Update on Hong Kong New Capital Investment Entrant Scheme

The New Capital Investment Entrant Scheme (the “New CIES”) was launched in March 2024 to attract high-net-worth individuals and business elites to relocate to Hong Kong by making capital investments. In 2024, the scheme met with over 800 applications, out of which 733 were verified as having fulfilled the net asset requirement. A total of 240 applicants had fulfilled the permissible investments. To further the objective of the New CIES, various enhancement measures have been introduced to take effect from 1 March 2025 (the “Enhancement”). This article outlines the features of the scheme and such new measures.

Feature. The New CIES is often described as an investment immigration scheme. Upon approval, the applicant and his/her dependents may stay in Hong Kong for no more than 24 months, after which they can apply to extend their stay for up to three years. During the stay, the committed investments must not be reduced. If they have ordinarily resided in Hong Kong for a continuous period of not less than seven years, they can apply to become permanent residents of Hong Kong.

Nationality eligibility. The New CIES is open to foreign nationals but not PRC nationals unless they have obtained permanent resident status in a foreign country. Nevertheless, Macau residents and Chinese residents of Taiwan are eligible.

Net wealth requirement. Each applicant must have net assets with a value of not less than HKD30 million (approximately USD3.86 million) throughout the six months preceding the application (two years before the Enhancement). Within the specified investment timeframe, the applicant is expected to:

1. make investments of not less than HKD27 million in permissible investment assets; and

2. place HKD3 million in the CIES Investment Portfolio which is managed by the Hong Kong Investment Corporation Limited whose mandate is to invest in projects related to Hong Kong.

From 1 March 2025 onwards, net assets jointly owned with the applicant’s family members can be counted in the net wealth requirement in respect of the portion owned by the applicant.

Investments. The permissible investment assets include:

• shares of companies listed on the Hong Kong Stock Exchange and traded in HKD or RMB;
• debt securities listed on the Hong Kong Stock Exchange and traded in HKD or RMB (including debt instruments issued in Hong Kong by the Ministry of Finance and local governments of Mainland China), debt securities denominated in HKD or RMB issued or guaranteed by the Hong Kong Government or Hong Kong listed companies;
• certificates of deposits denominated in HKD or RMB issued by authorised institutions (with a cap of HKD3 million);
• subordinated debts denominated in HKD or RMB;
• eligible collective investment schemes;
• ownership interests in… READ FULL ARTICLE

By: Rossana Chu and Sam Wu at YYC Legal LLP

Note: This material has been prepared for general informational purposes only and is not intended to be relied upon as professional advice. Please contact us for specific advice.