Hong Kong allows residential property investment in capital investment entrant scheme

HONG KONG, Oct. 16 (Xinhua) — Hong Kong will include investment in residential properties in its capital investment entrant scheme, John Lee, chief executive of the Hong Kong Special Administrative Region (HKSAR), said while delivering his third policy address Wednesday.
The enhancement to the scheme, effective Wednesday, included investment in residential properties with transaction price no less than 50 million Hong Kong dollars (about 6.4 million U.S. dollars), with the amount of real estate investment to be counted toward the total capital investment capped at 10 million Hong Kong dollars, Lee said.
In addition, investments made through an eligible private company wholly owned by an applicant will be counted toward the applicant’s eligible investment with effect from March 1 next year, he added.
Since its launch in March this year, the new capital investment entrant scheme has received overwhelming responses, with more than 550 applications received as of mid-September, reflecting strong confidence from high-net-worth individuals in Hong Kong.
As part of the measures to further enhance Hong Kong’s status as an international asset and wealth management center, Hong Kong will collaborate with sovereign wealth funds in regions along the Belt and Road, including striving to collaborate with large-scale sovereign wealth funds in regions such as the Middle East, in financing the setting up of funds to invest in assets in the mainland and other regions, Lee added.
Hong Kong has some 2,700 single-family offices, and it is predicted that Hong Kong will become the world’s largest cross-boundary wealth management center by 2028. ■