Kong Science and Technology Innovation Co operation Zone and San Tin Technopole, will become an important base for talent attraction. In the coming five years, we will advance the infrastructure development of the San Tin University Town and commence the construction of the medical school of The Hong Kong University of Science and Technology and the integrated medical teaching and research hospital. We will, in collaboration with San Tin Technopole and the Loop Hong Kong Park, support the co-operation between local institutions and renowned Mainland and overseas institutions as well as research institutes in organising programmes and setting up research facilities such as joint laboratories, etc., hence enabling the establishment of national level research platforms, harnessing the power of high quality development in science and technology.

3.8 The HSK University Town is positioned as a cultivation centre for smart manufacturing applied post secondary education and internationalised talent. We will develop a diverse range of industries through the following efforts, including commercial floor space for high end professional services and supporting facilities for the provision of producer services, the Hung Shui Kiu Industry Park for promoting smart production, the versatile Enterprise and Technology Park sites, the Lau Fau Shan Digital Technology Hub, as well as the R&D facilities of the Microelectronics Centre at the Yuen Long InnoPark and the Hong Kong Microelectronics Research and Development Institute, in addition to the Advanced Construction Industrial Park in Yuen Long South. We will prioritise the development of the HSK University Town by advancing flagship campus development and promoting cross sectoral collaboration to bolster industry development in the area. The HSK Station of the MTR Tuen Ma Line is also expected to commence operation in 2030 to tie in with the facilities and gradual population intake of the HSK University Town.

Table 25 Advancing the Development of the HSK University Town

1. Introducing institutions Facilitate the development of flagship campuses and encourage local institutions to foster in-depth collaboration such as teaching and research programmes or projects with renowned Mainland and overseas institutions. Site allocation for the campus area will commence within 2026 for institutions to establish presence.

2. Developing an internationalised cross-boundary platform Fully leverage the advantages of our transport infrastructure projects to create a testing ground for various facilitation measures and mechanisms, offering solutions to facilitate the flow of students and talent between Guangdong and Hong Kong.

3. One-stop services for talent Student hostels and talent accommodation will be provided, creating an international ecosystem characterised by an organic integration of teaching and learning, scientific research, living, and employment.

4. Advancing the development of the Hung Shui Kiu Industry Park, the Lau Fau Shan Digital Technology Hub, and the Yuen Long South Advanced Construction Industrial Park By developing these industry parks, promote a diverse range of industries such as high value-added and smart production as well as advanced manufacturing industry, etc., thereby pursuing industry-academia-research synergised development with the institutions in the HSK University Town.

• Facilitate the development of flagship campuses and encourage local institutions to foster in-depth collaboration such as teaching and research programmes or projects with renowned Mainland and overseas institutions. Site allocation for the campus area will commence within 2026 for institutions to establish presence.

• Fully leverage the advantages of our transport infrastructure projects to create a testing ground for various facilitation measures and mechanisms, offering solutions to facilitate the flow of students and talent between Guangdong and Hong Kong.

• Student hostels and talent accommodation will be provided, creating an international ecosystem characterised by an organic integration of teaching and learning, scientific research, living, and employment.

• By developing these industry parks, promote a diverse range of industries such as high value-added and smart production as well as advanced manufacturing industry, etc., thereby pursuing industry-academia-research synergised development with the institutions in the HSK University Town.

3.9 In addition to fostering the synergised development of education, technology, industry, talent, and urban development, the TKL University Town will also incorporate arts and blue green development elements, while reserving strategic development space for future development needs. From 2030 onwards, sites will be made available progressively to support emerging industries, advanced construction industries, traditional industries and new industries development, promoting the collaboration between institutions and industries in the area and expediting the commercialisation of research outcomes. Local post secondary institutions establishing a presence in the area will be encouraged to actively take forward the integration of industry and education, thereby nurturing talent for emerging industries.

Section 2 Advance the Development of the Northern Metropolis University Town

3.10 We will advance the development of the NMUT in a co-ordinated manner by proactively taking the lead in driving the post secondary institutions to refine and implement their detailed plans, and grasp the key milestone dates, with a view to advancing and completing the various tasks necessary for establishing their presence in the NMUT in an orderly manner.

