Across The Border | Beijing may extend these three policy ‘gifts’ as part of handover anniversary celebrations, analysts say

A number of favourable policies could be announced in the coming days, in accordance with a tradition since 2003 that has seen Beijing unveil administrative measures around the July 1st handover anniversary that are designed to help boost Hong Kong’s economy.

Analysts expect an emphasis on the planned Palace Museum, the Hong Kong-Shenzhen Tech Park, and the role of Hong Kong as an international financing centre in China’s “Belt and Road” initiative.

“It is customary for the central government to announce some favourable policies for Hong Kong around this time every year,” said Vincent Chan and Hu Shen, analysts at Credit Suisse, in a recent research note.

In 2003, when Hong Kong’s retail and property sectors were heavily hit by the Sars outbreak, Hong Kong received a big “gift” from Beijing — Closer Economic Partnership Arrangement (Cepa), the first free trade agreement between the mainland and Hong Kong.

During the same year, Beijing launched the individual visit scheme (IVS) to allow residents from 49 Chinese cities to visit Hong Kong on an independent travel permits rather than as members of tour groups. The move was seen as a great boost to Hong Kong’s tourism and retail industries.

Since 2003, the Chinese government has extended the Cepa policy framework with supplemental measures each year.