Hong Kong to ease asset requirements in cash-for-residency scheme
Changes also aimed at bolstering city’s status as family office hub, but questions remain over whether Hong Kong can lure business away from Singapore
Hong Kong will relax the asset criteria for its cash-for-residency scheme and allow funds brought in through certain family investment tools to count towards minimum requirements, with authorities predicting the programme will pump HK$24 billion (US$3.08 billion) into the city.
But one economist said on Tuesday he doubted the changes would be enough to draw much business away from regional rival Singapore, which was “very competitive” in its push to serve as a hub for family offices.
The Financial Services and the Treasury Bureau, along with InvestHK, announced that applicants to the New Capital Investment Entrant Scheme (New CIES) would only need to prove they had at least HK$30 million in assets or equity for the past six months, down from the current two years.
Net assets or equity jointly owned with the applicant’s family members will be taken into consideration when calculating whether the threshold has been met.
Additionally, investments made through family-owned investment holding vehicles (FIHV) will count towards requirements.
“Since the launch of the scheme, we have been liaising closely with the industry and are continuously working on further enhancements,” Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said.
