The New CIES Office, a new dedicated team under the Invest Hong Kong will be responsible for assessing the financial assets and investment of the New CIES Applicants/Entrants as well as monitoring their continuous compliance of the relevant requirements, while the Immigration Department will be responsible for assessing applications for visa/entry permit, extension of stay and unconditional stay pursuant to the Scheme.

Before an Applicant submits an Entry Application for a visa/entry permit to enter Hong Kong and/or remain in Hong Kong for residence under the Scheme (“Entry Application”) to the Immigration Department, he/she is required to first approach the New CIES Office of the Invest Hong Kong for verifying whether he/she has fulfilled the Net Asset Requirement.

Upon verification that the Applicant has fulfilled the Net Asset Requirement, the New CIES Office will issue a certifying proof to the Applicant and notify the Immigration Department of the result. The Applicant is then required to submit an Entry Application to the Immigration Department within the validity period of the certifying proof. If Approval-in-Principle is given after assessment from immigration perspectives, the Immigration Department will grant a visa/entry permit to the Applicant for entering Hong Kong on visitor status for not more than 180 days for making the committed investment within the period.

Upon verification that the Applicant has fulfilled the Investment Requirements, the New CIES Office will issue a certifying proof to the Applicant and notify the Immigration Department of the result. The Applicant is then required to submit the certifying proof within its validity period to the Immigration Department, who will in turn resume assessment on the Applicant’s Entry Application. Upon satisfaction from immigration perspectives, the Immigration Department may grant Formal Approval of the Entry Application. Permission to stay will normally be granted to the Applicant/Entrant and his/her dependants, where any, for not more than 24 months on time limitation only, subject to the condition that the Applicant/Entrant continues to satisfy the requirements of the Scheme throughout this period.

Upon expiry of the initial 24-month period, before the Entrant submits an application for extension of stay to the Immigration Department, he/she is required to first approach the New CIES Office not earlier than three months before expiry of his/her limit of stay for verifying his/her continuous compliance with the Portfolio Maintenance Requirements. Upon the New CIES Office’s verification that the Entrant has fulfilled the Portfolio Maintenance Requirements, the New CIES Office will issue a certifying proof to the Entrant and notify the Immigration Department of the result.

The Entrant and his/her dependants, where any, are required to submit an application for extension of stay to the Immigration Department before expiry of their limit of stay, notwithstanding the relevant certifying proof may have not yet been secured from the New CIES Office. Depending on whether the Entrant subsequently submits the certifying proof, the Immigration Department will make decision on the application for extension of stay. Upon satisfaction of the Immigration Department from immigration perspectives that the Entrant and his/her dependants, where any, still meet the eligibility criteria under the Scheme, extension of stay for not more than three years will normally be granted to the Entrant and his/her dependants, where any. Further applications for extension of stay for not more than three years should follow the same application procedures.

The New CIES Office is located on 15/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong, and can be reached by MTR through Wan Chai Station Exit A5 or Exhibition Centre Station Exit B3.

The opening hours of the New CIES Office are 9:00 a.m. to 12:30 p.m. and 1:30 p.m. to 5:00 p.m., Mondays to Fridays (closed on Saturdays, Sundays and public holidays).

An Applicant can call the hotline of the New CIES Office at +852 3904 3001 (9:00 a.m. to 12:30 p.m. and 1:30 p.m. to 5:00 p.m., Mondays to Fridays, and closed on Saturdays, Sundays and public holidays) or send enquiry to the email address of his/her responsible team processing the application. The Applicant should quote his/her name and the New CIES Application Reference Number allocated by the New CIES Office in his/her enquiry of application progress. Upon verification, the New CIES Office will provide a reply to the Applicant.

Yes. An Applicant can fill in the information of his/her appointed agent when he/she submits applications. If the Applicant needs to change his/her agent’s information or appoint another agent after submitting applications, he/she has to submit a written authorisation letter to the New CIES Office.

