HONG Kong is easing the requirement of its capital investment entrant scheme, bolstering efforts to attract family offices and lift the city’s status as a global wealth hub.
Investments made through an eligible private company wholly owned by an applicant will be counted towards the programme starting Mar 1, according to a government statement on Tuesday (Jan 7). Assets owned by family members and family-owned investment vehicles will be also valid, according to a government statement.
The city revived the programme in March last year after a two-decade halt, allowing people who invest HK$30 million (S$5.3 million) to obtain residency. It’s the latest move by the city to attract wealth in the face of increased competition from peers including Singapore.
The government expects the programme to bring in more than HK$24 billion of investments, which may help its rebound from a weak economy and a real estate downturn. The city saw an exodus of international firms brought on by the pandemic and US-China tensions.
A total of 240 applicants out of more than 800 have fulfilled investment requirements within a six-month limit, according to the statement on Tuesday.
The government added that 733 people showed they have net assets of at least HK$30 million in the two years preceding. The latest adjustment shortens the time period to the six months preceding applications.
It follows changes in October when Hong Kong added single residential properties of HK$50 million and above as part of the investment qualification. The total contribution amount from real estate is subject to a cap of HK$10 million.
“These measures will encourage more investors to join,” Christopher Hui, Hong Kong’s secretary for financial services and the treasury said on Tuesday. It “can create synergy with the tax concession regime for family offices, thereby promoting the development of family office businesses in Hong Kong”.
Hong Kong had more than 2,700 single-family offices based in the city in 2023, according to a Deloitte survey commissioned by the government. Chief executive John Lee made of target of having 200 large family offices set up in the city by this year. BLOOMBERG
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