Hong Kong resurrects Capital Investment Entrant Scheme, luring in international capital and family offices worldwide
The Capital Investment Entrant Scheme (New CIES), reintroduced in Hong Kong and effective from 1 March 2024, aims to attract high-net-worth individuals to settle and invest in the city. The scheme requires a minimum investment of HK$30 million, with at least HK$27 million allocated to eligible financial assets and real estate, and an additional HK$3 million placed into a designated Capital Investment Entrant Scheme Investment Portfolio (CIES IP).
The eligible assets primarily consist of funds, stocks, and bonds approved by the Hong Kong Securities and Futures Commission (SFC). Funds constitute about 40% of investments, stocks about 30%, bonds about 10%, and the remaining 20% are allocated to investment-linked assurance schemes, open-ended fund companies, real estate investment trusts, real estate, and the CIES IP.
Applicants must demonstrate a net asset threshold to meet the Net Asset Requirement (NAR), verified by Invest Hong Kong before applying for a visa or residency permit assessed by the Immigration Department. The program is designed to enrich the talent pool and boost the asset and wealth management industry in Hong Kong.
Since its relaunch, the scheme has attracted over 1,500 applications, with more than 670 approvals, collectively involving investments exceeding HK$21 billion. The New CIES is 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.
The New CIES includes permissible investments in private limited partnership funds (LPFs) and open-ended fund companies, subject to defined caps. Applicants under the New CIES must maintain investment thresholds for a period of 7 years. Profits from the New CIES investments can only be withdrawn as cash income such as dividends or rent.
The New CIES allows up to HK$10 million investment in non-residential real estate, with mortgages permitted but only the equity portion qualifying. The scheme is also designed to boost capital inflows and reinforce Hong Kong's position as a leading international asset and wealth management center. A mandatory HK$3 million contribution to a government-managed portfolio by the Hong Kong Investment Corporation is also part of the investment requirement.
In summary, the New CIES offers high-net-worth individuals a pathway for residency combined with significant investment and asset management opportunities in Hong Kong’s thriving financial market. To be eligible for the New CIES, applicants must have a minimum net asset threshold of HK$30 million over the past two years.
- Under the New CIES, a minimum investment of HK$30 million is required, with at least HK$27 million allocated to eligible financial assets and real estate, and an additional HK$3 million placed into a CIES Investment Portfolio.
- The eligible assets in the New CIES primarily consist of funds, stocks, bonds, investment-linked assurance schemes, open-ended fund companies, real estate investment trusts, real estate, and the CIES IP.
- Applicants for the New CIES must demonstrate a net asset threshold and place at least HK$3 million in a government-managed portfolio by the Hong Kong Investment Corporation.
- permissible investments in private limited partnership funds and open-ended fund companies are included in the New CIES, subject to defined caps.
- Applicants under the New CIES must maintain investment thresholds for a period of 7 years, and profits from the New CIES investments can only be withdrawn as cash income such as dividends or rent.
- The New CIES allows up to HK$10 million investment in non-residential real estate, with mortgages permitted but only the equity portion qualifying, and aims to boost capital inflows and reinforce Hong Kong's position as a leading international asset and wealth management center.
