Hong Kong's New Capital Investment Entrant Scheme

• Published date: 27 March 2024
• Law Firm: Mayer Brown
• Author: Mr Eugene Y. C. Wong, Helen Wang and Stephanie Lam

Introduced in the 2023-2024 Budget, the new and revamped Capital Investment Entrant Scheme (New CIES) aims at enriching the talent pool and attracting more new capital to Hong Kong. It is one of the eight policy measures under the Policy Statement on Developing Family Office Businesses in Hong Kong issued by the Financial Services and the Treasury Bureau in March 2023.

The New CIES started accepting applications from 1 March 2024. Detailed Rules for the New Capital Investment Entrant Scheme (Rules) were published.

As the first of a series of our write-ups on the New CIES, this Legal Update provides an overview of the eligibility requirements and application procedures laid down by the Rules. It also coverssuch types of investments which would qualify as Permissible Investment Assets under the New CIES, in particular focusing on non-residential real estate. The next write-up will focus on how private fund sponsors can structuretheir private fund products to be eligible as Permissible Investment Assets under the New CIES.

1. Eligibility Requirements

To be eligible to make an application under the New CIES, an applicant must be a natural person who satisfies the following criteria:-

Age

18 or above.

Nationality/Residence

Foreign nationals (other than nationals of Afghanistan, Cuba and North Korea); Chinese nationals who have obtained permanent resident status in a foreign country; Macao Special Administrative Region residents; or Chinese residents of Taiwan.

Net Asset Requirement

Absolute beneficial entitlement to net assets with a market value of not less than HK$30 million throughout the two years preceding the date of lodgement of application for net asset assessment (Net Asset Requirement).

Investment in Permissible Investment Assets

Investment of not less than HK$30 million net in Permissible Investment Assets after 1 March 2024. Types of Permissible Investment Assets The HK$30 million investment must includebothtypes of investment below:- * The CIES IP is an investment portfolio managed by the Hong Kong Investment Corporation Limited. It will primarily invest in companies and projects with a Hong Kong nexus, with a view to supporting the innovation and technology industries and other strategic industries that are beneficial to the long term development of Hong Kong's economy. The HK$27 million of Permissible Investment Assets may include the following financial assets (Permissible Financial Assets) and non-residential real estate:-

Here are some highlights of investment requirements applicable to specific...