HONG KONG – The Hong Kong Special Administrative Region on Tuesday relaxed the net asset assessment and calculation requirements under the New Capital Investment Entrant Scheme to strengthen the city’s status as a global asset and wealth management center.

The measures, which will take effect on March 1, will attract more people and promote the development of family offices in the city, the Financial Services and the Treasury Bureau and Invest Hong Kong said in a notification detailing various enhancement measures.

Under the new measures applicants will only need to prove they have a minimum net worth of HK$30 million in the six months preceding the application, down from an initial requirement of two years.

Investments made through family-owned investment holding vehicles (FIHV) or a family-owned special purpose entity (FSPE) under an FIHV would count towards requirements under the scheme.

Net assets or net equity jointly owned with the applicant's family members can now be taken into consideration for the calculation of the net asset requirement for the respective portion which is absolutely beneficially entitled to the applicant, the notification added.

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The government will also recognize investments made by private enterprises that are wholly owned by applicants as eligible investment, it said.

The New CIES, which was launched on March 1 last year, is expected to bring in HK$24 billion investment to the city, the government said citing the scheme’s statistics for the first 10 months.

“The New CIES has attracted high-net-worth individuals, business elites, and innovative entrepreneurs,” Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said, adding that the government has been liaising closely with the industry and are continuously working on further enhancements since the launch of the scheme.

He expressed his belief that the enhancement measures will encourage more investors to join the scheme and be able to create synergy with the tax concession regime for family offices, thus promoting the development of family office businesses in the SAR.

“We are committed to providing comprehensive support for family office decision-makers to establish themselves in Hong Kong, further attracting global asset owners and reinforcing Hong Kong's leading position as an international asset and wealth management hub.”

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InvestHK Director-General of Investment Promotion Alpha Lau Hai-suen said the number of applications for the New CIES in the first 10 months has exceeded the number of applications received for the same period under the previous Capital Investment Entrant Scheme launched in 2003.

“This reflects the strong confidence of investors in Hong Kong. I trust that these measures will enhance the attractiveness of the scheme,” she said.