The document discusses immigration trends and return migration in Hong Kong over five waves. The first wave brought entrepreneurs and workers from Shanghai to help develop labor-intensive industries after World War 2. Subsequent waves saw an influx of low-skilled mainland Chinese workers, family dependents, foreign domestic helpers and professionals to support Hong Kong's growing economy. The fifth wave involved return migration of educated Hong Kong residents as the economy transitioned, bringing human capital back that helped support sectors like business and education. New policies aim to attract more skilled professionals from mainland China and abroad to keep pace with economic restructuring.

1. IMMIGRATION TRANSITIONIMMIGRATION TRANSITION
AND RETURN MIGRATION INAND RETURN MIGRATION IN
HONG KONGHONG KONG
Zhongdong Ma
Presented by
Cheung Kin Man (Man), Wong Hoi Shan (Sharon)
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2. IntroIntro
Immigration plays a crucial role in HK
economic development
Happened alongside the political
development of China and HK (both at her
colonial and handed-over periods)
A brain drain reversal, i.e. return of well
educated or skilled emigrants
The paper explained theoretically how the
above happened and the findings on
relationship between immigration and
economic development of HK
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3. OutlineOutline
The Theoretical Framework: Comprehensibility
of Brain Drain Reversal
5 waves of immigration in the development of
Hong Kong
New Waves (plus Current Policies as of 2013)
Summary of the immigration trend
Q & A
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4. Theoretical FrameworkTheoretical Framework
Developing economy
-Cheap and abundant labour
-Labour-intensive industries foundation
growth
Results:
-Gain in International trade
-Capital accumulated
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5. Theoretical FrameworkTheoretical Framework
Development process
Capital and technical skills
Drop in demand for low skilled labour
Increase in demand for skilled labour
and professionals
process of mobility transition
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6. Theoretical FrameworkTheoretical Framework
Theory of Mobility Transition
-restructure of industries
-more advanced economy
-more opening opportunity
Emigrants with human capital acquired
from developed countries benefited
most
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7. Theoretical FrameworkTheoretical Framework
Expectation
- returnees and migrants maintain their
importance
e.g. leadership and high professional
position
- the importance increase with more
diversified backgrounds
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8. The Development of Hong KongThe Development of Hong Kong
Population size:
600,000 7.1 millions
Immigration played different roles in
each stage of development
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9. 1st Wave: Pioneers of Development1st Wave: Pioneers of Development
Background
- Second World War and Chinese Revolution
- Fall in entrepot trade
Result:
-influx of mainland entrepreneurs and
workers, e.g. Shanghai
- Skills and capital for labor intensive
industries
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10. 2nd Wave: Labour Migrants from Mainland2nd Wave: Labour Migrants from Mainland
Tighten control of immigration from
Mainland
- demand for low-skilled labor drop
- Cause housing problem and other social
problems
Immigration restriction policy
- “Touch Base” policy ( 抵壘政策 ) which
ended in 1980
- Immediate repatriation ( 遣返 )
-daily quota
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11. 2nd Wave: Labour Migrants from Mainland2nd Wave: Labour Migrants from Mainland
Illegal immigrants from Mainland
- rural farmers with little education
- mostly unmarried male
- formed families in mainland
Immigration of dependents from
Mainland
Obtain residence in Hong Kong
Bring spouse and children
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12. Age-sex Structure of MigrantsAge-sex Structure of Migrants
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13. Marital StatusMarital Status
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14. 3rd Wave: Dependents from Mainland3rd Wave: Dependents from Mainland
Family reunion
- mainly mainland wives and children
- Priority reason
Classification of immigrants
- One way permit (80%) [ 單程證 ]
- spouse(28%), children(48%), parent(3%)
- sex ratio (61% female vs. 39% male)
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16. Problems caused:
Corruption
- only Chinese Government had authority
- no transparency
Illegal immigrants
- Birth of children by pregnant mothers
- smuggling of mainland-born children
Right of Abode controversy in 1998
3rd Wave: Dependents from Mainland3rd Wave: Dependents from Mainland
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17. Improvement
- Ministry of Public Security in Beijing
- new computerized point system
- improved transparency eg. Scores
Consequence
- perceive by locals
- employed in lower service with low
income
-rely on public financial assistance
3rd Wave: Dependents from Mainland3rd Wave: Dependents from Mainland
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18. 1980s to early 1990s
◦ China reopened its door to the outside
world
 Small businesses in HK relocated their factories
back to their hometown, i.e. South Guangdong
 HK’s global and regional roles changed
 Foreign professionals were needed
◦ More affluent households and more
women to participate in the labour market
 Foreign domestic helpers were needed
44thth
Wave: Foreign Domestic Helpers &Wave: Foreign Domestic Helpers &
ProfessionalsProfessionals
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19. 44thth
Wave: Foreign Domestic Helpers &Wave: Foreign Domestic Helpers &
ProfessionalsProfessionals
Foreign Domestic Helpers
◦ South-east Asians mainly from the Philippines and
Indonesia
◦ 47.3% in 1986 & 55.5% in 1996
◦ 1991 to 1996: 28.3% University graduates & 46.4%
High School graduates  75% highschool or above
◦ Earnings: 500 US dollars per month, i.e. around
HKD3500 to HKD4000
◦ Cannot become permanent residents
◦ Young female maids
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22. Foreign Professionals
◦ From Developed Countries in search for golden income
opportunities abroad
◦ In early 1990s
 trade and the financial sector were booming
 wages in the upper level of the service sector driven by an
increasing demand for overseas professionals in large
international firms
◦ Canadian, American, Australian and Japanese immigrants
increased 2 to 3 times between 1986 and 1996
◦ In 2006
 University graduates 72%
 Employed as managers and administrations (41%), Professionals
(25%) and Associate professionals (18%)
 Avg. monthly income of HKD45,000 with much lower tax rate than
their home countries
44thth
Wave: Foreign Domestic Helpers &Wave: Foreign Domestic Helpers &
ProfessionalsProfessionals
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25. 55thth
Wave: Return MigrantsWave: Return Migrants
Migration to MDC e.g. Canada, the US,
Australia and the UK in mid 1980s to mid
1990s
◦ Between 1984 to 1995, 530K HK residents, avg.
