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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President Xi Jinping meets Hong Kong's John Lee and Macao's Sam Hou Fai in Beijing to hear their work reports.
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Xi meets Hong Kong and Macao leaders to hear work reports

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On Tuesday, President Xi Jinping met separately in Beijing with Hong Kong Chief Executive John Lee and Macao Chief Executive Sam Hou Fai, hearing reports on the current situations in Hong Kong and Macao as well as their governments' work. Xi fully recognized the efforts of both SAR governments and stressed the need to resolutely implement the 'one country, two systems' principle while aligning with the national 15th Five-Year Plan to better integrate into and serve the country's overall development.

Hong Kong has established the Hung Shui Kiu Industry Park Company to expedite development of a 23-hectare industrial park under the Northern Metropolis project, earning praise from developers as a 'one-stop service centre'. The company is set to be fully operational by mid-2026, alongside government incentives for a new land tender including phased payments and an extended bidding period.

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The Hong Kong government announced on Friday that Linda So Wai-sze, director of the Hong Kong Economic and Trade Office in Guangdong, will take up the role of director of the Northern Metropolis Coordination Office from Monday next week. The position has been vacant for nearly two months, with deputy director Pecvin Yong Pui-wan handling responsibilities since former head Vic Yau Cheuk-hang became permanent secretary for transport and logistics. Secretary for the Civil Service Ingrid Yeung Ho Poi-yan expressed confidence in So's abilities.

In Hong Kong's legislative election, new candidates and parties engaged in fierce competition in directly elected geographical constituencies. Parties are adapting by building stronger community ties and diversifying, which helps bridge the gap between policymakers and the public. The Democratic Alliance for the Betterment of Hong Kong secured victories for all its candidates in the Election Committee constituency, highlighting its leadership in electioneering.

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In 2025, Hong Kong's political landscape was shaped by key events, including the halted sale of ports in the Panama Canal by Li Ka-shing's firm and the conviction of Jimmy Lai in a national security trial.

Investment from mainland China hit a five-year high in the last quarter of 2025, indicating a measured recovery in Hong Kong's commercial property sector. Colliers forecasts a 10% increase in deal values for 2026. Mainland capital accounted for 60% of big-ticket deals in that period.

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A senior cadre at Beijing’s liaison office in Hong Kong, Qi Bin, is expected to return to the capital for a new role advising on economic policies for China’s next five-year plan. The position is deputy director of an economic committee under the Chinese People’s Political Consultative Conference. Qi, with a strong financial background, recently appeared at an event for a cross-border innovation zone.

 

 

 

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