3.11 We will co-ordinate the diverse contributions from the Government, post secondary institutions, and the public. In terms of financial arrangements, the Government will provide full support through a multi pronged approach (such as land premium exemption and loans, etc.), while post secondary institutions will mobilise their reserves and/or employ flexible funding modes (such as the issuance of bonds) to bring in market and social capital to jointly advance the NMUT development. Taking full account of the views of post secondary institutions, we will consider the circumstances of individual institutions and the planned feature subjects, with a view to allocating suitable sites to institutions for the construction of new campuses, supporting their development and capacity building.

3.12 We will expedite the construction of specific ancillary facilities such as student hostels. When we advance the construction of hostels, we will adopt diversified development models, so as to increase the supply of hostel places and continuously upgrade the accommodation standards. In order to provide students with better accommodation and ancillary facilities, the existing mechanism for managing student hostels will be enhanced.

Chapter 12 A Technology driven Industry Academia Research Collaborative Innovation System

3.13 We shall strive to achieve the target of developing the Hetao

Shenzhen Hong Kong Science and Technology Innovation Co operation Zone into a world class I&T platform, and expedite the development of industry zones such as San Tin Technopole, the Sandy Ridge Data Facility Cluster, HSK, and Lau Fau Shan, etc. We will step up the development of science and technology services institutions and transformation platforms to form innovation consortia, thereby driving the integration of technological and industry innovation.

Section 1 Co-ordinated Development of the HetaoShenzhen Hong Kong Science andTechnology Innovation Co operation Zone

3.14 We will prioritise and advance the development of the Loop Hong Kong Park, with the focuses placed on development and establishing presence, in a bid to facilitate the scaling up of the I&T industry as soon as possible. We will co-ordinate and advance the development of the Hetao Shenzhen Hong Kong Science and Technology Innovation Co operation Zone under the vision of "one river, two banks" and "one zone, two parks", strengthening the alignment of the Hong Kong Park and the Shenzhen Park in terms of spatial layout, planning co-ordination, infrastructure connectivity, etc., and putting in place a unique and effective regulatory regime. We will support the Loop Shenzhen Park in aligning rules governing scientific research with those applicable in Hong Kong and the international arena, while facilitating the secure, efficient, and convenient flow of factors such as personnel, materials, capital, and data.

Section 2 Diversified Industry Development Platform

3.15 We will establish a system with Hong Kong character for diversified industry development having regard to local circumstances. We will expedite the development of San Tin Technopole into a core engine for industry development in the Northern Metropolis to create an industry space for industry academia research integration and provide one stop services for innovation entities, while expanding and opening up more application scenarios, as well as developing platforms for proof of concept and pilot production verifications. Starting from end 2026, land parcels for I&T will be available in the area by phase for development.

3.16 Located in the Northern Metropolis, the Sandy Ridge Data Facility Cluster is a core area of the Hong Kong Shenzhen Boundary Control Points Economic Belt. It will provide crucial support for the development of AI in Hong Kong with essential elements such as computing power, thereby deepening Hong Kong's leading advantage in regional digital infrastructure and facilitating its development into a regional hub for advanced data and computing power.

3.17 We will reserve industry land in TKL to develop ancillary facilities for supply chains in support of the development of emerging industries, traditional industries, and new industrialisation, covering modern logistics, food produce, fresh food supply, as well as green/environmental and advanced construction industries, etc.

3.18 We will take forward the development of HSK/Ha Tsuen and Lau Fau Shan NDAs into hubs for high end professional services, modern logistics, advanced construction industries, smart manufacturing, and digital technology. With priority accorded to the development of high end professional services industries, we will attract local and multinational enterprises specialising in the provision of high end professional services such as finance, insurance, wealth and risk management, legal, mediation, arbitration, and accounting, etc., so as to achieve synergised development with the neighbouring Qianhai Co operation Zone and the new high tech cluster in Nanshan District. Capitalising on the locational advantage of HSK for its comprehensive transport network and proximity to Qianhai in Shenzhen, we will drive the diversified development of high value added and smart manufacturing industries such as pharmaceutical manufacturing, food processing, and advanced construction industries at the Hung Shui Kiu Industry Park. There is also potential for establishing HSK as a modern logistics cluster for the development of high value added logistics, while the Digital Technology Hub will be developed in Lau Fau Shan.

