Tsang likely to stress co-operation Stepping up co-operation between Hong Kong and Guangdong and regulation of financial markets will be among the focal points of the forthcoming policy address, sources say. Chief Executive Donald Tsang Yam-kuen is expected to announce in his policy address that the Lok Ma Chau Loop will be turned into a hub for high-value-added industries and creative industries. Hong Kong and Shenzhen started a joint study this year to decide future uses of the loop, a 96-hectare piece of no man's land formed by straightening the Shenzhen River more than a decade ago. Development of the area was one of the 10 major infrastructure projects Mr Tsang announced in his policy address last year. He will also give an update on projects such as the bridge linking Hong Kong with Zhuhai and Macau and the Guangzhou-Shenzhen-Hong Kong Express Rail Link. A government source said co-operation between Hong Kong and Guangdong would be among the focuses of the policy address. It is understood that a high-level delegation of Guangdong officials, led by provincial deputy secretary general Tang Hao, discussed Guangdong-Hong Kong co-operation with senior Hong Kong officials and academics during its visit to the city in July. The delegation joined the head of the Central Policy Unit, Lau Siu-kai, and some of the city's academics for seminars organised by the unit, the government's top think-tank. 'Mr Tang and his colleagues canvassed views on how to facilitate further collaboration between Hong Kong and the province, but he spent most of the time listening to our opinions,' a source said. The source said a working group comprising officials and researchers from central government ministries headed to Guangdong last month to study the development of the Pearl River Delta, including possible ways of aiding co-operation between Guangdong and Hong Kong. The provincial government is to submit a report on the development of the delta, including co-operation with Hong Kong, to Beijing by the end of the month. Hong Kong town planners, architects, surveyors, social workers, language teachers and doctors were the major beneficiaries of the 11 supplementary agreements signed between Hong Kong and Guangdong in August on how to implement the latest phase of the Closer Economic Partnership Arrangement. A source from the Guangdong government said the provincial authorities would announce a directive on further strengthening co-operation among the province, Hong Kong and Macau in the next one or two months. 'Further concessions to Hong Kong's service providers will be spelled out in the directive.' Mr Tsang is also likely to state his views in his policy speech about Hong Kong's economic situation amid the global financial turmoil. 'Mr Tsang may analyse the impact of the 'financial tsunami' on Hong Kong's economy and tell the public to prepare for hard times in the near future while emphasising the fundamentals of the city's economy are sound,' the source said. The address, to be delivered on Wednesday, is unlikely to announce huge handouts to the city's needy families.