Investor visa program targets $120b

Hong Kong has unveiled a new Capital Investment Entrant Scheme to attract high-net-worth individuals that requires an asset threshold of HK$30 million and permits investments in stocks, bonds and nonresidential real estate.

The administration had suspended the previous Capital Investment Entrant Scheme from January 15, 2015.

Under the scheme announced yesterday, foreigners, Chinese people who have foreign nationality, Macau residents and Chinese residents of Taiwan can apply to emigrate to

Hong Kong by investing no less than HK$30 million in financial assets and nonresidential properties.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu expects the scheme can bring HK$120 billion capital to Hong Kong next year.

Hui believes the scheme is attractive, with a wide range of permissible investment assets, including equities, debt securities, nonresidential real estate and a minimum HK$3 million investment supporting the development of innovation and technology industries and other strategic industries.

The investment in nonresidential real estate is subject to a cap of HK$10 million.

The scheme is expected to be launched in the middle of next year, and applicants will be able to stay in the city for up to two years after receiving formal approval, with an extension of stay for not more than three years each time.

If applicants are unable to fulfill the continuous ordinary residence requirement of not less than seven years to apply for becoming Hong Kong permanent residents they can seek an unconditional stay to dispose of their investments.

A mechanism announced in the policy address this year suspends payment of a buyer’s stamp duty and new residential stamp duty for the acquisition of residential property by incoming talented people. It also cover successful applicants under the capital investment scheme.

Hui said Hong Kong is a vibrant international city that has always attracted people from all over the world.

“The new scheme will enhance Hong Kong’s strengths in asset and wealth management and finance and related industries and bring more business opportunities and high-quality employment to all segments of the industries’ service chain,” he said.

The Hong Kong General Chamber of Commerce welcomed the scheme, saying it will further enrich the talent pool and attract more capital.

“It will also strengthen the development of our asset and wealth management business, financial services and other related professional services, and bring more business and job opportunities to all segments of industries and service chains,” the chamber added.

Legislator Jeffrey Lam Kin-fung welcomed the scheme, saying it will enable investors to manage investments flexibility and help attract talent and capital, and that would have a positive effect on investment promotion.

“The scheme will inject vitality into Hong Kong’s investment market, including the nonresidential property market,” Lam noted.

Tina Cheng Tin-yan, senior director for strategy at Midland Immigration Consultancy, expects 5,000 applicants to apply if the United States cuts the interest rate, bringing HK$30 billion more to Hong Kong.

However, Cheng says the administration should remove the HK$10 million ceiling for nonresidential properties to allow flexibility for applicants to build up their investment portfolios.

stacy.shi@singtaonewscorp.com