Capital Investment Entrant Scheme be suspended
Objective of the Scheme:
The Government introduced the Capital Investment Entrant Scheme in October 2003 to attract expatriates to apply for immigration. The objective of the Scheme is to facilitate the entry for residence by capital investment entrants (the entrant), i.e. persons who make capital investment in Hong Kong but would not be engaged in the running of any business here. The entrant is allowed to make his choice or investments amongst permissible assets without the need to establish or join in a business. Lamtex Securities Ltd is a licensed corporation licensed to perform Type 1,4 and 9 regulated activities under the Securities and Futures Ordinance. Entrants can diversify your investments in equities, bonds and funds through our services.
Scope of the Scheme:
The Scheme is applicable to:
- Foreign nationals (except nationals of Afghanistan, Albania, Cuba and Democratic People’s Republic of Korea);
- Macao Special Administrative Region (MSAR) residents;
- Chinese nationals who have obtained permanent resident status in a foreign country;
- Stateless persons who have obtained permanent resident status in a foreign country with proven re-entry facilities; and
- Taiwan residents
To qualify for admission under the Scheme, the entrant must:
- Be aged 18 or above when applying for entry under the Scheme;
- Have net assets of not less than HK $ 10 million* to which he is absolutely beneficially entitled throughout the two years preceding his application**;
- Have invested within six months before submission of his application to the
Immigration Department, or will invest within six months after the granting of approval in principle by the Immigration Department, not less than HK$10 million* in permissible investment asset classes (except Certificates of Deposit which must be invested within the latter period) as detailed in “Permissible Investment Asset Classes”);
- Have no adverse record both in Hong Kong and country/region of residence; and
- Be able to demonstrate that he is capable of supporting and accommodating himself and his dependents, if any, on his own without relying on any return on any return on the permissible investment assets, employment or public assistance in Hong Kong.
*The investment threshold (and Net assets or Net equity requirement) has been raised from HK$6.5 million to HK$10 million with effect from 14 October 2010.
** The entrant may at his own cost engage a Certified Public Accountant (Practising) to assist in demonstrating his fulfillment of this requirement. For details please refer to “Arrangement to Engaging a Certified Public Accountant (Practising)”.
The entrant should invest not less than HK$10 million* in one or a combination of the following permissible investment assets**:
- Equities - shares of companies that are listed on the Hong Kong Stock Exchange and traded in Hong Kong dollar.
- Debt securities - denominated in Hong Kong dollars including fixed or floating rate instruments and convertible bonds which are issued or fully guaranteed by the HKSAR Government, the Exchange Fund, the Hong Kong Mortgage Corporation, MTR Corporation Limited, Kowloon-Canton Railway Corporation, Hong Kong Airport Authority and other corporations, agencies or bodies wholly or partly owned by the HKSAR Government as may be specified from time to time; or by companies listed on the Hong Kong Stock Exchange.
- Qualified collective investment plan - Fund investment.
Change in Value of Investment:
The entrant is not required to top up the value of his investment should the value of his total investment under the Scheme fall below the requisite minimum level of HK$10 million*. He is also not allowed to withdraw any capital gain from his investment if its market value rises above the requisite level. Cash dividend income and interest income derived from permissible financial assets can be retained by the entrant and need not be ring-fenced under the Scheme. The entrant is free to switch his investments from one permissible financial asset to another (e.g. from equities to debt securities or vice versa) provided that the entire proceeds from the sale of the initial assets are reinvested. He should keep a record of every change to his investment portfolio for the purpose of applying for extension of stay in Hong Kong.
* The investment threshold (and Net assets or Net equity requirement) has been raised from HK$6.5 million to HK$10 million with effect from 14 October 2010.