According to a comprehensive report by Visatopia: On August 12, the Hong Kong Immigration Department released statistics for the “Capital Investment Entrant Scheme” for the first half of the year. From January to June 2014, 2,527 people were formally approved, and another 2,184 people received principle approval. As of June 30, a total of 23,176 people had been formally approved under the “Capital Investment Entrant Scheme,” with nearly 90% of the approved applicants coming from the Mainland.
Three Reasons for Investment Immigration to Hong Kong
The Hong Kong Capital Investment Entrant Scheme is what we commonly refer to as investment immigration to Hong Kong, China. As an international platform blending East and West, Hong Kong has always been a vital link between the Mainland and the world due to its geographical proximity and shared culture. Hong Kong possesses a highly free, open, and internationalized free-market economy, a sound financial system, and a simple, open, and transparent low-tax regime. With global resources such as multinational capital and elite professionals converging in one place, Hong Kong's business environment is uniquely advantageous.
Looking at past cases, there are three main types of reasons for investment immigration applicants to Hong Kong, China: First, to expand their business footprint by leveraging Hong Kong's market system of free competition, independent operation, and free flow of capital. Second, to obtain Hong Kong residency, which facilitates working, traveling, or conducting other affairs globally, while retaining Mainland household registration to maintain their life or career on the Mainland. Third, to allow their children to enjoy high-quality international education within Hong Kong's consistent linguistic environment; Hong Kong possesses a high-quality international education system that incorporates advanced Western educational concepts, characterized by a blend of East and West. Furthermore, using Hong Kong as a springboard increases the chances of being admitted to prestigious universities in Europe and America.
Points to Note for Hong Kong Investment Immigration
In previous years, the continuous influx of Mainland capital investors led the Hong Kong government to significantly increase the investment threshold from the original HK$6.5 million by 54% to HK$10 million in October 2010. Over the past two years, the number of capital investors has continued to rise, and it is highly likely that the Hong Kong government will raise the investment threshold again in the near future for reasons such as balancing local resources.
Additionally, although real estate projects are no longer included in the permissible investment asset classes, purchasing a home is still considered a “rigid demand” for applicants who wish to live in Hong Kong and consider their children's schooling. When purchasing a home, it is still necessary to consider the surrounding schools and other supporting living facilities. Properties near high-quality schools are generally more expensive, but they offer the advantage of convenient schooling for children and also have greater potential for appreciation.
Current permissible investment asset classes include stocks, bonds, certificates of deposit, subordinated debt, and qualified collective investment schemes. As Hong Kong is an international capital market with operating mechanisms different from those on the Mainland, investors should pay particular attention to whether their service provider has compliant qualifications, a good reputation, and sound investment insight. This is the only way to ensure that the HK$10 million is invested in sufficiently safe asset projects. Taking the Hong Kong, China investment immigration service system of Renhe Overseas as an example, it provides a comprehensive solution that includes third-country residency processing, school selection for children, nearby home purchasing, selection of preferred investment projects, international tax planning, and overseas asset allocation.
Visatopia Editor
