Opinion | Immigration plan will attract wealthy people

The city has taken a step towards becoming a haven for the wealthy. The new immigration plan aims to attract capital and talent by attracting investments worth HK$120 billion a year to Hong Kong.

At HK$30 million per applicant, the new Capital Investment Entrant Scheme hopes to attract investors who will benefit the City’s professional services, particularly asset management.

Although a promising start, the headline figure of HK$120 billion per year may be a little too optimistic. It may take some time for this system to become established.

The investments required for investors and their family members to qualify for Hong Kong residency can be local stocks or other assets.

A family office can be established under this system. Admittedly, HK$30 million is not for the super-rich. And it’s lower than Singapore.

How does Hong Kong’s efforts to attract ultra-wealthy family offices compare to others?

However, it is undeniable that it has an appeal for wealthy people with high mobility and investment appetite outside the city.

This system does not include people residing solely in mainland China, but targets mainlanders with permanent resident status abroad, Taiwanese nationals, and Macau residents.

This will be combined with other incentives introduced in May, such as tax breaks and the construction of an art storage facility at Hong Kong Airport. These are a key part of the government’s strategic plan to attract a further 200 family offices, in addition to the more than 400 already established here.

There are also concerns about whether Hong Kong is perceived as as attractive and livable as it used to be, given the recent political turmoil. But as the city stabilizes and returns to normal, outsiders will find out that the city is open for business again.

On the other hand, some of the system’s restrictions are seen as severe. For example, the investment requires him to remain in the city’s financial market for at least 7 years. These rules are necessary if the city doesn’t want immigrants leaving the city after putting their money here temporarily.

New companies entering the system should be able to help drive the economy and create jobs. This is not just a tax haven plan, but a plan for economic growth.