Group 1: AI Industry Development - The Hong Kong government emphasizes accelerating the cultivation of emerging industries, particularly artificial intelligence (AI) [1][2] - The establishment of the "AI Efficiency Enhancement Group" aims to promote technological innovation within government departments and improve efficiency through AI applications [2][3] - A budget of HKD 3 billion is allocated for the "Frontier Technology Research Support Scheme" to foster AI research and development [3] Group 2: Integration of AI in Various Sectors - The report advocates for the deep integration of AI across various industries while ensuring risk management [3] - 93% of surveyed banks believe that skills related to AI technology will be crucial for future workforce demands [3] - The Digital Port is set to enhance infrastructure and attract innovative enterprises, supporting Hong Kong's goal of becoming an international innovation and technology hub [3][4] Group 3: Northern Metropolis Development - The Northern Metropolis is identified as a key driver for economic development and technological innovation in Hong Kong [5][6] - The government plans to establish exclusive legislation to streamline approvals and enhance infrastructure delivery in the Northern Metropolis [5][6] - The development of the Lok Ma Chau Loop and the Hong Kong-Shenzhen Innovation and Technology Park is expected to foster collaboration and attract global tech firms [6][7] Group 4: Data Governance and Cross-Border Collaboration - Effective data governance is essential for the successful development of AI, particularly in cross-border data flow between Hong Kong and mainland China [4][7] - The government aims to legislate for the cross-border flow of data necessary for AI testing and research, which is critical for regional innovation [7]

Group 1 - The core focus of the report is on promoting AI innovation and digital transformation in Hong Kong [1] - The government aims to enhance Hong Kong's status as an international financial center by expanding gold trading, deepening stock and bond market development, and improving digital asset regulation [1] - The report highlights the establishment of a new listing requirement for companies with dual-class share structures and the acceleration of the Southbound Stock Connect's RMB-denominated trading counter [1] Group 2 - The "Northern Metropolis" is positioned as a new engine for technology, education, and infrastructure development [1] - The optimized capital investor entry plan is expected to slightly stimulate luxury property sales [1] - Additional relief measures for small and medium-sized enterprises, as well as new social policy initiatives related to welfare and youth development, are proposed to ensure the sustainability and competitiveness of Hong Kong's future [1]

Core Points - The Hong Kong government is accelerating the development of the Northern Metropolis, establishing a dedicated committee led by Chief Executive John Lee to streamline administrative processes and enhance resource allocation [1][2] - The Northern Metropolis is expected to become a key area for urban construction and population growth over the next 20 years, with an estimated future population of around 2.5 million, accounting for one-third of Hong Kong's total population [2][5] - The region will enhance collaboration with the Greater Bay Area, particularly with Shenzhen and Guangzhou, improving technological and industrial integration [2][3] Group 1: Development Plans - The Northern Metropolis will be managed by a committee with three working groups focusing on development models, university city planning, and comprehensive planning and execution [1] - The area covers approximately one-third of Hong Kong's total land area, including developed towns and new development zones [1] Group 2: Economic Impact - The Northern Metropolis is viewed as a strategic development area with significant economic value and potential, aiming to address Hong Kong's spatial and resource constraints [2] - The establishment of the Hong Kong-Shenzhen Innovation and Technology Park is a key project, with the first phase already completed and various industries, including health tech and AI, set to establish a presence [2] Group 3: Population and Infrastructure - The government anticipates that the Northern Metropolis will house about 2.5 million residents by the end of 2024, based on current population statistics [5] - Infrastructure improvements will include simplified administrative measures and a phased development model to reduce costs and construction time [5]

Core Viewpoint - The Chief Executive of Hong Kong, John Lee, announced the establishment of the "Northern Metropolis Development Committee" to accelerate the development of the Northern Metropolis, emphasizing its strategic importance and potential for economic growth [1][6]. Group 1: Development Plans - The Northern Metropolis covers approximately one-third of Hong Kong's total area, including Yuen Long and North District, with several new development areas and hubs at various planning and construction stages [2]. - The Northern Metropolis is expected to be the most active area for urban construction and population growth in Hong Kong over the next 20 years, with a projected population of about 2.5 million, accounting for one-third of Hong Kong's total population [6][7]. Group 2: Administrative Measures - The government plans to simplify administrative processes, including the introduction of a fast-track approval system and a phased development model, to reduce engineering costs and shorten construction timelines [7]. - The "Northern Metropolis Development Committee" will consist of three working groups focusing on development models, university town planning, and comprehensive management of planning and execution [1]. Group 3: Economic Integration - The development of the Northern Metropolis aims to enhance Hong Kong's integration with the Greater Bay Area, particularly with Shenzhen and Guangzhou, facilitating closer collaboration in technology and industry [6]. - The Lok Ma Chau Loop, a key area for innovation cooperation between Hong Kong and Shenzhen, is being developed with a focus on industries such as life sciences, microelectronics, new energy, and artificial intelligence [6].