The authorisation letter must clearly state the following information: names of the Applicant and the agent, the identity document number of the Applicant, the contact information for the agent and the Affiliated Company (if applicable) including telephone number and email address, the effective date of the authorisation letter, signatures of the Applicant and the agent, etc.

Subsequent to the lodge of application for Net Asset Assessment and submission of documents relevant to the application, the New CIES Office will allocate an Application Reference Number to the Applicant, and the Applicant and its appointed service providers can submit the notification/supplementary documents to the New CIES Office via the following means:

i.  send to the email address of the responsible team processing the Applicant/Entrant’s application; or
ii.  by post or in person to the New CIES Office (Address: 15/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong).

The Applicant is reminded that the New CIES Application Reference Number  (instead of Immigration Department’s Reference Number) shall be quoted in any communication (such as financial intermediaries delivering notices to the Director-General of Investment Promotion) with the New CIES Office.  For any communication by email with the responsible team, the subject matter and the New CIES Application Reference Number must be included in the subject line for reference.

“Working day” means a day other than: (a) a Sunday; (b) a public holiday; or (c) a gale warning day or a black rainstorm warning day as defined in section 71(2) of the Interpretation and General Clauses Ordinance (Cap. 1 of the Laws of Hong Kong).

The following two examples illustrate the calculation rules of Working days and calendar days under the Scheme:

Example 1: on calculation of Working day
Paragraph 6.1(b)(vi) of the Scheme Rules stipulates that “Director-General of Investment Promotion (“DGIP”) must be informed in writing seven Working days of any changes regarding absolute beneficial ownership of, legal title to or any mortgage of the non-residential real estate which qualified under the Scheme.”

Assuming that the abovementioned changes took place on 20 December 2024 (Friday), the first Working Day falls on 21 December 2024 (Saturday). After excluding the Sundays and Hong Kong public holidays, the seventh Working day falls on 31 December 2024 (Tuesday) (see the illustration below). As such, the Applicant shall inform DGIP of the changes on or before 31 December 2024.

*WD denotes “Working day”.
*PH denotes “Hong Kong public holiday”.

Example 2: on calculation of calendar day

Paragraph 4.2 of the Scheme Rules stipulates that “No more than 14 calendar days may elapse between the date of issuance of the Fulfillment document and the date on which the Applicant lodges his application for Net Asset Assessment”.

Assuming the date of issuance of the Fulfillment document is on 1 March 2024 (Friday), the first calendar day falls on 2 March 2024 (Saturday). The application for Net Asset Assessment should be lodged on or before 15 March 2024 (Friday) (i.e., the 14th calendar day) (see the illustration below).

If the 14th calendar day falls on a Saturday, a Sunday or a public holiday, the Applicant should submit the application for Net Asset Assessment together with provision of the Fulfillment document and all relevant document stated therein to the New CIES Office in person or by post on the next weekday (Monday to Friday) which is not a public holiday.

*CD denotes “Calendar day”.

The New CIES OAS has become effective, and provides an online channel for an Applicant of New CIES to submit application for Net Asset Assessment and Assessment on Investment Requirements in prescribed manner and format. For online application for Assessment on Portfolio Maintenance Requirements, details would be announced later.

The OAS is available 24 hours a day and seven days a week except for system maintenance period. 

The following online application forms are available now for the applicants:

(i) Online Application Form for Net Asset Assessment  
(ii) Online Application Form for Assessment on Investment Requirements  

Major steps of online application submission by the applicants are as follows:
•    Start filling in a new form;
•    Fill in the information and upload documents as required in the online application;
•    Submit the online application form and provide an email address to receive the acknowledgement receipt generated by OAS; 
•    Print/download the submitted form;
•    Record the Transaction Reference Number from the acknowledgement receipt for future communication; and
•    Within seven calendar days after submitting the online application forms, submit the other supporting documents by post or in person to the New CIES Office (Address: 15/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong).

