Under the "one country, two systems" policy, Hong Kong has been winning global acclaim for its ever-improving business and investment environment, with a recent think tank report evidencing its status as one of the world's top three financial centers.

"Thanks to the concerted efforts of all concerned, Hong Kong's status as an international financial center has climbed up one place to restore the global third position, putting an end to the negative narratives about our city's future," Lee said.

Still, the city is faced with many challenges. Hong Kong's economy is yet to fully recover, especially with weakened consumption activity.

The economy grew by 3.3 percent year on year in the second quarter, driven mainly by exports. The HKSAR government had forecast a 2.5-3.5 percent growth for the whole year of 2024, following a year-on-year growth of 3.2 percent in 2023.

Well aware of the challenges, Lee announced a number of initiatives in the policy address. Among the measures to revive economic activity, the duty rate for liquor with an import price of over 200 Hong Kong dollars (25.74 U.S. dollars) will be slashed, he said.

To open up new growth areas of the financial sector, Hong Kong will take advantage of its strength in gold import and export to build itself into an international gold trading center, Lee announced, noting that the current complexity in geopolitics underscores the city's edge in security and stability, and hence an attractive location for investors for gold storage, trading, settlement, and delivery.

He also announced that Hong Kong will also include investment in residential properties above certain transaction price in its new capital investment entrant scheme starting Wednesday, a move that is expected to boost the city's struggling property market.

To build a quality talent pool for development, Lee said that the HKSAR government will reform various aspects of the talent admission regime, including expanding the list of universities under the top talent pass scheme to 198 universities by adding 13 top mainland and overseas universities.

The policy address also highlighted a number of institutional arrangements, including the establishment of cross-bureau coordination mechanisms. Among them, a committee on education, technology and talents will be set up.

"I believe the establishment of this committee will be an important step for Hong Kong to become an international education hub," said S. Joe Qin, president of Lingnan University in Hong Kong.

The blueprint also highlighted measures to improve people's livelihood, vowing to put in place, through legislation, a system on the renting of subdivided units in residential buildings to ensure adequate living conditions.

"The policy address demonstrated the HKSAR government's determination for change and innovation. It is a policy address that is profound, elevated, and compassionate," said Yim Kong, member of the HKSAR Legislative Council.

Noting the city's reform proposals must take heed of the prevailing circumstances and be tailored to local conditions, Lee said reform is a continuous process.

"Through our united efforts to reform and innovate, our economy will become even stronger and our people will lead better lives, making Hong Kong a shining city," he said.