HONG KONG -- Hong Kong's leader announced plans Wednesday to speed up development of an economic powerhouse near its border with mainland China and nurture industries ranging from artificial intelligence to higher education as the city seeks new economic growth engines to maintain its international competitiveness.Chief Executive John Lee is under pressure to distinguish Hong Kong from regional rivals and mainland Chinese metropolises after a yearslong crackdown on democracy activism and Beijing's tightening grip tainted the city's image as a free-wheeling financial center.
“My ultimate objective in governance is to improve people’s livelihood,” he said.“The well-being of our people is interwined with the health of our economy.
Economic growth is the foundation of improving livelihood.” In his annual policy address, Lee said he will lead a committee on developing the Northern Metropolis, an ongoing project that envisions building a new IT hub and a university town near the Chinese tech hub of Shenzhen.It aims to provide 650,000 jobs and house 2.5 million people.
The development proposal was first floated in 2021 by his predecessor Carrie Lam.The government would devise a range of financing schemes and introduce legislation to empower the government to simplify procedures for issues such as setting up industrial park companies and speeding up building plan approvals, Lee said.The city’s gross domestic product is estimated to have grown 3.1% in the second quarter of 2025, supported by strong exports and improved domestic demand.
For the first half of this year, Hong Kong ranked first globally in funds raised through initial public offerings as a wave of Chinese companies sought to list in Hong Kong under U.S.-China tensions.But vacant shops remain in various areas.
Retail sales between January and July this year saw a drop.Restaurants have closed.
The slump stemmed from tourists spending less and many residents opting to spend weekends on mainland Ch...