Les Hong Kong Government has announced key enhancements à la New Capital Investment Entrant Scheme (CIES), set to take effect from March 1, 2025. These updates aim to attract high-net-worth individuals while fostering synergy between the CIES and Hong Kong’s growing family office sector.

Originally launched in 2003, the CIES provides a pathway to Hong Kong residency for individuals who invest in approved asset classes. The revised scheme increases flexibility in investment holding structures and strengthens Hong Kong’s position as a global wealth management hub.

Key Enhancements to the Scheme

1. New Net Asset Requirement

En vertu de la enhanced CIES, applicants must now demonstrate:

• Absolute beneficial ownership of net assets worth at least HK$30 million for at least six months before application.
• If assets are jointly owned with family members, the applicant’s portion of beneficial ownership can be counted towards the requirement.

This adjustment makes the scheme more accessible, particularly for family applicants who share investment ownership structures.

2. New Investment Holding Mechanism

Applicants now have the option to hold investments through a private company, aligning the scheme with family office structures. The private company must meet the following conditions during the six months preceding the application:

• Incorporated or registered in Hong Kong.
• Wholly owned by the applicant (or entrant).
• Exclusively holds permissible investment assets.
• Structured as a Family-Owned Investment Holding Vehicle (FIHV) ou un Family-Owned Special Purpose Entity (FSPE) under an FIHV.

If the applicant chooses to structure their investment through an FIHV, the vehicle must:

• Employ at least two full-time staff in Hong Kong for managing investment activities.
• Incur a minimum of HK$2 million in annual operating expenses in Hong Kong.
• Be managed by an Eligible Single Family Office (SFO) overseeing assets of at least HK$240 million across the family’s FIHVs.

This change fosters closer integration between CIES applicants and Hong Kong’s family office ecosystem, offering greater flexibility for multi-generational wealth management.

General Investment Requirements

To qualify for the CIES, applicants must invest at least HK$30 million in approved asset classes, including:

• Real estate (subject to regulatory conditions).
• Listed equities (on the Hong Kong Stock Exchange).
• Debt securities (such as government and corporate bonds).

A key feature of the scheme is its protection against market fluctuations—applicants do not need to replenish investments if asset values drop below the threshold due to market volatility.

Residency Benefits & Application Process

Successful applicants gain Hong Kong residency and can bring eligible dependents, y compris :

• Spouses
• Unmarried dependent children under 18

Residency Timeline

• Initial Stay: 2 years
• First Extension: Additional 3 years
• Subsequent Extensions: 3 years per renewal

After seven years of continuous residence, applicants may apply for résidence permanente à Hong Kong.

Why Choose the CIES?

With these new enhancements, le CIES offers more investment flexibility while supporting wealth structuring through family offices. The scheme provides:

• A streamlined pathway to Hong Kong residency for high-net-worth investors.
• Tax-efficient investment opportunities with access to global financial markets.
• A stable and business-friendly environment for long-term wealth management.
• Enhanced integration with family offices, making it easier for ultra-high-net-worth families to centralize their assets in Hong Kong.

For those considering applying for the CIES, it is recommended to consult legal and financial advisors to optimize investment structuring and ensure compliance with the updated regulations.