Hong Kong 2022 Policy Address Summary

Hong Kong Chief Executive John Lee announced his first policy address on 19 October 2022, following his appointment in July 2022. The policy sets out a plan for the next five years, and covers measures to improve governance systems, initiatives to attract foreign talent, as well as an emphasis on reviving and facilitating offshore investors to participate in the financial market with China, ensuring Hong Kong maintains its leading international status. 

Some highlights that business owners and private wealth industry professionals may want to note are as follows:

Attracting strategic enterprises

• The Financial Secretary’s Office aims to attract enterprises to set up operations in Hong Kong by co-investing $30 billion from the ‘Future Fund’ 

Attracting quality talent and enterprises

• To launch a two year scheme to attract top talent such as graduates from the world's top 100 universities to pursue careers in Hong Kong
• To improve and quicken the recruitment process for local employers intending to import foreign talent by removing the need to provide evidence of local recruitment efforts
• For non-local graduates and those who graduate from the Greater Bay Area (GBA) campus of a Hong Kong university, the stay arrangements will be relaxed on a pilot basis for two years to encourage recruitment in Hong Kong 
• Suspend the annual quota of the ‘Quality Migrant Admission Scheme’ for two years allowing a higher number of qualified individuals to emigrate to Hong Kong
• Support the Hong Kong Exchanges and Clearing Limited (HKEX) by revising the Main Board Listing Rules to aid the listing of large-scale advanced technology enterprises that fail to meet the profit and trading record requirements
• Support the HKEX to explore revitalising the Growth Enterprise Market (GEM) to serve small and mid-sized issuers, to provide a more effective fundraising platform for start-ups and small and medium enterprises (SMEs)

Deepening and widening mutual access between the financial markets of Hong Kong and China

• Launch the Northbound Trading of Swap Connect (once the relevant regulatory approvals are completed) to address the risk management needs of international investors for their RMB bond investments

Supporting asset and wealth management business

• Introduce an amendment bill to offer tax concessions for eligible family-owned investment holding vehicles managed by single family offices in Hong Kong

Financial technologies

• Implement a licensing regime for virtual asset (VA) service providers (on approval of the relevant legislative amendments) to protect investors, mitigate money laundering risks, and facilitate the development of the VA market

These highlights form part of the address which covers around 590 policy measures aiming to better serve the people of Hong Kong and the city’s development. If you have any questions about the policy address or would like to discuss your specific circumstances, please contact James Ho.