Hong Kong policy address seen pivoting from security to economic growth
Hong Kong leader John Lee to give address at 0300 GMT Wednesday
Lee says focus of address will be on economic development
Economy of financial hub has struggled to recover since COVID
By James Pomfret
HONG KONG, Oct 15 (Reuters) -Hong Kong is expected to announce measures to boost the city's economy in its annual policy address on Wednesday, including slashing liquor tariffs, as it seeks to revive the financial hub which has been struggling to recover since the pandemic.
Hong Kong's small and open economy has felt the ripple effects of a slowdown in the Chinese economy. The city's economy expanded by 3.3% in the second quarter from a year earlier, and is forecast to grow 2.5-3.5% for the year.
Although tourism numbers have rebounded since COVID, with 46 million visitors expected this year, consumption and retail spending remain sluggish, while stock listings have dried up and capital flight remains a challenge.
In February, Hong Kong's financial secretary announced new measures spanning property, tourism and financial services, noting headwinds including a complex geopolitical environment and ballooning budget deficits.
But in a meeting last month between China's top official on Hong Kong affairs, Xia Baolong and Hong Kong leader John Lee, Xia emphasised a need for further "reforms" to spur economic growth, in line with China's national strategy.
He called on the Hong Kong government to "unite and lead all sectors of society" to promote reforms, while urging businessmen to help in this drive.
One commentator in the state-run China Daily said Xia's speech suggested a need for "economic and social reforms".
Lee has said the focus this year would be on economic development and people's livelihoods. His government pushed through new national security laws in March which Lee said had improved stability.
Some countries including the U.S. have criticised Lee for leading a years-long security crackdown that has jailed opposition democrats, shutdown liberal media outlets and curbed freedoms.
Lee will deliver his policy address on Wednesday at 0300 GMT.
Local media also reported possible plans to phase out some of Hong Kong's more squalid sub-divided flats, tiny cubicles which have been criticised as below acceptable living standards. Lee is also expected to push more tourism-related initiatives.
On real estate, a key pillar of the economy, Lee is under pressure to do more to revive a market that has fallen around a fifth from its 2021 peak.
Some market players including Midland Realty's Hong Kong residential CEO Sammy Po have called for further cutting of red tape to help Chinese buyers, including younger ones on talent schemes, to transfer capital and secure mortgages.
Liquor taxes could also be slashed from the current 100% - one of the highest rates globally - to try to turn the city into a spirits trading hub in the way that it became an Asian wine trading hub after wine duties were abolished in 2008.
The move may benefit local bars and restaurants that have struggled since COVID, with many local residents now opting to travel across the northern border to the Chinese city of Shenzhen to dine more cheaply.
Retail sales were down 7.7% for the first eight months of 2024 compared with the same period a year before.
Additional reporting by Clare Jim; Editing by Lincoln Feast.
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
