{"id":7026,"date":"2024-02-21T12:34:29","date_gmt":"2024-02-21T04:34:29","guid":{"rendered":"https:\/\/mpl.hk\/?p=7026"},"modified":"2024-02-21T12:34:29","modified_gmt":"2024-02-21T04:34:29","slug":"hong-kongs-game-changing-new-capital-investment-entrant-scheme","status":"publish","type":"post","link":"https:\/\/mpl.hk\/hong-kongs-game-changing-new-capital-investment-entrant-scheme\/","title":{"rendered":"Hong Kong\u2019s game-changing New Capital Investment Entrant Scheme"},"content":{"rendered":"<ul class=\"css-1mniedq eq9i94312\" data-qa=\"ContentSchemaRender-defaultRenderMapFunctions-Component-0\">\n<li class=\"css-1mniedq eq9i94311\" data-qa=\"ContentSchemaRender-defaultRenderMapFunctions-Component-0\">New Capital Investment Entrant Scheme aims to attract talent and high-net-worth asset owners from across the globe<\/li>\n<li class=\"css-1mniedq eq9i94311\" data-qa=\"ContentSchemaRender-defaultRenderMapFunctions-Component-2\">Initiative is expected to inject capital into the city\u2019s economy, strengthen its asset and wealth management sector and create new business and investment opportunities<\/li>\n<\/ul>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">Hong Kong is witnessing a remarkable surge in the growth of family businesses, particularly from the Asia-Pacific region. According to global real estate consultants Knight Frank, the number of ultra-high-net-worth (UHNW) individuals in the region is growing faster than anywhere else in the world, creating more wealth for their families \u2013 and Hong Kong is at the forefront of that growth. These families have a common desire to establish a family office where they can leverage local infrastructure and resources to look after and grow their wealth.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The appeal of Hong Kong lies in its strategic location and position as Asia\u2019s premier financial centre, as well as having a government that is highly supportive of the family office sector. That support extends across the city\u2019s financial and business ecosystem, addressing the core needs of family businesses, as well as driving creativity, innovation and entrepreneurship \u2013 all key factors for a dynamic international city, adding to the range of investment opportunities offered.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">As the number of family businesses in Asia has grown, so has Hong Kong\u2019s role as a home for family offices. In addition to a strong macro environment, family offices also demand a robust and transparent market infrastructure, favourable government policies and an opportunity for new wealth creation. Foreign businesses can incorporate their operations in Hong Kong, register branches and set up representative offices without encountering obstacles or undue regulation, and there are no restrictions on ownership.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">According to a survey conducted by the Commerce and Economic Development Bureau, published in December 2023, the number of Hong Kong businesses with parent companies in mainland China or overseas stood at more than 9,000, with a total of 468,000 staff in the city. Hong Kong is home to more of the world\u2019s top 500 family enterprises than any other territory in Asia-Pacific, including mainland China, India and South Korea. The city benefits from being part of the Greater Bay Area (GBA), with a population of more than 86 million and 20 per cent of China\u2019s UHNW and high-net-worth (HNW) households.<\/p>\n<p data-qa=\"Component-Component\"><img decoding=\"async\" class=\"lazyload alignnone size-large wp-image-7016\" src=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-1024x576.jpg\" data-orig-src=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-1024x576.jpg\" alt=\"\" width=\"1024\" height=\"576\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271024%27%20height%3D%27576%27%20viewBox%3D%270%200%201024%20576%27%3E%3Crect%20width%3D%271024%27%20height%3D%27576%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-200x113.jpg 200w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-300x169.jpg 300w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-400x225.jpg 400w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-600x338.jpg 600w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-768x432.jpg 768w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-800x450.jpg 800w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-1024x576.jpg 1024w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-1200x675.jpg 1200w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/03-2-1536x864.jpg 1536w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\"><strong class=\"css-1mniedq eq9i94316\" data-qa=\"ContentSchemaRender-defaultRenderMapFunctions-Component-0\">New scheme aims to attract capital<\/strong><\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">Hong Kong is now set to attract more global talent and HNW individuals with the introduction of the New Capital Investment Entrant Scheme (CIES), with details announced at the end of last year. The scheme, which will process applications starting later this year, aims to draw individuals from various sectors.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The city has long been recognised as a global financial hub, attracting businesses and investors from around the world. Its strategic location at the heart of Asia, coupled with its well-established legal and regulatory framework, has made it an ideal destination for international companies and individuals looking to tap into the vast opportunities offered by the region.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The New CIES provides a pathway for residency in Hong Kong and is expected to further enhance Hong Kong\u2019s appeal to global talent and family offices. This will not only attract HNW individuals but also encourage them to bring their expertise and resources to the city, contributing to its economic growth and development.<\/p>\n<p data-qa=\"Component-Component\"><img decoding=\"async\" class=\"lazyload alignnone size-large wp-image-7017\" src=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-1024x573.webp\" data-orig-src=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-1024x573.webp\" alt=\"\" width=\"1024\" height=\"573\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271024%27%20height%3D%27573%27%20viewBox%3D%270%200%201024%20573%27%3E%3Crect%20width%3D%271024%27%20height%3D%27573%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-200x112.webp 200w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-300x168.webp 300w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-400x224.webp 400w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-600x336.webp 600w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-768x430.webp 768w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-800x448.webp 800w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-1024x573.webp 1024w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-1200x672.webp 1200w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/04-1536x860.webp 1536w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The financial services sector is expected to be one of the main beneficiaries of the new scheme. Hong Kong is already Asia\u2019s largest financial centre, home to numerous multinational banks, asset management firms and insurance companies. The influx of global talent is likely to further strengthen the city\u2019s position in the financial services industry, attracting more businesses and investors to set up their operations in Hong Kong.