As of June 30, authorities had received 339 applications for the scheme, which was launched on March 1.

“The New CIES brings a vast pool of talent to Hong Kong, attracting successful businessmen and innovative entrepreneurs,” said Alpha Lau Hai-suen, director general of InvestHK, the government agency in charge of attracting foreign investment.

She said the city could expect investment of over HK$10 billion if the more than 300 applicants were all approved, which would provide a boost to the asset and wealth management industry.

The scheme is designed to provide a fast track to residency for the wealthy and their families when they make investments of at least HK$30 million. The funds must remain in the city’s financial markets for at least seven years.

Most of the amount, or 90 per cent, must be invested in financial assets such as equities on the Hong Kong stock exchange, debt securities, cash deposits, subordinated debts, eligible collective investment schemes and limited partnership funds.

The remaining HK$3 million must be invested in areas related to the development of the innovation and technology sector, and strategic industries, which will go into a new CIES investment portfolio managed by the Hong Kong Investment Corporation and used to support the city’s start-ups and IT industry.

Investment in residential properties does not count towards the amount.

The threshold for the new scheme is three times higher than an earlier version that ended in 2015 because of speculation in the property market.

Director of Immigration Benson Kwok Joon-fung said the scheme was just one of the policies introduced by the government to attract talent and capital.

“We have approved the first batch of entry applications and are actively processing other applications. I believe the New Capital Investment Entrant Scheme will bring new vitality and opportunities to Hong Kong,” he said.

Successful applicants and their dependents may apply to become permanent residents after a period of continuous ordinary residence in Hong Kong of not less than seven years, subject to any other relevant requirements under the Immigration Ordinance.

Lau added that InvestHK and the Immigration Department had been working closely together on the scheme and would continue to deepen cooperation to further strengthen the city’s appeal as a business hub.

Simon Lee Siu-po, an honorary fellow at the Asia-Pacific Institute of Business at the Chinese University of Hong Kong, said the scheme’s potential impact on the property and stock markets could still be limited.

“We still need many foreign investors to come and do business here,” he said. “Only then can we boost the property and stock markets.”

Critics have said housing market conditions continue to deteriorate, with the residential property price index seeing a ninth consecutive quarter of year-on-year declines.

The city in 2024 also recorded the lowest first-half total for funds raised through initial public offerings (IPOs) in more than two decades, at US$6.3 billion, a 43.8 per cent drop compared with the same period last year.

Gary Ng Cheuk-yan, senior economist at Natixis Corporate and Investment Bank, said competition with regional peers and other local talent schemes also cast a shadow.

He said that while the CIES and Top Talent Pass Scheme had different criteria targeting investment and income respectively, the latter one did not require locking up capital in Hong Kong with the same duration for permanent residency.

Authorities introduced the top talent scheme in late 2022 for graduates from the world’s leading universities to apply for two-year visas, offering an easier path to residency.