These are definitely NOT mutually exclusive.
Unfortunately the education system has been left to fester while the executive branch of government have concentrated on nefarious ways to make the blighters more patriotic rather than better.
Closing down immigration because you can't run an education system is not a good thing for the city.
I think the main issue here is the education system, it teaches people to regurgitate whatever they have been told by their teacher. Which is good if you want to hire data monkey of back office. But if you need people to come up with a solution given a problem, and not providing step by step, then this system of education is useless.
That's also why you see all these kids with master/phd from top Uni in HK with a really crap English, they just learn sentence by heart but unable to express themselves simply.
But then if we train the kids to think for themselves more we might have riot against the government several years down the line, lets get expats instead, once China will take over they will fck off somewhere else.
It's also why there is a dramatic difference between HK people who have studied overseas and those who have stayed here. Even the ones who go to very average UK/US universities are more creative and open-minded thinkers than the ones who got top marks and went to the top HK universities.
As a condition of the land/facilities grant from the government, most international schools must have 70% of their student body holding a foreign passport.
Beyond that the schools do make an effort to ensure that the student body isn't too local, otherwise it gets a reputation as "international in name only." I have heard some local parents complain that it's easier for foreigners for this reason. My response is - as it should be. In most countries foreigners easily get places in the international school of their nationality. In HK we have to compete with upwardly mobile local families willing to pay anything, pushing up fees and increasing the hassle of applying.