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">Successful applicants must invest at least HK$27 million (about US$3.5 million) in permissible financial assets and non-residential real estate. Additionally, applicants are required to put HK$3 million into a new CIES Investment Portfolio.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The CIES Investment Portfolio will be set up and managed by the Hong Kong Investment Corporation, to make investments in companies and projects that have a Hong Kong nexus. This will support the development of innovation and technology industries and other strategic industries beneficial to the long-term development of the city\u2019s economy.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\"><strong class=\"css-1mniedq eq9i94316\" data-qa=\"ContentSchemaRender-defaultRenderMapFunctions-Component-0\">New CIES to boost Hong Kong\u2019s liquidity, strengthening its status as a financial hub<\/strong><\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The New CIES is set to make Hong Kong a magnet for family offices globally, promising to spur the city\u2019s economic growth, energise its capital markets and bolster the asset and wealth management sectors. It aims to fuel economic expansion by attracting affluent families whose expertise, networks and capital can catalyse comprehensive economic development. This initiative is not only about increasing wealth but also about harnessing the skills and connections that come with it.<\/p>\n<p data-qa=\"Component-Component\">The New CIES is also poised to shape Hong Kong\u2019s investment landscape. Targeting foreign UHNW individuals, the scheme encourages investment in various sectors, from cutting-edge technology to burgeoning start-ups, further invigorating the city\u2019s robust capital markets. This strategic diversification of investments fosters innovation, job creation and economic resilience in the long run.<\/p>\n<p data-qa=\"Component-Component\"><img decoding=\"async\" class=\"lazyload alignnone size-large wp-image-7018\" src=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-1024x682.webp\" data-orig-src=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-1024x682.webp\" alt=\"\" width=\"1024\" height=\"682\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271024%27%20height%3D%27682%27%20viewBox%3D%270%200%201024%20682%27%3E%3Crect%20width%3D%271024%27%20height%3D%27682%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-200x133.webp 200w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-300x200.webp 300w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-400x267.webp 400w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-600x400.webp 600w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-768x512.webp 768w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-800x533.webp 800w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-1024x682.webp 1024w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-1200x800.webp 1200w, https:\/\/mpl.hk\/wp-content\/uploads\/2024\/02\/05-1-1536x1024.webp 1536w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The scheme will strengthen Hong Kong\u2019s position as a premier financial nexus. The influx of UHNW individuals and their investments amplifies the city\u2019s reputation as a global financial centre. This further expands Hong Kong\u2019s capital markets as increased investment generates demand for financial products and services.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">Furthermore, the New CIES is anticipated to fortify the city\u2019s asset and wealth management industry. The expected surge in demand for bespoke asset management services, private banking and family office solutions will not only grow but also diversify the sector, positioning Hong Kong as a top-tier hub for global family offices.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The anticipated growth of Hong Kong\u2019s family office ecosystem will also catalyse an uptick in demand for professional services, including private banking, trust management, accounting, legal and wealth management. This expansion is set to enrich the local service industry, creating a cycle of growth and innovation.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">The implementation of the New CIES in Hong Kong has the potential to enhance the city\u2019s economy by attracting investments, broadening the investment sphere, amplifying capital markets and cultivating the asset and wealth management industry. This will help position Hong Kong as the ideal location for global family offices to settle and thrive.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">A family office intending to set up, operate or expand in Hong Kong can rely on the support of the FamilyOfficeHK team, which is an integral part of InvestHK, the government department responsible for attracting and facilitating foreign direct investment in Hong Kong. The team can also connect family offices with relevant government departments to help them establish and operate their businesses in Hong Kong. It can also guide global entrepreneurs through the process of setting up a family office in the city.<\/p>\n<p class=\"e15kmbpe0 css-1c6uqr6 e1346ty31\" data-qa=\"Component-Component\">Last year, FamilyOfficeHK announced the launch of the Network of Family Office Service Providers, a platform specially designed to help promote Hong Kong as a preferred destination of choice for global family offices. It was established to cultivate an ecosystem that continues to support local and global family offices as they set up or grow in Hong Kong.<\/p>\n<p data-qa=\"Component-Component\">Sources: <a href=\"https:\/\/www.scmp.com\/presented\/business\/banking-finance\/topics\/family-offices-drawn-hong-kong\/article\/3252383\/hong-kongs-game-changing-new-capital-investment-entrant-scheme?campaign=3252383&amp;module=perpetual_scroll_0&amp;pgtype=article\" target=\"_blank\" rel=\"noopener\">SCMP<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Capita [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7015,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[386],"tags":[],"class_list":["post-7026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trust-or-company-service-provider-industrial-news"],"acf":[],"lang":"en","translations":{"en":7026},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/posts\/7026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/comments?post=7026"}],"version-history":[{"count":2,"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/posts\/7026\/revisions"}],"predecessor-version":[{"id":7028,"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/posts\/7026\/revisions\/7028"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/media\/7015"}],"wp:attachment":[{"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/media?parent=7026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/categories?post=7026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mpl.hk\/wp-json\/wp\/v2\/tags?post=7026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}