Investors Can Now ‘Buy’ Residency in Hong Kong!

Reply
Page 1 of 3 1 2 3 LastLast
  1. #1
    Emigra

    Post Investors Can Now ‘Buy’ Residency in Hong Kong!

    Investors Can Now ‘Buy’ Residency in Hong Kong!

    October 22, 2003.

    The HKID introduced a brand new visa category late last month; one which allows foreign nationals to invest a fixed sum of money into the economy of Hong Kong in return for which residency rights in the HKSAR will be granted.

    The Capital Investment Entrant Scheme applies to foreign nationals, residents of Macau and Taiwan. Chinese nationals who have obtained permanent residence status overseas and stateless people who have obtained permanent residence in a foreign country with proven re-entry facilities. Mainland residents have been excluded due to foreign currency controls.

    Applicants must invest HK$6.5 million into property or financial assets, or a combination of both. Real estate can be comprised of commercial, industrial or residential properties. Financial investments will comprise equities, debt, unit trusts and mutual funds. The money can only be invested in government-approved funds, 11 of which have presently been listed. These are:

    · Dao Heng Hong Kong Fund
    · Dao Heng Premium Choice: Hong Kong Fund
    · Dao Heng Premium Choice: Money Market Fund
    · Hang Seng Index Fund
    · Hang Seng HK MidCap Index Fund
    · Hang Seng China Index Fund
    · Hang Seng China H-Share Index Fund
    · Hang Seng Index Leveraged 150 Fund
    · Hang Seng Hong Kong Bond Fund
    · Mansion House Hong Kong Trust
    · Tracker Fund of Hong Kong

    The money must remain invested for seven years before the applicants and their families can apply for the Right of Abode.

    Participants in the Capital Investment Entrant Scheme will not be allowed to cash in any capital appreciation of their qualifying portfolio. If the value of the portfolio falls below the original HK$6.5 million, no topping up is required. Regular reporting of present portfolio value will be necessary.

    Applicants will be subject to security vetting. Those who have committed serious criminal offences will not be accepted. Time line to approval appears to be 4-6 weeks.

    Successful applicants will be allowed to bring in their spouses and unmarried dependant children under 18 years.

    The initial period of stay granted will be two years, renewable subject to continuing portfolio eligibility.

    There will be liberal landing requirements – possibly availing successful applicants up to 24 months to activate their Hong Kong residence after approval (compared to 90 days for most other visa categories).

    Renewals have to be effected in Hong Kong.

    The Government plans to review the Scheme after 12 months.

    Unresolved issues:

    · It remains unclear if there is a ‘new money’ requirement – i.e. that the investments have to be acquired after the commencement date of October 27, 2003 from funding sources presently outside of the HKSAR.

    · There is uncertainty as to the mechanism for acquiring a Capital Investment Visa: e.g. will existing Hong Kong residents be able to apply for this type of residence permission on a change of status basis?

    · The exact extent of the due diligence requirements remain unclear: will the applicant have responsibility for arranging the requisite supporting security clearances or will the Department itself undertake the majority of the work in respect of these prerequisites to approval? What is a “serious” criminal offence?

    · Whilst it appears that permanent residence is available to successful applicants after 7 years of maintaining the qualifying investment portfolio, the information released to date intimates that there will be no landing requirement for the first 24 months. Will the first 24 months prior to landing represent ‘ordinary residence’ irrespective of when the applicant actually first arrives in Hong Kong? Moreover, will the ‘ordinary residence’ criteria be liberalized in view of the stated policy of attracting new investment to Hong Kong (as opposed to contributing to Hong Kong society in the “normal” way – starting a business, accompanying as family, taking up employment etc).

    Permitted activity under the Capital Investment Visa program has yet to be disclosed. Will Capital Investment Visa holders be able to join the local workforce without any further express permissions? Join in a business?

    Last edited by Emigra; 22-10-2003 at 04:08 PM.

  2. #2

    Join Date
    Nov 2003
    Posts
    15

    Talking

    If I had 6.5 million, why should I choose to live in HK?


  3. #3

    Join Date
    Oct 2003
    Location
    in an underground bunker at an undisclosed location
    Posts
    2,078

    Exactly my point........why HK?


  4. #4

    Join Date
    Mar 2004
    Location
    Btn JP & UK
    Posts
    187

    OK... I'm curious about something.

    Just before or immediately after the '97 hand over, many natives wanted to leave Hong Kong because they didn't want to be associated with the PRC. Rich businessman and woman, would sell their property and leave. And now, it seems the whole world wants to immigrate to HK. Why?

    OK I heard the HK Gov. is a little skint those days but HK$6.5 million isn't that much money either. Why is this the magic number?


  5. #5

    Join Date
    Apr 2003
    Posts
    12,383

    >> why HK?

    Because many other places start at HK$ 7.8 million?


  6. #6

    Join Date
    May 2004
    Posts
    10

    7yrs $6.5 M dead HKD, i am just curious who would do that?



    Quote Originally Posted by Max:
    Exactly my point........why HK?

  7. #7

    Join Date
    Apr 2003
    Posts
    12,383

    There is a sucker born every minute.


  8. #8
    Emigra

    hello

    The people who would do it would be those who have legitimate finances but do not have the qualifications or knowledge to obtain an employment visa or an investment visa.


  9. #9

    Join Date
    Oct 2005
    Posts
    107

    Which is just a few dollars shy of one million in US$


    Quote Originally Posted by KnowItAll:
    >> why HK?

    Because many other places start at HK$ 7.8 million?

  10. #10

    Join Date
    Apr 2003
    Posts
    12,383

    One cent..

    Two cents...

    Takes a while.


Reply
Page 1 of 3 1 2 3 LastLast