As Chief Executive John Lee Ka-chiu prepares his fourth Policy Address, Hong Kong stands at an inflection point. The city’s remarkable surge to third place in global competitiveness rankings and its resurgent IPO market signal not just recovery but the potential for transformative growth. Yet realizing this potential requires a vision that extends beyond conventional economic strategies — one that reaches literally for the stars.

The New People’s Party’s proposal for Hong Kong to tap into the space economy represents precisely the kind of forward-thinking ambition the city needs. While some may view space ventures as distant dreams, the global space economy is projected to reach $1.8 trillion by 2035, according to McKinsey & Company. Singapore has already established its Office for Space Technology and Industry, while Luxembourg has positioned itself as Europe’s space finance hub. Hong Kong, with its world-class universities and financial infrastructure, possesses every advantage needed to claim its share of this new frontier.

The synergy between space economics and Hong Kong’s existing strengths is compelling. Our financial markets, now leading global IPO volumes with $14 billion raised in the first half of 2025, are perfectly positioned to become the preferred funding destination for Asian space ventures. The recent Technology Enterprises Channel could naturally extend to space-tech companies, creating a specialized ecosystem that bridges East and West.

Consider the success of SpaceX’s Starlink, which has revolutionized global internet connectivity while generating billions in revenue. Hong Kong could foster similar ventures focused on Asian markets, leveraging its unique position under the “one country, two systems” framework to facilitate collaboration between Chinese mainland space capabilities and international partners. The city’s universities already contribute to national space missions — this foundation could spawn commercial ventures in satellite technology, space data analytics and communication systems.

The timing aligns perfectly with broader economic trends. As mainland companies seek Hong Kong listings to fund global expansion, space technology offers a sector where geopolitical tensions might actually accelerate rather than hinder development. While US-China technology competition intensifies in traditional sectors, space commerce requires international cooperation that Hong Kong is uniquely positioned to facilitate.

The chief executive should seize this moment to announce Hong Kong’s entry into the space age — not as fantasy, but as a logical extension of its evolution from trading port to financial center to innovation hub. The stars aren’t the limit; they’re the next frontier for Asia’s world city

Moreover, parallel suggestions to develop the low-altitude economy create a comprehensive aerial economic strategy. Urban air mobility, drone logistics and aerial surveying represent immediate commercial opportunities that complement longer-term space ambitions. Dubai has already begun testing autonomous air taxis, while Shenzhen leads in drone delivery services. Hong Kong could integrate both the low-altitude and space economies into a unified “vertical economy” strategy.

The cultural investments the New People’s Party proposes, including a HK$50 million ($6.4 million) fund for artistic talent, might seem unrelated but actually reinforce this vision. Great cities require both economic dynamism and cultural vitality. The success of pianist Aristo Sham demonstrates Hong Kong’s potential to nurture world-class talent across disciplines. A city that sends both satellites and artists to global stages projects soft power that enhances all sectors.

Recent market dynamics provide additional support for bold initiatives. The record southbound investment flows through Stock Connect and the Hang Seng Index’s 27-percent gain this year reflect massive liquidity seeking quality opportunities. Space ventures, with their long-term growth potential and alignment with national priorities, could channel this capital productively while diversifying Hong Kong’s economy beyond traditional sectors.

The World Competitiveness Yearbook’s recognition of Hong Kong’s broad-based improvements — ranking first in tax policy and business legislation — provides the institutional foundation for ambitious ventures. Its regulatory efficiency could enable rapid development of space-related financial products, from satellite leasing funds to space tourism investments, creating first-mover advantages in emerging markets.

Critics might question whether space economics suits Hong Kong’s compact geography. Yet the small European state of Luxembourg has become a space powerhouse through regulatory innovation and financial expertise rather than launch facilities. Hong Kong could similarly focus on space finance, insurance, legal services, and technology development — high-value activities perfectly suited to its strengths.

In the run-up to the Policy Address, the question is not whether Hong Kong can afford to pursue space economics, but whether it can afford not to. The cities that dominate the next century will be those that dare to reach beyond traditional boundaries. With its proven resilience, world-class infrastructure, and unique positioning between the mainland and global markets, Hong Kong possesses every ingredient necessary for space economy leadership.

The chief executive should seize this moment to announce Hong Kong’s entry into the space age — not as fantasy, but as a logical extension of its evolution from trading port to financial center to innovation hub. The stars aren’t the limit; they’re the next frontier for Asia’s world city.

The author is the convenor at China Retold, a member of the Legislative Council, and a member of the Central Committee of the New People’s Party. 

The views do not necessarily reflect those of China Daily.