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Hong Kong Relaxes CIES Net Worth Requirement Amid Other Changes · IMI Podcasts

• 0:00
  SPEAKER_00: On January 7, 2025, Invest Hong Kong announced new updates to its capital investment entrance scheme, also known as CIES, easing asset verification requirements and expanding investment options for prospective applicants.
• 0:14
  SPEAKER_00: Understanding these changes requires examining the original policies framework.
• 0:19
  SPEAKER_00: Under the previous rules, principal applicants must hold personal assets worth HK dollar 30 million or more for at least two consecutive years and invest 30 million Hong Kong dollars in government-designated projects within 180 days of passing the asset and identity verification to obtain Hong Kong residency.
• 0:37
  SPEAKER_00: The asset verification stage stymied many applicants despite the process' apparent simplicity.
• 0:43
  SPEAKER_00: Applicants face two major challenges.
• 0:46
  SPEAKER_00: The previous policy required that applicants hold$30 million in assets solely in their name for over two years.
• 0:53
  SPEAKER_00: The policy excluded all jointly owned assets, including properties shared with spouses or other parties.
• 0:59
  SPEAKER_00: Frequent trading of stocks and funds created difficulties for applicants holding financial assets.
• 1:04
  SPEAKER_00: If their asset value fell below$30 million balance even for a single day during the two-year period, the applicants were disqualified.
• 1:13
  SPEAKER_00: Investhk has said it listened to feedback from stakeholders and investors and has updated the program to include one, acceptance of jointly held assets.
• 1:23
  SPEAKER_00: Applicants can now qualify through shared ownership of assets, including properties, bank accounts, and business assets that they have held for at least six months.
• 1:32
  SPEAKER_00: Official documentation determines the principal applicants' ownership proportion of each asset type.
• 1:38
  SPEAKER_00: For example, real estate and bank accounts.
• 1:41
  SPEAKER_00: Land registry offices and banks must certify ownership percentages for real estate and bank accounts.
• 1:47
  SPEAKER_00: Applicants can now invest in private Hong Kong companies to support the program's integration with family offices.
• 1:53
  SPEAKER_00: These companies must meet five conditions six months before investors apply.
• 1:58
  SPEAKER_00: First, registration and incorporation in Hong Kong.
• 2:02
  SPEAKER_00: Second, full ownership by the applicant third, holdings limited to permissible investment assets.
• 2:08
  SPEAKER_00: Fourth, operation as a family-owned investment holding vehicle, also known as FIHV, or its special purpose entity, with two full-time Hong Kong employees and two million minimum annual local operating costs.
• 2:23
  SPEAKER_00: Fifth, management by an eligible single-family office that oversees family FIHV assets under Schedule 16C of the Inland Revenue Ordinance and maintains minimum aggregate assets of$240 million.
• 2:40
  SPEAKER_00: Second, defining qualifying family members.
• 2:43
  SPEAKER_00: Schedule 16E, Section 4 of the Inland Revenue Ordinance now defines eligible family members as the principal applicant's spouse, children, and parents.
• 2:53
  SPEAKER_00: Lastly, inclusion of family office investments.
• 2:57
  SPEAKER_00: Family offices now qualify as an investment option, accepting investments up to$27 million under the program.
• 3:04
  SPEAKER_00: The new criteria apply to all applications from March 1, 2025.
• 3:09
  SPEAKER_00: The new standards accept asset proof dating back to September 2024.
• 3:14
  SPEAKER_00: The government continues to tinker with the CIES.
• 3:18
  SPEAKER_00: InvestHK had amended the policy on October 16, 2024, to include residential properties as investment options for high net worth individuals.
• 3:28
  SPEAKER_00: Hong Kong has also appointed four fund managers, splitting$600 million between them.
• 3:34
  SPEAKER_00: This episode first appeared as an article by Siren Chen on imidaly.com.
• 3:41
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• 3:48
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