Table 26 Establishing a Platform for Diversified Industry Development

1. Advancing the development of San Tin Technopole Commence operating the San Tin Technopole Company Limited, which is wholly owned by the Government, for the phased development of the 210-hectare I&T land.

2. Strengthening computing infrastructure The Sandy Ridge Data Facility Cluster has entered the construction stage, and will commence operation by 2029.It is expected to provide computing power of up to 180000 peta-floating point operations per second by 2032, which is equivalent to 36 times the current level in Hong Kong.

3. Advancing the development of the Hung Shui Kiu Industry Park Commence operating the Hung Shui Kiu Industry Park Company Limited, which is wholly owned by the Government, for the phased development of the 27.5-hectare land.

4. Advancing the development of modern logistics and other industries About 32 hectares of land in HSK have been reserved for developing a modern logistics cluster, within which spade-ready sites will be progressively rolled out for development starting from 2027-28. An "Enterprise and Technology Park" site under the development project of the HSK pilot area of large-scale land disposal awarded, with construction works of the building on the site anticipated to be completed by the successful tenderer in early 2030; the remaining two sites granted to the Hung Shui Kiu Industry Park Company Limited. Reserve around 10 hectares of land in Yuen Long South for the development of the first Advanced Construction Industrial Park.

5. Developing landmark I&T facilities in Lau Fau Shan The Government plans to develop a Digital Technology Hub in the Lau Fau Shan area, for which about 30 hectares of land have been reserved.

6. Establishing TKL as a base for emerging industries Reserve industry land in TKL to develop ancillary facilities for supply chains in support of the development of emerging industries, traditional industries, and new industrialisation, covering modern logistics, advanced construction industries, food produce, fresh food supply, as well as green/environmental industries, etc.

• Commence operating the San Tin Technopole Company Limited, which is wholly owned by the Government, for the phased development of the 210-hectare I&T land.

• The Sandy Ridge Data Facility Cluster has entered the construction stage, and will commence operation by 2029.It is expected to provide computing power of up to 180000 peta-floating point operations per second by 2032, which is equivalent to 36 times the current level in Hong Kong.

• Commence operating the Hung Shui Kiu Industry Park Company Limited, which is wholly owned by the Government, for the phased development of the 27.5-hectare land.

• About 32 hectares of land in HSK have been reserved for developing a modern logistics cluster, within which spade-ready sites will be progressively rolled out for development starting from 2027-28.
• An "Enterprise and Technology Park" site under the development project of the HSK pilot area of large-scale land disposal awarded, with construction works of the building on the site anticipated to be completed by the successful tenderer in early 2030; the remaining two sites granted to the Hung Shui Kiu Industry Park Company Limited.
• Reserve around 10 hectares of land in Yuen Long South for the development of the first Advanced Construction Industrial Park.

• The Government plans to develop a Digital Technology Hub in the Lau Fau Shan area, for which about 30 hectares of land have been reserved.

• Reserve industry land in TKL to develop ancillary facilities for supply chains in support of the development of emerging industries, traditional industries, and new industrialisation, covering modern logistics, advanced construction industries, food produce, fresh food supply, as well as green/environmental industries, etc.

3.19 We strive to develop a synergised ecosystem where the chain of industry academiaresearch is well integrated, creating an end to end model for basic research, technology breakthroughs, transformation of outcomes, and industry incubation. Local institutions will join forces with their counterparts in the Mainland and overseas to create a mode of industry development under which R&D undertaken by higher education institutions will go for production in the Guangdong-Hong Kong-Macao Greater Bay Area, with financing support in Hong Kong and Macao, and outcomes targeted for the international market, alongside the setting up of specialised technology transfer organisations and I&T funds. We will encourage institutions in the NMUT to form alliances with adjacent industry parks and join forces with enterprises therein for the purpose of research outcome transformation and commercialisation. Taking the university towns as development axles, we will comprehensively enhance the layout of living amenities, so that higher education institutions will perform their roles in attracting talent and leading innovation, thereby driving the high quality development of the Northern Metropolis and creating a modernised area that is suitable for living, work, and education.

