Hong Kong only place in China that can adopt model akin to SpaceX, CY Leung says

Hong Kong is the only place in China capable of replicating the financing model of US tech giant SpaceX, which leverages market forces to grow rapidly, former leader Leung Chun-ying has said, urging the city to develop professional services for the emerging aerospace industry.
Leung, a vice-chairman of the Chinese People’s Political Consultative Conference, the country’s top political advisory body, also called on Hong Kong to make trade-offs when formulating its first five-year plan, prioritising initiatives that align with mainland China’s development goals.
Earlier this month, SpaceX’s record-breaking initial public offering (IPO) raised US$85.7 billion, making its chief executive Elon Musk the world’s first trillionaire.
“Elon Musk leveraged the highly market-oriented economy of the US and the power of a capitalist society to pool the country’s capital, talent, and technology in a short period of time,” Leung told a radio programme on Sunday.
“Among all cities in our country, which one possesses such a capitalist market force to adopt a model akin to Elon Musk’s? It is Hong Kong.”
Leung stressed that Hong Kong was well-positioned to develop professional services to support the growth of the aerospace and shipping sectors, including legal, insurance, and financing services.

He acknowledged, however, that developing the aerospace industry would take at least 10 to 20 years.
“We need to develop aerospace law, which has existed in the West for decades. We have to catch up,” he said, noting that the scope of Hong Kong’s legal services remained narrow.
“Once our law firms provide a broader range of services, it enables more young people who aspire to become lawyers to be experts in maritime and aerospace law, rather than focusing mainly on real estate sales or criminal cases.”
Leung also called on Hong Kong’s law schools to establish dedicated platforms and attract international legal experts in these two areas, capitalising on the city’s educational strengths with the mainland.
The former chief executive also spoke about Hong Kong’s first five-year plan, which authorities aim to release in the third quarter of this year, with a two-month public consultation currently under way.
The consultation paper published last week highlighted six key areas, including the Northern Metropolis megaproject, innovation and technology, as well as economy, finance and trade.
Leung emphasised that the blueprint must align with national priorities and utilise Hong Kong’s strengths to serve the country, rather than trying to pursue every advantageous aspect.
“When we have dinner, you cannot eat everything at once. There is plenty of good food, but some may need to leave for the next meal,” Leung said. “We need to make trade-offs and choose what to focus on in the next five years.”
He noted that the national 15th five-year plan, which guides the country’s development from 2026 to 2030, sets the goal for China to become a financial powerhouse.
The plan tasked Hong Kong to cement its role as an international financial hub by strengthening its offshore renminbi business and supply chain services.
“We are benchmarking ourselves against major global financial centres like New York and London, as well as highly specialised markets such as Tokyo and Osaka,” Leung said.
“We have to look at what others are doing and what we have not yet done – for example, developing shipping-related financial services, including maritime financing and insurance.”

Leung also suggested that Hong Kong expand beyond traditional stock listings and banking services to develop specialised financing services, such as those supporting the shipping industry.
He also highlighted national goals to accelerate the development of a multi-tiered bond market and advance futures trading, derivatives and asset securitisation.
“These are areas Hong Kong is well-suited to pursue, not just in the next five years, but even over the next 20 years,” Leung said.
He also called for a study of the long-term division of labour between Hong Kong and Shanghai, as the mainland city sought to emerge as another international finance centre.