Upon receipt of all the supporting documents for application for Net Asset Assessment, the New CIES Office will allocate an Application Reference Number to the Applicant, and send the application acknowledgement email containing the Application Reference Number to the Applicant.  In the subsequent submission of the online application for Assessment on Investment Requirements, the Applicant can input either this Application Reference Number (instead of Immigration Department’s Reference Number), or the Transaction Reference Number received from the acknowledgement receipt of online application for Net Asset Assessment.

An Applicant is reminded to review and confirm the information he/she fills in the online application forms before submission. The Applicant can also print/download the submitted forms after he/she completes the online application. 

If any information in the online application form has to be revised later, the Applicant should contact the New CIES Office by email (newcies@investhk.gov.hk) instead of submitting another online application form. Duplicate submissions of online application form may result in confusion and a significant delay in the assessment process.

The instructions of attachments and the file formats acceptable to the system are set out in different parts of the online application forms and the Applicant is required to upload the required files in the specified format within the size limit. In addition, the Applicant is also required to upload an image of his/her signature before submitting the online application forms. 

The Applicant can save his/her draft online application form into his/her personal device, and use a password in a specified format to protect the file when he/she is filling in the online application form at any page.  Please note that the OAS does not retain any form data associated with the file. 

If the Applicant wishes to retrieve the information from the file later, he/she can click “Fill in a Saved Form” in the first page of online application form. He/she can first attach his/her saved form file from his/her device and input the password, before continuing his/her filling of other uncomplete information on the OAS.

The procedures of submitting supporting documents consist of two parts: (a) submission of documents through OAS and (b) submission of other supporting documents by post/in person. Within seven calendar days after submitting the online application forms, the Applicant should submit the required supporting documents by post/in person to the New CIES Office (Address: 15/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong). Failure to submit the required supporting documents from the Applicant by the specified deadline may render an application invalid.  Notwithstanding that the Applicant has already furnished the  information and documents through the channels above, he/she may still be required to further submit other information or other supporting documents in connection with his/her application.

Online Application Form for Net Asset Assessment

¹ No more than 14 calendar days may elapse between the date of issue of the Fulfillment document and the date the Applicant lodges his/her application for NAA.

Online Application Form for Assessment on Investment Requirements

² No more than 14 calendar days may elapse between the date of issue of the Fulfillment document and the date the Applicant lodges his/her application for AIR.

Before an Applicant submit online application forms for Net Asset Assessment and Assessment on Investment Requirements, he/she is required to engage a Certified Public Accountant (Practising) as defined in the Accounting and Financial Reporting Council Ordinance (Cap. 588 of the Laws of Hong Kong) at his/her own cost to assist in demonstrating his/her fulfillment of the requirements under the New CIES. The Applicant should provide such Fulfillment documents and all relevant supporting documents stated therein by post or in person to the New CIES Office (Address: 15/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong) within seven calendar days after submitting the online application forms.

The Net Assets Statements/Permissible Investment Assets Statement attached to the Fulfillment documents should be original and have to be signed on every single page by the Applicant. All the relevant supporting documents for inspection of different types of assets/Permissible investment assets as stated in the Statements should be original or photocopies certified true by the Applicant, i.e. duly signed by the Applicant on the first and last pages of each set of supporting documents.

An Applicant should also note that when he/she submits online application forms for Net Asset Assessment or Assessment on Investment Requirements, he/she has to refer to the information as stated in the Net Assets Statements/Permissible Investment Assets Statement attached to the Fulfillment documents, to fill in the relevant parts of Net assets/Permissible investment assets in the forms.

