Leung calls for more integration with China

Chief Executive stirs hornet’s nest with call for closer ties.

In his first major policy address, Leung called for greater integration with the mainland, saying there is far-reaching, strategic significance to more cooperation. He said closer ties would boost Hong Kong's economy and open new opportunities for the city's service industries in the booming region of southern China just across the border.

Political observers said Leung's comments send a strong message he remains very loyal to China's communist leaders. This indicates he is highly dependent on China's support amid his sinking popularity. Leung’s approval ratings have been consistently below 50%.

Leung devoted a large part of his address to affordable housing. Hong Kong's property prices rose some 20% last year, almost doubling prices compared to 2008 and making the city's housing market one of the world's most expensive.

"Land shortage has seriously stifled our social and economic development and smothered many opportunities for people to start and expand their businesses," Leung said.

He unveiled plans to provide at least 128,700 residential units in the short and medium term. His long-term plans are to explore new town developments in the New Territories and major land-reclamation programs.

The government is also considering lifting a decades-long moratorium that restricts the sale of new land in the Mid-Levels and Pokfulam neighborhoods, which are home to many of the city's wealthiest locals and expatriates.