Hong Kong Revamps Investment Scheme For Residency
The Hong Kong government has announced a revamped investment scheme that will allow overseas individuals to gain residency in the city by investing a certain amount of capital in local assets, excluding property. The Capital Investment Entrant Scheme will attract new money to the city and enrich the talent pool, according to Financial Secretary Paul Chan Mo-po. However, the investment amount required will be “multiples” of the old HK$10 million threshold for a similar programme that was suspended eight years ago. The scheme will also exclude mainland Chinese residents, as was the case with the previous programme.
When Hong Kong promoted WEB3, it also restarted the investment immigration program. The program threshold is 10 million HKD (about 1.27 million US dollars), but it does not include real estate investment, and does not include mainland Chinese residents. https://t.co/huoruy0oSj
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Non-property Investments for Residency
The authorities are looking for investments related to growth sectors in Hong Kong, but not property. They will compile an asset list, which is a condition and not an option, to provide more options for outsiders looking for residency rights. The revamped scheme was launched because Hong Kong needs an initiative like Singapore’s Global Investor Programme, which allows those interested in starting a business or investing in the city-state to apply for permanent resident status. Hong Kong launched a similar scheme in 2003, but it was suspended in 2015 after deviating from its policy goal and causing housing prices to skyrocket.
The new scheme is more likely to attract capital than talent, said Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank. He suggested the authorities require applicants to invest in government bonds, which would become an essential instrument to mitigate fiscal deficits in the future. Marcos Chan, head of research at property consultancy CBRE in Hong Kong, said the scheme would enhance the city’s positioning as an international financial hub and support the growth of the asset and wealth management sectors. It will also potentially attract high-net-worth individuals and high-calibre talent to Hong Kong, which will benefit the retail market and strengthen the city’s competitiveness.
Funding Boosts
In addition to the investment scheme, the government will continue to nurture talent in different sectors, including launching a fintech internship scheme for postsecondary students that provides subsidies to participants in Hong Kong and the Greater Bay Area. The financial secretary has also pledged to inject HK$200 million into the Maritime and Aviation Training Fund to support training in the logistics industry. The fund has benefited more than 15,000 practitioners since it was launched in 2014.
