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“Many of them expressed interest in applying for residency in Hong Kong alongside their plans to set up family offices in the city. It will be a huge boost to our development.”
Mr Chan said the previous round of the scheme had about 4,000 applicants each year. If the new scheme can attract similar numbers, it could bring about HK$120 billion in annual inflows into the stock, bond, fund and private equity markets.
“This will be a huge boost for the capital markets and asset management sector,” he said. “The new CIES will also strengthen Hong Kong’s role as an offshore RMB trading center, as the new CIES will allow applicants to invest in RMB-denominated assets.”
Hong Kong and Greater Bay Area support US$50 million decarbonization fund
Hong Kong and Greater Bay Area support US$50 million decarbonization fund
Although the government has not yet announced when it will start accepting applications, Mr Chan said InvestHK, as well as accountants, lawyers, banks and intermediaries, are all working hard to prepare for processing applications.
Brokers say the wealthy individuals interested in the scheme are those with overseas passports from other Asian markets, the Middle East, Europe and the Americas.
“InvestHK’s involvement will help provide the necessary information and guidance to ensure a smooth application process,” said Mr Chan.
InvestHK established a family office team in June 2021, so it has experience in serving wealthy immigrants setting up family offices here, Chan said.
Hong Kong originally introduced CIES after the 2003 SARS (Severe Acute Respiratory Syndrome) outbreak, but abolished it in 2015 following speculation in the real estate market. The threshold for the previous scheme was initially set at HK$6.5 million, but was later increased to HK$10 million.
Hong Kong revamps residency cash regime to compete with Singapore
Hong Kong revamps residency cash regime to compete with Singapore
The threshold for the new scheme is three times that of the previous scheme. Additionally, the new CIES no longer counts residential real estate, but does include investments in RMB-denominated bonds, stocks, and private equity funds.
Hong Kong faces competition from Singapore as a regional family office hub. According to the latest government data, Singapore’s family office population grew from 400 in 2020 to 700 in 2021 due to favorable incentives offered by the city government.
The HK$30 million threshold under Hong Kong’s new investment migration scheme is lower than Singapore, which requires investments ranging from a minimum of S$10 million (approximately HK$59 million) to S$50 million.
“Hong Kong can compete with Singapore for wealthy families to set up base here,” Mr Chan said. “Hong Kong has the advantages of ‘one country, two systems’, the rule of law, free flow of capital, free convertibility of the local currency, and the size of its capital market.”
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