Hong Kong Property: Takeaways from legal expert call on cross-border home purchase

Research evidence excerpt

Hong Kong Property: Takeaways from legal expert call on cross-border home purchase

J P M O R G A N Asia Pacific Equity Research

16 June 2026

Hong Kong Property

Takeaways from legal expert call on cross-border home

purchase

The State Council’s Regulations on Outbound Direct Investment (“Document Mainland China/Hong Kong Property

837”) (report) have triggered investors’ concerns about the eligibility of Mainland & Conglomerates

Chinese to purchase property in Hong Kong. To address the legal implications, we Karl Chan AC

hosted an expert call with a Beijing-based lawyer. Our 6 key takeaways: (852) 2800-8513

karl.chan@jpmorgan.com

Venus Choi

1. For Mainland Chinese, money remittance to Hong Kong for the purpose of (852) 2800-8599

buying property has never been—and is unlikely to be—allowed. venus.choi@jpmorgan.com

2. However, there is no ban on Mainland Chinese buying property in Hong Kong Jocelyn Gao

if the funding source is offshore. (852) 2800-8529

jocelyn.gao@jpmorgan.com

3. Document 837 does not appear to be targeted at curbing Mainland Chinese J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

purchases of property in Hong Kong. Morgan Broking (Hong Kong) Limited

4. Including real estate in CRS is complex and may not be realistic in the near

term.

5. For Mainland Chinese classified as “Mainland tax residents”, they are

theoretically subject to 20% tax on rental income/capital gains from HK

property, but this is not a new rule.

6. Even if some Mainland Chinese are found to have violated laws to fund

purchases of HK property, penalties are likely but forced disposals are

unlikely.

While we believe the overhang may persist for some time, we came out of the

call marginally less concerned, as it appears Document 837 is not (at least for