The Hong Kong Investment Corporation Limited issued an open invitation on November 27 seeking fund managers to oversee its Capital Investment Entrant Scheme (CIES) investment portfolio.
The HKIC, wholly owned by the Hong Kong government, projects that the CIES Investment Portfolio (CIES IP) will reach HK$300 million by the end of the year. Investment activities will start in the first quarter of 2025, according to the invitation for proposal document.
The CIES requires that applicants invest HK$30 million in permissible investments, including a mandatory HK$3 million allocation to the CIES IP. Selected fund managers will each oversee portfolios of no less than HK$50 million.
Fund managers must meet strict eligibility criteria. The HKIC stipulates firms must operate for at least five years and hold Securities and Futures Commission Type 9 regulated activity licenses for asset management.
Investment teams must show successful experience raising capital from institutional investors.
The HKIC will evaluate technical and fee proposals separately. Fee proposals “would only be considered upon meeting a minimum threshold of the technical response.”
Fund managers must target companies in their development stage, using Hong Kong as their market base. The HKIC mandates regular consolidated reports on investment progress and performance.
The HKIC retains discretionary power in the selection process. The corporation can disqualify applicants engaging in activities “prejudicial to national security or the public interest of Hong Kong.”
Fund managers must submit their proposals by December 10, 2024. The HKIC will review submissions through December. Fund managers who receive no response by December 31, 2024, may assume the HKIC did not select them for further consideration.
The HKIC directs interested parties to www.hkic.org.hk for detailed information about the corporation and the CIES IP.
IMI program guide: Hong Kong Capital Investment Entrant Scheme (CIES)
