In a comprehensive interview, Christopher Hui Ching-yu, the Secretary for Financial Services and the Treasury, outlined the strategic vision behind the revitalization of Hong Kong's investor visa program, particularly in light of the challenges posed by an anticipated economic slowdown. Hui emphasized that the newly restructured Capital Investment Entrant Scheme (CIES) is a pivotal component in bolstering Hong Kong’s real economy. Under this scheme, applicants are required to make substantial investments in local technology and innovation projects. VisaGuide.World highlighted Hui's insights on this initiative.

The Capital Investment Entrant Scheme (CIES)

Hui elaborated on the anticipated economic benefits of the CIES, underscoring its potential to catalyze growth in several key sectors. He predicted that the influx of affluent individuals, drawn by the opportunities presented by the CIES, will significantly boost demand for professional services in Hong Kong. This surge, according to Hui, is not just a transient effect but aligns seamlessly with the government's broader objectives of fortifying the financial sector and augmenting employment opportunities for the city's skilled professionals.

Another crucial aspect of Hui's vision involves the implementation of tax relief tailored for family offices within the city. These tax incentives are designed to stimulate economic activity, with qualifying criteria including the employment of at least two local residents and an operational expenditure exceeding HK$2 million. Hui believes that these measures will make Hong Kong an even more attractive destination for family offices.

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Integrated Fund Platform

Moreover, Hui announced the introduction of an integrated fund platform, slated for launch by the end of the year. This platform, as Hui explained, aims to diversify the market, providing a plethora of choices to international asset management firms. Primarily targeting retail funds, the platform is poised to be a conduit for overseas asset management companies to effortlessly reach Hong Kong’s retail investors.

In alignment with these economic strategies, the Chief Executive’s 2023 Policy Address includes pivotal proposals, such as the suspension of the 'Buyer’s Stamp Duty' and the 'New Residential Stamp Duty' for skilled professionals moving to Hong Kong. This move, Hui noted, will involve legal amendments to incorporate successful CIES applicants into the Suspension Mechanism, further incentivizing their relocation.

Future Prospects

Hui expressed confidence that the revamped CIES would substantially contribute to the development of various sectors, including asset and wealth management, financial services, and related professional services. He emphasized that this initiative is expected to generate a plethora of business opportunities and high-quality job prospects across the service chain in these industries.

In pursuit of attracting a more diverse international demographic and catalyzing new investments in Hong Kong, the HKSAR government, as part of its 2023-24 budget, has laid out plans for the new CIES. Hui detailed the scheme in a briefing on December 19, 2023, announcing that the application process for the new CIES is scheduled to commence in mid-2024, marking a significant step in Hong Kong’s economic strategy.

FAQs

When will the application process for the new CIES begin?

The application process for the new CIES is scheduled to commence in mid-2024.

What are the key sectors expected to benefit from the influx of affluent individuals through the CIES?

Key sectors such as asset and wealth management, financial services, and related professional services are expected to experience substantial growth.

What tax relief measures have been introduced for family offices under the revitalized CIES?

Tax relief measures for family offices include criteria such as employing at least two local residents and operational expenditure exceeding HK$2 million.