Described by some as an ‘aim-high, spread-wide policy address’, Hong Kong chief executive John Lee’s fourth policy address was delivered at a time that the Special Administrative Region’s (SAR) economic landscape is divided by a flourishing financial market and a lacklustre retail economy.
While IPO listings by 66 companies raised US$23.27bn on the main board of the Hong Kong stock exchange during the first nine months of 2025, at the same time a slew of iconic bakery chains, beloved restaurants and decades-old retail outlets have pulled down the shutters, citing high rents and a muted economy for their demise.
The pet industry is a resilient one due to deep emotional bonds
Vowing to improve residents’ livelihoods as the ‘ultimate objective’, Lee said that Hong Kong is ‘moving through an irreversible economic transition’, which is an essential process for building a stronger and more robust economy in the future.
Pet-friendly culture
Acknowledging the potential economic benefits Hong Kong’s pet-friendly culture could generate, Lee announced that authorities will issue licences to restaurants to allow pet owners to take their pets onto their premises. Historically, dogs have not been allowed in restaurants, with the exception of guide and police dogs.
The pet industry is a resilient one, even during economic downturns, due to deep emotional bonds between owners and their pets, with an estimated 240,000 households sharing their homes with around 400,000 dogs and cats, and annual spending on premium pet food, health services and accessories, estimated to be worth more than HK$2.4bn annually. Lee’s proposal could be good news for animal owners and the pet economy.
Urbanisation agenda
As Hong Kong seeks new economic growth engines to maintain its international competitiveness, a main thrust of the chief executive’s vision for the future involves accelerating the development of the Northern Metropolis, a megaproject aimed at the urbanisation of the area between Hong Kong and the border with the Shenzhen tech hub in mainland China.
First proposed in 2021, Lee announced that he will take personal charge of a new body overseeing the megaproject, which is envisioned to eventually cover a third of Hong Kong’s total land area, provide 650,000 jobs and house 2.5 million people. To further diversify Hong Kong’s economy and accelerate growth, Lee pledged to entice more high-value-added industries and enterprises to the SAR by offering preferential policy packages.
AI focus
The chief executive also announced plans to promote artificial intelligence (AI) as a core industry. These include an AI-based landslip warning system, due to be implemented in 2026, which combines AI, big data and real-time rainfall monitoring, and which the government claims can improve risk assessment and warning issuance to 90% accuracy.
Several recommendations put forward by ACCA featured in the policy address
In general, Hong Kong’s business community gave credit to the chief executive for delivering a policy blueprint that bolsters Hong Kong’s strengths as an international hub for finance, while also providing support for new industries. ACCA Hong Kong chairman Wilson Cheng noted how several recommendations put forward by the ACCA Hong Kong policy team had featured in the address.
Cheng singled out the establishment of an ‘AI Efficacy Enhancement Team’, which fits with ACCA’s focus on promoting the application and development of AI, which will feature in a redesigned qualification in 2027. Cheng added that ACCA Hong Kong also endorses Lee’s proposal to formulate preferential policy packages to attract high-value-added industries and high-potential enterprises to establish their presence in Hong Kong to drive high-quality development.
Yachts welcome
While the majority of topics covered in the policy address were predictable, the chief executive did include a few unexpected initiatives including a proposal to take advantage of Hong Kong’s 1,180km shoreline and 263 islands to develop a yacht hub for Asia. The plan would include making more than 1,000 moorings at strategic government-designated waters available, which would eliminate the need to reserve moorings at privately run clubs.
