New CIES

Hong Kong's "New Capital Investor Entrant Scheme" official applications started on March 1, 2024!

Hong Kong has always served as a springboard for the mainland to connect with the world. Its excellent geographical location and tax advantages have attracted high-net-worth families to invest or settle in Hong Kong. Emperor Capital has outlined the following key points for the New CIES to provide clients with interest in obtaining Hong Kong residency through capital investment with a preliminary understanding.

Scope of the Scheme

• Foreign nationals (Nationals of Afghanistan, Cuba, and Democratic People's Republic of Korea are excluded;
• Chinese nationals who have obtained permanent resident status in a foreign country;
• Macau Special Administrative Region residents; and
• Chinese residents of Taiwan

Eligibility Criteria

• aged 18 or above at the time of applying for Net Asset Assessment;
• must apply for a Net Asset Assessment: the Applicant should demonstrate to the satisfaction of DGIP that he has Net assets or Net equity to which he is absolutely beneficially entitled with a Market value of not less than HK$30 million Net (or equivalent in foreign currencies) throughout the two years preceding the date he lodged his application for Net Asset Assessment of the Scheme;
• has invested within and thereafter throughout the period beginning on the Launch date of the Scheme or the 180th day before his application is lodged for Net Asset Assessment, whichever is later, and ending on the 180th day after Approval-in-Principle has been granted by DoI, not less than HK$30 million Net (or equivalent in foreign currencies) in Permissible investment assets to which he is absolutely beneficially entitled.
• must demonstrate that he has no adverse immigration record and meets normal immigration and security requirements; and
• can demonstrate to DoI that he is capable of supporting and accommodating himself and his dependants, if any, on his own without relying on any return on the Permissible investment assets, employment, self-employment, office, business or public assistance in or carried on in Hong Kong as the case may be;

Permissible Investment Assets

An Applicant must make the committed investment not less than HK$30 million Net (or equivalent in foreign currencies) in Permissible investment assets. the Applicant is required to deposit cash of HK$3 million to the designated account opened with one of his appointed financial intermediary(ies) for subsequent placing into the CIES IP.

The Applicant must invest a minimum of HK$27 million in any of the following Permissible financial assets and/or properties:

	Equities shares of companies that are listed on the Stock Exchange of Hong Kong (“SEHK”) and traded in Hong Kong Dollars (“HKD”) or Renminbi (“RMB”)
	Debt securities debt securities listed on the SEHK and traded in HKD or RMB (including debt instruments issued in Hong Kong by the Ministry of Finance of the People’s Republic of China and local people’s governments at any level in the Mainland); fixed or floating rate instruments and convertible bonds 6 issued or fully guaranteed by: the Hong Kong Special Administrative Region Government; the Exchange Fund; the Hong Kong Mortgage Corporation； the MTR Corporation Limited, Hong Kong Airport Authority； other corporations, agencies or bodies wholly or partly owned by the Government；or Stock Exchange of Hong Kong (“SEHK”)
	Certificates of deposits (cap at HK$3 million) certificates of deposits denominated in HKD or RMB issued by authorised institutions as defined in the Banking Ordinance: with a remaining term to maturity of not less than 12 months at the time of acquisition by the Applicant/Entrant; the acquisition must take place after Approval-in-Principle has been granted by the DoI and thereafter the Applicant/Entrant be absolutely beneficially entitled to the invested certificates of deposits throughout its term; the certificates of deposits on reaching maturity must be replaced by certificates of deposits with a remaining term to maturity of not less than 12 months at the time of acquisition by the Applicant/Entrant or by other Permissible investment assets
	Subordinated debt subordinated debt denominated in HKD or RMB issued by authorised institutions
	Eligible collective investment schemes 1 Securities and Futures Commission (“SFC”)-authorised funds/REITs managed by corporations licensed by or institutions registered with the SFC for Type 9 regulated activity; SFC-authorised Investment-Linked Assurance Schemes8 issued by permitted insurers
	Ownership interest in limited partnership funds (“LPFs”) registered under the Limited Partnership Fund Ordinance （cap at HK$10 million）
	Residential real estate or Non-residential real estate (cap of HK$10 million) Excludes illegal or unlawful use or occupation of land, and boats, houseboats, trailers, caravans, illegal structures and cocklofts whether or not rated, connected to mains water or power supplies, or on permanent or fixed moorings or foundations. Non-residential real estate Non-residential real estate, whether commercial and/or industrial (including pre-completion properties covering offices, commercial premises, retail premises and factories and excluding land and multi-purpose real estate partly for residential purposes) in Hong Kong Residential real estate For residential real estate (including pre-completion property and multipurpose real estate partly for residential purposes) in Hong Kong, the investment must be made in one single property with transaction price of HK$50 million or above
	Eligible private company wholly owned by an Applicant/Entrant Investments in Permissible investment assets made through an eligible private company wholly owned by an Applicant/Entrant to be counted towards the value of Applicant/Entrant’s eligible investment with effect from 1 March 2025 Details will be announced by InvestHK later

Separately, each Applicant/Entrant under the Scheme is required to place HK$3 million into the CIES IP, which is set up and overseen by the Hong Kong Investment Corporation Limited (“HKIC”). The selected fund managers of the CIES IP are expected to make investments bringing contribution to the long-term development of Hong Kong’s economy and society by accelerating the exploration and strategic planning of cutting-edge growth drivers along the development journey of technological innovation.

