New schemes to attract migrants

New schemes to attract migrants

The Executive Council today (March 11) endorsed two schemes designed to attract quality immigrants to Hong Kong, including professionals from the Mainland.

Details of the 'Capital Investment Entrant Scheme' and the 'Admission Scheme for Mainland Talents and Professionals' were announced by the Secretary for Security, Mrs Regina IP.

"The two schemes are aimed at attracting the inflow of capital and facilitating local firms to tap the expertise of Mainland professionals to develop their businesses," she said.

Under existing policy, entrepreneurs can enter Hong Kong to set up or join in a business. But this does not cover people who have the financial means to make substantial investments in Hong Kong, but do not wish to run the business themselves.

"This places Hong Kong at a disadvantage in the global competition for capital investment," Mrs Ip said.

The Capital Investment Entrant Scheme will overcome this disadvantage.

"We will 'ring-fence' the new investment they bring so as to ensure that they bring benefits to local financial and economic activities. Capital investment entrants will also contribute to local consumption," she said.

The investment threshold under the Scheme will be set at $6.5 million and the investment will have to be made in a specified list of permissible investment assets.

Mrs Ip said the government believed the threshold would provide a proper balance between making Hong Kong attractive in the global competition for capital investors and ensuring that the investors were of an appropriate quality.

The Hong Kong scheme will allow capital investment entrants greater flexibility than other similar schemes in their choice of investment assets to suit their individual needs.

The new policy will be applied to all foreign nationals, residents of Macau, Chinese nationals who have obtained permanent resident status in a foreign country, stateless people who have obtained permanent resident status in a foreign country with proven re-entry facilities and residents of Taiwan.

Mrs Ip said that at this stage the new policy would not apply to Mainland residents as there were controls on foreign exchange in China.

Under the Scheme, entrants may invest in two permissible investment asset classes:-

(i) Real estate - whether commercial, industrial or residential, including land and pre-completion properties in Hong Kong; and

(ii) Financial assets

Under this class, the entrant can invest in one or a combination of financial assets:-

(a) Equities - shares of companies that are listed on the Hong Kong Stock Exchange and traded in Hong Kong dollars;

(b) Debt securities denominated in Hong Kong dollars, including fixed or floating rate instruments and convertible bonds which are issued or fully guaranteed by the HKSAR Government, the Exchange Fund, the Hong Kong Mortgage Corporation, the MTR Corporation Limited, the Kowloon-Canton Railway Corporation, the Hong Kong Airport Authority, and other corporations, agencies or bodies wholly or partly owned by the HKSAR Government as may be specified from time to time and companies referred to under (a) above;

(c) Certificates of Deposits denominated in Hong Kong dollars with a remaining term to maturity of not less than 12 months at the time of purchase (such purchase should take place after approval in principle has been given by the Director of Immigration for the entrant to join the Capital Investment Entrant Scheme);

(d) Subordinated debt denominated in Hong Kong dollars issued by authorised institutions under the Banking Ordinance; and

(e) Approved unit trusts or mutual funds.

Portfolio maintenance and 'ring-fencing' requirements will be imposed to ensure that entrants do not reduce their investment commitment to Hong Kong during the time when they are permitted to stay in Hong Kong under the Scheme.

"In a nutshell, entrants are not allowed to realise or cash in any capital appreciation of the qualifying portfolio," Mrs Ip said.

"On the other hand, if the value of the portfolio falls below the original level of $6.5 million, no topping up is required."

An entrant will be allowed to switch investments from one permissible asset class to another provided that the ring-fencing principle is adhered to.

Successful applicants will be allowed to bring in their dependants. After seven years' of continuous ordinary residence in Hong Kong, capital investment entrants and their dependants may apply for the right of abode in Hong Kong.

On the Admission Scheme for Mainland Talents and Professionals, Mrs Ip said the conditions for admitting Mainland residents for employment and those applicable to foreign nationals would be aligned as far as possible.

No sectoral restriction or quota will be imposed under the new Scheme. And Mainland residents who satisfy the following eligibility criteria may apply for entry:-

(a) the applicant should have a good education background, normally a first degree in the relevant field. But in special circumstances, good technical qualifications, proven professional abilities and/or relevant experience and achievements supported by documentary evidence may also be accepted;

(b) the applicant's admission is contingent on a confirmed offer of employment. Applicants should be employed in jobs relevant to their academic qualifications or working experience which cannot be readily taken up by the local work force; and

"Apart from professionals in the commercial and financial fields, the Scheme will also cater for the entry of talent and professionals in the arts, culture and sports sectors, as well as those in the culinary profession. The admission of these people will enhance Hong Kong's status as Asia's world city," said Mrs Ip.

With the launch of the new scheme, the existing Admission of Talents Scheme and the Admission of Mainland Professionals Scheme will be abolished.

A non-statutory advisory committee, to be appointed by the Chief Executive, will be set up to advise on applications submitted under the Scheme.

Mrs Ip said successful applicants would be allowed to bring their spouses and unmarried dependent children under the age of 21 to Hong Kong.

The Admission Scheme for Mainland Talents and Professionals is expected to commence from July, while the Capital Investment Entrant Scheme will be launched in the third quarter of this year.

End/Tuesday, March 11, 2003