LCQ6: Measures to attract inward investment
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Question:
Regarding measures to attract inward investment, will the Government inform this Council:
(1) of the respective numbers of applications received, approved and rejected by the authorities under the New Capital Investment Entrant Scheme (New CIES) since its enhancement measures took effect on the first of last month, together with a breakdown by the applicants' place of domicile and total investment amount; and the reasons for rejecting applications under New CIES;
(2) whether it has compiled statistics on, among the approved applications mentioned in (1), the number of successful applicants who have already made investments in Hong Kong; whether it has assessed the effectiveness of the enhancement measures for New CIES in promoting the development of family offices in Hong Kong;
(3) as it has been reported that the delegation of Hong Kong deputies to the National People's Congress has proposed to establish a dedicated remittance mechanism called "Property Purchase Capital Connect" to allow residents of the Mainland and Hong Kong to make cross-boundary remittances for purchasing properties in Hong Kong or on the Mainland, with a view to further facilitating the flow of talents and economic integration between the two places, whether the authorities will look into this proposal and communicate with the relevant Mainland authorities in this regard; if so, of the details; if not, the reasons for that;
(4) as it has been reported that even though the policies adopted by some countries to combat investment immigrants' money laundering are more stringent compared to Hong Kong, such money laundering still exists in those countries, how the authorities strike a balance between anti-money laundering on the one hand and facilitating the entry of and attracting investment immigrants to Hong Kong on the other; and
(5) as it is learnt that while persons who have been granted visas under New CIES may apply to become Hong Kong permanent residents after meeting the relevant requirements and having resided in Hong Kong continuously for seven years, there is no such arrangement for the major asset managers of family office who have also come to Hong Kong for investment, whether the authorities will consider putting in place an identical arrangement for the aforesaid major asset managers with reference to New CIES; if so, of the details; if not, the reasons for that?
Reply:
President,
In consultation with the Hong Kong Monetary Authority, the Immigration Department (ImmD) and Invest Hong Kong (InvestHK), the reply to various parts of the question is as follows:
(1) and (2) Since the implementation of the enhancement measures for the New Capital Investment Entrant Scheme (the Scheme) from March 1, 2025 up to end-March, a total of 174 applications have been received. The applications are being processed and no application has been rejected so far. Under the Scheme, applicants must invest a minimum of HK$30 million in the permissible investment assets. If all the aforementioned applications are approved, it is estimated that they will bring more than HK$5.2 billion to Hong Kong. Besides, since the Scheme opened for application from March 2024, a total of 1 092 applications have been received, having a positive impact on attracting more new capital to Hong Kong and strengthening the development of our asset and wealth management business, financial services and related professional services.
In accordance with the application procedures under the Scheme, after InvestHK has verified that the applicant fulfills the net asset requirement, he/she may submit to the ImmD an entry application for a visa/entry permit to enter Hong Kong for residence (entry application). Upon "approval-in-principle" after assessment from the immigration perspectives, the ImmD will grant a visa/entry permit to the applicant for entering Hong Kong as a visitor for not more than 180 days for making the committed investment within the period. Among the 174 applications received in March, InvestHK has approved 99 applications for Net Asset Assessment, and the ImmD has received 65 entry applications. The ImmD will generally complete the assessment of "approval-in-principle" in around three weeks, upon receipt of all needed documents. Since no application has been granted "approval-in-principle" so far, applicants have yet to commence their investments in Hong Kong. The detailed breakdown of the 65 entry applications received by the ImmD is set out in the table below:
| Entry applications received by the ImmD | |
| Guinea-Bissau | 41 |
| Vanuatu | 15 |
| Hungary | 2 |
| New Zealand | 2 |
| Australia | 1 |
| Canada | 1 |
| France | 1 |
| Greece | 1 |
| Malta | 1 |
| Total | 65 |
Since the enhancement measures under the Scheme have only been implemented for a short period of time, the Government will continuously review the applicants' investment arrangement and suitably evaluate its effectiveness.
(3) The Government has maintained communication with financial regulatory authorities in the Mainland on various cross-boundary remittance arrangements to seek to provide more facilitation arrangements for the convenience and benefit of the public and the business sector while ensuring that the risks are manageable. On facilitation for cross-boundary property purchases, the facilitative payment arrangement for Hong Kong and Macao residents purchasing properties in the Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), announced in January 2024, has been implemented. This arrangement applies to both newly built and second-hand residential properties purchased by individual Hong Kong and Macao residents, and allows them to remit funds in Renminbi or foreign currencies from outside the Mainland for property purchases and repayment of mortgage loans in the Mainland following the relevant procedures for settlement and payment.
For cross-boundary remittance arrangements (including that for property purchases) for Mainland residents or Mainland talents admitted to Hong Kong, since it involves different regulatory regimes (including requirements for capital inflows and outflows), the Government has been, with regard to their practical needs, exploring facilitation arrangements with the Mainland authorities concerned, with an aim to explore a gradual approach for seeking suitable policies and solutions through close collaboration between the two places within their regulatory framework and existing practices. Any facilitation arrangements will be announced in due course.
(4) Under the Scheme, an applicant is required to appoint eligible financial intermediary(ies) to manage the permissible investments in his/her designated account(s). The appointed financial intermediary(ies) is/are required to carry out customer due diligence and fulfill relevant anti-money laundering and counter-terrorist financing obligations under the Anti-Money Laundering and Counter Terrorist Financing Ordinance (Cap. 615), and report to InvestHK on the applicant's continuous compliance with the Scheme Rules. When processing the applications for Assessment on Investment Requirements, InvestHK will also check the fund flow and investment arrangement of the applicant, and examine contract notes/reference letters, etc as provided by the applicant or issued by the appointed financial intermediary(ies). If necessary, InvestHK will also request the applicant to provide other supporting documents and information to certify that the applicant's investment complies with the requirements of the Scheme.
(5) Since the enhancement measures to the Scheme effected in March 2025, applicants may make investments through eligible family-owned investment holding vehicles or family-owned special purpose entities. The Government has included experienced management professionals in asset and wealth management under the Talent List to promote the development of Hong Kong as an asset and wealth management hub. Outside talents who meet the eligibility criteria for the relevant profession (including family office professionals and asset managers) may apply for entry under the Quality Migrant Admission Scheme, the General Employment Policy or the Admission Scheme for Mainland Talents and Professionals. Persons admitted under the above various talent admission schemes who have ordinarily resided in the Hong Kong Special Administrative Region (HKSAR) for a continuous period of not less than seven years may apply for the right of abode in the HKSAR in accordance with the law.
Ends/Wednesday, April 16, 2025
Issued at HKT 14:45
Issued at HKT 14:45
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