One of the strongest threads in the Policy Address delivered on Wednesday by John Lee Ka-chiu, chief executive of the Hong Kong Special Administrative Region, is the urgency on economic growth and transformation. The government reaffirmed its goal of deepening Hong Kong’s role as a central node between the Chinese mainland and the global economy — not just a gateway, but a platform. 

The Northern Metropolis was made a new priority, both as a housing solution and as a catalyst for tech-driven growth, intended to connect with neighboring innovation centers across the border. On financial markets, the Policy Address promises reforms designed to improve liquidity, attract new-economy listings, expand dual counter trading in renminbi, and facilitate the second listing of overseas-listed Chinese mainland companies. These are intended not only to build on recent strong performance in Hong Kong’s initial public offerings and market activity, but also to hedge against external headwinds.

Some of the measures regarding innovation announced in the Policy Address were to build a competitive ecosystem for the low-altitude economy to turn the city into a hub for innovative applications of drones; to promote artificial intelligence education in schools (The Education Bureau has allocated HK$2 billion ($257 million) from the Quality Education Fund to support digital education in primary and secondary schools, while a blueprint for digital education in primary and secondary schools will be released in 2026); to digitalize the port system to boost maritime trade; to support small and medium-sized enterprises in the innovation sector to estimate the value of their patents against mainland standards; to press ahead with the new innovation and technology infrastructure (the Innovation, Technology and Industry Bureau will aim to complete preparatory work in 2026 for setting up the Life and Health Technology Research Institutes and the Hong Kong Artificial Intelligence Research and Development Institute); to release a  conceptual outline and development plan for the I&T industry at San Tin Technopole within this year; to roll out parcels of land in Phase One of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone this year, and to enhance  efficiency with a new AI task force, among others.

This year’s Policy Address certainly came amid ongoing economic difficulties and weak domestic consumption that have hit many businesses across different sectors in the city.

That being said, the situation overall is not that grim at all, but quite the opposite. Hong Kong’s economy is transforming, but it is far from being in “decline” or “over”, as some commentators suggested.

Innovationwise, the World Intellectual Property Organization published its Global Innovation Index (GII) 2025 top 100 innovation on Sept 1, among which the Shenzhen-Hong Kong-Guangzhou cluster ranked first globally.

The Shenzhen-Hong Kong-Guangzhou technology hub overtook Tokyo-Yokohama to become the world’s largest innovation cluster as per the index. It marked the first time the region has topped the global ranking after holding the No 2 spot for five consecutive years. Further down the list, the San Jose-San Francisco cluster jumped three spots to third place, followed by Beijing in fourth, then Seoul, Shanghai–Suzhou, and New York City.

Indeed, while many people all over the world associate Hong Kong with finance, the truth is Hong Kong excels in many more areas. Leaving aside Hong Kong’s very rich cultural heritage and very high quality of life, Hong Kong is also an innovation hub, as was demonstrated by the GII 2025.

In an era of mounting global financial uncertainties, Hong Kong stands at the forefront as a beacon of innovation and new technologies. The city’s ascent within the innovation world isn’t coincidental; it’s the product of deliberate foresight, regulatory agility, and in general the product of being one of the world’s most important financial centers, enhancing its status year after year.

Hong Kong now is embracing not only opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area development, and, by playing a proactive part in China’s 14th Five-Year Plan (2021-25), the SAR is unleashing its potential thanks to unreserved support from the central authorities for advancing key strategies to upgrade its superconnector role, including the digital yuan and environmental, social and governance.

Furthermore, one of the most important elements of the new Policy Address is its alignment with national strategic priorities. It emphasizes Hong Kong’s evolving role in the Greater Bay Area, the Belt and Road Initiative, RMB internationalization, and cross-border financial, trade, cultural, and institutional collaborations. These weren’t treated as add‐ons but as integrated parts of the policy vision. By tying local plans—housing, tech, education, and infrastructure — to wider national goals, the SAR government is navigating a path that seeks both local benefits and stronger synergy with the mainland’s development trajectory.

To sum up, the Policy Address offers a road ahead. It is hopeful in tone and ambitious. In a city built on both aspiration and pragmatism, these two qualities are essential. The Policy Address alongside projects like the Greater Bay Area will allow Hong Kong not only to keep enhancing its role as one of the world’s most important financial centers but also help the city keep excelling in other areas such as innovation, where Hong Kong has also recently ranked very high.

The author is a fintech adviser, a researcher and a former business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.