The SAR government relaunched the New Capital Investor Entrant Scheme (New CIES) in March last year. As of October this year, it has received over 2,200 applications. The government estimates this will bring HK$70 billion in capital investment. With each application requiring at least HK$3 million to be invested in the "Investment Portfolio" supporting Hong Kong's innovation and technology sector, this scheme is expected to bring over HK$6.6 billion in future funding to the portfolio.
After a selection process, the Hong Kong Investment Corporation (HKIC) announced yesterday the 10 institutions appointed for the "2025 Capital Batch" of the Investment Portfolio under the CIES. These include asset management companies employing strategies such as venture capital, private equity investment, private credit, and hedge funds. According to HKIC's latest estimates, the scale of the "2025 Capital Batch" will be at least HK$3 billion by the end of this year. This amount will be equally distributed among the selected asset management companies, with investment work set to commence in the first quarter of 2026.
Far exceed last year
Compared to the first tranche of allocated funds under the Investment Portfolio, the "2024 Capital Batch," which has already commenced investments, both the scale and the number of appointed institutions for the "2025 Capital Batch" have increased. This reflects the growing attractiveness of Hong Kong's "investment immigration" to investors, leading to an accelerated inflow of capital into Hong Kong.
A Legislative Council (LegCo) discussion paper dated July 7 this year showed that the initial management scale of the "2024 Capital Batch" was approximately HK$860 million, equally distributed among four selected fund managers: Betatron Venture Group, Inno Angel Fund, MindWorks Capital, and Radiant Tech Ventures Limited. The investment sectors proposed by these four fund managers include the low-altitude economy, technology for the elderly (Gerontech), smart living, and technology-driven cultural and entertainment experiences, among others.
It is reported that the ten institutions appointed for the "2025 Capital Batch" are: Abax Global Capital, Beyond Ventures, CMC Capital, FirstLight Capital, Hidden Hill Capital, M Capital, Polymer Capital, Primavera Capital, Trustar Capital/CITIC Capital with Vision Capital Investment Management Limited, and Value Partners. The backgrounds of these ten institutions are quite diverse, fully reflecting Hong Kong's role as an international financial centre.
Focus on AI, sustainable tech, etc.
HKIC stated yesterday (Dec. 2) that all the aforementioned asset management companies have proposed specific plans for expanding their business in Hong Kong in their proposals, demonstrating their commitment to contributing to Hong Kong's long-term economic, competitive, and social development. Their suggested investment themes include artificial intelligence application scenarios, sustainable technology, materials science, biotechnology, and more.
BOCI-Prudential Trustee Limited, as the service provider for asset administration and related services of the Investment Portfolio, will issue notifications regarding capital injection and transfer to relevant CIES applicants in the first quarter of 2026 and will closely coordinate with the aforementioned asset management companies. The entire Request for Proposal (RFP) and selection process was overseen by KPMG, with legal advice provided by Clifford Chance.
HKIC added that the market response was enthusiastic this year when seeking asset management companies for the "2025 Capital Batch." The asset management companies that submitted proposals were highly diverse in terms of background, investment strategies, and practical experience, indicating confidence among various types of investment institutions in Hong Kong's future development. The investment areas advocated in the proposals hold significant potential and demonstrate high-quality industry development trends. HKIC will continue to collaborate with more diverse enterprises and partners in the future, leveraging institutions with different backgrounds and expertise, and utilizing HKIC's professional acumen and network to contribute to Hong Kong's economic, competitive, and social development.
Each immigrant leaves HK$3 million to support I&T
The SAR government announced details of the CIES in 2024 and began accepting applications on March 1 that year. Eligible applicants are required to invest a minimum of HK$30 million in permissible investment assets, of which HK$3 million must be invested in the "Investment Portfolio" to support Hong Kong's innovation and technology. According to HKIC's latest estimates, the scale of the "2025 Capital Batch" will be at least HK$3 billion by the end of this year.
Secretary for Financial Services and the Treasury Christopher Hui revealed in early October that since the launch of the CIES, over 2,200 applications had been received, meaning a 75% increase from the 1,257 applications received by the end of April. If all are approved, it is expected to bring HK$70 billion in capital inflow to Hong Kong, far exceeding initial expectations for the year.
As each investment immigrant to Hong Kong must meet a minimum entry threshold of HK$30 million in qualified investments, and after deducting the mandatory requirement of at least HK$3 million allocated to the "CIES Investment Portfolio," where does the remaining money go? Data shows that this capital has clear allocation preferences, with nearly two-thirds used to purchase stocks and funds.
Investment funds account for 36%
Referring to the latest data from InvestHK, as of the end of April this year, of the HK$16.5 billion in completed investments, over one-third (36.4%) was allocated to Securities and Futures Commission (SFC)-authorized funds, making it the largest pool of funds. This was closely followed by direct investment in stocks, absorbing 28.1% of the capital. Combined, these two categories account for nearly two-thirds (64.5%) of the total investment, indicating a preference among wealthy individuals for professionally managed and highly liquid assets. Other investment options include bonds (13.1%), investment-linked assurance schemes (8.7%), while the CIES Investment Portfolio accounted for 9.9%, or approximately HK$1.63 billion.
It is worth noting that after the CIES introduced enhancement measures in March this year, which shortened the net asset holding period from two years to six months and allowed for family joint assets and investments through private companies, the number of applications that month surged by 440% month-on-month. The growth momentum continued thereafter, reflecting that the policy relaxation directly spurred global high-net-worth individuals to accelerate their deployment. As of the end of April, 911 people had received "approval-in-principle" to come to Hong Kong to complete their investments, and 512 had completed their investments and received "formal approval."
Applications from Africa account for nearly half
Which countries do these wealthy individuals primarily come from? InvestHK previously revealed that as of the end of February this year, a total of 918 applications had been received. Among the 828 applications received by the Immigration Department from foreign nationals or individuals who have obtained foreign permanent resident status, 410 applications were from Guinea-Bissau in West Africa, followed by 250 applications from Vanuatu, a Pacific island nation.
The market anticipates that as the remaining over a thousand applications gradually complete their investments, and with the launch of the 2025 Capital Batch in the first quarter of next year, the capital inflow into Hong Kong through the CIES in the first half of next year is expected to increase by another HK$20 billion. This is expected to continuously inject more vitality into the local asset management industry, capital markets, and innovation and technology ecosystem.
(Source: Wen Wei Po; Journalist: Sum Kin-lok, Ma Chui-mei; English Editor: Darius)
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