Blog
Let “One Country, Two Systems” Shine Brighter
The National Two Sessions currently taking place in Beijing have attracted significant attention. Despite the multiple challenges in a complex external environment, the Mainland’s economy has moved forward steadily, and high-quality development has continued to progress. Last year, the Mainland registered an economic growth of 5%, with its gross domestic product (GDP) reaching RMB135 trillion. Notably, technological innovation and its applications have gradually become the core driving forces of our country’s economic growth. The value added output of the core industries in the digital economy accounted for around 10% of GDP. Moreover, the added value of the “Three New” economy – namely new industries, new business models and new business formats – rose to over 18% of GDP. These indicators fully reflect the steady growth and solid momentum of our country’s economy.
“Technological and industrial innovations are the fundamental pathways for developing new quality productive forces.” Indeed, from large artificial intelligence (AI) models to online gaming, and from robotic applications to animations, it is heartening to witness many of the Mainland’s breakthroughs in technology as well as in the cultural and creative sectors. Indeed, the rise of numerous innovative enterprises on the Mainland has surprised the world. The innovations that are occurring in enterprises, products and services are not only generating substantial value but will also accelerate the transformation and upgrading of traditional industries. All of these are clear indication that technological and industrial innovations are key to driving economic growth and accelerating development.
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Hong Kong will closely align with the direction and trajectory of national development, and steer our work around the priorities outlined by the Central Government. As Hong Kong further integrates into the overall national development, we need to accelerate efforts in the following three areas:
First, we should expedite technological innovations and their applications to create new impetus for the economy and enhance the quality of development. In this process, we are committed to both advancing the transformation and upgrading of traditional industries, and nurturing strategic emerging sectors and future industries. We will also take into account Hong Kong’s local conditions and better leverage our role as an international financial centre to match capital with technology. Through the efficient allocation of funds via our financial markets, we will inject momentum into Hong Kong’s innovation and technology (I&T) ecosystem, enterprises and industry clusters.
Hong Kong’s extensive investments in scientific research in recent years, along with our endeavours to nurture startups and attract large-scale I&T enterprises to establish their presence in the city, are bearing fruit. Efforts in this regard will be strengthened so as to enable emerging industries to make greater contributions to our economic growth. At the same time, through various policies, we can guide traditional sectors to unleash creativity and enhance competitiveness.
Hong Kong’s financial markets provide critical support for technological and industrial innovations. In turn, these innovations are reinforcing the momentum of Hong Kong’s equities market. Driven by the robust performance of technology shares, the Hong Kong stock market has seen substantial rise since the start of this year, with the average daily turnover nearing HK$300 billion in February. The initial public offering (IPO) market has also become more active, with over 100 applications currently being processed by the Hong Kong Stock Exchange. The total IPO funds raised in Hong Kong this year are projected to be between HK$130 and HK$160 billion. The dedicated “technology enterprises channel” (TECH) for IPO applications, announced in this year’s Budget, aims to address market needs by providing targeted services to expedite the early-stage preparation for IPO applications.
Second, by creating unique experiences across various themes, we will adopt innovative approaches to unleash the market’s consumption potential. This will strengthen domestic demand and boost consumption. In light of changes in the consumption patterns of residents and visitors, the local retail market has been affected. However, past practices from the Mainland have suggested that by crafting new experiences and scenarios in culture, sports and tourism, it is possible to reach a broader and more diverse consumer base. With effective digital marketing and promotion, this can help stimulate consumption power, thereby achieving a virtuous cycle of creating value for industries and helping them expand market capacity. By leveraging Hong Kong’s distinctive East-meets-West cultural appeal, we can provide more novel consumption experiences. This will be key to maintaining our competitive edge and driving future development.
Meanwhile, consumer demand is also driven by innovations on the supply side of products and services. In the Mainland, brand new smart appliances and advanced electronic home products are gaining popularity. These products help address many daily life pain points for consumers. As smart appliances become more accessible and undergo upgrades, they will stimulate even greater consumer demand.
Third, we will deepen international engagement and cooperation. Under the "one country, two systems" arrangement, Hong Kong plays the unique role of connecting with both the Mainland and the rest of the world. We need to seize the opportunity to strengthen our international ties, under the strategy of forging closer partnerships with the Greater Bay Area and opening up more overseas markets. We will reinforce connections with traditional markets while building new ones with emerging economies. Taking major international conferences as an example, we will host the inaugural "Hong Kong Global Financial and Industry Summit" this year, which will bring together global enterprises, funds and technologies, thereby elevating the level of international co-operation in various industries. It will also attract more leading companies in advanced industries, as well as Mainland and overseas enterprises and investors, to establish their presence in Hong Kong. Moreover, we will organise the “International Young Scientists Forum on Artificial Intelligence” and “International Conference on Embodied AI Robot”, which will gather top talents in the relevant fields and promote Hong Kong as a hub for collaboration in the AI industry.
The trends are clear: technology is driving innovation; good experience will boost consumption; and exchanges promote more co-operation. We will integrate the spirit of the National Two Sessions into our efforts in advancing social and economic development, with a view to supporting Hong Kong’s high-quality economic growth and better sharing the economic fruits with the community. Above all, Hong Kong will be proud to make greater contributions to the building of China into a great country and its great rejuvenation through Chinese modernisation.
March 9, 2025