Press Release - March 11, 2003

The implementation details of the "Capital Investment Entrant Scheme" and the "Admission Scheme for Mainland Talents and Professionals" were today (March 11) endorsed by the Chief Executive-in-Council of the Hong Kong Special Administrative Region.

Announcing details of the schemes as part of the recently announced population policy, the Secretary for Security, Mrs Regina Ip, said, "The schemes are aimed at attracting the inflow of capital and facilitating local firms to tap on the expertise of Mainland professionals to develop their businesses."

"We will introduce the Capital Investment Entrant Scheme to attract capital investment entrants to come to Hong Kong, i.e. people who have the financial means to make substantial investment in Hong Kong but would not, in the context of the Scheme, run the business themselves. We will ring-fence the new investment they bring so as to ensure that they bring benefits to local financial and economic activities. Capital investment entrants will also contribute to local consumption," she said.

"The investment threshold under the Scheme will be set at HK$6.5 million, and investment will have to be made in a specified list of permissible investment assets.�

The new policy will be applied to all foreign nationals, Macao Special Administrative Region 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 residents of Taiwan.

"As foreign exchange control is implemented in the Mainland, the new policy will not apply to Mainland residents at this stage, " Mrs Ip said.

Under the Scheme, entrants may invest in the following two permissible investment asset classes:-

(i) Real estate - whether commercial, industrial or residential, including land and pre-completion properties in Hong Kong; and

(ii) Financial assets

Under this class, the entrant can invest in one or a combination of the following types of financial assets:-

(a) Equities - shares of companies that are listed on the Hong Kong Stock Exchange and traded in Hong Kong dollars;

(b) 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 and companies referred to under (a) above;

(c) Certificates of Deposits denominated in Hong Kong dollars with a remaining term to maturity of not less than 12 months at the time of purchase (such purchase should take place after approval in principle has been given by the Director of Immigration for the entrant to join the Capital Investment Entrant Scheme);

(d) Subordinated debt denominated in Hong Kong dollars issued by authorised institutions under the Banking Ordinance; and

(e) Approved unit trusts or mutual funds.

Portfolio maintenance and 'ring-fencing' requirements will be imposed to ensure that an entrant does not reduce his investment commitment to Hong Kong during the time when he is permitted to stay in Hong Kong under the Scheme.

"In a nutshell, entrants are not allowed to realize or cash in any capital appreciation of the qualifying portfolio.

"On the other hand, if the value of the portfolio falls below the original level of HK$6.5 million, no topping up is required," Mrs Ip said.

An entrant is allowed to switch his investments from one permissible asset class to another provided that the ring-fencing principle is adhered to, she said.

Successful applicants will be allowed to bring in their dependants. After seven years' of continuous ordinary residence in Hong Kong, capital investment entrants and their dependants may apply for the right of abode in Hong Kong.

Welcoming the introduction of the �Capital Investment Entrant Scheme�, the Director of the Hong Kong Economic and Trade Office (Canada), Mrs Rosanna Ure, said: � The scheme offers a good opportunity for people from overseas who have the financial means to make substantial investment in Hong Kong and, at the same time, have a genuine interest in immigrating to Hong Kong.

�By relaxing our immigration rules, we hope to attract more overseas investors to contribute toward Hong Kong�s economy.�

The Capital Investment Entrant Scheme would be launched in the third quarter of this year.

The Admission Scheme for Mainland Talents and Professionals, which aims at admitting Mainland professionals in the commercial and financial fields, as well as Mainland talents in the arts, culture and sports sector, is not applicable to Canadian citizens.



For more information, please call: John Tam, Chief Information Officer of Hong Kong Economic and Trade Office at: (416)924-5544 or email: [email protected] or Elison Chu, Senior Information Officer at
[email protected]