He was referring to a suggestion made by lawmaker Lau Kwok-fan, who said a link can be built from Hung Shui Kiu to Qianhai. It can attract companies to set up headquarters in the New Territories, Lau said.

Railway has the advantage of carrying a high volume of passengers whilst being environmentally friendly and fast, Chan said on a TV program today.

"If we want to attract enterprises to join the innovation sector in Hong Kong, we need to provide them with sufficient land to settle in Hong Kong. The original Lok Ma Chau Loop is still inadequate," Chan added.

He also said that the development of Qianhai will not be a threat to Hong Kong. Rather, it can create synergy.

"For example, it is relatively inconvenient for capital to enter and exit the mainland due to foreign exchange control and other institutional problems, therefore Hong Kong can play to its strengths, mastering the offshore RMB market," Chan said.

He said authorities can review the use of land at the border between Shenzhen and Hong Kong, so that there can be a balance between conservation and releasing land for development of IT industries.