Major events, CEPA to further boost HK economy

Hong Kong Chief Executive John Lee Ka-chiu on Tuesday emphasized the significance of the coming month for strengthening the local economy, highlighting major sports, cultural and artistic events as well as a new stage in the city's trade relationship with the Chinese mainland.

Speaking ahead of the weekly Executive Council meeting, Lee said the series of high-profile events in the first half of the year is expected to attract around 840,000 visitors, generate HK$3.3 billion ($424 million) in consumption and contribute HK$1.8 billion to the city's economy.

The recent public debut of Hong Kong's first locally born twin giant panda cubs drew enthusiastic crowds, with nearly 9,000 visitors flocking to Ocean Park Hong Kong on Sunday and Monday, Lee said.

Building on that momentum, the city will celebrate another milestone on March 1 with the official opening of the HK$30 billion Kai Tak Sports Park, its largest sports stadium. The government will unveil details of the opening ceremony this week, he said.

The stadium is set to host major events, including the 2025 World Snooker Grand Prix and the Hong Kong Sevens rugby tournament, which are expected to boost dining and retail spending.

The Hong Kong Golf Club in Fanling will also host the signature LIV Golf event from March 7 to 9. Last year's tournament attracted 40,000 attendees and generated approximately HK$200 million in economic benefits.

Starting March 15, Kowloon's M+ museum will launch a four-month Picasso exhibition, while ComplexCon Hong Kong and Art Basel Hong Kong will take place later in the month.

On the trade front, a new agreement aimed at further opening the mainland market to Hong Kong's professional sectors will take effect on March 1.

The pact — known as the Second Agreement Concerning Amendment to the Mainland & Hong Kong Closer Economic Partnership Arrangement Agreement on Trade in Services, or CEPA — was signed last year.

Lee said the Hong Kong government and the Ministry of Commerce will hold a briefing on Wednesday to outline specific market access measures under the new pact.

Since CEPA's initial implementation in 2003, the agreement has generated significant economic benefits for Hong Kong, with cumulative tariff concessions exceeding 10.2 billion yuan ($1.4 billion), he said.

Total goods trade between the mainland and Hong Kong exceeded HK$480 billion last year — more than three times the amount before CEPA was introduced — reflecting an average annual growth rate of 5.6 percent, he said.

He added that the number of mainland service sectors granting full or partial access to Hong Kong businesses has expanded to 153, covering 96 percent of the 160 service sectors classified by the World Trade Organization.

Lee credited CEPA with helping Hong Kong businesses establish mainland-based hospitals, clinics, construction firms and insurance companies.

Separately, Lee announced that Hong Kong's average waiting time for public rental housing in 2024 has dropped to a six-year low of 5.3 years, a 13 percent decrease from the peak of 6.1 years in March 2022, several months before he took office.

He expressed confidence in meeting his goal of reducing the wait time to 4.5 years within his five-year tenure.

The shorter waiting period has saved subdivided-unit residents approximately HK$30,000 in rent while improving their living conditions, he said.

Efforts to meet the target of providing 30,000 light public housing units are also progressing smoothly, he added.