Economic Development Initiatives - The Hong Kong government will establish a "Mainland Enterprises Going Global Task Force" to assist mainland companies in utilizing Hong Kong as a platform for international expansion, particularly targeting Southeast Asia and the Middle East [3] - The government aims to deepen international cooperation by seeking to establish an office for the Asian Infrastructure Investment Bank in Hong Kong and hosting several international economic conferences in the coming year [3] - Hong Kong will collaborate with exchanges in the Greater Bay Area to explore new businesses in bulk commodity trading and carbon trading, including the development of an offshore soybean spot market [3] Financial Sector Enhancements - The government plans to accelerate the development of new growth areas to solidify Hong Kong's status as an international financial center, including the establishment of an international gold trading market and a leading bond market [5] - Initiatives will encourage more companies to issue bonds in Hong Kong and promote the use of offshore Chinese government bonds as collateral in various clearing houses [5] Low-Altitude Economy Development - A "Low-Altitude Economy Development Action Plan" will be formulated, which includes enhancing core infrastructure and introducing specific legislation for non-traditional flying vehicles weighing over 150 kilograms [5][6] - The government will simplify the licensing process for low-orbit satellites and promote investments related to commercial space and aerospace technology [5] Tourism and Yacht Economy - The government will promote the yacht economy by easing requirements for visiting yachts and discussing measures for facilitating cross-border yacht travel with Guangdong Province [5] Innovation and Manufacturing - The government emphasizes the importance of technology innovation in driving high-value manufacturing and plans to introduce leading European aviation service companies to develop a sustainable aviation fuel industry [6] Local Economic Support Measures - The report includes measures to support the local economy, such as reducing water and sewage fees for non-residential users by 50% and encouraging banks to adopt more flexible credit policies for well-performing businesses [8]

Core Viewpoint - The Chief Executive of Hong Kong, John Lee, presented his fourth policy address focusing on economic development and improving people's livelihoods, aligning with the national development strategy for the 14th and 15th Five-Year Plans [1] Group 1: Economic Development - The policy address emphasizes accelerating the development of the Northern Metropolis and establishing a "Northern Development Committee" led by the Chief Executive [1] - The report highlights the unique advantages of Hong Kong under "One Country, Two Systems," with a shift in focus from "bringing in" to "going out" for future opportunities [1] Group 2: Governance and Administration - To enhance governance, a "Department Head Responsibility System" will be established, along with the formation of an "AI Efficiency Enhancement Group" [1] - The policy address details governance objectives, key measures, and performance indicators, along with an appendix listing additional measures and matters [1]

Core Insights - The new Policy Address aims to promote high-quality economic development and improve the well-being of citizens in Hong Kong, providing a clear path and specific action plans for long-term prosperity and happiness [1] Group 1: Economic Development - The Policy Address focuses on two main pillars: economic development and improving people's livelihoods, with a strong commitment to reform and progress through institutional innovation and policy breakthroughs [1] - A dedicated chapter on accelerating the development of the Northern Metropolis is included, emphasizing its role as a key engine for future economic growth and technological innovation [2] - Measures to simplify administrative procedures and promote market participation in the Northern Metropolis development are outlined, with the Chief Executive personally leading the Northern Metropolis Development Committee [2] Group 2: Technological Advancement - The report highlights the importance of developing the artificial intelligence (AI) industry, announcing measures to further promote AI and data science, and attract local and international talent [2] - The establishment of an AI Efficiency Enhancement Group is announced to drive technological innovation within government departments [2] Group 3: Governance and Education - Strengthening the governance system is a key focus, with the introduction of a responsibility system for department heads to enhance accountability and improve overall government efficiency [3] - The report aims to position Hong Kong as an international education hub by implementing measures to attract global talent and increase student accommodation [3] Group 4: Social Welfare - The Policy Address emphasizes building a caring and inclusive society, with measures to improve living standards, enhance grassroots healthcare, and support labor welfare [3] - A "precision poverty alleviation" strategy is continued, targeting resources to the most in-need groups through various community initiatives [3] Group 5: Comprehensive Development - The report proposes a series of short, medium, and long-term measures across various sectors, including industrial development, maintaining international status, innovative technology, and cultural tourism [3]

