Hong Kong will offer HK$20,000 (US$2,556) handouts to parents of newborns and ease stamp duties on some home sales as the city struggles to reboot its economy hit by a population exodus and slowing Chinese growth.John Lee, Hong Kong’s chief executive, outlined the measures in his annual policy address on Wednesday as the Chinese territory grappled with the retreat of foreign companies and an outflow of foreign workers and residents following years of pandemic restrictions and a political crackdown.
“We must . . . sustain our efforts to strengthen Hong Kong’s competitiveness in view of the fierce global competition,” Lee said.
The territory’s economy grew a lacklustre 1.5 per cent year on year in the second quarter, while home prices fell for four consecutive months between May and August this year, and real estate and land sales transactions slowed, cutting into one of the government’s largest sources of revenue.