The new CIES, effective March 1, 2024, is designed for foreign nationals, Chinese nationals with permanent residency in another country, Macao residents, and Taiwanese residents. It aligns with Hong Kong’s evolving market policies and global investment trends.

To qualify, applicants must:

• Be at least 18 years old.
• Possess net assets of HK$30 million (or equivalent in other currencies) for at least two years prior to application.
• Maintain a clean immigration record and meet Hong Kong’s standard security and due diligence checks.

Successful applicants may bring their spouse and dependent children under 18, provided they can support them independently without relying on investment returns, employment, or public assistance.

Investors must allocate a minimum of HK$30 million into one or more of the following eligible asset classes:

• Equities: Stocks listed on the Hong Kong Stock Exchange (SEHK).
• Debt Securities: SEHK-listed bonds and Chinese government bonds.
• Certificates of Deposit & Subordinated Debt.
• Investment Funds: SFC-authorized funds and real estate investment trusts (REITs).
• Limited Partnership Funds (LPFs).
• Real Estate: Both residential and non-residential properties, with a cap of HK$10 million for real estate investments.

A distinctive feature of the scheme is the requirement to allocate HK$3 million to the CIES Investment Portfolio, managed by the Hong Kong Investment Corporation Limited. This portfolio supports businesses and projects that contribute to Hong Kong’s long-term economic development, particularly in innovation, technology, and other strategic sectors.

While capital preservation and dividend payouts are not guaranteed, distributions may be made based on portfolio performance and policy objectives. Further details will be released as the portfolio evolves.

To ensure compliance, investors must:

• Hold investments in a designated investment account with an approved financial institution.
• Maintain the investment throughout their stay in Hong Kong.
• Reinvest all trading proceeds if reallocating between asset classes.
• Refrain from withdrawing the principal amount or using the investment as collateral.
• Withdraw only dividends or interest income earned from the investments.

Residential Properties

• The minimum property value qualifying for investment is HK$50 million.
• A maximum of HK$10 million can be counted toward the HK$30 million investment threshold.
• From March 1, 2025, investments made via eligible private companies wholly owned by the applicant will also qualify.

Non-Residential Properties

• There are no restrictions on the number of properties an applicant may acquire.
• Mortgage loans are allowed, but only the equity portion is counted toward the HK$30 million threshold.
• Refinancing is permitted, provided the loan amount does not increase.
• Rental income from non-residential properties remains with the applicant.
• If selling real estate, proceeds must be reinvested into eligible assets to maintain scheme compliance.
• Applicants must submit transaction details to Invest Hong Kong and declare ownership changes.

From February 2025, Hong Kong recognizes Bitcoin (BTC) and Ethereum (ETH) as valid proof of assets for CIES applicants. To include cryptocurrency holdings, applicants must provide:

• Verified ownership and valuation reports from recognized exchanges or blockchain analytics services.
• Supporting documentation as required by Invest Hong Kong or the Immigration Department.

This update underscores Hong Kong’s forward-thinking approach to digital assets, creating new residency pathways for crypto investors.

Two main government agencies handle CIES applications:

1. Invest Hong Kong (InvestHK): Verifies financial eligibility.
2. The Immigration Department (ImmD): Manages visa applications and extensions.

Step-by-Step Application Guide

1. Submit an application to InvestHK for financial eligibility assessment.
2. Once approved, submit a visa/entry permit application to ImmD.
3. Upon initial approval, receive a 180-day visitor visa to complete the required investment.
4. After investment verification, ImmD grants a 24-month stay permit.
5. After 24 months, apply for a 3-year extension, with further renewals every 3 years if requirements are met.
6. After 7 years of continuous residence, apply for Hong Kong permanent residency.
7. If residency criteria are not met but financial requirements are maintained for 7 years, apply for unconditional stay, allowing full control over assets without restrictions.

Navigating the New CIES can be complex, but Jade Land Properties is here to assist. Our expertise ensures a smooth application process, strategic asset selection, and compliance with investment requirements.

For personalized guidance, contact us today or visit our website!