HONG KONG SAR, CHINA Trends and Developments Contributed by: Wang Hui and Zheng Hui, King & Wood Mallesons
• They must provide evidence that they possess at least HKD30 million in net assets, which must have been beneficially owned for a minimum of six months, rather than two years, prior to the applica - tion. • They must make a minimum investment of HKD30 million in approved assets aligning with a stipulated allocation, which includes: (a) at least HKD27 million in approved financial assets, residential and non-residential real estate (within the HKD27 million floor, there are no caps on allocations to equities, debt securi - ties or subordinated debt, while investments in eligible collective investment schemes and private limited-partnership funds are collec - tively capped at HKD10 million, certificates of deposit at HKD3 million and real estate (includ - ing both residential and non-residential) at HKD10 million); and (b) HKD3 million allocated to a New CIES invest - ment portfolio, which will be managed by Hong Kong Investment Management Limited, and which is intended to support innovation and strategic industries in Hong Kong. In addition, assets jointly held with family members can now be included when calculating the applicant’s net assets and investment in Hong Kong, provided the applicant has absolute beneficial entitlement to their portion. Investments made through eligible pri - vate companies will also qualify. These must be wholly owned by the applicant and structured as FIHVs or as FSPEs under FIHVs, as defined under Hong Kong tax regulations. Last but not least, the Hong Kong government has also rolled out several other talent attraction initiatives, such as: • the Quality Migrant Admission Scheme, which requires applicants to meet basic eligibility criteria before they can earn points under the scheme’s scoring system; and • the Top Talent Pass Scheme, which primarily tar - gets high-income individuals and graduates from the world’s top 100 universities, offering faster approval processes.
Each of these initiatives is specifically designed to encourage various types of professionals and other talents to come to Hong Kong and settle by providing tailored immigration pathways. Conclusion As global wealth continues to rise and the appeal of family offices becomes increasingly pronounced, Hong Kong is establishing itself as a premier hub for the development of this sector. The city is character - ised by significant geographical advantages, a robust financial infrastructure and favourable tax policies. Its highly open and international market, along with mature capital markets and regulatory frameworks that align with global standards, creates an environ - ment conducive to the free flow of information and capital. Furthermore, Hong Kong acts as a crucial link between the PRC and global investment opportuni - ties, rendering it an attractive destination for family offices. As Hong Kong continues to refine its regulatory envi - ronment and as the demand for professional family office services escalates, the city is well positioned for further growth in this domain. Additionally, with family offices playing an increasingly vital role in diversify - ing Hong Kong’s economy and enhancing its finan - cial services sector, the authors expect that a growing number of high net worth individuals will select Hong Kong as their preferred location in which to establish a family office. It is clear that the city will remain a top destination for global family offices and high net worth families alike.
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