Hong Kong’s leader unveils economic blueprint focused on reforms

Chief Executive John Lee Ka-chiu announced an economic reform blueprint on Wednesday aimed at transforming Hong Kong’s traditional sectors such as finance, trade and shipping, and investing in new technology industries, while rolling out a bigger welcome mat for foreign talent and funds.

In his third policy address since becoming Hong Kong’s leader, he also threw a lifeline to the luxury property market, liberalising the loan-to-value ratio for all homes to the pre-2009 level of 70 per cent.

Lee also revealed details of his government’s much-awaited overhaul of the city’s notorious subdivided flats and “coffin-sized” homes, setting minimum requirements for landlords to fulfil such as providing windows and toilets or risk criminal liability.

Owners would have to convert their flats into “basic housing units” to meet new legal requirements within a grace period, but tenants would not face any penalties, he said.

Lee conceded later at a press briefing that turning subdivided homes into accommodation considered acceptable, rather than eradicating them altogether, was not a “perfect 100 per cent solution”.

The chief executive began his third policy address, titled “Reform for Enhancing Development and Building our Future Together”, by detailing how his government had been guided by a “reform mindset” from the outset and had met most of the “result-oriented” targets he had set.

“Reform is a continuous process,” he told lawmakers, many of them wearing green jackets or ties to match the colour theme of his policy document symbolising vitality, harmony and prosperity.