The call to facilitate money transfer for mainland Chinese talent based in Hong Kong has been made by the city’s largest pro-Beijing party, the Democratic Alliance for the Betterment and Progress of Hong Kong (DAB). The party has suggested that authorities should lower the threshold for these professionals to move their capital from mainland China to Hong Kong, as more and more talent is arriving from across the border.
In order to support these newcomers, the DAB has proposed the establishment of a specialized office to assist them and has recommended that the government work with the central government to partially lift the restrictions on cross-border capital transactions. They have also suggested setting up a mechanism for mainland Chinese talent in Hong Kong to move money from China for specific purposes, such as buying property or paying off a mortgage.
Currently, Chinese nationals are limited to transferring US$5,000 out of the country per person per year to prevent large amounts of capital flight. The DAB’s former chair, Starry Lee, has proposed starting with a pilot scheme to allow those who have obtained Hong Kong identities to utilize their capital from mainland China in Hong Kong.
In late 2023, Hong Kong expanded the Top Talent Pass Scheme to attract more high earners and university graduates to the city. The scheme offers successful applicants a two-year work visa, with the opportunity for extension if they secure employment at market level remuneration. Those earning at least HK$2 million can enjoy an extension of six years upon renewal.
The DAB has also suggested that the government should be more flexible in reviewing where applicants earn their income and consider income from mainland China when assessing work visa extensions to retain talent. They have also proposed expanding the talent scheme to invite international talent to the city and provide more services for the children of newly arrived talent to settle in Hong Kong.
This initiative aims to support the influx of mainland Chinese talent in Hong Kong and strengthen ties between the two regions. As Hong Kong continues to attract professionals from across the border, facilitating money transfer and providing necessary support will contribute to the city’s growth and development as a hub for talent and innovation.