Chapter 13 Diversified Development of a Metropolis Ideal for Living, Work, and Travel

3.20 We will adopt a reform oriented mindset and an early and pilotimplementation approach to advance the diversified development of the Northern Metropolis. With an approach that is planning oriented, infrastructure led, industry driven, and people oriented, we shall forge a Northern Metropolis that is blissful, vibrant and innovative. We will implement a series of reform measures, including the adoption of the early and pilot implementation, management, and operation mechanisms for NDAs in the Northern Metropolis, which will entail flexible land use planning to accommodate diversified industries and respond to market changes, as well as innovative and diversified development models, encouraging public private partnerships, etc.

3.21 We strive to streamline control along the whole development process to expedite developing the Northern Metropolis and bringing in industries. In addition to enacting the Northern Metropolis Development Ordinance, we will also adopt diversified development models to expedite the rolling out of space. To speed up our efforts in bringing in enterprises, we will establish industry park companies, taking full advantage of public private partnerships, realising the two pronged approach of "capable government" and "effective market". We will implement the "Pay for What You Build"¹³ Pilot Scheme to enhance the market's investment incentive, and use a "two envelope" approach for tendering¹to drive integrated development. We will allow low density facilities to be developed first to generate footfall and income, before the implementation of large scale developments in the long run.

3.22 We will increase the housing and economic land supply. We will advance the housing and economic development of the Northern Metropolis, with a target of making available the necessary land to enable, in the coming five years, the provision of over 70 000 housing units and one million square metres of economic floor space.

3.23 We strive to achieve higher living standards in the Northern Metropolis. We will progressively enhance the flat mix of public housing and raise the unit size requirements for private residential development in new projects in the Northern Metropolis, so as to create favourable conditions for enhancing the average living space per person. For public housing, preparations are underway to deliver units for rental and sale over the next decade, including those in the Northern Metropolis. We will progressively enhance the internal floor area of these units and increase the proportion of larger units for newly built subsidised sale flats, including those in the Northern Metropolis.

3.24 We will enhance local and cross boundary transport infrastructure connectivity. Adopting an infrastructure led approach, we are pressing full steam ahead with the major Northern Metropolis related railway and road projects under the "Eight Vertical and Eight Horizontal Corridors"¹infrastructure layout, including the Northern Metropolis Highway (San Tin Section), the Tsing Lung Bridge at the southern end of Route 11, the Northern Link Spur Line connecting to the new Huanggang Port, and the Hong Kong section of Hong Kong Shenzhen Western Rail Link. We will also examine the feasibility of a southern extension of the Hong Kong Shenzhen Western Rail Link to strengthen the connectivity between the Northern Metropolis and the Hong Kong International Airport.

Table 27 Promoting the Development of Northern Metropolis-related Transport Infrastructure

1. Railway projects Expedite the construction works of Kwu Tung Station on the East Rail Line and HSK Station on the Tuen Ma Line for commissioning in 2027 and 2030 respectively. Implement the Northern Link Main Line in combination with the Spur Line, complete the gazettal procedures for the railway scheme of the Spur Line within 2026, and commence the tunnel boring works for the Northern Link Project progressively from 2028 onwards, with the im of commissioning the Main Line and Spur Line simultaneously in 2034. Expedite the preparatory work for the Hong Kong-Shenzhen Western Rail Link, invite tender for the detailed design and construction of the Hong Kong section in 2027, and strive for commissioning of the Hong Kong and Shenzhen sections in Hong Kong and Shenzhen simultaneously in 2035.

2. Major road projects Prioritise taking forward the Northern Metropolis Highway (San Tin Section) in accordance with the strategy of "Holistic Planning and Phased Implementation" and complete the gazettal procedures for the road scheme of the San Tin Section in 2027, with the target of commissioning in 2034. To meet the north-south transport demand arising from the future development of the Northern Metropolis and strengthen the connection between the Northern Metropolis and the urban area, priority will be given to taking forward the Tsing Lung Bridge at the southern end of Route 11, with the target of commissioning in 2033.

