[Insights Article] Hong Kong’s CIES Scheme Creates New Wealth Management Opportunities

Since the Hong Kong Government’s official launch in March, the new Capital Investment Entrant Scheme (CIES) has recorded double-digit applications and over 1,600 enquiries as of early April as part of its drive to enhance the city’s diversity of skilled individuals and draw in new investment. The scheme is designed to attract new asset owners and their family to settle in Hong Kong, obtain local residency, and discover the city’s enormous opportunities for investment and wealth management.

The scheme requires the participants to invest a net minimum of HK$30 million (or equivalent in foreign currencies) in permissible investment assets, of which HK$3 million must be allocated to a new CIES Investment Portfolio, which will be invested in companies and projects specifically tied to Hong Kong – this element is intended to foster the growth of strategic industries, such as the innovation and technology sector, that will contribute to the city’s long-term economic development.

Unlike the previous scheme, the permissible investment assets may comprise a series of financial assets, including equities, debt securities, certificates of deposits, subordinated debt, eligible collective investment schemes, and ownership interest in limited partnership funds; as well as non-residential real estate and CIES Investment Portfolio. In terms of eligible collective investment schemes, it includes SFC-authorised investment-linked assurance schemes issued by insurers permitted to carry on Class C business as specified in Part 2 of Schedule 1 to the Insurance Ordinance. This offers investors a wide range of opportunities for diversification and growth in their investment portfolios under the scheme. Lioner’s team is ready to help with clients’ needs by providing holistic wealth management solutions.

This recent initiative exemplifies the government’s efforts to widen Hong Kong’s talent pool and strengthen its wealth management sector and is in line with the government’s unwavering commitment to the city’s ongoing future as a leading financial hub. Lioner’s advisory team is fully ready and equipped to respond to high-net-worth individuals’ wealth planning needs by providing holistic wealth management solutions.

Lioner has also received a lot of enquiries on this new CIES scheme and how we could assist in the scheme application and the investment in permissible assets especially in the approved assurance scheme.

Lioner is committed to assisting our clients in attaining their long-term wealth planning goals while preserving their financial well-being within Hong Kong and across international boundaries. We eagerly anticipate the success of the New CIES, which we believe has the potential to optimize financial opportunities and bring the city prolonged financial prosperity.