Hong Kong is starting a program next year to give residency to people who invest HK$30 million (US$3.8 million) in the territory as it steps up efforts to revive its status as a financial center and bolster revenue.
The plan, scheduled to start in the middle of next year, includes a mandatory HK$3 million investment into a portfolio run by Hong Kong Investment Corp to support local technology and innovation. Other eligible assets include stocks, debt securities and funds. Industrial and commercial real estate are capped at HK$10 million. Residential real estate is excluded.
The move is expected to bring in HK$120 billion annually, Hong Kong Secretary for Financial Services and the Treasury Christopher Hui (許正宇) said on Tuesday.
Photo: Bloomberg
He said he estimates that 4,000 people could participate per year.
It is the latest move to attract talent and capital as the territory is facing fierce competition from peers including Singapore. In addition to population outflow amid political clampdowns, Hong Kong is also seeing dwindling revenue from land sales due to a slump in the property market.
Known as the Capital Investment Entrant Scheme, the plan was announced during Hong Kong Chief Executive John Lee’s (李家超) policy address in October.
The scheme was previously implemented in 2003 to stimulate economic growth, before being halted in 2015. The relaunch underscores how the years-long COVID-19 pandemic and ensuing economic slowdown are prompting the Hong Kong government to seek new avenues of growth.
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