A general view of the Hong Kong skyline from the Kowloon district of Hong Kong on Feb 2, 2023. (PHOTO / AFP)
Experts said Hong Kong’s latest push to attract talent and capital with the launch of a new investment immigration program could help shore up the local economy, but called for measures to reduce the required time for talents to obtain permanent residency to maintain the city’s attractiveness.
“With a view to further enriching the talent pool and attracting more new capital to Hong Kong, we will introduce a new Capital Investment Entrant Scheme,” Financial Secretary Paul Chan Mo-po announced on Wednesday in the 2023-24 Budget.
Investment at a certain amount in the local asset market, excluding in property, is required for the applicant to qualify, he said.
Experts said Hong Kong’s latest push to attract talent and capital with the launch of a new investment immigration program could help shore up the local economy, but called for measures to reduce the required time for talents to obtain permanent residency to maintain the city’s attractiveness.
“With a view to further enriching the talent pool and attracting more new capital to Hong Kong, we will introduce a new Capital Investment Entrant Scheme,” Financial Secretary Paul Chan Mo-po announced on Wednesday in the 2023-24 Budget.
Investment at a certain amount in the local asset market, excluding in property, is required for the applicant to qualify, he said.
Those qualified will be allowed to reside and pursue development in Hong Kong upon approval, Chan said.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said at a press conference held after the budget had been delivered that financial assets or other types of assets that are linked to Hong Kong’s long-term development are acceptable. The government is working on the details of eligibility for applicants, he said
The launch of the program comes at a time when Hong Kong is making considerable effort to woo business, talents and tourists back to the city following three years of stringent COVID-19 measures.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said at a press conference held after the budget had been delivered that financial assets or other types of assets that are linked to Hong Kong’s long-term development are acceptable.
The government is working on the details of eligibility for applicants, he said.
A government source said Hong Kong has previously launched a similar program, which was canceled in 2015. Mainland residents were not included in the program.
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The program has been relaunched to attract talent and capital to pave the way for Hong Kong’s long-term development. Details are expected to be announced within the year, the source said, adding that the threshold for investment could be higher than for the previous program and that mainland residents would be considered this time.
The amount of investment is expected to be higher than HK$10 million ($1.27 million), according to a report by local media outlet Wen Wei Po. Successful applicants need to have resided in Hong Kong for at least seven years to obtain permanent residency, the report said.
Legislative Council member Lai Tung-kwok said the revamped program “has a crucial role in boosting Hong Kong's economy after the pandemic, as it is expected to attract a significant amount of capital to the region”.
“The government has set a threshold for the program, which excludes property investment, in order to avoid overheating in the real estate market,” Lai said, adding that he hopes the program will attract more funds to emerging sectors like technology and green finance.
Additionally, the former secretary for security expressed his support for the government's decision to open the program to Chinese mainland residents. The previous program was implemented from 2003 to 2015, and over 90 percent of the applicants were mainland people with residency status in overseas regions, indicating their strong desire for investment immigration, he said.
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Lai believes that the requirement for investment immigration is relatively high, and therefore, there won't be a large number of mainland people immigrating to Hong Kong through the program, making the overall risk manageable.
“We welcome the government’s new program, but the government still needs to take a multi-pronged approach to attract outstanding talents to settle down in Hong Kong,” Alice Leung and Stanley Ho, tax partners of KPMG China, said.
The duo suggested that share awards offered to Hong Kong talent by key enterprises should be exempted from salaries tax.
They also recommended that the government introduce measures to attract immigrants, such as shortening the period for eligible applicants to obtain Hong Kong permanent residency from seven years to four years under the Quality Migrant Admission Scheme, Top Talent Pass Scheme and tax incentive programs.
“Hong Kong needs to reexamine its relevant policies to maintain its attractiveness,” they said.
Contact the writers at sally@chinadailyhk.com