HONG KONG, Jan. 15 -- Hong Kong Chief Executive CY Leung said Wednesday in his second policy address that the government is to introduce a subsidy scheme to assist needy students who further their studies in the mainland.

The subsidy scheme proposed by Leung as one of the ways to provide local students with more opportunities for higher education aims to help students in need pursuing studies under the scheme for the Admission of Hong Kong Students to Mainland Higher Education Institutions. Students may receive a means-tested grant of up to 15,000 HK dollars (about 1,935 U.S. dollars) per year during their studies.

Leung also suggested a new scholarship scheme be implemented to support up to 100 outstanding local students each cohort to pursue studies in renowned universities outside Hong Kong, with a view to nurturing a diversified pool of top talent to spur Hong Kong's development.

Apart from a scholarship of up to 250,000 HK dollars, students in need will also receive a means-tested bursary of up to 200,000 HK dollars each year, he said, adding the scholarship scheme will benefit three cohorts of students, and will then be reviewed for its effectiveness.

In line with the government's youth policy of fostering a culture of multi-faceted excellence, Leung said a 100 million HK dollars scholarship fund will be set up.

Furthermore, an additional 2,120 subsidized places will be provided to local students to pursue degree education in and outside Hong Kong.

As for preschool education, Leung said the city's Committee on Free Kindergarten Education is studying practical ways to implement three-year free kindergarten education and plans to submit its recommendations next year. (1 U.S. dollar = 7.75 HK dollars)