Mr. Christopher Hui, Secretary for Financial Services and the Treasury：New CIES Receives Warm Response
Over 200 Applications Establishment of Over 320 OFCs
In recent years, the Government of the Hong Kong Special Administrative Region (the HKSAR Government) has taken positive measures to attract capital and talent. New Capital Investment Entrant Scheme (New CIES), colloquially known as "Capital Investment Entrant Scheme 2.0," has been launched for application since March 1, 2024. At the Caixin Summer Summit 2024, Secretary for Financial Services and the Treasury, Mr. Christopher Hui, revealed that the New CIES received a positive response, in which there were over 3,000 inquiries since the launch on March 1, and more than 250 applications were received.
The asset and wealth management business of Hong Kong amounted to over HK$30.5 trillion
He noted that Hong Kong is a top-tier city for ultra-high-net-worth individual (UHNWI), the New CIES consolidates Hong Kong’s leading position as a hub for talent and capital. Citing an independent market study commissioned by the Invest Hong Kong, he added that there were approximately 2,700 single-family offices operating in Hong Kong at the end of last year, with over half of them established by UHNWIs with assets exceeding US$50 million. Moreover, he emphasized that Hong Kong will continue to leverage its unique advantages and play a vital role in offering multiple options for asset allocation for investors amidst challenging environments, aiming to preserve and grow wealth.
Mr. Christopher Hui also mentioned that the assets under management in Hong Kong stood firmly above HK$ 30 trillion, with nearly two-thirds of the funds sourced from non-Hong Kong investors, According to the Securities and Futures Commission of Hong Kong (SFC), the net inflows of fund capital domiciled in Hong Kong continued to increase, reaching HK$ 87.1 billion last year, representing a substantial year-on-year increase of over 90%. Furthermore, since the implementation of the Open-ended Fund Company (OFC) and Limited Partnership Fund (LPF) regimes, over 320 OFCs and 830 LPFs have been registered in Hong Kong.
He stressed that the HKSAR Government will continue to introduce various measures to give impetus to Hong Kong’s diverse fund industry, including extending the three-year grant scheme for the establishment of OFCs and Real Estate Investment Trusts (REITs) in Hong Kong for another three years to attract funds to the city. Hong Kong Exchanges and Clearing Limited (HKEX) will also establish a new integrated fund platform within the year to expand Hong Kong's fund distribution network, enhance market efficiency, and reduce transaction costs.
