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Edith Lin

Major local, Chinese and overseas firms are expected to pledge their support on Friday for Hong Kong’s Northern Metropolis, a megaproject near the city’s border with the mainland.
Their explicit support will follow a call by Xia Baolong, Beijing’s point man on Hong Kong affairs, for business leaders to “recognise their responsibilities” and take “concrete actions”.
The city’s development minister also said Xia had urged property tycoons to support Hong Kong’s long-term blueprint by bidding for relevant projects.
The Post looks at how authorities lobby the business and real estate sectors, and whether the private actors will take the lead in the Northern Metropolis.
1. How will the business sector show support?
Major companies from Hong Kong, mainland China and overseas have been invited to take part in a Northern Metropolis promotion event on Friday, according to Chief Secretary Eric Chan Kwok-ki.
Insiders said the highlight would be a signing ceremony in the afternoon, in which businesses would pledge support for the megaproject after being hosted by Chief Executive John Lee Ka-chiu at the government headquarters in Admiralty.
The business leaders will visit sites in the Northern Metropolis in the morning, including the cross-border science and technology innovation zone in the Lok Ma Chau Loop, as well as Hung Shui Kiu and Ha Tsuen – areas earmarked to become hubs for high-end professional services and logistics.
The business figures are expected to be briefed on a large-scale land-disposal pilot scheme, which the government hopes the private sector will embrace to develop large parcels of land in the Northern Metropolis.
Business representatives also joined an official delegation on a fact-finding trip, which took place between Monday and Wednesday, to mainland cities in the Greater Bay Area to learn more about “zoned” projects across the border.
Chan said the projects could serve as good references for similar initiatives in Hong Kong.
2. What is the Northern Metropolis?
First proposed in 2021 by then chief executive Carrie Lam Cheng Yuet-ngor, the mega development aims to turn 30,000 hectares of land in the New Territories, close to the city’s border with the mainland, into an economic powerhouse and housing centre.
The Northern Metropolis has been divided into four zones focusing on high-end professional services and logistics, innovation and technology, commerce and industry, as well as recreation and conservation.
The development is expected to accommodate a population of 2.5 million with more than 900,000 flats and provide about 634,000 job opportunities.
In February, Financial Secretary Paul Chan Mo-po indicated the project would take priority over the massive reclamation at Kau Yi Chau, which aims to create three artificial islands in waters off Lantau Island to build 1,000 hectares of land for housing and the city’s third central business district.

3. What is the land-disposal pilot scheme?
As raised in the city leader’s policy address last month, developers are expected to bid for land parcels ranging between 10 and 20 hectares to build private properties and community facilities.
The government has picked three sites in Hung Shui Kiu, Fanling North and San Tin respectively.
Secretary for Development Bernadette Linn Hon-ho earlier said the government planned to launch the first plot, either located in Hung Shui Kiu or Fanling North, next year.
Linn also said the government would seek views from the private sector, such as whether they wished to pay land premiums and complete the entire project in stages.
4. Why do Beijing, Hong Kong lobby for the private sector’s support?
The pilot scheme is part of the Hong Kong government’s efforts to leverage market forces to expedite the development of the Northern Metropolis amid public financial burden and developers’ lukewarm response to land sales.
The government’s deficit stood at HK$226 billion (US$29 billion) in the first six months of the current financial year starting from April, while the total land premium revenue amounts to HK$3.7 billion as of October, around 10 per cent of the HK$33 billion estimate set in the budget in February.
Political analysts said Beijing was worried that developers’ tepid response to the mega development would further erode investor confidence and the central government had decided to step in to mobilise the business community.
Xia, director of the Hong Kong and Macau Affairs Office, earlier this month met about 30 local business leaders in a closed-door meeting in Shenzhen. He urged them to “recognise their responsibilities” and take “concrete actions” in supporting the city’s development.
Linn earlier also said Xia called on property tycoons to throw their weight behind the city’s long-term development by bidding for projects.
5. Will the private sector take part?
No 2 official Eric Chan clarified on Wednesday that business leaders who took part in the fact-finding trip were not obliged to commit to investing in the Northern Metropolis.
Lau Siu-kai, a consultant with the Chinese Association of Hong Kong and Macau Studies, a semi-official think tank, also said Beijing did not mean forcing the private sector to participate in projects without considering business risks but hoped they could give a vote of confidence.
Despite a pledge of support, Kathy Lee Yuen-yan, head of research at property consultancy Colliers Hong Kong, said the private sector still had many elements to consider before taking part in the pilot land scheme, especially given the large scale of development.
She said the result of the US presidential election also posed uncertainties to the interest rate environment and could dampen property market sentiment.
Lee added that developers had their land banks and projects in the Northern Metropolis, while the ability for the road and railway infrastructure to be delivered on time would also affect their decision.
She said the government should consider lowering the land premium for sales and minimising public facilities that the winning bidder had to build to reduce their construction costs.


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Why Hong Kong authorities lobby major firms to pledge support for Northern Metropolis

The Northern Metropolis will be developed on land at the border with Shenzhen. Photo: May Tse

The Northern Metropolis is expected to accommodate a population of 2.5 million with more than 900,000 flats. Photo: Martin Chan

Firms to pledge support for Hong Kong’s Northern Metropolis after Beijing’s call

The Northern Metropolis will be developed on land at the border with Shenzhen.  Photo: Martin Chan

Xia Baolong held a closed-door meeting with nearly 30 business representatives earlier this month. Photo: Handout.

Hong Kong tycoons not obliged to invest in Northern Metropolis, Eric Chan says

Chief Secretary Eric Chan (second from right) tours the factory of Chinese electric vehicle manufacturer BYD in Shenzhen. Photo: SCMP

Chief Secretary Eric Chan says trip to Guangdong cities “purely an introduction and opportunity for exchange”. Photo: Handout

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Beijing’s point man on Hong Kong affairs earlier urged business leaders to ‘recognise their responsibilities’ and take ‘concrete actions’


Beijing’s point man on Hong Kong affairs earlier urged business leaders to ‘recognise their responsibilities’ and take ‘concrete actions’.


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Explainer | Why Hong Kong authorities lobby major firms to pledge support for Northern Metropolis

Beijing’s point man on Hong Kong affairs earlier urged business leaders to ‘recognise their responsibilities’ and take ‘concrete actions’

1. How will the business sector show support?