The man identified as a 56-year-old Hong Konger named Guo, who had "financed several figures in the (Hong Kong) opposition", was arrested in the Chinese border city of Shenzhen, Xinhua said.
According to the report, a member of Hong Kong's pro-democracy movement "had told Mr Guo to buy a drone" that would be used for "disruptive activities" during next week's visit to the semi-autonomous city by the third-ranked member of China's communist party Zhang Dejiang.
The Hong Kong police confirmed the arrest Sunday.
"We received a notification from (the) mainland this morning and we are trying to seek more information about this," assistant commissioner of police Nelson Cheng told reporters.
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He added protesters will be banned from using drones during Zhang's visit.
"We will by all necessary means prevent any suspicious objects from entering the security zone," Cheng said.
Hong Kong is self-governing and retains liberties not seen on the mainland under a "one country, two systems" deal, made before the city was handed back to China by colonial power Britain in 1997.
Zhang is the most senior member of China's communist part to visit Hong Kong since pro-democracy protests paralysed parts of the city for months in 2014.
Guo was described by the Shenzhen police as the "head of a criminal gang" who was also arrested for money laundering, telephone fraud and the illegal sale of over 800 Hong Kong residency cards, according to Xinhua.
Four other people -- one Hong Konger and three Chinese -- were also arrested.