For each of the application stages on assessment as processed by the New CIES Office, including but not limited to Net Asset Assessment, Assessment on Investment Requirements, and Assessment on Portfolio Maintenance Requirements, an Applicant should submit an online application form, with subsequent provision of the Fulfillment document and all relevant supporting documents stated therein by post/in person to the New CIES Office within seven calendar days after submitting the online application forms. Meanwhile, an Applicant is expected to ensure that all information in the relevant application is accurate and complete in all material respects and is not misleading or deceptive. Failure to comply so by the Applicant may result in a significant delay in the assessment on the application or may render the application invalid.

The New CIES Office will start vetting the application when substantially all necessary information and supporting documents are received from the Applicants.  However, it is reminded that submission of the requested information by the Applicants does not guarantee automatic approval of the application. The New CIES Office may also request the Applicants for other information as and when required during the vetting process. Failure to submit the required information from the Applicants by the specified deadline will impede the New CIES Office’s ability to  process the application and may render the application rejected eventually.

Under the New CIES, an Applicant may be allowed to bring in his/her dependants (i.e. spouse and unmarried dependent children under 18 years of age).

Applications for extension of stay for residence as dependants in Hong Kong will be considered only when the applicant continues to meet the eligibility criteria for entry for residence as dependants (including that there is no change in circumstances which would have otherwise resulted in loss of sponsorship for the applicants, e.g. change in marriage relationship between the dependant spouse and the sponsor).

The limit of stay of dependants of persons who have been admitted to Hong Kong under the New CIES will normally be the same as that of their sponsors (i.e. the Applicants). The entry of dependants will be subject to any other policies applicable at the time of arrival.

He/she is allowed to work, be an office-holder or self-employed, or join in a business in Hong Kong.

Any person who satisfies the eligibility criteria of the New CIES can submit an application, irrespective of whether he/she is residing in Hong Kong or elsewhere.

An Applicant and his/her dependants, upon a period of continuous ordinary residence in Hong Kong of not less than seven years, may apply for becoming Hong Kong permanent residents in accordance with the law. If the Applicant’s application for Verification of Eligibility for Permanent Identity Card is approved, he/she will be free to dispose of the Permissible investment assets invested under the New CIES subject to the terms and conditions of the underlying investments.

No. The Applicant and his/her dependants must have ordinarily resided in Hong Kong for a continuous period of not less than seven years before applying for the right of abode in Hong Kong in accordance with the law.

If an Applicant has parked his/her investments here for seven years but does not meet the requirement of continuous ordinary residence in Hong Kong to acquire the Hong Kong permanent resident status, he/she may apply for unconditional stay (which would allow him/her to enter and stay in Hong Kong without being subject to any conditions or limit of stay) at the end of the seventh year. Upon successful application, he/she will be free to dispose of the Permissible investment assets invested under the New CIES subject to the terms and conditions of the underlying investments.

No. An Applicant is required to have Net assets or Net equity to which he/she is absolutely beneficially entitled with a Market value of not less than HK$30 million Net (or equivalent in foreign currencies) throughout the two years preceding the date he/she lodges his/her application for Net Asset Assessment of the New CIES.

All fees, charges, commissions, stamp duties, taxes, levies and all other expenses incurred during the process of acquiring, disposing or realising the Permissible investment assets shall not be counted as committed investment.

No, none of the investments in the designated account of the Applicant/Entrant should be traded on margin basis.

An Applicant may invest in real estate of mixed commercial and industrial uses, but not in real estate of mixed commercial and residential uses. There is no restriction on the number of properties the Applicant may acquire. The Applicant may also switch from one non-residential real estate to another, or from non-residential real estate to other Permissible financial assets (e.g. equities, debt securities), or vice versa.

Yes. An Applicant may use the non-residential real estate as collateral to take out or refinance a mortgage with banks or financial institutions licensed in Hong Kong, but only investment in the form of net equity (i.e. the portion contributed by the Applicant) in non-residential real estate will be counted as qualifying investments under the New CIES, subject to a cap of HK$10 million.

Subject to the meeting of the below requirements, the carparks in commercial buildings for rental purpose can be considered as non-residential real estate under paragraph 5.2 of the Scheme Rules.

