Capital Investment Entrant Scheme

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  1. #1

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    Capital Investment Entrant Scheme

    Hi there everyone,
    I do consider to move to HK under Capital Investment Entrant Scheme. I have no problem to deposit capital of HKD6.5 million in bank. But as the capital wouldn't be very productive from my point of view, do you know any bank which will provide me with some kind of "back-to-back" loan for let say 85 to 95 percent of initial deposit at reasonable cost. So I can use the money elsewhere. I can prove steady overseas income to support my CIES application, just feel I can use money better than bank. Any good advice will be appreciated. Thnaks


  2. #2

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    Maybe I've got this wrong, but my understanding is that you don't just have to deposit the money in a bank - but invest it in HK in some form or other. Not completely sure what if any restrictions there are to what you can invest in.


  3. #3

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    Yes - clearly you can't just put he money here and then take the same amount out again!

    You need to invest in, and stay invested, in certain asset classes in Hong Kong. And you need to be able to prove that the money has been yours for the previous two years (not borrowed from anyone else).

    And you have to have enough above the $6.5M to live on (the 6.5M has to stay locked up).

    The Government of the Hong Kong Special Administrative Region - Immigration Department


  4. #4

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    Not to hijack this thread, but can one invest in HK property as part of the CIES scheme. For instance purchasing an apartment for HKD7 million. Or are the designated mutual funds the only way to go.


  5. #5

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    Yes, property is fine, but the $7M you use to buy it has to have been yours for the previous two years. Obviously you can't use a mortgage!

    The Permissible Classes of Asset or described here: The Government of the Hong Kong Special Administrative Region - Immigration Department


  6. #6

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    I understand your points. I know that some banks or their parts will lend you money or make available line of credit , when you have deposits with them without making any charge to deposits. HSBC Premier, BEA and DBS can do it. With properties it goes a bit different. What it counts forward to minimum $6.5M in regards to properties is actually not purchase price , but what is called "surplus equity", which can be the purchase price in case of no mortgage on property. But you can have also property which is partially mortgaged. As a example only, total price for property is $8M, mortgage is $4M, so remaining $4M is "surplus equity". In this case you should invest another $2.5M in Permissible investment assets or real estate to stay within the Scheme Rules. Good way how to tap the money from the scheme legally is either income from property rent or dividends. With high dividends paying stocks you access more than 10 percent every year from money you have in Scheme without breaching any rules. Scheme just don't permit you to access any capital gains which locked up with initial investments for period of 7 years.

    BTW. I can prove that I have capital in excess of $6.5M for much more than 2 years. So no problem on this.

    Last edited by meir13; 19-09-2009 at 01:13 AM.

  7. #7

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    How is possible to show they have been yours for the previous 2 years?

    Bank statements will work?


  8. #8

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    Please read the links I gave - they have all the details. Essentially you need to employ a CPA to certify it.


  9. #9

    Join Date
    Sep 2009
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    Correct, CPA will certify it for you.


  10. #10

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    Sep 2008
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    Thanks for the info