Sun Dong: The Hong Kong government has initiated a review to optimize the listing mechanism to meet the financing needs of the aerospace industry.

On June 3, Professor Sun Dong, Director of the Hong Kong Innovation Technology and Industry Bureau, responded to questions from legislators by stating that the 15th Five-Year Plan of China clearly sets out the goals of building a modern industrial system and accelerating the construction of a space power. With strong support from the country, the first Hong Kong payload expert participated in the Shenzhou-23 manned space mission, fully demonstrating the country's high recognition of Hong Kong's innovative technology talents, development, and achievements. This also reflects the country's high level of attention and support for the development of science and technology in Hong Kong. Hong Kong has transformed from a supporter to a participant in the great aerospace cause of the country, showcasing not only the contribution that Hong Kong can make to the construction of a strong aerospace nation but also the best practices for Hong Kong to better integrate into and serve the overall development of the country. Professor Sun pointed out that Hong Kong has a strong research capability. Different research institutions and universities actively participate in aerospace research projects, providing systems, instruments, and technological support for the country's moon and Mars exploration missions, as well as conducting spaceborne experiments, making positive contributions to China's aerospace industry. In the future, as the Aerospace Hi-Tech Holding Group embarks on its international development path, Hong Kong can play a unique role in furthering international exchanges and cooperation, to serve the country's needs with Hong Kong's strengths. In terms of promoting the development of the Aerospace Hi-Tech Holding Group, the Hong Kong government's strategies are clear. Talent is a key driver of innovation and technology development. The Hong Kong government will implement policies that focus on talent driving technology, technology leading industry, and industry attracting talent. Under the "one country, two systems" framework, Hong Kong benefits from the support of the motherland and its connectivity with the world. Hong Kong's five universities that are ranked among the top 100 globally provide strong momentum for nurturing and gathering innovation and technology talents. The Hong Kong Innovation Technology and Industry Bureau and the Innovation Technology Support Scheme have been actively strengthening the local research and innovation talent pool, supporting enterprises and research institutions in developing technology talent and promoting innovation and technology development. Specific measures include sponsoring undergraduate and postgraduate students studying full-time STEM-related courses through innovation and technology internship programs, funding companies or organizations in Hong Kong engaging in research and development activities through the research talent pool program, and providing high-end technology training to employees of local companies through the new industrialization and technology training program. Furthermore, under the InnoHK innovation research platform, the Hong Kong Space Robotics and Energy Center has been established to actively participate in national space missions. The Hong Kong Innovation Technology Support Scheme launched in July 2024, allocated over a billion Hong Kong dollars to fund six research and development projects related to the Aerospace Hi-Tech Holding Group, including the Sky Harmony camera, a greenhouse gas detection instrument developed by the Hong Kong University of Science and Technology, which recently arrived at the Tian Gong space station. In terms of industrial development, existing Hong Kong government policies to promote new industrial development are also applicable to the aerospace sector. For example, the Industrialization Fund supports companies in setting up new intelligent production lines in Hong Kong through a matching fund scheme, the Industrial Acceleration Program provides funding in a matching format for enterprises engaged in strategic industries to establish new intelligent production facilities in Hong Kong, and the Innovation and Technology Industry Guidance Fund is planned to be launched within the year to guide more market capital towards strategic emerging and future industries, systematically building the innovation and technology industry ecosystem. Generally, the Hong Kong government will continue to strengthen research capabilities, talent development mechanisms, and industry support measures to play a unique role in the country's Aerospace Hi-Tech Holding Group. In terms of financing, the Hong Kong Treasury has been working towards building a vibrant and sustainable financing platform in Hong Kong. As a global premier listing platform for companies from various jurisdictions and the second-largest private equity fund management center in Asia after the Mainland, the Hong Kong Treasury actively promotes the Hong Kong Securities and Futures Commission and the Hong Kong Exchanges and Clearing Limited to study and widen channels for corporate financing, closely following international trends and continuously optimizing Hong Kong's listing regime to facilitate companies from different industries to list