• Expedite the construction works of Kwu Tung Station on the East Rail Line and HSK Station on the Tuen Ma Line for commissioning in 2027 and 2030 respectively.
• Implement the Northern Link Main Line in combination with the Spur Line, complete the gazettal procedures for the railway scheme of the Spur Line within 2026, and commence the tunnel boring works for the Northern Link Project progressively from 2028 onwards, with the im of commissioning the Main Line and Spur Line simultaneously in 2034.
• Expedite the preparatory work for the Hong Kong-Shenzhen Western Rail Link, invite tender for the detailed design and construction of the Hong Kong section in 2027, and strive for commissioning of the Hong Kong and Shenzhen sections in Hong Kong and Shenzhen simultaneously in 2035.

• Prioritise taking forward the Northern Metropolis Highway (San Tin Section) in accordance with the strategy of "Holistic Planning and Phased Implementation" and complete the gazettal procedures for the road scheme of the San Tin Section in 2027, with the target of commissioning in 2034.
• To meet the north-south transport demand arising from the future development of the Northern Metropolis and strengthen the connection between the Northern Metropolis and the urban area, priority will be given to taking forward the Tsing Lung Bridge at the southern end of Route 11, with the target of commissioning in 2033.

3.25 We will enhance the planning for public services, community facilities, and cultural and sports facilities in the area. We will co-ordinate the distribution of facilities in relation to housing, employment, education, healthcare, social welfare, recreation, and greening, etc. in the Northern Metropolis. Diversified arts and cultural facilities, as well as arts performance and exhibition spaces will be developed. We will adopt the "15 minute neighbourhood" concept in the course of land use planning, enhance transport connectivity, and develop high quality public space and blue green network¹. In 2027, we will launch the plan to establish the New Territories North Cluster and press ahead with the construction of an integrated teaching and research hospital in Ngau Tam Mei. By comprehensively enhancing the quality of life, and attracting talent to reside and work, we will forge the Northern Metropolis into an exemplary model for quality living in Hong Kong.

¹² It refers to the "dual core planning" where our most competitive sectors including finance will continue to develop at the Harbour Metropolis, whereas the I&T sector will be placed at the Northern Metropolis.

¹³"Pay for What You Build" refers to the arrangement that in lease modifications, subject to the condition of the land parcels involved, owners will be allowed to pay the required premium according to the actual built floor area and use, rather than the maximum floor area based on the maximum plot ratio; and allowing developers to pay land premiums by phase according to the development scale may also be considered.

¹Under a "two envelope" approach for tendering, the non premium and premium proposals are considered comprehensively, with the weightings and elements for assessment set to suit individual circumstances.

¹As a series of transport infrastructure projects will progressively materialise in the future, the territory wide "Five Vertical and Five Horizontal Corridors" railway network and "Three Vertical and Three Horizontal Corridors" major road network will form an "Eight Vertical and Eight Horizontal Corridors" grand layout. The "Five Vertical Corridors" comprise five north south railway corridors; the "Five Horizontal Corridors" comprise five east west railway corridors. The "Three Vertical Corridors" refer to the three major north south corridors; and the "Three Horizontal Corridors" refer to the three major east west axes.

¹It refers to the network of green spaces and blue water resources, such as river channels, wetlands, open spaces, and hills.

(To be continued.)

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Full text of "The Chief Executive's 2026 Policy Address" (3)

(C) International Trade Centre

75. Hong Kong was ranked the world's fifth-largest entity in merchandise trade in 2025, two places up from the previous year, according to the "Global Trade Outlook and Statistics" report, published by the World Trade Organization (WTO). We will consolidate and enhance Hong Kong's status as an international trade centre, playing a greater role in the high-level opening up of our country.

Deepen the Work of the GoGlobal Task Force

76. Since the Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) was established last October, it has provided assistance, including listing and raising capital in Hong Kong, aligning with overseas standards, acquiring industry certifications and fulfilling compliance requirements for more than 340 Mainland enterprises. About 30% of them position Hong Kong as their regional/international headquarters or corporate treasury centre (CTC).

