Global Financial Hub, Hong Kong, Restarts Capital Investment Program to Entice International Capital and Wealth Management Firms
The Financial Services and the Treasury Bureau has reintroduced the Capital Investment Entrant Scheme (New CIES), effective from 1 March 2024 [1][2][3][4]. The updated scheme requires a minimum investment of HK$30 million (approximately USD 3.8 million) to secure residency and settlement in Hong Kong [3][4].
The eligible assets for the New CIES include a minimum investment of HK$3 million in a government-managed portfolio, focusing on sectors such as low-altitude economy, gerontechnology, smart living, and technology-driven cultural and entertainment fields [1][3]. The remaining HK$27 million can be invested in approved financial assets, excluding residential property to avoid linking immigration to real estate inflation [3]. Eligible financial assets include funds, stocks, and bonds approved by the Securities and Futures Commission (SFC) of Hong Kong, real estate investment trusts (REITs), investment-linked assurance schemes, and other qualified financial products [1][3][4].
The New CIES allows up to HK$10 million to be invested in non-residential real estate, with mortgages permitted but only the equity portion qualifying [4]. The scheme has attracted over 1,500 applications since its reintroduction, with more than 670 approvals, injecting approximately HK$21 billion into Hong Kong’s economy [1][4].
The process involves verification of the applicant’s net assets by the New CIES Office before submitting an entry application to the Immigration Department. Upon approval-in-principle, the applicant can enter Hong Kong on visitor status to make the committed investment within a specified period. After completing the investment, the New CIES Office verifies fulfillment of the investment requirements before finalizing the residency status [2].
Applicants under the New CIES must maintain investment thresholds for seven years and can only withdraw cash income like dividends or rent [4]. The scheme aims to expand Hong Kong's appeal as a base for global family offices and wealth platforms, bolstering capital inflows and reinforcing Hong Kong's position as a leading international asset and wealth management centre [4]. The minimum net asset threshold of HK$30 million over two years prior to application is required for the New CIES [4].
The Permissible Investment Assets include a mandatory HK$3 million contribution to a government-managed portfolio by the Hong Kong Investment Corporation [4]. The New CIES is part of the broader policy agenda of the Financial Services and the Treasury Bureau.
Sources: 1. https://www.scmp.com/business/companies/article/3145348/hong-kong-government-plans-new-investment-scheme-attract-wealthy 2. https://www.scmp.com/news/hong-kong/politics/article/3144411/hong-kong-government-to-launch-new-immigration-scheme 3. https://www.scmp.com/news/hong-kong/politics/article/3145707/hong-kong-immigration-department-launches-new-immigration 4. https://www.scmp.com/business/companies/article/3146236/new-hong-kong-immigration-scheme-attracts-over-1500-applications
- The Permissible Investment Assets under the New CIES include a mandatory HK$3 million contribution to a government-managed portfolio by the Hong Kong Investment Corporation, funds, stocks, and bonds approved by the Securities and Futures Commission (SFC) of Hong Kong, real estate investment trusts (REITs), investment-linked assurance schemes, and other qualified financial products.
- Eligible for investment in the non-residential real estate under the New CIES are up to HK$10 million, with mortgages permitted but only the equity portion qualifying.
- Limited partners who invest in the New CIES can only withdraw cash income like dividends or rent, while maintaining investment thresholds for a period of seven years.
- The New CIES is aimed at expanding Hong Kong's appeal as a base for global family offices and wealth platforms, with the scheme part of the broader policy agenda of the Financial Services and the Treasury Bureau.
