Former Hong Kong leader CY Leung is urging the city to heed the country’s call to keep up with developments in the digital economy

Leung said that real estate investment trusts (REITs), which allow individuals to invest in large, income-generating real estate, are one of the areas Hong Kong could consider as it bolsters its digital economy while serving the country’s needs would fulfil.

During his recent trip to the city of Fuzhou in Fujian province, he found that the city has included data centers in its REITs. The income from the investments would be used for the development of the digital economy.

“Hong Kong is an international financial center. If these data centers and other similar infrastructure [from the mainland] REITs could be added in Hong Kong, it will start to attract foreign investment and become a big boost for Hong Kong and the country,” Leung said.

“Hong Kong’s digital economy is lagging behind. If we continue like this, nothing will come to fruition,” he said, urging industry leaders to attend a mainland summit next month.

According to the latest White Paper on the Global Digital Economy (2022) issued by the China Academy of Information and Communications Technology, China ranked second among 47 countries after the United States in terms of added value of the digital economy in 2021.

The size of China’s digital economy has doubled between 2016 and 2021, growing from RMB22.6 trillion (US$3.2 trillion) to RMB45.5 trillion, accounting for 39.8 percent of GDP by the end of the five years years, the report on the development of China’s digital economy shows.

The Digital China Summit, held in Fuzhou on April 27-28, will be attended by central and regional authorities, as well as academics and entrepreneurs.

“Participants will discuss the areas where the country will intensify its efforts to grow its digital economy. This allows Hong Kong to be better informed and prepare to embrace these areas as a starting point for developing its digital economy,” said Allen Yeung Tak-bun, president of the Greater Bay Area International Information Technology Association.

It is not known whether the Hong Kong government will attend the April summit.

The Hong Kong government established the Digital Economy Development Committee in June 2022, chaired by Finance Minister Paul Chan Mau-po.

Chan said in his budget for this year that the committee has conducted in-depth studies on the infrastructure needed to promote the development of the digital economy, cross-border data transmission in a convenient, efficient and secure manner, and the transformation of businesses and human resources support.

The committee is also tasked with making plans to boost Hong Kong’s artificial intelligence industry, including establishing an AI supercomputing center, which was featured in Chan’s budget speech.