HONG KONG SAR, CHINA Trends and Developments Contributed by: Wang Hui and Zheng Hui, King & Wood Mallesons
benefit from the city’s tax exemption on qualifying transactions. Meanwhile, Hong Kong’s virtual asset market contin - ues to develop. On 19 February 2025, the Securities and Futures Commission introduced a bespoke regu - latory framework listing the “ASPIRe” pillars (the prin - ciples of access, safeguards, products, infrastructure and relationships) to support Hong Kong’s emergence as a virtual asset hub. Subsequently, on 21 May 2025, the Legislative Council passed the Stablecoins Bill to establish a licensing regime for fiat-referenced sta - blecoins issued in Hong Kong or associated with the Hong Kong dollar. These developments collectively underscore Hong Kong’s commitment to becoming a leading hub for digital assets. Multi-Family Offices In addition to SFOs, another increasingly popular option exists for high net worth individuals, known as multi-family offices (MFOs), which are designed to serve multiple affluent families simultaneously. The specific type of licence that is required for these offices largely depends on the range of services they provide within the jurisdiction of Hong Kong. For instance, if a company or an MFO is established with the primary purpose of managing assets (which may include securities or futures contracts), it is likely that they will need to secure a Type 9 regulated activity licence, which pertains specifically to asset manage - ment. Conversely, if the MFO plans to offer additional services, such as acquiring financial assets based on the directives of the family, it is essential for them to assess whether these services fall under the definition of Type 1 (which involves dealing in securities) or any other regulated activities, and to determine whether a licence is necessary for those activities. Acquiring Hong Kong Residency For numerous high net worth families, the manage - ment and growth of their assets represent only a part of their overall concerns; they are also keenly inter - ested in acquiring residency in Hong Kong. Hong Kong residency can serve as a strategic gateway to the Asia-Pacific region and beyond. One viable option for achieving this is to establish an SFO in Hong Kong and to employ family members within that office, thereby enabling those family members to obtain a
Hong Kong work visa. After a period of seven years of legal residency, these family members may then apply for permanent residency status in Hong Kong. However, it is important to note that family members who are employed by the SFO must possess certain qualifications, which may include relevant education or experience in management or investment, in order to successfully secure a work visa. In addition to obtaining residency through employ - ment within a family office, high net worth individu - als also have the opportunity to apply for permanent residency in Hong Kong through investment immigra - tion pathways. The original CIES, which was imple - mented in October 2003, permitted eligible individuals to immigrate to Hong Kong by making a minimum investment of HKD6.5 million (a figure that was later increased to HKD10 million); this was suspended in 2015. As part of Hong Kong’s efforts to boost its family office business, the region’s government announced the revival of the CIES in December 2023, in which they raised the net asset requirement to HKD30 mil - lion and imposed a holding period of two years prior to the application. The latest reform of the new Capital Investment Entrant Scheme (the “New CIES”) came into effect on 1 March 2025. Its stated objectives are to streamline eligibility requirements, deepen the pool of available talent and attract fresh capital to Hong Kong’s economy. According to the latest data released by Invest Hong Kong (“InvestHK”) on 25 May 2025, InvestHK received 1,257 New CIES applications by the end of April 2025. During the same period, the Immigration Department granted “Approval in Principle” status to 911 applicants – allowing them to enter Hong Kong as visitors to complete their investments – and issued “Formal Approval” to 512 applicants who had already finalised their investments. Under the New CIES, applicants must fulfil several criteria, including the following. • They must be at least 18 years of age (this includes foreign nationals, Chinese nationals holding foreign permanent residency, residents of the Macau Spe - cial Administrative Region, and residents of China’s Taiwan region).
243 CHAMBERS.COM
Powered by FlippingBook