Pls try (From left) Secretary for Innovation, Technology and Industry Sun Dong and Secretary for Financial Services and the Treasury Christopher Hui Ching-yu attend a press conferences on 2024-25 Budget initiatives at Central Government Offices in Admiralty, Hong Kong, on Feb 29, 2024. (ANDY CHONG / CHINA DAILY)

The new Capital Investment Entrant Scheme (CIES) will open for applications from Friday, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu at a press conference on Thursday, as Hong Kong strives to expand its talent pool and attract fresh capital to the city. 

InvestHK — the government department responsible for foreign direct investment — will release details of the program soon, Hui noted. He said he expects the capital inflow to enhance the city’s innovation and technology sector, which the government views as a new engine for economic growth. 

Individuals are required to allocate at least HK$27 million into financial products, such as equities, bonds, certificates of deposit, and non-residential properties

Earlier, Hui said the program is expected to benefit Hong Kong’s asset and wealth management businesses, enhance financial and related professional service sectors, and “bring more business opportunities and high-quality job prospects to all segments of the industry’s service chain”.

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The development came following Hong Kong’s 2024-25 Budget on Wednesday delivered by Financial Secretary Paul Chan Mo-po, in which he emphasized that Hong Kong will aim to attract enterprises, capital and talent “on all fronts”.

“We will continue to roll out policies and initiatives on all fronts, drawing in capital, enterprises and talent, expanding our economic capacity and strengthening our impetus for development,” Chan said.

The CIES will be open to individuals who have “net assets of not less than HK$30 million ($3.8 million) to which he/she is absolutely beneficially entitled throughout the two years preceding the application”.

The minimum investment threshold for the program stands at HK$30 million. Individuals are required to allocate at least HK$27 million into financial products, such as equities, bonds, certificates of deposit, and non-residential properties. And HK$3 million must be directed into a newly established CIES investment portfolio to support the development of innovation and technology industries and other strategic industries.

The enterprises are expected to bring over HK$40 billion in investment to Hong Kong and create about 13,000 jobs over the next few years, Chan said in his Budget speech

The investment program was first introduced in 2003, requiring a minimum investment of HK$6.5 million. The threshold was raised to HK$10 million in 2010 due to the large number of applications. The program was suspended in 2015.

Regarding the Hong Kong Stock Exchange’s public consultation paper on allowing stock trading during severe weather conditions, Hui said, “The goal is to finalize the plan’s execution details by mid-year.” 

Prior to making an announcement, authorities must resolve labor concerns and settlement challenges, as updates to brokerage back-end systems are necessary to facilitate stock and cash transactions, he added. “Specific implementation timelines will be rolled out once the market is ready.” 

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Secretary for Innovation, Technology and Industry Sun Dong said the government is set to hold a signing ceremony in March for the second batch of 16 strategic enterprises that will set up an office or expand operations in Hong Kong through the Office for Attracting Strategic Enterprises, bringing the total to 36. 

The enterprises are expected to bring over HK$40 billion in investment to Hong Kong and create about 13,000 jobs over the next few years, Chan said in his Budget speech.

“The Hong Kong Science Park will allocate resources based on the actual investment of these enterprises,” Sun noted. “The government has established various subsidy programs offering financial support for corporates and talent.”

Contact the writer at tianyuanzhang@chinadailyhk.com