Hong Kong's Exciting New Investment Initiative!

Get ready for a game changer! Starting March 1, 2024, Hong Kong is elevating its global investment appeal with a refreshed Capital Investment Entrant Scheme (CIES). This bold move aims to not just boost capital inflows but also solidify the city’s position as a premier hub for asset and wealth management.

What’s New in the Investment Game?

Under the revamped scheme, applicants will need to showcase a minimum net asset of HK$30 million within the two years prior to applying. But that’s just the beginning! To qualify, they must channel these funds into Permissible Investment Assets, including a compulsory HK$3 million investment into a government-managed fund provided by the Hong Kong Investment Corporation. The remaining HK$27 million can be allocated across a variety of options like public market securities, private funds, and non-residential real estate.

Attracting Global Talent and Wealth

This initiative isn't just a financial strategy; it’s part of a broader blueprint by the Financial Services and the Treasury Bureau to draw global family offices and wealth management platforms. It's all about making Hong Kong irresistible to international investors eager to tap into its vibrant financial landscape.

A Flexible Approach to Investments!

Perhaps the most exciting update is the flexibility offered to investors. For the first time, applicants can invest up to HK$10 million in non-residential real estate, as long as that property is wholly owned by them or a company they fully own. And while mortgages are allowed, only the equity part of the investment counts towards their threshold.

Keeping Investments Steady for Seven Years

There are commitments involved! Applicants must sustain their investment thresholds for a solid seven years, with the caveat that profits can’t be withdrawn—except for earning like dividends or rent.

Expanding the Investment Horizons

This updated CIES marks a strategic shift from the previous version, bringing in more flexible investment options. Investors can now explore private limited partnership funds (LPFs) and open-ended fund companies, provided they adhere to specific investment limits. This is a golden opportunity for savvy investors looking to navigate Hong Kong's bustling financial waters.