Hong Kong has launched an updated Capital Investment Entrant Scheme (CIES), effective 1 March 2024, to boost capital inflows and reinforce the city's status as a leading global asset and wealth management centre.
Under the new programme, applicants must meet a minimum net asset threshold of HK$30 million over the two years before application. Additionally, they must invest this amount in Permissible Investment Assets. These assets include a mandatory contribution of HK$3 million into a government-managed portfolio by the Hong Kong Investment Corporation and HK$27 million allocated to eligible public market securities, private funds, and non-residential real estate.
The initiative is a key part of the Financial Services and the Treasury Bureau's broader strategy to enhance Hong Kong's appeal as a base for global family offices and wealth management platforms. It builds on the city's ongoing efforts to attract international investors and expand its financial services sector.
Notably, the revised programme allows applicants to invest up to HK$10 million in non-residential real estate, provided the property is fully owned by the applicant or their wholly owned company. Mortgages are permitted, but only the equity portion of the investment qualifies.
Applicants must maintain the investment thresholds for seven years, with the restriction that profits may not be withdrawn except for cash income such as dividends or rent.
The updated CIES significantly shifts from the previous framework by introducing greater flexibility in permissible investments. Now, applicants can invest in private limited partnership funds (LPFs) and open-ended fund companies, subject to defined investment caps.
