More Hongkongers are leaving after the implementation of the new national security law—Article 23—despite Hong Kong authorities’ vigorous attempts to promote newly launched immigration schemes to recent transplants.
More Visa Holders for Dependants than TTPS
In response to the influx of immigrants and the exodus of foreign capital, the Hong Kong authorities have launched multiple initiatives, including the Top Talent Pass Scheme (TTPS), the Technology Talent Admission Scheme, and a New Capital Investment Entrant Scheme with a capital threshold of HK$30 million ($3.8 million), sparking discussions on the Chinese internet.Lin Qiang (pseudonym), from mainland China, said that many of his friends from Shanghai and Beijing have recently been selling their houses and preparing to immigrate to Hong Kong, some through the TTPS, while others through investment.
“Although the mainland also has medical insurance, the actual medical expenses are much higher than those in Hong Kong; there are not as many restrictions on foreign exchange, passports, etc.; and the educational pressure in Hong Kong is not as intense as in mainland China. Most importantly, children have many opportunities to develop abroad,” he told The Epoch Times.
According to the latest data obtained by Hong Kong media The Collective, as of late February, nearly 59,000 applications had been approved under the TTPS, and over 61,000 dependants had been approved. Among these, 46,362 people, including 27,000 dependents under the age of 18, have already arrived in Hong Kong. This means that for every “top talent” who arrives in Hong Kong, there are approximately 1.06 dependants.The Labour & Welfare Bureau conducted a questionnaire survey about TTPS in November 2023. Of the 40 percent who replied, only 54 percent indicated that they were employed, nearly half were unemployed, and only 16 percent of the applicants’ spouses were employed. Based on this ratio, fewer than 24,000 top talents are estimated to make a substantial economic contribution, with only 3,098 dependent spouses employed.
Based on official announcements, the median monthly income for top talents is HK$50,000 ($6,380), while the median monthly income for dependants (spouses) is HK$30,000 ($3,800). Rough estimates suggest that the total annual salary for top talents immigrating under the TTPS amounts to HK$15.35 billion ($1.9 billion). This figure falls significantly short of the Secretary for Labour and Welfare, Chris Sun Yuk-han’s estimate of the scheme bringing approximately HK$34 billion ($4.3 billion) to Hong Kong annually, reaching only 45.1 percent of the official claim.
Mr. Lin’s friends, for instance, are primarily talented individuals engaged in technology and software development. However, they are not employed by Hong Kong companies.
“They work online for foreign companies from home, receiving cryptocurrency [as payment]. Going to Hong Kong [for currency exchange] provides more freedom, and their families can enjoy Hong Kong’s healthcare and education,” he said.
Additionally, top talents may not necessarily stay in Hong Kong for consumption purposes. Some even prefer to reside in Shenzhen and commute daily, limiting their indirect economic contributions. The core households in mainland China typically consist of 2 to 3 people, with the number of dependant children immigrating to Hong Kong exceeding that of dependent spouses. This may indicate that the TTPS has become a new wave of “astronaut” immigrants, where one spouse works in Hong Kong while the other resides in mainland China, and children come to Hong Kong to enjoy superior education.
According to Sing Tao Daily, many top talents choose to reside in Shenzhen and commute to work in Hong Kong daily. Their major expenses may not necessarily benefit the Hong Kong property market. Some interviewed talents even stated that they buy takeout in Shenzhen for dinner, failing to support Hong Kong’s night market food industry.
Compared to mainland China, Hong Kong still enjoys greater international recognition. Hong Kong authorities stated that there are over 250,000 applications for various immigration schemes. Regarding the New Capital Investment Entrant Scheme implemented on March 1, Alpha Lau, Director General of Investment Promotion, said that the office received over 100 inquiries on the morning of the announcement.
The financial sector is a significant factor in considering Hong Kong.
According to Sina Finance, investors in mainland China are willing to pay HK$30 million ($3.8 million) to immigrate to Hong Kong. The primary reason is the difficulty domestic investors have in surviving in the initial public offering (IPO) market, prompting them to seek a Plan B. Hong Kong offers advantages in low tax rates and infrastructure in finance and family trusts. Another consideration for families is the better quality of education, healthcare, and social welfare in Hong Kong.
Emigration Springboard
Another significant factor attracting mainland Chinese immigrants to Hong Kong is the fact that the Hong Kong passport allows visa-free travel to many more countries than the Chinese mainland passport.“Although Hong Kong now has its own national security law, it is still relatively free compared to the mainland. Moreover, the Hong Kong passport allows easy access to other countries, while the mainland passport has many restrictions, requiring visas for almost every destination. Additionally, many people are frequently restricted from leaving the country, and there are also many restrictions on foreign exchange,” Mr. Lin said.
The Hong Kong passport currently allows visa-free travel to 171 countries. After residing in Hong Kong for seven years, residents can obtain a passport and gain visa-free access to major countries worldwide. However, as of March 1, 2024, Chinese ordinary passport holders have visa-free access to only 29 countries, excluding major countries in Europe and America.
In recent years, discussions of how to “escape” or “run” have spiked on Chinese social media, the neologism refers to ways to emigrate out of China to leave the worsening social, political, and economic conditions. Apart from some attempting to illegally immigrate to the United States by crossing the U.S.-Mexico border, Chinese platforms like Xiaohongshu and immigration websites pointed directly to Hong Kong as the best springboard for emigrating to foreign countries. They cited examples of holders of Hong Kong passports becoming citizens of the U.S., UK, Australia, and Canada by studying, working, or even lifeboats.
1.35 Percent of Mainland Talent Stay in Hong Kong
In the past, despite various schemes to attract talent to Hong Kong, the final number of residents staying was disappointing. In Hong Kong, residency must be held for seven years before applying for permanent residency rights. Those who obtained residency rights in 2022 would have needed to obtain a Hong Kong identity card by 2015 at the latest.
On March 26, Alibaba withdrew its logistics subsidiary Cainiao Smart Logistics Network Limited’s IPO application from the Hong Kong Stock Exchange. The primary market in Hong Kong has become increasingly lackluster, with Chinese companies raising $5.7 billion through primary and secondary listings in 2023, a 54 percent decrease year-on-year.
The financial sector remains a crucial factor for investment immigration, with 20 percent of participants in the TTPS working in finance. With the exodus of foreign capital and the contraction of the financial industry, Hong Kong may only serve as an emigration springboard for Chinese talents.
