Letters | How to get more growth from Hong Kong’s investment residency scheme

Readers discuss mandatory capital allocations, lung cancer treatment, the HK$2 fare for seniors, and the authenticity of products

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A view of the Hong Kong skyline from the Tsim Sha Tsui promenade on November 26. Photo: AFP

Published: 11:30am, 15 Jan 2025

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Hong Kong’s New Capital Investment Entrant Scheme (New CIES) shows promise, with the Hong Kong Investment Corporation Limited’s (HKIC) recent appointment of venture capital managers for its CIES investment portfolio.

Currently, CIES applicants must make a minimum investment of HK$30 million (US$3.85 million), including HK$3 million in HKIC’s venture capital portfolio.

However, drawing from my experience in Hong Kong’s financial markets, I believe we can better balance domestic growth with our wealth management aspirations.

Specifically, I propose mandatory allocations beginning with 20 per cent, or HK$6 million, in HKIC’s portfolio – double the current requirement – supporting strategic growth sectors, and 30 per cent, or HK$9 million, in Hong Kong-incorporated, Securities and Futures Commission-authorised funds (i.e. local funds) focusing on small and mid-cap stocks listed on the Hong Kong stock exchange.

For the remaining 50 per cent, or HK$15 million, applicants could choose between two routes. The traditional investment route would include 33.3 per cent or HK$10 million in local funds or managed accounts investing primarily in Hong Kong equity and debt securities and/or Hong Kong property, and 16.7 per cent or HK$5 million in unrestricted SFC-authorised funds or managed accounts. The direct contribution route would include a fixed donation of HK$10 million to the likes of the government’s Lotteries Fund, the Community Care Fund, the Hospital Authority budget and the budget for the Hospital Development Plans.