In accordance with Article 29A of the Stamp Duties Ordinance (Cap. 117 of the Laws of Hong Kong), “non-residential property” means immovable property which, under the existing conditions of:
(a) a Government lease or an agreement for a Government lease;
(b) a deed of mutual covenant, within the meaning of section 2 of the Building Management Ordinance (Cap. 344 of the Laws of Hong Kong);
(c) an occupation permit issued under section 21 of the Buildings Ordinance (Cap. 123 of the Laws of Hong Kong); or
(d) any other instrument which the Collector is satisfied effectively restricts the permitted user of the property,

may not be used, at any time during the term of the Government lease in respect of the property or during the term of the Government lease that has been agreed for in respect of the property (as is appropriate), wholly or partly for residential purposes.

In addition. upon completion of making the committed investment, an Applicant is required to approach the New CIES Office for verifying whether he/she has fulfilled the Investment Requirements. The Applicant is required to engage a Certified Public Accountant (Practising) as defined in the Accounting and Financial Reporting Council Ordinance (Cap. 588 of the Laws of Hong Kong) at his/her own cost to assist in demonstrating his/her fulfillment of the Investment Requirements, and submit the application form with the Fulfillment document and all relevant supporting documents stated therein, including proof which can indicate the property invested by the Applicant being non-residential real estate.

The CIES Investment Portfolio will be set up and managed by the Hong Kong Investment Corporation Limited.

If an Applicant has purchased equities in one of the three situations set out in paragraph 2.1(d) of the Scheme Rules (extracted below) and subsequently transferred and deposited the aforesaid equities into a designated account in his/her own name to be operated by an eligible financial intermediary under the New CIES, the aforesaid equities can be counted as the Applicant's committed investment. As regards equities, all other situations that do not involve the purchase of equities by the Applicant will not be counted as committed investment.

Extract of Paragraph 2.1(d) of the Scheme Rules:
“ … an Applicant has met the Investment Requirements if he:

1. has invested within and thereafter throughout the period beginning on the Launch date of the Scheme or the 180th day before his application is lodged for Net Asset Assessment, whichever is later, and ending on the day his application is lodged for Net Asset Assessment; or
2. (ii) has invested within and thereafter throughout the period beginning on the Launch date of the Scheme or the 180th day before his application is lodged for Net Asset Assessment, whichever is later, and ending on the 180th day after pproval-in-Principle has been granted by DoI (Note: i.e. Director of Immigration); or
3. (iii) has invested within and thereafter throughout the period beginning on the day when Approval-in-Principle has been granted by DoI and ending on the 180th day thereafter; …”

Please refer to Paragraph 2.1(d) of the Scheme Rules for details in full.

The requirement for valuation report, which is also applicable for real estate, at the stage of application for Net Asset Assessment, is stated in paragraph 4.4 and footnote 4 of the Scheme Rules, which are extracted below.

Paragraph 4.4 of the Scheme Rules reads:
“New CIES Office will ascertain the Applicant’s eligibility and assess whether he has fulfilled the Net Asset Requirement. For the purpose of the calculation of Net Asset Requirement, assets not traded on a public exchange can be accepted solely for the purpose of Net Asset Assessment only if the proof of assets is accompanied with a written valuation report from a valuer acceptable to a Certified Public Accountant (Practising) in Hong Kong as defined in the Accounting and Financial Reporting Council Ordinance (Cap. 588 of the Laws of Hong Kong) and included in the Fulfillment document.”

Footnote 4 of the Scheme Rules also reads:
“In general, a valuation report contains the following information: date of valuation, essential information about the asset (which may include description and condition of the asset), basis of/ approach to valuation, recent transaction data for comparable pieces/ items; and relevant photos etc. The report will then arrive at a valuation of the asset, based on the foregoing information. The information of the valuer such as professional qualifications and experience should usually be attached to the valuation report.”