Core Points - The 2025 Policy Address by Hong Kong Chief Executive John Lee emphasizes economic development and aligning with national strategies [1] - Specific measures include accelerating the development of the Northern Metropolis, industrial innovation, and reinforcing Hong Kong's status as an international financial center [1] Development of Northern Metropolis - The Northern Metropolis is identified as a new economic engine for Hong Kong, with plans to establish a "Northern Development Committee" led by John Lee [2] - The government will create dedicated legislation to facilitate the development of the Northern Metropolis, including funding channels for park companies and streamlined cross-border logistics [2] - The first phase of the Hong Kong Science and Technology Innovation Cooperation Zone is complete, with major industries like life sciences and AI tenants moving in [2] Industrial Development and Innovation - Emphasis on artificial intelligence (AI) development, including a HKD 3 billion funding plan to attract international research talent [4] - Plans to establish the "Hong Kong AI Research Institute" by 2026 with a budget of HKD 1 billion to promote AI research and application [4] - The life sciences sector is set to grow, with initiatives to attract pharmaceutical companies for clinical trials and the establishment of an "International Clinical Trial Academy" [5] Reinforcing Hong Kong's Financial Center Status - The government aims to support tech companies in raising funds through the stock market and improve listing mechanisms [6] - Initiatives to enhance the bond market include creating a centralized platform for managing various assets and promoting offshore Chinese government bonds [6][7] - Plans to establish an international gold trading market and enhance commodity trading, including carbon trading [7][8] Stock Market Performance - Following the Policy Address, the Hang Seng Index rose by 1.41%, reaching a new high [9] - The Hong Kong stock market has seen significant recovery in 2025, with the Hang Seng Index up over 33% year-to-date and new stock issuance increasing dramatically [10][11] - The average daily trading volume in the Hong Kong stock market has surged by 118% year-on-year [11]

Group 1 - The Northern Metropolis is identified as a new engine for Hong Kong's economic development, with significant potential for growth and the best timing for introducing industries and major projects [1][2] - The Hong Kong government plans to establish the "Northern Development Committee" to formulate operational models for various development zones within the Northern Metropolis [1] - A dedicated legislation will be created to accelerate the development of the Northern Metropolis, including special funding channels for park companies and streamlined management for cross-border flows of people, goods, and data [1][2] Group 2 - The Lok Ma Chau Loop Hong Kong Science and Technology Innovation Cooperation Zone has seen the completion of three buildings in its first phase, with tenants from key industries such as life sciences, microelectronics, new energy, and artificial intelligence [1][2] - The first phase of the remaining land in the Lok Ma Chau Loop will be launched within this year, with plans for the second phase's development scale and industry distribution to be completed [1][2] - The Northern Metropolis covers approximately 300 square kilometers, accounting for about one-third of Hong Kong's area, with an expected future residential population also representing one-third of Hong Kong [2] Group 3 - The Northern Metropolis is expected to provide over 3,000 hectares of new development land and create 500,000 job opportunities [3] - Infrastructure projects connecting Hong Kong and Shenzhen are being accelerated, with the completion of the Kwu Tung Station and Hung Shui Kiu Station expected in 2027 and 2030, respectively [3] - The Hong Kong-Shenzhen Western Railway is projected to be completed between 2034 and 2038, significantly reducing travel time between the Northern Metropolis and Shenzhen Qianhai to just 15 minutes [3][4] Group 4 - Shenzhen's government plans to collaborate with Hong Kong on the planning and construction of the Hong Kong-Shenzhen Western Railway and the Northern Link [4] - The Western Railway project will form a dual railway corridor with the Northern Link, enhancing connectivity and supporting the development of the Lok Ma Chau Loop [4] - The completion of these projects will contribute to a more integrated "one-hour living circle" in the Greater Bay Area, strengthening the linkage between the east and west banks of the Pearl River Estuary [4]

Group 1: Government Policy and Market Development - The Hong Kong government is set to release the 2025 Policy Address, with recommendations to introduce fractional share trading to lower entry barriers for investors and enhance market liquidity [1] - There is a proposal to extend trading hours, particularly by adding night trading sessions, to better meet global investor demands and strengthen Hong Kong's position as an international financial center [1] - KPMG supports the government's continued efforts to deepen policies that attract market forces to develop the Northern Metropolis as a new engine for Hong Kong's future growth [1] Group 2: Infrastructure and Regional Development - KPMG highlights the importance of infrastructure planning and the exploration of "district development" models to provide a solid foundation for the efficient development of the Northern Metropolis [1] - The Northern Metropolis is expected to become a core hub in the Guangdong-Hong Kong-Macao Greater Bay Area, releasing greater potential for economic growth [1] Group 3: Innovation and Technology - KPMG advocates for policies that favor the development of innovation and technology, emphasizing the role of AI as a core driver for industry upgrades in finance, healthcare, and logistics [2] - The firm suggests that enhancing talent strategies is crucial for supporting Hong Kong's innovation and economic development, with a focus on attracting global talent and improving local workforce capabilities [2] Group 4: Tourism and Cultural Development - KPMG supports the government in implementing more measures to stimulate tourism and attract visitors, highlighting the success of the Kai Tak Sports Park as a new landmark for events [3] - The firm anticipates that the upcoming Policy Address will include specific measures to leverage Hong Kong's unique resources to enhance its appeal as an international tourist destination [3]