Hong Kong Policy Address Promises New Growth Drives

17 September 2025

A screen displays Hong Kong Chief Executive John Lee as he delivers his annual policy address at the Legislative Council in Hong Kong, China, September 17, 2025. REUTERS/Tyrone Siu

Hong Kong Chief Executive John Lee delivered his fourth policy address on September 17, 2025, laying out a plan to bolster the city’s economy, improve quality of life, and reinforce its global standing. Faced with a cooling Chinese economy and escalating trade tensions with Washington, Lee reaffirmed the city’s growth forecast for 2025 at 2-3 percent.

Lee’s address focused heavily on improving livelihoods. He emphasized the need for better public housing, higher income for workers, stronger social care for the elderly, and more opportunities for youth. While the address included few groundbreaking housing plans, Lee said the administration would fast-track certain initiatives and improve access.

One of the signature pillars of the speech was the Northern Metropolis project. Located near the border with mainland China, this large-scale development is meant to house about 2.5 million people and create a modern business district that can serve as a bridge between Hong Kong and its neighboring tech and manufacturing hubs.

On the economic front, Lee pledged to expand and diversify key industries beyond Hong Kong’s traditional strengths of finance and trade. He proposed establishing an international gold trading market, boosting fintech and green finance, and attracting pharmaceutical firms capable of conducting clinical trials and producing advanced therapies.

The address also proposed reforms and incentives to enhance Hong Kong’s appeal as an international business center. Chinese banks will be encouraged to set up regional headquarters in Hong Kong and extend operations into Southeast Asia and the Middle East. The aviation sector is expected to grow, particularly through services for high-value aircraft parts recycling and development of a sustainable aviation fuel industry.

On education, Lee moved to make Hong Kong more globally competitive. One key change will increase the quota of non-local student placements in government-funded universities from 40% to 50%. This is part of a broader plan to position Hong Kong as a higher education hub. He also announced a sizable child allowance for new parents of HK$260,000 in the first two years after childbirth.

Lifestyle and social policies also featured in the plan. For example, Lee proposed licensing for pet-friendly restaurants, recognizing the large number of pet-owning households as a burgeoning market.

While the address was rich in policies and targets, observers noted that major housing reforms or fresh large-scale housing projects were limited in substance. Instead, the speech emphasized speed of implementation, regulatory accountability, and reinforcing areas like national security and administrative effectiveness.

The context for these proposals is challenging. Sluggish consumer demand, concerns over property market instability, and external headwinds from global trade tension are undermining confidence. Lee’s address seeks not only to respond to immediate economic pressures but to build structures and policies to sustain growth in a changing landscape.

Lee’s vision seems to rest on integrating Hong Kong more closely with both mainland China’s growth strategies and global financial networks. The initiatives around education, trade expansion, and international finance suggest he is aiming for Hong Kong to play a bigger role in connecting China to global markets, especially as other economic hubs in Asia compete for prominence.

Implementation will be the real test. For many citizens the value of these promises will depend on speed, execution, clarity in regulation, and tangible improvements in housing, income, and social services. If the plans move from announcement to action, these policies could reshape Hong Kong’s trajectory in coming years. If not, it may deepen frustration with a government perceived as heavy on rhetoric but light on delivery.