“Hong Kong is our shared home,” Lee said. “This policy address of mine is my vision and commitment to the people. It is a policy address for every resident.”

The Post earlier reported that Lee would roll out new measures to address structural problems in the economy, which have been aggravated by an ageing population and sluggish diversification of activity.

Sources revealed that Lee’s administration hoped to encourage more Hongkongers to have children by offering monetary incentives to couples, with HK$20,000 handed out for each newborn if at least one of the parents is a permanent resident of Hong Kong.

“But studies have shown that there were no certain ways that could stimulate a large number of people to give birth,” the source said. “The cash incentives only hope to serve as an ‘encouragement’ for families who are still planning on having a child.”

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The insider also ruled out giving a larger sum, such as a one-off HK$40,000 payment suggested by Liberal Party chairman Peter Shiu Ka-fai, to avoid having couples give birth just for the cash.

According to the source, however, there will also be other support measures for families, including an expanded child tax allowance, strengthened preschool childcare and more incentives for “home-based” child-carers.

Births in the city have been declining, with 32,600 recorded in the year to June, down from 35,100 over the preceding 12 months.

The city’s workforce will also fall from 3.82 million this year to 3.58 million, and account for 43 per cent of the population of 8.19 million by 2046. One in three people will be 65 or older by then.

Meanwhile, policies on promoting “reindustrialisation” and “digitalisation” are expected to boost the city’s status as a regional innovation hub.

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“Last year, the government focused more on encouraging research and development, and giving support to enterprises to transform their research into products, while this time we will focus on finding new markets for their products, especially in the Middle East and countries along the belt one road,” the source said, referring to China’s plan to grow global trade.

The government will also try to encourage students from countries taking part in the initiative to study at publicly funded universities in the city by allowing them to double the number of non-local undergraduates admitted in the 2024-25 academic year to about 6,000.

A high-level coordination group will be set up to push forward work on patriotism after a national bill was passed by China’s top legislature on Tuesday. There will also be a designated office promoting Chinese culture, while the coastal defence museum in Shau Kei Wan will be turned into an “anti-war” memorial hall, the source said.

The administration also aims to create a “digitalised government”, with plans to provide one-stop digital services through the “iAM Smart” in 2025.

Other measures previously reported by the Post include attracting companies to conduct biomedical research by setting up a platform to share health data with mainland Chinese cities. The government aims to set up a drug approval authority in the long run and speed up the development of the third generation of semiconductors, according to the source.

Regarding housing, a source familiar with the decisions earlier told the Post that Lee would announce measures to revive the city’s flagging property market, which could include easing or scrapping stamp duty on some transactions.

For lower-income groups, authorities will announce the creation of more “community living rooms” for children living in subdivided flats, including the sites for the facilities and partnering organisations.

Lee’s second policy speech, aimed at bringing hope, unity and vitality, will be unveiled in the Legislative Council at 11am on Wednesday. The city leader on Tuesday said his address would adhere to the “four musts” framework laid out by President Xi Jinping in a 2022 tone-setting speech in Hong Kong.

Xi’s four “musts” and four “hopes” called for the city government to uphold the principle of patriots administering Hong Kong, to maintain the financial hub’s unique status and strengths, and to take solid steps addressing difficulties in people’s lives.

Additional reporting by Olga Wong