HONG KONG - Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang began delivering the 2011-12 policy address, his seventh and last piece, on Wednesday morning at the opening of the Legislative Council, outlining the city government's policy direction in the coming year.

"To sustain economic growth, we must seize opportunities and rise to challenges. During my term, I have had to deal with two major issues," Tsang said in his annual policy address, which was live broadcast for Hong Kong's 7. 1 million people.

The first, he said, was to leverage the National 11th and 12th Five-Year programs to develop Hong Kong into the global financial center of China and to facilitate entry to the Chinese Mainland market for the city's industrial, commercial and professional sectors.

The second was to respond to the global financial tsunami in 2008. Hong Kong's economy started to recover in the second quarter of 2009 and has since remained strong. Hong Kong achieved growth of 7 percent in 2010 and expected the economy to grow by 5 to 6 percent this year, he said.

"The wealth gap, housing and the aging population are the issues of greatest public concern," he said.

In regard to housing, the financial tsunami has led to surging asset values and soaring property prices in Hong Kong.

"People have become frustrated because it is more difficult for them to own a home.  I am striving to tackle the problem by increasing land supply, combating property speculation and adjusting our subsidized housing policy," Tsang said.

The policy address is an annual address by the Chief Executive of the Hong Kong Special Administrative Region. Usually, it is addressed in October at the opening of the city's Legislative Council.

Tsang, who turned 67 last Friday, was elected the Chief Executive of Hong Kong in May 2005, after Hong Kong's first Chief Executive Tung Chee Hwa announced his resignation for health reasons. Tsang then served out the remaining two years of Tung Chee Hwa's 5-year term. In March of 2007, he was re-elected for a full five year term, which will end on June 30 of 2012.

The fresh annual session of Hong Kong's Legislative Council was opened in the day at the new Legislative Council complex, at Central on Hong Kong Island, which was completed about two months ago.

It is part of a huge building project which also houses the office of the Hong Kong's Chief Executive, the city government's offices, an open space, two covered pedestrian walkways and other ancillary facilities. The project's total cost amounted to 4.94 billion HK dollars ($ 633 million).