Hong Kong Tech Hub Plans to Boost AI Ambition
Hong Kong Tech Hub Plans to Boost AI Ambition
According to a report by Bloomberg, Hong Kong’s Chief Executive John Lee is expected to announce plans to accelerate the creation of a cross-border technology hub with mainland China as the city looks for new growth drivers to revive its weak economy. The initiative, known as the Northern Metropolis, is designed to deepen integration with the mainland and transform the underdeveloped region into a centre for innovation and advanced industries. This shift is part of a broader strategy to diversify beyond the city’s reliance on finance and real estate.
Lee’s fourth policy address will set out measures to fast-track the project, including easing financing restrictions, Wen Wei Po reported. The government intends to bring in companies from sectors such as artificial intelligence, renewable energy and medical technology to anchor the district.
The urgency comes despite signs of a tentative rebound. Hong Kong’s economy expanded at its fastest pace in over a year in the last quarter, while fundraising activity has improved. However, property prices have fallen for four straight years, bad debt is rising, and unemployment has reached a three-year high.
Measures proposed by the property sector, such as easing capital flows for mainland buyers or lowering property taxes, are not under consideration, Sing Tao noted. Cutting transaction levies would hurt fiscal revenue, especially with strained public finances, explained Kathy Lee, head of research at Colliers International. She also highlighted concerns about capital flight and money laundering tied to monitoring cross-border real estate investment.
Instead, the government may revive the Tenants Purchase Scheme, first launched in 1998, which allows public housing residents to purchase their flats at discounted rates, RTHK reported. The move could help locals gain a foothold in the property market.
Home values remain near their lowest levels since 2016 despite lower interest rates, with oversupply and weak demand still weighing heavily. Analysts suggest property developers could benefit in the near term if Lee announces measures to stimulate primary sales, with potential support also coming from lower mortgage rates following an anticipated US Federal Reserve cut. Bloomberg Intelligence noted that developers like Sun Hung Kai Properties and Henderson Land Development may benefit.
Hong Kong’s US$7.2 trillion stock market, already buoyed by a liquidity-driven rally, could also gain from policies encouraging more listings and capital inflows. The economy grew 3.1 per cent between April and June compared with a year earlier, but momentum is expected to ease as frontloaded exports fade. Mainland China’s recent economic slowdown further adds pressure on Hong Kong’s outlook.
Source here – Have a Story? Address it to the Editor and submit it here
About The Business Times
The Business Times is Singapore’s leading financial daily, well regarded for its coverage of business, economic, and market developments across Asia and globally. Published by SPH Media Limited, the newspaper focuses on corporate news, investment trends, government policy, and international affairs that impact the financial community. It delivers in-depth reporting on industries such as banking, property, technology, energy, healthcare, and logistics, with analysis tailored to decision-makers, professionals, and investors.
Beyond print and online editions, The Business Times offers newsletters, podcasts, and digital platforms that extend its reach to readers who rely on timely updates for trading, strategy, and policy insights. It is also known for special supplements, lifestyle features, and coverage of ESG, wealth management, and startups. With a reputation built over decades, The Business Times serves as a trusted source of intelligence, shaping perspectives for Singapore’s business leaders and the wider regional economy.
Featured Image: KR-Asia
Disclaimer
The information provided in this article is for general informational purposes only and from publicly available sources. While we strive for accuracy, we do not make any representations or warranties, express or implied, regarding the completeness, reliability, or validity of the content. This article does not make any direct claims about specific companies, individuals, or organizations. Any references to reports or external sources are for context and do not imply endorsement or verification of any specific allegations. Readers are encouraged to conduct their own research and seek professional advice before making business decisions. We disclaim any liability for any losses or damages incurred as a result of reliance on the information provided.