77. In June, I led a delegation, which included representatives of Mainland enterprises, to visit Central Asia, where we met with local enterprises to open up business opportunities. Many of the Mainland companies successfully matched with local partners for collaborative projects. The GoGlobal Task Force will continue to help enterprises expand their businesses into Central Asia.

78. The GoGlobal Task Force will further consolidate Hong Kong's role in helping Mainland enterprises establish their presence abroad. It will:

(i) Deepen collaboration with trade associations of both places to provide more targeted support services to Mainland enterprises.

(ii) Strengthen collaboration with professional organisations to train talent for the GoGlobal initiative and enhance professional services.

(iii) Extend the Cross-sectoral Professional Services Platform, adding a new sector to provide environmental, social and governance (ESG) services, with a view to leveraging Hong Kong's international expertise to assist Mainland enterprises in meeting the requirements of their target markets.

(iv) Enhance the platform's matching function to encourage connections between Mainland enterprises and Hong Kong professional service providers, and keep track of the effectiveness of individual cases.

79. The IA will promote the development of a specialty insurance business that aligns with the real economy to diversify and manage risks for enterprises to "go global".

80. The Government will continue to assist the local media to expand their network beyond Hong Kong, telling the good stories of Hong Kong.

Build a High Value-added Supply Chain Services Centre

81. As our country improves the comprehensive overseas services system and guides the orderly development of cross-border industry and supply chains, it creates enormous opportunities for Hong Kong. Since announcing the building of a high value-added supply chain services centre in the 2024 Policy Address, the Government has been enhancing strategies to encourage Mainland enterprises to leverage Hong Kong as their supply chain services centre.

82. Hong Kong will better align with our country's modern industrial system, including driving the upgrade and transformation of traditional industries, as well as cultivating emerging pillar industries, in order for enterprises to take advantage of our strengths in international finance, trade, shipping, scientific research, branding, design and exhibitions, as well as our global network, to connect with overseas supply chains and launch international businesses.

Encourage More Financial Institutions to Set Up Headquarters in Hong Kong

83. Mainland financial institutions with stronger capital strength and higher level of compliance and internal control standards are encouraged to set up international headquarters in Hong Kong, on the premise of compliance with laws and regulations in a risk-controlled manner and voluntary commercial participation, to consolidate their businesses and management functions outside the Mainland. We support major Chinese securities firms' plans, in compliance with laws and regulations, to increase capital for their subsidiaries in Hong Kong, and utilise Hong Kong as a booking centre for risk management and capital market operations.

Encourage Enterprises to Establish Corporate Treasury Centres and Sourcing Centres in Hong Kong

84. The Government has completed its review of tax concessionary measures applicable to CTCs, as well as a public consultation on recommendations to provide pre approved CTCs and their associated companies with additional tax benefits and flexibilities. An amendment bill is expected to be introduced into the LegCo in the first half of 2027.

85. A tax concession of 5%, or half-rate, may be offered under the preferential policy packages on attracting enterprises and investments, depending on the investment plan of individual enterprises and their actual contribution to Hong Kong's economy. This will attract high value-added enterprises to set up headquarters or regional headquarters in Hong Kong to manage their supply chain and sourcing businesses.

Strengthen Innovation and Technology Enterprises

86. The Government launched the Pilot Innovation and Technology Accelerator Scheme in January. It was designed to accelerate the growth of innovation and technology (I&T) companies, by attracting professional I&T enterprise service providers with proven track records in and beyond Hong Kong to set up accelerator bases in Hong Kong.

87. One of them has set up an accelerator base at Cyberport, serving nearly 100 member enterprises, including eight listed companies with a total market value exceeding $180 billion. Focusing on key industries such as AI, embodied intelligence and robotics, new energy and new materials, and biomedicine, the company assists I&T companies in going global by leveraging Hong Kong's I&T ecosystem, application scenarios, capital markets and overseas networks.

88. The Green Tech Fund also supports Hong Kong research institutions and companies in conducting research and development (R&D) in Hong Kong and the Mainland to develop low-carbon technologies with commercialisation potential, helping more green technologies and products to go global.

