Hong Kong to draw ‘substantial’ capital from new investment-migration scheme, turnover-boosting efforts: Financial Secretary
- A soon-to-launch investment migration scheme will bring ‘substantial’ new capital inflows to the city, says Paul Chan
- Hong Kong private bankers and wealth managers agree Hong Kong will see strong asset inflow over the next five years, according to association survey
Hong Kong’s financial markets can look forward to a boost from a soon-to-launch investment migration scheme that will bring “substantial” new capital inflows to the city, while a task force prepares to deliver plans to enhance market turnover, Financial Secretary Paul Chan Mo-po said on Friday.
The government in March unveiled a plan to introduce a new capital investment entrant scheme, which offers applicants and their family members residency in Hong Kong if they invest a certain sum of money in stocks or other investments.
“It is expected to channel substantial funds into Hong Kong’s capital market,” Chan told top private bankers and money managers at a meeting organised by the Private Wealth Management Association (PWMA) on Friday. “We are actively pursuing it, and are finalising its details.”
An influx of funds would turn the tide after net fund inflows to Hong Kong declined sharply last year, falling 80 per cent year on year to HK$121 billion (US$15 billion), compared with HK$638 billion in 2021 and HK$656 billion in 2020, the PWMA said in a report.
Meanwhile, a recently created task force on enhancing stock market liquidity, chaired by Carlson Tong Ka-shing, will soon give its report examining the city’s listing regime and the market’s structure and trading mechanisms.