In addition, in the event that the real estate of the Applicant/Entrant is registered in a territory outside Hong Kong, the Applicant/Entrant should provide the latest official documents issued by the corresponding country/region concerning the real estate together with his/her personal identity document of the corresponding country/region, if applicable, so that he/she can prove the current status of his/her ownership of that real estate.

As regards the recent transaction data for comparable pieces/items, to facilitate the vetting procedures, the Applicant/Entrant is expected to provide the screen capture of market quotations and/or recent transaction data together with the geographical locations of the comparable estates illustrating their locations are in the periphery of his/her real estate.

For assets and securities deposited in banks or securities firms, an Applicant/Entrant should acquire evidence from banks or securities brokers throughout the two years preceding the date of lodging the application for Net Asset Assessment of the Scheme, e.g. monthly reports, quarterly statements, letter from banks or securities firms, in order to certify the maintenance of the required amount and above in the bank or securities firm balance throughout the specified whole period.

In the event that the evidence only shows the month-end balance, the Applicant/Entrant should also provide other supporting documents from the bank or securities broker (e.g. statement with detailed transactions, settlement notes, transaction confirmations) to prove his/her net asset value (no matter in Hong Kong dollars or equivalent) throughout the specified whole period.

The monies/assets deposited in the designated account by Applicant/Entrant or the proceeds of sale or other realisation of the Permissible financial assets must be invested or reinvested in its entirety in Permissible financial assets and/or non-residential real estate in accordance with requirements set out under the Scheme Rules. The designated account must be exclusively used for the transaction of Permissible financial assets. The Applicant/Entrant must not reduce the committed investment while permitted to stay in Hong Kong under the Scheme.

Furthermore, according to paragraph 6.1(a)(vii) of Scheme Rules, the Applicant/Entrant may at any time withdraw from the designated account any cash dividend income or interest income arising directly from the Permissible financial assets.

In conclusion, except for cash dividend or interest income, extra monies/assets deposited in designated account is required to be ring-fenced under the Scheme and cannot be withdrawn at any time.

If the value of the assets shown in the proof of assets is denominated in foreign currency only, an Applicant/Entrant can make reference to the following webpages for the Hong Kong dollar equivalent values of his/her assets/liabilities:

1. the average of the selling rate and the buying telegraphic transfer rate of the relevant currency published daily by the Hong Kong Association of Banks (HKAB), which can be found on HKAB’s webpage; or
2. the daily figures under Section 6: Exchange rates and interest rates of the Monthly Statistical Bulletin published by the Hong Kong Monetary Authority (HKMA), which can be found on HKMA’s webpage.

The Applicant is required to engage a Certified Public Accountant (Practising) (“CPA”) as defined in the Accounting and Financial Reporting Council Ordinance (Cap. 588 of the Laws of Hong Kong) at his/her own cost to assist in demonstrating his/her fulfillment of Net Asset Requirement and submit an application for Net Asset Assessment with provision of the Fulfillment document and all relevant supporting documents stated therein.

The CPA should obtain the audited financial statements of the unlisted entity which covers the specified two-year period. The CPA should read the auditor’s reports and should indicate in the Fulfillment document for any modified opinions in these auditor’s reports. It is expected that the latest financial period in the audited financial statements must not have ended more than six months before the date of issuance of the Fulfillment document.

In the event that the audited financial statements have ended more than six months before the date of issuance of the Fulfillment document, stub period financial statements should be provided so that no more than six months may elapse between the date of issuance of the Fulfillment document and the end date of the latest stub period financial statements.

Stub period financial statements and comparative information must be at least reviewed by the auditor of the unlisted entity in accordance with the Hong Kong Standards on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity or International Standards on Review Engagements 2410 if the auditor of the unlisted entity is from overseas. For an unlisted entity incorporated in Mainland China, the stub period review should be performed in accordance with the China Standards on Review Engagements 2101 — Engagements to Review Financial Statements issued by the Chinese Institute of Certified Public Accountants.

