HONG KONG: Hong Kong is starting a programme next year that will give residency to people who invest HK$30 million (US$3.8 million) into the city as it steps up efforts to revive its status as a financial centre and bolster revenue.
The plan, set to start in the middle of 2024, includes a mandatory HK$3 million investment into a portfolio run by Hong Kong Investment Corp. to support local technology and innovation. Other eligible assets include stocks, debts and funds. Industrial and commercial real estate are capped at HK$10 million. Residential real estate is excluded.
The move is expected to bring in HK$120 billion for Hong Kong annually, Secretary for Financial Services and Treasury Christopher Hui said Tuesday. He added that he estimates 4,000 people could participate per year.
It’s the latest move to attract talent and capital as the city is facing fierce competition from peers including Singapore. In addition to population outflow amid political clampdowns, Hong Kong is also seeing dwindling revenue from land sales due to a slump in the property market.
Known as the Capital Investment Entrant Scheme, the plan was announced during Hong Kong Chief Executive John Lee’s policy address in October.
The scheme was previously implemented in 2003 to stimulate economic growth, before being halted in 2015. The relaunch underscores how the years-long Covid pandemic and ensuing economic slowdown are prompting the government to seek new avenues of growth. - Bloomberg
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