A look into Leung’s mind

Hong Kong’s Chief Executive-elect Leung Chun-ying has been a media darling since his election Sunday.

Among the more interesting revelations about his plans for Hong Kong as reported by local and international media:

• He intends to set up a new investment fund to grow the economy, using the Exchange Fund as a model.

"The financial reserves that have built up over the years could be deployed in several ways," Leung said.

"What I would like to do is to look at the need and probability in investing in other sectors as well. Essentially to invest in business initiatives that would not happen by itself in the market."

He said his fund will boost local businesses and push the government to fill "gaps" in the economic structure. He believes the size of the fund shouldn’t be very big at the start.

• Leung will to consult various industries to see where government investments are needed.

Leung said his government intends to launch a pilot project to build middle-class housing for residents only.

The idea is to sell land for developments that would be restricted to Hong Kong residents. The government owns all land in Hong Kong and sells it on long leases.

"This will be residential land suitable for middle class incomes," he noted. "It's a political move to address sentiment in the market. It's not going to form the bulk of supply."

He does not, however, want to depress private housing prices or rents artificially through government action. He admitted that affordability will not catch up with prices quickly and said the government would fill the gap by providing subsidized housing.

Leung, a former property consultant, was past president of Hong Kong’s Institute of Surveyors.

• He confirmed he will not reform Hong Kong’s low tax system whose top personal and corporate tax rates stand at 16%. 

• He does not intend to alter Hong Kong's currency peg to the U.S. dollar because the peg serves Hong Kong well.

• Leung will finalize his cabinet in the next few weeks but does not have anyone in mind for the position of Financial Secretary. He said, however, the individual will probably come from within the government.