The valuation of the unlisted entity for each of the three points of time should make reference to the corresponding latest audited financial statements or reviewed financial statements at that particular point of time. Applicants are reminded that the valuation dates should be consistent with the dates of three points of time in the Net Assets Statements.

For the details of the reporting requirement of CPA regarding Net Asset Requirement, please refer to the circular issued by the Hong Kong Institute of Certified Public Accountants.

For the details of documents to be submitted for Net Assets Statements, please refer to the Reference Guide for the Completion of Net Assets Statement.

The Applicant/Entrant is required to ascertain that he/she has made investment in PIA of not less than of HK$30 million Net (or equivalent in foreign currencies) before his submission to New CIES Office for assessment on Investment Requirements, and shall ring-fence the committed investment throughout the stipulated period of the Scheme.  
If the value of PIA invested shown in the assets proof is denominated in foreign currency only, the respective Hong Kong dollar equivalent value should be translated with reference to its actual exchange rate incurred in the corresponding transaction. In the event that an exchange rate proof adopted for conversion of the entire purchased amount of PIA (i.e. actual exchange rate) cannot be provided, the prevailing market rate on the purchase date should be applied for such currency translation. 

All foreign exchange gain or loss arising from PIA acquisition process by the Applicant/Entrant shall not be counted as committed investment. The Applicant/Entrant is reminded that all foreign exchange gains are regarded as capital gains and shall be ring-fenced under the Scheme.  Likewise, the Applicant/Entrant is not required to top up his investment to account for the foreign exchange loss. 

Upon disposal or realisation of the abovementioned investment, the Applicant/Entrant is required to reinvest the entire sale proceeds (i.e. without deducting all relevant fees and charges) in PIA with reference to the requirements stipulated in paragraph 8 of the Scheme Rules.  

If the entire sale proceeds are denominated in foreign currency, the corresponding Hong Kong dollar equivalent value should be translated with reference to its actual exchange rate incurred in the corresponding transaction. In the event that an exchange rate proof adopted for conversion of the entire realised amount (i.e. actual exchange rate) cannot be provided, the prevailing market rate on the disposal or realisation date shall be applied.  The Applicant/Entrant is required to reinvest into PIA with an amount not less than its Hong Kong dollar equivalent value. 

To facilitate the financial intermediary and the Applicant/Entrant in making a contract in respect of the New CIES, a contract template is uploaded on the New CIES website. Please note that the content of the contract template is solely for reference purpose.

A list of eligible collective investment schemes (CIS) under the New CIES (List) has been published and will be maintained by the Securities and Futures Commission (SFC) on a dedicated webpage on the SFC’s website, and is accessible here. CIS that meet the eligibility criteria as set out in paragraph 5.1(e) of the Scheme Rules per the SFC’s records have been included in the List posted on the SFC’s website. For enquiries about the List, please contact the SFC via e-mail (enquiry@sfc.hk).

Under the Scheme Rules, there is no specific requirement on the domicile of an eligible fund. A fund, irrespective of where it is domiciled, would qualify as an eligible CIS under the New CIES provided that it meets the eligibility criteria as set out under paragraph 5.1(e)(i) of the Scheme Rules.

Under the Scheme Rules, there is no specific requirement on the track record or the size of assets under management of an eligible CIS.

Answer to (a):
For the purposes of paragraph 5.1(e)(i) of the Scheme Rules, “management” refers to the discretionary investment management in respect of the relevant fund as performed by the RA9 Licensee, whether as a management company, an investment delegate or co-delegate.

Answer to (b):
As a Hong Kong representative of an SFC-authorised fund appointed for the purpose of Chapter 9 of the Code on Unit Trusts and Mutual Funds does not perform discretionary investment management for the fund, an SFC-authorised fund would not qualify as an eligible CIS under paragraph 5.1(e)(i) of the Scheme Rules if the RA9 Licensee only acts as its Hong Kong representative.

