Global Capital and Family Offices Targeted as Hong Kong Revitalizes Capital Investment Entrant Scheme for Increased Financial Attraction
Hong Kong Introduces Revamped Capital Investment Entrant Scheme
Hong Kong has unveiled an updated version of its Capital Investment Entrant Scheme (New CIES), designed to attract substantial global investment and talent while striking a balance in its property market.
The New CIES requires high-net-worth individuals to demonstrate and invest a minimum of HK$30 million (approximately 5.3 billion won) in approved assets within six months prior to application. This investment provides a pathway to permanent residency for investors and their immediate family members, including spouses and unmarried dependent children under 18 years old.
Investment options under the New CIES are varied and include both residential and non-residential properties. However, the amount counted towards the total investment is capped at HK$10 million for property investments, representing one-third of the minimum investment amount. This cap applies regardless of property type, with ongoing government review of investment patterns.
Successful applicants gain access to Hong Kong’s thriving business ecosystem and can potentially establish family offices that meet minimum asset thresholds (HK$240 million) to qualify multiple family members under the scheme.
Regarding dependent children’s education benefits, children under dependent visas related to the scheme must reside in Hong Kong for at least two years before qualifying for government-subsidized post-secondary tuition fees; otherwise, they pay non-subsidized fees.
Applicants must invest HK$30m into Permissible Investment Assets, which include a HK$3m contribution to a government-managed portfolio by the Hong Kong Investment Corporation and HK$27m in eligible public market securities, private funds, and non-residential real estate.
To qualify, applicants must have a minimum net asset threshold of HK$30m over two years, and they must maintain investment thresholds for a period of seven years. The updated framework now includes private limited partnership funds (LPFs) and open-ended fund companies as permissible investments, subject to defined caps.
Early market reception suggests strong uptake, with banks, brokers, and fund sponsors receiving inquiries from global investors exploring investment structures and family offices under the New CIES. The New CIES aims to bolster capital inflows and reinforce Hong Kong's position as a leading international asset and wealth management center.
The reintroduction of the Capital Investment Entrant Scheme (New CIES) occurred on March 1, 2024, as part of the Financial Services and the Treasury Bureau's broader policy agenda to expand Hong Kong's appeal as a base for global family offices and wealth platforms.
- High-net-worth individuals seeking permanent residency in Hong Kong can invest a minimum of HK$30 million in approved assets, as per the requirements of the revamped Capital Investment Entrant Scheme (New CIES).
- The New CIES offers investment options in both residential and non-residential properties, with a cap of HK$10 million for property investments, accounting for one-third of the minimum investment amount.
- Successful applicants can benefit from access to Hong Kong's bustling business ecosystem and potentially establish family offices that meet minimum asset thresholds, enabling multiple family members to qualify under the scheme.
- Children under dependent visas related to the New CIES must reside in Hong Kong for at least two years to qualify for government-subsidized post-secondary tuition fees.
- Applicants must invest HK$30m into Permissible Investment Assets, which include a HK$3m contribution to a government-managed portfolio and HK$27m in eligible public market securities, private funds, and non-residential real estate.
- The updated New CIES framework now includes private limited partnership funds (LPFs) and open-ended fund companies as permissible investments, subject to defined caps, aimed at bolstering capital inflows and reinforcing Hong Kong's position as a leading international asset and wealth management center.
