Cross-border property connect still under consideration

Hong Kong is still considering whether to introduce a cross-border property purchase channel, a concept similar to the Stock Connect, which allows capital to flow in and out of the mainland through the same channel, a government source said.

The source's statement came after Chief Executive John Lee Ka-chiu delivered his latest policy address, which did not mention the plan.

In late July, Financial Secretary Paul Chan Mo-po said the Hong Kong government has held discussions with the central government concerning a property connect mechanism.

Chan said authorities are trying to “explore appropriate relaxations”on capital transfer restrictions for mainland workers settling in Hong Kong who want to purchase local property.

The push aims to streamline fund flows while preventing capital outflows, he said.

On digital assets, the source said the government will expand the regime to cover a wider range of products cleared as low-risk by the Securities and Futures Commission and market checks, but limited to professional investors.

The move distinguishes such products from stablecoins, which are aimed at both retail and professional investors, the source said, describing it as an attempt to ease regulation.

CICI CAO