in Hong Kong. At the same time, under the active promotion of the Hong Kong government, Hong Kong has been a hub for international bond issuances in the Asian region. In fact, in recent years, Hong Kong's bond market has seen rapid development, with issuance sizes increasing gradually and a more diversified issuer base. Many large technology companies have issued bonds in Hong Kong in recent years. The aerospace industry has developed rapidly in recent years, expanding beyond national strategic development to the commercial sector. In terms of listing platforms, the Hong Kong Stock Exchange introduced Chapter 18C in March 2023 to provide a listing pathway for early-stage special technology companies. According to the HKEX guidelines, Chapter 18C has included a broad range of commercial aerospace activities in the sector that can be accepted by special technology industries, including Aerospace Hi-Tech Holding Group, advanced communication technology, and advanced transportation technology. Aerospace industry applicants can apply for listing under Chapter 18C and benefit from the Fast Track for Technology Companies. To cater to the rapidly growing industry, HKEX has initiated a review to optimize the existing listing mechanism to meet the financing needs of the aerospace industry. HKEX will announce specific measures and provide further guidance in due course. Additionally, the Hong Kong Investment Management Limited is actively exploring and advancing investment directions related to commercial aerospace and space economy, leveraging capital, technology, talent, and application scenarios to connect potential aerospace companies with Hong Kong's international financial center's diverse financing channels, high-end talents, and common law system advantages, assisting relevant enterprises in accelerating technology transfer and market landing. Regarding the assessment of manpower needs, the Hong Kong SAR Government regularly conducts macro-level workforce estimations to assess the trends in future manpower supply and demand in Hong Kong, providing a reference for mid-term human resources strategies. The Labour and Welfare Bureau in Hong Kong is currently undertaking a mid-term update of manpower estimation to evaluate the manpower supply and demand trends in Hong Kong from 2025 to 2028 at a macro level. This estimation covers 17 different key industries, including the International Innovation Technology Center. The development of various high-tech industries and related research activities are all included in the overall manpower demand assessment of the International Innovation Technology Center. Currently, the industry consultation and data analysis work for the mid-term update of manpower estimation has been largely completed, and the Labour and Welfare Bureau of Hong Kong expects to announce the estimation results in the fourth quarter of 2026. As preliminary consultations with the industry have shown that the current manpower demand for the Aerospace Hi-Tech Holding Group is relatively small within the overall manpower demand assessment of the International Innovation Technology Center, there was no independent quantitative assessment of the Aerospace Hi-Tech Holding Group in this mid-term update of manpower estimation. The Hong Kong government will continue to closely monitor the development trends of the innovation and technology sector in Hong Kong. If necessary, more targeted sub-assessments of specific technology categories may be considered in future manpower estimations to ensure that manpower supply meets the needs of industry and national development. In terms of talent development, the Education Bureau of Hong Kong stated that the Hong Kong government has been encouraging the University Grants Committee to fund universities to offer courses that meet the needs of Hong Kong's development, bolstering talent pools in key areas such as innovation and technology to enhance Hong Kong's competitiveness. In the Chief Executive's 2022 Policy Address, it was proposed that by the 2026/27 academic year, 35% of university students funded by the UGC would study STEAM subjects and 60% of students would study disciplines related to the eight major centers of Hong Kong development under the 14th Five-Year Plan of China. Over the three-year period from 2025 to 2028, the UGC will fund the eight universities to collectively introduce 27 bachelor's degree courses related to STEAM and the eight major centers, covering emerging areas that have developed rapidly and are popular among young people in recent years, such as the Aerospace Hi-Tech Holding Group. In addition to consolidating Hong Kong's development in innovation and technology and the eight major centers, these initiatives will create opportunities for young people to showcase their talents and drive social and economic diversification. The UGC provides the universities with recurring block grants to offer courses and distribute degrees across different disciplines. Currently, four UGC-funded universities in Hong Kong offer undergraduate courses in aerospace knowledge training, namely, City University of Hong Kong, Chinese University of Hong Kong, Hong Kong Polytechnic University, and Hong Kong University of Science and Technology, with the latter also offering postgraduate courses. These courses cultivate talents in aerospace engineering for both Hong Kong and the country.