Hong Kong’s representatives to China’s top legislature have collectively submitted a proposal to set up a housing fund pool that would facilitate mainlanders buying properties in the city through direct remittance.
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This suggestion, along with another to promote carbon trading in Hong Kong, was endorsed by all 35 local deputies of the National People’s Congress (NPC) on Tuesday as the annual political meetings known as the “two sessions” drew to a close in Beijing.
Starry Lee Wai-king, the sole Hong Kong member of the Standing Committee of the NPC, who first raised the idea of the housing fund pool to the city’s deputies, likened it to the Stock Connect mechanism that allowed cross-border trading of stocks between Hong Kong and mainland China.
Under mainland China’s strict capital controls, residents face an annual foreign exchange conversion limit of US$50,000, which applies to overseas transactions, including property purchases in Hong Kong.
Lee said her proposal was aimed at easing limitations that hindered mainland talent who wanted to settle in Hong Kong from acquiring property.
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She added that mainlanders should be allowed to directly remit full funds to Hong Kong for property purchases, as long as they indicated the source of funds during registration and provided proof to verify the deals.
“We see a growing need for mainland talent in Hong Kong to purchase flats. Under a closed loop management system, this arrangement could support Hong Kong’s development as an international hub for high-calibre talents, aligning with Beijing’s expectations,” she said.