New Capital Investment Entrant Scheme ("New CIES")
What is New CIES?
On 19 December 2023, the Hong Kong SAR Government unveiled details of the New CIES, with applications open from 1 March 2024.
The New CIES is one of eight policy measures by the Hong Kong SAR Government to foster a dynamic ecosystem for global family offices and asset owners.
Eligible applicants must invest at least HK$30 million in permissible Hong Kong assets to gain entry and residency in Hong Kong.
In Brief
Who is eligible for CIES
On 1 March 2024, the Hong Kong SAR Government launched the New CIES to attract capital and talent to Hong Kong. To be eligible, applicants must be 18 or older at the time of the Net Asset Assessment and belong to one of the following groups:
Foreign nationals
Chinese nationals with permanent residency in a foreign country
Macau Special Administrative Region residents
Chinese residents of Taiwan
Applicants must also prove they have beneficially owned net assets or net equity worth at least HK$30 million (or its foreign currency equivalent) for throughout the two years before lodging their application (Net Asset Requirement).
Eligible assets
Under the New CIES, applicants must invest at least HK$27 million in permissible financial assets and non-residential real estate (capped at HK$10 million). Additionally, HK$3 million must be allocated to a new CIES investment portfolio, managed by the Hong Kong Investment Corporation Limited, targeting innovation, technology, and strategic industries with a Hong Kong connection.
Permissible financial assets include equities, debt securities, certificates of deposit (capped at HK$3 million), subordinated debt, eligible collective investment schemes, and limited partnership funds. Each asset type has specific requirements, such as shares being listed on the Stock Exchange of Hong Kong and traded in Hong Kong Dollars or Renminbi.
Application procedures
The New CIES office under InvestHK will evaluate whether applications meet the net asset and investment criteria, while the Immigration Department will handle assessments for visas, entry permits, and extensions of stay.
Applicants must hire a Certified Public Accountant (Practicing) in Hong Kong to provide asset verification reports and supporting documents for the Net Asset Assessment and Investment Assessment.
Upon formal approval, the New CIES office will monitor ongoing compliance with portfolio maintenance requirements. Applicants must submit a Fulfillment of Portfolio Maintenance Requirements report, prepared by a Certified Public Accountant (Practicing) in Hong Kong, to the New CIES office after the first anniversary of approval and annually thereafter.
The New Capital Investment Entrant Scheme (“New CIES”), launched on 1 March 2024, by Invest Hong Kong (InvestHK), is now accepting applications. It seeks to attract fresh capital and talent to Hong Kong, boosting the economy with renewed energy.
Service Scope
Why Avera?
Avera CPA Limited offers end-to-end support throughout the CIES application process, covering assurance, immigration, tax, strategy, transaction, and valuation services.
Assurance
To serve as the Certified Public Accountant (Practicing) conducting agreed-upon procedures under Hong Kong Standard on Related Services 4400 (Revised) for:
Verifying the applicant’s net asset requirement, confirming beneficial ownership of at least HK$30 million for the two years prior to the application lodgment date.
Confirming the applicant’s investment requirement, ensuring an investment of at least HK$30 million in permissible investment assets on or after the scheme’s launch date.
Validating the applicant’s portfolio maintenance requirement, demonstrating ongoing compliance with permissible investment asset holdings annually after the first anniversary of formal approval.