In Depth: The Tide Turns on Hong Kong’s Talent Influx

Hong Kong launched the Top Talent Pass Scheme (TTPS) and expanded the Quality Migrant Admission Scheme (QMAS) in late 2022 to rejuvenate its post-pandemic economy and address labor shortages, particularly among high-skilled workers. Social media widely advertised the advantages of Hong Kong residency—including fifteen years of free education, easier access to top universities, visa-free travel to 171 countries, and exemption from the mainland’s competitive college entrance exams—making the city an attractive destination for China’s middle class [para. 1][para. 2]. However, as the first cohort of migrants faces visa renewals two and a half years later, enthusiasm has faded: data from August 2025 shows roughly half of the approximately 14,000 individuals whose visas expired chose not to seek renewal, and only about two-thirds of those who did are long-term residents [para. 3].

Early applicants were often driven by “herd mentality,” lured by perceived opportunities, but many faced economic and professional disappointments. High-paying jobs tended to cluster in finance and law, and those from tech or design backgrounds often faced pay cuts or had to accept positions beneath their qualifications. Adapting to Hong Kong’s high cost of living and limited housing emerged as major stumbling blocks, with some eventually returning to the mainland [para. 4]. New applications for TTPS and QMAS have since dropped sharply; for example, QMAS application numbers were down 75% in the first half of 2025 compared to the previous year, and TTPS applications dropped 40% [para. 5].

The government has adopted a pragmatic approach, emphasizing that talent programs are exploratory—a mutual selection process allowing both the city and migrants to assess fit [para. 6]. Yet a deeper challenge is evident: expanding the talent pool is easier than retaining individuals who match Hong Kong's economic goals and can successfully assimilate. The next policy phase aims to focus on attracting the right talent for Hong Kong’s industrial development while mitigating social frictions [para. 7].

TTPS was structured with three entry categories: Category A for high-earners (over HK$2.5 million annually, around $321,000), Category B for experienced graduates from top 100 universities, and Category C for recent graduates of such institutions [para. 8]. While the scheme saw rapid initial uptake—with 110,000 out of 140,000 applications approved by mid-2025 and over 90,000 visas activated [para. 11]—retention rates have been lackluster. Only 54% of TTPS holders renewed their visas, with stark differences among categories: 77% for high-earners, 50% for experienced graduates, and just 40% for recent graduates [para. 19]. In comparison, the UK’s Graduate Visa has a similar renewal rate of about 46% [para. 21].

Many left due to difficulties securing suitable employment and adapting to Hong Kong’s extremely high living costs. For example, even well-resourced migrants, like businesswoman Liu Mo, found the value proposition lacking after comparing cramped, expensive Hong Kong apartments with more spacious mainland lifestyles [para. 25][para. 28]. According to Mercer’s 2024 survey, Hong Kong is now the world’s most expensive city, with housing costs rising 8% year-on-year [para. 29].

Professionally, Hong Kong’s market remains oriented toward finance and law, while opportunities in technology and new industries lag expectations. Families often adopt split living arrangements, with one parent staying in the mainland for work and the other in Hong Kong for children’s education [para. 31][para. 33]. While attracting families and stay-at-home mothers is addressing demographic challenges—such as an aging population and a labor shortfall of 50,000—there remains a mismatch between the government’s stated goal of fostering innovation and the reality that only 17% of renewed talent are in that sector [para. 36][para. 38].

Experts suggest a new focus on quality over quantity, including better data collection to identify why migrants leave and a more targeted approach aligning migrants’ skills with Hong Kong’s economic needs. Only by continually refining policy, they argue, can Hong Kong attract and retain the talent it needs for future competitiveness [para. 40][para. 42].