HONG KONG SAR, CHINA Trends and Developments Contributed by: Hui Wang and Hui Zheng, King & Wood
net worth individuals seek Hong Kong residence by deploying capital in the city. Under the current rules, applicants must invest at least HKD30 million in per - missible investment assets, comprising HKD27 million in approved financial assets or real estate and HKD3 million in the CIES Investment Portfolio managed by Hong Kong Investment Corporation Limited. According to figures released by InvestHK on 2 March 2026, InvestHK had received approximately 3,200 New CIES applications as at 28 February 2026, with expected investment of about HKD95 billion. Among applications verified as having fulfilled the investment requirements, SFC-authorised funds and equities were the two largest allocation categories, with investment amounts of approximately HKD21,448 million (38.6%) and HKD16,116 million (29.0%), respectively. Invest - ment-linked assurance schemes, the CIES Investment Portfolio and debt securities also represented material categories, accounting for 9.9%, 9.9% and 9.5% of total qualifying investments, respectively. These fig - ures indicate that the New CIES is generating not only sustained individual capital inflows, but also structural demand across Hong Kong’s fund, securities, insur - ance and fixed income markets. By end-April 2026, InvestHK had received nearly 3,600 New CIES appli - cations, representing anticipated investment value of approximately HKD108 billion, a further increase from the record by the end of February 2026. Developments in 2026: removing the minimum incorporation period for private companies From the relaunch of the New CIES on 1 March 2024 until 28 February 2025, applicants were required to demonstrate that they were absolutely beneficially entitled to net assets or net equity of not less than HKD30 million throughout the two years preceding the application. With effect from 1 March 2025, the gov - ernment introduced a first round of enhancements: • the net asset verification period was reduced from two years to six months; • the applicant’s absolutely beneficial portion of assets jointly held with family members could be taken into account; and • investments made through an eligible private com - pany wholly owned by the applicant were eligible to qualify.
The last of these was expressly described as creating synergy with the family office tax concession regime. With effect from 1 March 2026, the government intro - duced a further relaxation. Applicants may now use an eligible private holding company incorporated for less than six months for the purposes of the investment requirement assessment, and no minimum incorpora - tion period is required. This allows company forma - tion and application preparation to proceed in parallel, materially reducing the implementation timetable. Interaction with family office structures The cumulative effect of the 2025 and 2026 enhance - ments is to align the New CIES application process more closely with the family office tax concession regime. Where investment assets are held through an eligible private company, that company must take the form of an FIHV or a family-owned special purpose entity (FSPE) under an FIHV, managed by an eligible SFO. The relevant SFO must manage assets of not less than HKD240 million and satisfy the applicable substance requirements, including employing at least two full-time employees and incurring annual operat - ing expenditure of not less than HKD2 million in Hong Kong. In practice, an applicant may therefore satisfy the New CIES investment conditions while establish - ing a structure capable of qualifying for the family office profits tax concession, with compliance costs shared across an integrated arrangement. Practical implications for capital entry and structural planning A New CIES application should not be treated as a standalone immigration matter, but as part of a fam - ily’s broader wealth structuring programme. For high net worth families intending to establish a long-term presence in Hong Kong through the New CIES, the 2025 and 2026 enhancements have a cumulative practical effect. The shortened net asset verification period, recognition of certain jointly held assets and removal of the minimum incorporation period together reduce the period between initial structuring and for - mal application. Families that were previously deterred by lengthy pre-application requirements may therefore reassess their timing.
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