44K per year migrated
◦ Peaked in 1990-1994 due to political
uncertainty created by the handing over and
post 1989 Tiananmen Incident
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26. 55thth
Wave: Return MigrantsWave: Return Migrants
Brain Drain to future Brain Gains (Skeldon, 1994)
◦ Migrants gained transnational capital
◦ Diversified political and economic risks
 Foreign passport enables emigrants to move, live and work
freely between HK and a destination country.
◦ Bringing back the human capital accumulated in a MDC
helps HK to enter the next stage of development.
◦ Asian Financial Crisis make HK people to realize the
importance of a knowledge-based economy (e.g. the
I.T. sector)
 Previous emigrants (brain drain) returned in response to rising
demand and job prospects
 Brain Drain Reversal happens!
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27. 55thth
Wave: Return MigrantsWave: Return Migrants
12% emigrants have returned: return rate:
8% (1987 – 1991) to 30% (1993 – 1994);
60.5% in 1995
Majority of returnees were educated young
and middle-aged adults (31 and 40%
respectively)
University degree holders 58%
Almost 70% were employed as managers
and administrators (25%), professionals
(22%) and associate professionals (21%)
Avg. monthly income HKD26000 (in 1990s!)
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30. 55thth
Wave: Return MigrantsWave: Return Migrants
In 2000s, Increasing volume and growing
importance of returnees in high
professions
◦ 62K (23.7% of total) in 2001 to 100K persons
(32% of total) in 2006
◦ Decline of expatriates from 21.7K (8.3%) to
14.7K (4.8%) from 2001 to 2006
◦ HK born returnees became more important in
almost every category, outperforming the
local in sr. mgmt. and admin. (37% vs. 25%)
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32. 55thth
Wave: Return MigrantsWave: Return Migrants
◦ Adding the shares of two types of returnees, the findings
suggested that returnees play an important role in
 small business (61%)
 university teaching (56%)
 high management (54%)
 business (49%)
 health (45%)
 IT Computer (44%)
 planning and engineering (42%).
◦ Returnees help the transition and expansion of HK’s
tertiary education, IT and business development
◦ HK born returnees have their edge in combing best of
tools: transnational human capita and local social capital
as comparing to expatriates
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33. New waves: Import ProfessionalsNew waves: Import Professionals
PolicyPolicy
Pressure for more professionals to fill the market
shortage in the face of global economic restructuring
In 1994, Pilot import scheme of Mainland professionals
and skilled personnel
◦ Graduates from 36 key universities
◦ Skills and experience relevant to the jobs
◦ Not allowed to bring families to HK
◦ Eligible to apply for permanent residence in HK after 7 years
of continuous residence
Later
◦ Professionals can bring their wife and children to HK
◦ No quota for the importation scheme as long as academic
and experience requirements fulfilled
◦ Alleviate the shortage of professionals and mitigate the
ageing population by allowing family members to stay
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34. New waves: Current HKSAR PolicyNew waves: Current HKSAR Policy
In 2006
◦ Dependent visa holders can take up
employment w/o the need to obtain
independent visa if his/her sponsor has been
admitted into HK for employment or as
capital investment entrant.
◦ QMA (Quality Migrant Admission Scheme)
launched with a max. at 1000 per annum
 General Points Test or the Achievement-based Points T
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35. New waves: HKSAR PolicyNew waves: HKSAR Policy
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36. SummarySummary
 HK’s development – immigration plays an important role
 Applying the theoretical framework to the immigration
waves of HK
Theoretical Framework of Mobility Transition
5 Waves of Immigration of HK
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37. SummarySummary
Returnees created a brain drain reversal by bringing
their transnational human capital and local social
capital in high professions in various sectors.
◦ helps facilitate HK’s transition and expansion of tertiary
education, technology development, global and regional
business
New Challenge: Migrants from the mainland
◦ Striking balance between the increasing pressure of
admitting the family members of past immigrants and the
increasing demand for skilled workers and professionals
from the mainland
Future direction: attract, train, and retain talents
from the region and the developed economies to
work in HK
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38. Q & AQ & A
HK’s population policy public consultation
◦ http://
www.hkpopulation.gov.hk/public_engagement/en
Other questions are also welcomed
Thank you!
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