The number of mainland-born children entitled to the right of abode in Hong Kong will be about 34,900 by July 1, according to Governor Chris Patten.
The latest estimate - made in November - is about 20 per cent higher than the 29,000 estimated in January last year.
Together with the 76,500 mainland women married to Hong Kong men, a total of 111,000 mainlanders would be either entitled to or eligible to apply to stay permanently in Hong Kong by the handover.
Mr Patten admitted that the increase in population would put a strain on welfare, education and housing.
But he did not comment on whether the Government could do anything if such children overstayed in Hong Kong on two-way permits or entered the territory by illegal means.
Mr Patten said there was no recent evidence showing an increase in illegal entry from China.