Empower the Transformation and Upgrading of Traditional Industries through Supply Chain Services

89. The Development Bureau (DEVB) has signed a co-operation agreement with the relevant Mainland organisation to establish a collaborative mechanism for construction standardisation and jointly formulate the GBA construction standards. This will help local and Mainland construction companies venture into the global market by making good use of Hong Kong's strengths in areas such as testing and certification. Advanced construction technology will be showcased by organising international conferences and large-scale events, reinforcing Hong Kong's position as an international infrastructure centre.

90. The Government will establish the Task Force on High Quality Development of Textile and Fashion Industry, to be led by the Secretary for Commerce and Economic Development. It will enhance collaboration between government and industry representatives to pursue high-quality development of the textile and fashion industry in areas including I&T, fashion design, supply chain management, sustainable development and brand promotion, as well as nurturing talent, thereby assisting the industry to connect with Mainland and overseas markets.

Pursue the Comprehensive Upgrade of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

91. Following the signing of an amendment agreement under the framework of CEPA in 2024, which further liberalised trade in services with the Mainland, the Commerce and Economic Development Bureau (CEDB) will sign a Memorandum of Understanding (MoU) with the Ministry of Commerce and continue to jointly pursue the comprehensive upgrade of CEPA, with a view to deepening co-operation with the Mainland services sectors, as well as further expanding the Mainland market access and liberalised areas.

Expand International Economic and Trade Network

92. We will continue to deepen our ties overseas, including the European, American, ASEAN and Middle East markets, while actively exploring emerging markets such as Central Asia and Africa, and focus on economies of high potential and strategic importance, with a view to forging closer economic and trade co-operation.

93. With the Economic and Trade Office (ETO) in Kuala Lumpur having officially commenced operation, the four ASEAN-based ETOs will deepen Hong Kong's trade and investment promotion in ASEAN and neighbouring Asian countries.

94. We are exploring the establishment of an ETO in Kazakhstan, and in the meantime leveraging the existing networks of the ETOs, the Hong Kong Trade Development Council (HKTDC) and InvestHK to step up trade and investment promotion work in priority Central Asian countries.

95. We signed an investment agreement with Bangladesh just last week, and will work towards signing investment agreements with Qatar and Peru as early as possible. We are negotiating new investment agreements with Saudi Arabia and Egypt. We are also exploring new investment agreements with Kazakhstan and Uzbekistan.

Promote the Development of Digital Trade

96. Upon coming into full operation, Phase 3 services of the Trade Single Window will provide a single consolidated platform for submission of import and export declarations and cargo information regarding different transport modes, to help the trade improve efficiency and reduce operating costs.

97. The Government will expand the "Single Submission for Dual Declaration" Scheme with the General Administration of Customs of the People's Republic of China to cover more trade documents and transport modes, and advance connectivity with ASEAN's Single Window. The Trade Single Window will also connect with the HKMA's Commercial Data Interchange (CDI) in mid 2027, facilitating banks in making reference to trade data for processing financing applications.

98. The Government will introduce, within this year, a bill on facilitating the digitalisation of "business to business" trade documents, to reduce the administrative costs of businesses and improve traceability of trading activities.

99. The HKMA will explore further applications of tokenised deposits, including collaborating with the Mainland to study trade-financing use cases, with pilot transactions to be completed by the end of the year.

Promote the Development of Convention and Exhibition Industry

100. The Government is taking forward the Wan Chai North Redevelopment project, as planned, for the expansion of the Hong Kong Convention and Exhibition Centre and related facilities. A task force to be led by the Deputy Financial Secretary will be set up to steer the project. The HKTDC will submit a proposal on the development approach of the project to the Government early next year.

101. The Government has earmarked $100 million to attract high-quality, large-scale international exhibitions with new elements to Hong Kong. The first such international flagship exhibition brought to Hong Kong will be held in November, centred around super yachts, as well as premium lifestyle elements, and featuring international leading brands.

All users in the sites of the Wan Chai Government Offices Compound and the Kong Wan Fire Station in Wan Chai North will be moved out within 2028.

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