Northern Metropolis can blend central planning and free market

Guided by national five-year plans, the Hong Kong government is changing policies and offering attractive terms for the Northern Metropolis project. As the administration's major policy focus, it appears in the news almost every day and is shaping a new future for Hong Kong.

The Northern Metropolis, part of the New Territories, was dubbed “a land between” in the 1980s, serving as little more than a rural leftover between urban Hong Kong and the mainland, where Shenzhen’s paddy fields were visible from a Lok Ma Chau hill.

Guided by national five-year plans, the Hong Kong government is adjusting policies and providing attractive terms to advance the project. As the administration's big policy focus under Chief Executive John Lee Ka-chiu, it is in the news almost every day and is determining a new future for Hong Kong.

The initiative seeks to combine the best of central planning and free-market dynamics. Key elements include the University Town and San Tin Technopole, with locations such as Yuen Long, Lau Fau Shan, Tin Shui Wai, Hung Shui Kiu, Tai Po, and Mai Po. It ties into the Greater Bay Area vision, echoing Deng Xiaoping's era. The Town Planning Board is involved in shaping this development alongside Shenzhen.

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Illustration of China's central authorities announcing supportive policies for Hong Kong in the 15th Five-Year Plan, featuring skyline and press conference.
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China's central authorities to roll out more policies for Hong Kong: spokesperson

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Chinese central authorities will continue rolling out more policies and measures that benefit the Hong Kong Special Administrative Region during the 15th Five-Year Plan period, a spokesperson said on Wednesday. The central authorities will make further arrangements in the 15th Five-Year Plan for national economic and social development to support Hong Kong in leveraging its unique strengths and playing a significant role.

Hong Kong's Secretary for Development Bernadette Linn Hon-ho said dedicated laws for the Northern Metropolis may speed up some projects by about one year. She revealed the government is preparing to increase the residential component of some sites to appeal to developers. The government unveiled a plan for six subsidiary laws earlier this month to remove bottlenecks in the massive scheme.

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Guangdong province pledged to actively align with Hong Kong’s Northern Metropolis strategy in its 15th five-year plan released on Tuesday. The document mentions the Guangdong-Hong Kong-Macau Greater Bay Area 57 times and targets about 5% average annual economic growth for 2026-2030.

Hong Kong's Secretary for Transport and Logistics Mable Chan told lawmakers on Monday that the government plans to table a bill by year-end to standardise regulation of future mass transit projects, including Kai Tak and East Kowloon. The framework would use open tenders to enhance service quality and empower the Executive Council to grant franchises while penalising non-compliant operators. Lawmakers have raised concerns over fares and long-term service quality.

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China has outlined plans to enhance infrastructure in its border regions, including completing two highways spanning its nine land-border provinces, advancing an east coast highway, and upgrading three routes into Tibet. The initiative, which details policy priorities for the rest of the decade, focuses on improving connectivity and mobility in strategic areas.

China is seeking to shift local policymakers' mindset away from growth at all costs toward social goals, but this requires resetting incentives and fiscal priorities. Real estate development has driven immediate economic growth while squeezing out industrial investment.

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