Hong Kong Chief Executive John Lee pledged to strengthen the city’s economy, raise living standards, and reinforce its status as an international hub. His plans include launching a gold trading market. Lee, a former senior police official, maintained the city’s 2025 growth forecast of 2 to 3 per cent and emphasized Hong Kong’s role as a gateway for mainland Chinese companies expanding overseas. This was his fourth policy address. He described his main goal as improving people’s lives — with better housing, higher wages, stronger elderly care, and greater opportunities for young people.

Hong Kong’s open economy continues to feel the impact of China’s slowdown and trade frictions with the U.S. His speech, delivered over nearly three hours, offered few new large-scale housing policies but focused on government accountability and national security. Lee outlined efforts to develop “new growth areas” such as an international gold market, fintech, and sustainable finance. He said the Hong Kong Monetary Authority would encourage Chinese banks to set up regional headquarters in the city and expand into Southeast Asia and the Middle East. Plans also include expanding the aviation sector through recycling and trading high-value parts and building a sustainable aviation fuel supply chain.

Hong Kong will also seek to attract pharmaceutical companies for clinical trials and advanced medical treatments, including rare disease drugs, high-end cancer therapies, and innovative therapies. On integration, Lee said the government would speed up the Northern Metropolis project, designed to house 2.5 million people and establish a new business hub near Shenzhen. Originally announced by former leader Carrie Lam in 2021, the project aims to become a hub for technology and innovation within the Greater Bay Area.

Lee also announced education reforms, increasing the cap on non-local student admissions to 50 per cent from 40 per cent. Other initiatives include licensing restaurants to allow pets, tapping into a market of 400,000 pet owners, which he said could unlock new business opportunities. To address falling birth rates, Lee said parents would be able to claim a tax allowance of HK$260,000 (about S$42,666) for each child during the first two years after birth.