INSUBCONTINENT EXCLUSIVE:
Hong Kong Chief Executive John Lee unveiled a sweeping plan to woo talent back to the city and ease its housing woes, in a bid to revive its
status as a thriving international finance hub
The city leader in his maiden policy address on Wednesday announced he would cut property duties for non-permanent residents and ease visa
rules to reverse a brain drain prompted by years of isolationist Covid policies
have blamed for political unrest in the city
Gross domestic product is projected to contract for the third time since 2019 as fallout from Covid restrictions, rising interest rates,
The Southeast Asia city-state has been trying to lure talent and business away from Hong Kong with its own new visa program and a faster,
more aggressive rollback of Covid restrictions
The Hang Seng Index was down 1.8% at 1:36 p.m
local time as Lee was delivering his address
A sub-index of property developers was down 0.8%, erasing gains before his speech of 2.8%.Countering Singapore Lee outlined a two-year visa
program for people who bring in at least HK$2.5 million ($318,480) annually that will allow them to to explore opportunities in Hong Kong
without being subject to any quota
The city will also suspend the annual quota of its current program for skilled talent and extend the limit of stay for non-local graduates
The proposal comes two months after Singapore announced its own five-year work visa program for foreigners earning S$360,000 ($253,530)
annually, citing a hypercompetitive battle for global talent
While Hong Kong has relaxed its toughest Covid restrictions in recent weeks -- in September, Lee announced an end to hotel quarantine for
travelers -- it has trailed Singapore, which this spring dropped many of its most prohibitive curbs and has been outspoken about needing to
position itself as a premier financial hub and global city
The university visa program, meanwhile, echoes a similar talent incentive program in the United Kingdom, which earlier this year launched a
two-year visa plan for jobseekers who have graduated from top-ranked universities in the last five years.Property Proposals A
much-anticipated change to property rules included a plan to refund extra stamp duties that non-permanent resident property buyers have to
pay after they have stayed in the city for seven years
Once they have become permanent residents, those buyers can apply for refunds of two separate stamp duties that are each fixed at 15%
Secondary home prices have dropped 8% since the start of the year and are on track to approach a five-year-low
The easing or lowering of stamp-duty rates for non-local buyers could attract demand, particularly from mainland Chinese interested in
luxury residential properties, said Patrick Wong, a real estate analyst with Bloomberg Intelligence ahead of the policy address
The impact on sales of mass residential projects could be limited until there is more clarity on how high mortgage rates could go, he added
He vowed to increase overall public housing production by about 50% in the coming five years.National Security Lee also used his address,
his most important speech since taking office in July, to express his gratitude to Chinese President Xi Jinping
In that address, Xi credited a national security law enacted in June 2020 -- along with an electoral overhaul to ensure governance under
stock exchange will revise the mainboard listing rules next year to facilitate fundraising, and to revitalize the Growth Enterprise Market,
a market with lower listing eligibility criteria The Hong Kong Monetary Authority is starting preparation on digital Hong Kong dollars The
city aims to attract 100 high-potential innovation and technology enterprises to the city to boost economic value and jobs Hong Kong will
promote its fintech industry, offer tax concessions to family offices
