<div id="readability-page-1">Hong Kong’s finance chief will earmark substantial funds for a new innovation hub near the border with mainland China and include incentives to attract more aerospace players to the city in his budget, government sources have said. Highlighting innovation as a key theme of Financial Secretary Paul Chan Mo-po’s budget speech to be delivered on Wednesday, the insiders told the South China Morning Post that the blueprint would provide significant impetus to the new San Tin Technopole. The revelations followed an earlier report by the SCMP that Chan would also boost the IP economy by training talent and offering patent evaluation for qualified tech enterprises, amid public concerns over how he would spend a surplus that had arrived sooner than expected after years of operating account deficits. Policy analysts are also monitoring how financial authorities would address national priorities listed in the country’s 15th five-year plan. “The amount of money assigned to push the innovation developments in the Northern Metropolis is huge, which will boost research and development and attract companies,” one source said. Another insider noted: “The measures being rolled out will take the implementation of the innovation hub forward.” The Northern Metropolis megaproject, near the city’s border with the mainland, aims to turn 30,000 hectares (74,132 acres) of land into new engines for economic growth. The San Tin Technopole spans 627 hectares of land within the megaproject. Around 300 hectares, comprising 87 hectares in the Lok Ma Chau Loop and about 210 hectares in San Tin, are earmarked for innovation and technology (I&amp;T) purposes, accommodating up to 7 million square metres of gross floor area for research, industrial and related activities. A third source said: “We are looking into ways to coordinate between developers who own land in the Northern Metropolis and science, tech, or advanced manufacturing companies to forge ahead with new ideas.” The insider added this would be like a “tripartite cooperation” aimed at speeding up the metropolis’s development. The hub is divided into three industry development corridors: life and health technology; artificial intelligence and robotics; and microelectronics and advanced manufacturing. Authorities plan to set up a dedicated government-owned company and subsidiary firms to drive the development of the innovation hub, in a bid to tap market resources and expedite the project while optimising costs.  Unveiling the five-phase development road map last November, the government said it aimed to preliminarily complete the technopole in 10 years, with the first 20 hectares of I&amp;T land set to be ready for development by this year. The hub is expected to provide more than 300,000 full-time jobs and generate at least HK$250 billion for the city’s economy annually when fully operational. Duncan Chiu, a lawmaker who represents the technology and innovation sector, said he hoped the budget would provide clearer direction on how to provide long-term capital for enterprises wanting to set up in Hong Kong and speed up the hub’s development. “Once you identify the right enterprises to set up here, how can you rapidly provide premises [for setting up] and the long-term capital support they need? I think these are the topics that need to be discussed,” he said. Chiu added that the government could consider allocating resources to opening new university campuses focused on technology and relevant talent development courses. “We want to promote how to properly build a cradle to nurture talent in Hong Kong,” he said.     Another key measure to be announced in the budget will focus on attracting companies to develop Hong Kong’s aerospace industry, according to sources. “The industry doesn’t lack funds, we need measures to attract enterprises to drive development to realise the city’s potential,” a source said. “It also aligns with national goals.” The 14th five-year plan for 2021-25 outlined support for Hong Kong’s “eight centres” strategy, including reinforcing its role as an international financial, innovation and technology, trade and shipping centre, as well as an aviation hub. Chief Executive John Lee Ka-chiu announced in last year’s policy address that a Space Robotics and Energy Centre would be set up under the InnoHK platform. Lee also allocated HK$100 million to six university aerospace research projects covering materials, energy, communications, robotics and data processing, highlighting Hong Kong’s strengths in internationalisation, financing and research. Last month, the Chief Executive’s Policy Unit convened a high-level roundtable on the space economy to discuss Hong Kong’s strategic positioning and opportunities. Stephen Wong Yuen-shan, who heads the policy unit, said Hong Kong could contribute to basic research, professional services, international financing and data governance in “NewSpace”.  NewSpace is an emerging industry that includes satellite manufacturing, launch services, space law, tourism and other commercial ventures concentrated on low Earth orbit at an altitude of 2,000km (1,240 miles) or less. China’s 15th five-year plan, which will guide the national development from 2026 to 2030, outlined the country’s aim to cement aerospace development and turn the nation into a major space power. The Hong Kong Investment Corporation, a government-owned investment vehicle, was also eyeing investment in NewSpace and the commercial application of aerospace technologies. The New People’s Party, chaired by Executive Council convenor Regina Ip Lau Suk-yee, previously proposed the establishment of a “space office” led by a space economy commissioner, alongside a new legal framework for the space economy. Professor Quentin Parker, director of the University of Hong Kong’s space research laboratory, said supportive policies, agile government action and a proper space office were key to attracting more aerospace talent and enhancing the development of the city as a global space sustainability hub. In plotting the road map for aerospace development, Parker stressed the government should seek advice from a variety of independent experts, not only industry stakeholders but also legal, compliance, academic and scientific professionals to get “the right kind of advice from the right kind of people, at the right time”. “We need to act quickly. Things are changing dynamically all the time, and our competitors are racing ahead while we’re debating,” he said.</div>

STECH

03032

03033

02800

<p>Hong Kong's finance chief plans to allocate significant funds for a new innovation hub near the mainland border and attract aerospace companies in the upcoming budget. The San Tin Technopole will focus on innovation and technology, with 300 hectares designated for related activities. The project aims to create over 300,000 jobs and generate HK$250 billion annually. Additionally, measures to support the aerospace industry will be introduced, aligning with national goals outlined in China's five-year plan. The government seeks to enhance talent development and expedite the hub's establishment.</p>

南华早报

Hang Seng TECH Index

HSTECH ETF

CSOP HS TECH

TRACKER FUND

Exclusive|Tech hub, aerospace industry set for major boost in Hong Kong budget: sources