6 Months In: Hong Kong’s CIES Receives 500 Applications   

Moustafa Daly
Cairo

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Hong Kong’s Capital Investment Entrant Scheme (CIES), which the government relaunched six months ago, continues to garner interest, receiving a total of 500 applications since its revival.

The government reports that 47 applicants have already met the scheme’s stringent investment requirements, each investing at least HK$30 million in the city.

Of the 500 applicants, 448 individuals have successfully demonstrated net assets of at least HK$30 million over the two years preceding their application. The 47 verified applicants who have already invested HK$30 million each are now awaiting visa approval from the Immigration Department.

Each application represents a HK$30 million (US$3.8 million) investment commitment, potentially injecting HK$15 billion into the local economy. InvestHK claims it has fielded over 5,000 inquiries during the first six months of operation.

Siren Chen, Group Head of Project R&D at Globevisa Group, explains that the low approval percentage isn’t “indicative of a backlog but rather delayed investment decisions.”

Chen notes that “only 47 applicants have completed their investments so far because, after receiving approval, applicants have up to 180 days to complete their investments.” She highlights that many applicants “do not rush to invest immediately after approval” but take their time to “choose investment products and directions.”

She attributes the slower pace of the CIES processing to the program’s various eligible investment options, “giving applicants more choices and considerations.”

Based on historical CIES figures, Stephen D. Barnes, Co-Founder of Hong Kong Visa Centre, sees significant room for growth in the newly relaunched program.

He notes that, according to statistics in the Hong Kong Immigration Department annual report, the total number of applicants under the old CIES was “nearing 20,000 in the five years between 2011 and 2015.”

How Chinese applicants navigate CIES eligibility

Earlier reports in June, when application volume reached 339, revealed that most applicants were residents of Vanuatu and Guinea-Bissau. Siren Chen speculates that these applicants were Chinese citizens with overseas citizens by investment, as Chinese nationals are otherwise ineligible to apply. Authorities have not released updated information on applicants’ origins since.

Chen believes that the majority of applicants are indeed Chinese and that “although these applicants are listed as coming from Vanuatu and Guinea-Bissau, they are not citizens of these nations but are actually from mainland China.”

She explains that permanent residencies in Vanuatu and Guinea-Bissau are “relatively easy to obtain” and that the CIES applicants “holding permanent residency from these countries are, in fact, from mainland China.”

How does CIES work, and who is it for?

The program’s eligible nationality parameters are broad, encompassing foreign nationals (with exceptions), Chinese nationals holding permanent residency or citizenship abroad, Macau SAR residents, and Chinese residents of Taiwan.

The CIES, which the government designed to attract high-net-worth individuals, mandates a minimum investment of HK$30 million (US$3.85 million) in permissible assets. Applicants can invest in assets which include non-residential real estate or financial products.

Of the total, applicants must allocate at least HK$27 million to financial assets, excluding real estate, and a minimum of HK$3 million to a CIES investment portfolio managed by the Hong Kong Investment Corporation, which aims to support the innovation and technology sector.

CIES’ success, which complements the city’s other residency routes for skilled migrants, could play a pivotal role in reinforcing Hong Kong’s position as a global financial and talent hub.