Hong Kong Investment Immigration Threshold Lowered Again! Who will benefit?

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To further consolidate Hong Kong's position as a leading international asset and wealth management center in the world, the Hong Kong SAR Government announced on January 7 that the"The optimization measures of the New Capital Investment Entrant Scheme (NCIES) will be effective from 1 March this year.

#01

Relaxation of the net worth review period

Starting from March 1, 2025, applicants of the New Capital Investment Entrant Scheme will only need toProof of absolute beneficial ownership of net assets or net capital with a market value of not less than HK$30 million at all times during the six months (originally two years) prior to the date of filing the NAV application.

At the same time, the applicant and his/her family membersof jointly held net assets or net capitalThe applicant'sThe share of absolute beneficial ownership will also be taken into account.

#02

Allowed to invest through family investment control vehicles

Effective March 1, 2025, theInvestments made by an applicant through an eligible private company wholly owned by the applicant will also be included in the Eligible Investment Amount of the Program.

The private company must fulfill the following conditions throughout the six-month period prior to the applicant's application for investment requirement review:

❶ Incorporated or registered in Hong Kong;

❷ Wholly owned by the applicant/investor;

❸ Holds only approved investment assets;

o It must be a family controlled vehicle or a family specific purpose entity under a family controlled vehicle that employs at least two full-time staff in Hong Kong to carry out the relevant activities and incurs operating expenses of at least HK$2 million per annum in Hong Kong;

❺ Managed by a qualified single family office of the applicant/investor's family, which manages for the family's family controlled vehicle the total net assets specified under Schedule 16C of the Inland Revenue Ordinance must be not less than HK$240 million.

#03

Publishing the latest data on scheme approvals

Since the implementation of the New Capital Investment Entrant Scheme (NCIES), many high net worth individuals, business leaders and innovative entrepreneurs have submitted applications and the response has been overwhelming.

According to the Director of Investment Promotion, Mr. Kenneth Lau, the number of applications received within the first ten of the scheme's implementation has already exceeded the highest number of applications received during the same period under the former Capital Investment Entrant Scheme launched in 2003. This clearly reflects investors' high level of trust and optimism in the stability and development potential of the Hong Kong market.

Overview of key data for the first ten months of program implementation:

❶ Number of consultations received: close to 7,000;

❷ Total number of applications received: over 800;

❸ Applications for net worth compliance: 733;

❹ Applications for investment completion: 240;

❺ Expected to attract total investment: over HK$24 billion.

The HKSAR Government's optimization measures for the scheme will undoubtedly significantly enhance the attractiveness of the scheme and further attract high net worth individuals from around the world. By participating in this scheme, investors will not only make valuable investments, but also be able to obtain residence status in Hong Kong, realizing a win-win situation.

#04

Impact on different types of investorsMainland investors

❶ Seeking internationalized asset allocation
Hong Kong has always been an ideal destination for asset allocation for high net worth investors from the Mainland.

With the optimization of the New Scheme, mainland investors can invest their capital in the Hong Kong market more conveniently. They can invest part of their capital in the capital market of Hong Kong, buy shares of internationally recognized enterprises or invest in emerging financial products.

At the same time, it is also possible to realize the inheritance and international management of family wealth through the establishment of family trusts in Hong Kong and other means.

❷ Enterprises Expanding International Business
Mainland enterprises can use Hong Kong as an internationalized platform to attract international capital and expand their market share overseas. For example, they can make use of Hong Kong's financial advantages to conduct overseas mergers and acquisitions or raise funds in the international bond market.

overseas investor

❶ Capitalizing on Mainland China Market Opportunities
Overseas investors can use Hong Kong as a springboard to penetrate deeply into the mainland China market. For example, some European and American investors can indirectly participate in the consumer market or technological innovation in Mainland China by investing in Hong Kong enterprises.

❷ An important addition to global asset allocation
As a financial center in the Asian region, Hong Kong offers a unique asset allocation option for overseas investors. Adding an investment element from Hong Kong to a global asset portfolio can achieve risk diversification and stable returns.

If you are interested in Hong Kong investment immigration, now is certainly a good time.Investors can not only enjoy the advantages of Hong Kong as an international asset management center, but also leverage on the policy dividend to explore more opportunities in the Greater Bay Area and even globally.Inquiries are welcome!