Hong Kong Unveils First Five-Year Plan to Expand Housing, Jobs and Tech Ties
By Donny Kwok and Jiaxing Li
HONG KONG, Sept 16 (Reuters) — Hong Kong leader John Lee on Wednesday unveiled the city's first five-year plan, a sweeping blueprint aimed at improving livelihoods, reinforcing Hong Kong's status as a global financial hub and deepening technology ties with mainland China.
The plan, developed after two months of consultations with lawmakers and residents, covers the economy, jobs, education and health. At its center is a pledge to deliver 196,000 public housing units within five years, as Lee seeks to address a housing shortage that has long defined life in one of the world's most expensive property markets.
Lee said the government would encourage "upward mobility" and "enhance the housing ladder to promote home ownership among young people," a challenge in a city where scarce land supply has put home purchases out of reach for many. Under the next decade's housing supply plans, 40% of units will be allocated to public rentals, 30% to subsidized flats and 30% to private homes, he said.
The blueprint also calls for accelerating development of the Northern Metropolis, a 30,000-hectare (116-square-mile) project near the mainland China border, as a new growth engine. Officials hope the area will bolster technological links with the mainland and help add both jobs and homes. When complete, Lee said, it should be ideal for living, work and travel, "further boosting Hong Kong's overall competitiveness and momentum for sustainable development."
The strategy follows Beijing's approval in March of a national five-year plan running through 2030, the latest in China's long-standing practice of setting an official road map for social and economic development. Hong Kong's adoption of its own five-year plan marks a notable shift in how the city presents its policy priorities, aligning them more explicitly with national goals while trying to preserve its international appeal.
Financial and technology ambitions
Highlighting his policy objectives, Lee said Hong Kong would officially launch its first central clearing and settlement system for gold in the first quarter of 2027. The city's Monetary Authority plans to implement central bank digital currency settlement by the end of this year, he added.
The plan's major aims include solidifying Hong Kong's financial, maritime and trade sectors, accelerating information and technology efforts and strengthening its role as a global offshore renminbi hub. Lee said Hong Kong would act as a "super connector" and integrate more closely with China's Greater Bay Area.
"We will expedite the alignment with key national strategies in technology," he said, pointing to areas ranging from lifestyle and healthcare to artificial intelligence and robotics, microelectronics, new energy, advanced manufacturing and new materials. He also said Hong Kong would step up efforts to become a Center for international legal and dispute resolution services.
Northern Metropolis to ease housing shortage
The government first unveiled the Northern Metropolis plan in 2021, aiming to provide homes for about 2.5 million people, alleviate the city's chronic housing shortage and create a new business district. The project also includes plans for three university campus sites, and authorities estimate it will add about 650,000 jobs once fully developed.
Hong Kong, a densely packed hub of 7.5 million people and a former British colony, has struggled with post-COVID malaise and a falling property market. Land sales income has long been a mainstay of public revenues, making the downturn a fiscal as well as an economic concern.
Lee, a former policeman and Hong Kong security chief, took over the city's leadership in 2022, after the COVID pandemic and mass anti-government protests in 2019 prompted Beijing to impose a sweeping National Security Law the following year. While Lee has pushed for an economic recovery, his administration has also faced pressure over last November's Wang Fuk Court fire in Tai Po, which killed 168 people and left thousands homeless in the deadliest fire in decades.
Policies to boost trading and births
In an annual policy address delivered after the plan's release, Lee detailed efforts to diversify the economy into gold and commodities trading, green and sustainable finance, and digital assets.
The securities regulator and stock exchange operator HKEX will promote dual primary and secondary listings for overseas enterprises, including companies from Southeast Asia and countries participating in China's Belt and Road program, Lee said.
To boost births in Hong Kong, where the fertility rate is among the world's lowest, Lee promised three more years of a HK$20,000 baby bonus for firstborns. The amount would rise to HK$30,000 for second and third children over the period, alongside child allowances, tax deductions and additional childcare centers.
Additional reporting by Alison Lui; Writing by Farah Master; Editing by Thomas Derpinghaus and Clarence Fernandez