Hong Kong’s cash-for-residency scheme can attract more family offices as it vies with Singapore, industry players say
- Revamped scheme requires at least US$3.8 million of investment in local stocks or other assets for investors and their families to get Hong Kong residency
- Family office operators say many of their customers have shown an interest in the soon-to-launch migration scheme, particularly those from mainland China
Hong Kong’s investment-migration scheme has drawn the attention of many wealthy families from mainland China and Asia, who are considering setting up family offices in the city, according to industry players.
Chief Executive John Lee Ka-chiu proposed a revamped investment migration programme for wealthy individuals and their families during his annual policy address in October, offering fast track residency for at least HK$30 million (US$3.8 million) of investment in local stocks or other assets.
“The upcoming Capital Investment Entrant Scheme is going to be very important to attract wealthy customers to set up family offices in Hong Kong,” said Victor Ai Kuiyu, executive director of Hong Kong-listed financial firm DL Holdings. “We have seen a lot of clients express interest in moving to Hong Kong via this scheme because it is very simple and easy.”
The details and exact launch date of the Capital Investment Entrant Scheme (CIES) will be announced by the end of this month. The scheme, alongside a tax break introduced in May and other incentives such as the creation of art-storage facilities at Hong Kong airport, formed part of Lee’s pledge to attract another 200 family offices on top of the more than 400 already set up here.
The objective looks reasonable as the number of US dollar millionaires in Asia is projected to reach 76 million by the end of the decade from about 30 million currently, according to an HSBC report from December last year.