Hong Kong unveils first 5-year plan to broaden city's identity beyond finance

Hong Kong Chief Executive John Lee on Wednesday unveiled the city's first five-year development plan, seeking to expand its identity beyond international finance to include technology, higher education and other sectors in a move that echoes Beijing's approach to economic planning.

Addressing the city's legislature, Lee said the plan aims to achieve breakthroughs in economic development, strengthen competitiveness, improve social well-being and advance Hong Kong's integration into and contribution to China's national development.

Hong Kong has long emphasised minimal government intervention in its economy, although officials have increasingly adopted language reflecting Beijing's development vision. Mainland China approved its 15th five-year plan, covering 2026 to 2030, in March.

Ahead of the announcement, the Hong Kong government said its plan would provide a framework for strategic priorities rather than establish a planned economy, stressing that the city's capitalist system would remain in place.

A major focus is the accelerated development of the Northern Metropolis, a large project intended to provide land for innovation and technology industries and establish university towns near Shenzhen, a major Chinese technology hub.

The proposal, first put forward in 2021 by Lee's predecessor Carrie Lam, is projected to create about 650,000 jobs and accommodate 2.5 million people.

Under the plan, Hong Kong aims to raise domestic expenditure on innovation activities from 1.63 per cent of gross domestic product in 2024 to 3 per cent after 2030.

The government also plans to strengthen links between industry and academia in areas where Hong Kong has competitive advantages, particularly in the Northern Metropolis.

Three planned university towns are expected to have distinct areas of focus, including one dedicated to fields such as artificial intelligence and robotics.

At the same time, the government wants to reinforce Hong Kong's established position as an international centre for finance, maritime services, trade and aviation.

It also plans to strengthen the city's role as the world's largest offshore renminbi hub and explore using China's currency for government expenditure where appropriate.

The plan comes as observers watch whether Lee's policy agenda could help build momentum for a second term next year.

Lee, a former security chief, oversaw the enactment of Hong Kong's homegrown national security law in 2024, fulfilling a long-standing demand from Beijing. Officials said the law, along with a separate China-imposed security law, was needed to maintain stability after the massive anti-government protests in 2019.

Lee has faced pressure to distinguish Hong Kong from regional competitors and mainland Chinese cities. Beijing's tightening control over the territory has also affected its international image as a relatively open financial centre, according to critics.