CIES Investment Portfolio (“CIES IP”) ²

• subject to a lock-up period
• are not guaranteed, and distribution may be made on a discretionary basis at appropriate junctures subject to factors such as the pace and mix of the construction and realisation of the CIES IP, as well as the policy objectives and implementation arrangements.
• to deposit cash of HK$3 million to the designated account opened with one of his appointed financial intermediary(ies)

Detailed design for the CIES IP will be announced in due course.

¹Source: List of Eligible Collective Investment Schemes under the New Capital Investment Entrant Scheme (New CIES) | SFCwebsite, updated on October 16, 2024, and subject to official announcement.
²Source: New Capital Investment Entrant Scheme Officewebsite, updated on October 16, 2024, and subject to official announcement.

Advantages of Hong Kong

• Visa-free Access to 172 countries and regions³
• Simple tax system – taxation based on local source, no sales tax, gift tax or inheritance tax
• High education standard – Hong Kong universities are consistently ranked among the top 100 in the world⁴
• Advanced Medical Services
• Diversified Investment
• Free Economy – Hong Kong ranked as the freest economy in the world⁵
• Better welfare
• Rule of law – Hong Kong ranks 7th in safety index⁶

³Source:Visa-free access or visa-on-arrival for HKSAR Passport | Immigration Departmentwebsite, updated on August 13, 2024, and subject to official announcement.
⁴Source:World University Rankings 2024 | Times Higher Education (THE)website, updated on April 9, 2024, and subject to official announcement.
⁵Source:Fraser Institute, Economic Freedom of the World, 2024, updated on October 16, 2024, and subject to official announcement.
⁶Source:Crime Index by Country 2024, updated on January 17, 2024, subject to official announcement.

Benefits from CIES

• There is no age limit, education background or working experience requirement for applicants
• Hong Kong adopts the Territorial Source Principle of Taxation. Only income earned in Hong Kong is subject to tax, while income from outside Hong Kong is not subject to tax in Hong Kong. No taxes on personal investment income or capital gains, no sales tax, no gift tax, and no estate tax
• Only need to continue to invest in Hong Kong, and the renewal requirements are relatively simple. You can also apply for your spouse and children to live in Hong Kong together.
• The diversity of permitted investment assets allows for appropriate planning and optimization of personal and family wealth management plans to achieve asset appreciation and preservation, as well as wealth inheritance.

Service Scope of Emperor Capital

	Free consultation service We provide comprehensive free consulting services based on the information provided by our clients to help them understand the latest regulations and personalise an investment plan that meets the requirements of CIES.
	Professional team With years of experience in serving CIES clients, Emperor Capital's professional team is dedicated to providing personalized financial strategies, and help you manage your wealth worldwide.
	A variety of investment products and services that meet the requirements of CIES Emperor Capital provides a wide range of investment products and services, including global investment products, wealth management, asset management, corporate financing, financial loans and properties, etc., which can help you choose the right products to meet the requirements of the CIES.
	Simplify the process We will assist in reviewing and organizing the documents you need to submit, including asset reports, account opening documents, etc., according to the CIES and other relevant requirements, and provide convenient services to save your time.

General Terms and Conditions：

• Emperor Capital's New Capital Investor Entrance Scheme service ("the Service") is only applicable to individual customers.
• For details, please refer to the relevant service overview or contact us.
• Emperor Capital reserves the right to amend, suspend and cancel the above services and products, and to amend the relevant rules, terms and conditions and service overview at any time at its sole discretion without prior notice to customers.
• The above information comes from sources Emperor Capital believes to be reliable. Emperor Capital does not make any guarantee or warranty or representation as to the accuracy and completeness of the relevant information and will not assume any responsibility or legal liability for it.
• The above information is not and should not be considered as a recommendation to sell, promote or solicit to subscribe for any investment product. Investing involves risks. Customers should carefully consider the risks and characteristics of any investment products or services mentioned herein to evaluate whether such products and services are suitable for customers in view of their investment experience, investment objectives, financial resources and relevant circumstances.
• The prices of investment products may go up and down. Buying and selling investment products can result in losses or profits.
  
• In case of any disputes, Emperor Capital reserves the right of final decision.
• For more information or to learn more about the latest regulations of the New Capital Investment Entrant Scheme, please visit the InvestHK website.