The Chief Executive of the Hong Kong Special Administrative Region, John Lee, is scheduled to release his third Policy Address on October 16, attracting considerable attention from both the market and the public. This report serves not only as a summary of the past year but also as a significant indicator of Hong Kong's policy direction and the key priorities for the upcoming year, which will have a profound impact on the Hong Kong stock market and various sectors of society.

John Lee emphasizes that the Policy Address is not merely a blueprint for government policies; rather, it represents a culmination of listening to the voices of citizens. To this end, he has engaged in extensive consultations with representatives from different social strata and industries during the drafting process of the report. In the lead-up to the release, various sectors of Hong Kong society have actively participated in public consultations to contribute their insights for the new Policy Address. The consultation process began on July 16, with Lee and his team attending approximately 40 online and offline consultation sessions to date. These discussions have spanned multiple areas, including the economy, livelihoods, housing, education, and healthcare, thereby reflecting the high levels of concern and anticipation among Hong Kong citizens regarding future developments.

Key Focus Areas and Expectations of the Policy Address

John Lee has previously indicated that economic recovery and social stability will be among the crucial topics of the Policy Address.In the economic domain, there are widespread expectations that Lee will announce a series of measures aimed at further consolidating Hong Kong's status as a global financial center. As an international hub for finance, shipping, and trade, Hong Kong's position in these sectors is anticipated to be strengthened. Additionally, the report may address issues related to the integration of the Guangdong-Hong Kong-Macao Greater Bay Area, as well as the support for cultural and medical industries.

In terms of public welfare, the housing issue remains a focal point of concern for Hong Kong society. In last year's Policy Address, Lee proposed the establishment of a working group to address the "subdivided housing problem." This year's report is expected to set minimum standards regarding the size and height of subdivided units to ensure that substandard housing does not reappear in the future. Furthermore, grassroots healthcare has emerged as another key focus area, with Lee emphasizing the government's commitment to community healthcare during his field visits in the Wong Tai Sin District. He noted that healthcare spending consistently ranks among the top three expenditures in the annual fiscal budget.

Regarding fiscal policy, the market anticipates that the Policy Address will introduce a comprehensive package of incremental fiscal policies, with a potential scale exceeding HKD 500 billion. This may include a new round of debt restructuring, the issuance of special government bonds to replenish bank capital, and measures to bridge the fiscal revenue-expenditure gap.

Potential Impact on the Hong Kong Stock Market

The content of the Policy Address is expected to have a significant impact on the Hong Kong stock market, particularly regarding financial and real estate policies, which may elicit swift market reactions. Should the government introduce new economic stimulus measures or tax incentives in the report, stocks in the financial sector and local enterprises are likely to benefit. Moreover, any changes in real estate policies will directly influence the performance of property stocks. Therefore, investors will closely monitor the market's response following the report to navigate the volatility arising from policy changes.