Hong Kong's incoming leader says government should play a greater role in the famously laissez-faire territory to improve social welfare and tackle inequality, a report said Thursday.

Leung Chun-ying was chosen to replace outgoing chief executive Donald Tsang by a pro-Beijing electoral committee last month, with promises to address issues of popular concern such as soaring housing and medical costs.

His "populist" ideas put him ahead in the public approval ratings but he failed to win the support of key tycoons on the electoral committee, who fear he will damage the financial hub's reputation as an open shop for business.

With more than two months to go before he formally assumes office, Leung told the Financial Times his would be a more "proactive" administration than the semi-autonomous southern city had known in the past.

"We will have to look at social implications and social costs and not just private benefits and private costs," he was quoted as saying.

His election promises included increasing public housing to address some of the highest property prices in the world, something he says he will do without disturbing "price stability".

Earlier this week he pre-emptively announced that his administration would ban pregnant mainlanders from giving birth in the city and deny their children residency rights, in a bid to ease pressure on local hospitals.

Hong Kong reverted to Chinese rule in 1997 under a system that guarantees rights and freedoms not enjoyed in the mainland.