HK eyes cross-border property fund for mainland buyers

Hong Kong is studying the creation of a cross-border fund pool to facilitate mainland buyers purchasing property in the city, Financial Secretary Paul Chan Mo-po said on Wednesday.

The Property Connect-style proposal was lifted by Starry Lee Wai-king, Hong Kong's delegate to the National People's Congress Standing Committee.

Authorities are working with mainland regulators to“explore appropriate relaxations”on capital transfer restrictions for mainland talent settling in Hong Kong, aiming to streamline fund flows while preventing capital outflows, Chan said.

Lee welcomed Chan's remarks, framing the mechanism as part of the city's role as an offshore yuan hub. She emphasized the need to balance financial security with yuan internationalization amid global uncertainties.

Her plan would impose strict repatriation rules – requiring funds to return to the mainland if buyers leave Hong Kong – while allowing two-way mobility for professionals entering the Greater Bay Area via the city.

Earlier, former chief executive Leung Chun-ying urged caution, emphasizing that housing policies must prioritize local residents.

STAFF REPORTER