We will know from Chief Executive Donald Tsang Yam-kuen's policy address next month whether he has officially decided to become a lame duck and play for time, or if he is going to boldly address some key problem areas in the final two years of his term.
The first big test will be how he deals with the property market, where prices at the luxury end have been soaring.
When prices rise dramatically in a short period, it means foreseeable demand and foreseeable supply are seriously out of step. One or other of these situations needs to be changed before prices will stabilise.
Can anything realistic be done to squeeze demand? The answer is surely no. It would be completely unrealistic to try to ban foreigners (read 'mainlanders') from buying property as any such scheme would be riddled with loopholes. And it would go against the grain in what is still arguably the world's most open and free economy.
Moreover, using the Monetary Authority's role as banking regulator to serve a different policy purpose - by lowering the mortgage ceiling vis-?-vis property value - is useless because many of the purchasers are paying in full and in cash and don't need a mortgage.
All of which brings us back to the point where we know we should have started: we need to increase supply.
One idea being considered is to restart the Home Ownership Scheme or something similar. But direct intervention by the government in any market is really an admission of policy failure. It would surely be much better to try to create conditions whereby the private sector could meet market demand at all levels. Luckily there is a way of doing this in an open and transparent manner: we should resume regular public land auctions.