HONG KONG -- The Hong Kong Special Administrative Region government will set up a HK$300 million ($38.7 million) Youth Development Fund to support innovative youth development activities, Hong Kong Chief Executive Leung Chun-ying said Wednesday.

Delivering his annual policy address, Leung said the fund will support youth development activities which are not covered by existing schemes, including subsidy in the form of matching funds for non-governmental organizations (NGOs) to assist young people in starting their own business.

The move was part of the government's broader efforts to create more job opportunities for young people.

Leung said the government also plans to provide a subsidy for students to join at least one the Chinese mainland exchange program each at the primary and secondary stages.

"We will explore with Mainland provinces and cities to expand and enhance such exchange and cooperation. Young people can broaden their horizons through two-way visits, life experience activities, cultural and service collaboration as well as job- seeking experience sharing," Leung said.

Meanwhile, four youth hostel projects are being progressively implemented.

"The government will seek funding approval as soon as possible to take forward the two projects at Sheung Wan and Tai Po, while advance preparation works are being carried out for two projects at Mong Kok and Jordan," he said, adding that the government will actively assist other interested NGOs with the early launch of more new projects.

The address, entitled "Uphold the Rule of Law, Seize the Opportunities, Make the Right Choices", was delivered by Leung at Hong Kong's Legislative Council.