Answer to (c):
For an SFC-authorised fund adopting pooled investment delegation arrangement and for which the RA9 Licensee only acts as one of the delegates in the pool, such fund would qualify as an eligible CIS under paragraph 5.1(e)(i) of the Scheme Rules only if the RA9 Licensee is for the time being delegated with the discretionary investment management function in respect of the fund. To demonstrate such fund’s eligibility under paragraph 5.1(e)(i) of the Scheme Rules, notice should be issued to the fund’s holders informing them that such fund is currently being managed by a RA9 Licensee and upon issuance such notice should also be posted on the fund’s website and post-filed with the SFC. Upon receipt of the post-filed notice, the SFC will arrange to include such fund in the List. In case such fund subsequently ceases to be managed by a RA9 Licensee and hence ceases to qualify as an eligible CIS under paragraph 5.1(e)(i) of the Scheme Rules, the management company is generally expected to notify the SFC at least 14 calendar days in advance and inform the fund’s holders as soon as practicable. Upon receipt of the management company’s notification, the SFC will arrange to remove such fund from the List.

There is no requirement for mandatory switching to another Permissible financial asset when a Permissible financial asset has subsequently become non-permissible for whatever reasons. In such situation, so long as the financial asset is still beneficially held by the Entrant, that financial asset is still deemed to be permissible, for the purpose of fulfilling the Portfolio Maintenance Requirements of his specific application.

That being said, if a Permissible financial asset is no longer deposited in the Entrant’s designated account for whatever reason (e.g. the asset is seized by a third party for satisfying a debt), the Entrant is required to reinvest in another Permissible investment asset equivalent to the Market value of the outgoing Permissible financial asset (assessed on the date it is seized) in order to meet the committed investment and continue to be qualified under the Scheme.

The List will be published and maintained by the SFC on a dedicated webpage on the SFC’s website. CIS that meets the eligibility criteria as set out in paragraph 5.1(e) of the Scheme Rules per the SFC’s records will be included in the List posted on the SFC’s website. No prior application to the SFC is required for an eligible CIS to be included in the List.

For an SFC-authorised fund adopting pooled investment delegation arrangement and for which a corporation licensed by or institution registered with the SFC for Type 9 regulated activity (RA9 Licensee) only acts as one of the delegates in the pool, such fund is required to demonstrate its eligibility under paragraph 5.1(e)(i) of the Scheme Rules in accordance with the arrangement set out under Q.4 of this category under Frequently Asked Questions before being included in the List. Please refer to Q.4 of this category under Frequently Asked Questions for details of the arrangement on the inclusion (and, where applicable, subsequent removal) of such fund in (from) the List.

For the eligible CIS and ownership interest in LPFs, all fees, charges and rewards arising from the process of acquisition by the Applicant/Entrant, e.g. upfront fees incurred, all rewards credited to the Applicant/Entrant’s designated account, etc., shall not be counted as committed investment.  The Applicant/Entrant is reminded that all rewards are regarded as capital gains and shall be ring-fenced under the Scheme.

Upon disposal or realisation of the abovementioned investment, the Applicant/Entrant is required to reinvest the entire sale proceeds (i.e. without deducting all relevant fees and charges, e.g. surrender charge for ILAS) in Permissible investment assets with reference to the requirement stipulated in paragraph 8 of the Scheme Rules.

The Applicant/Entrant is reminded that if his/her investment plan is paid by instalments, each payment instalment will be regarded as a new acquisition. The rationale mentioned in the paragraphs above shall continue to apply.

As regards the ongoing charges which may be deducted from the eligible CIS and ownership interest in LPFs, the Applicant/Entrant is not required to top up the value of the corresponding investment plan or acquire additional Permissible investment asset.

The New CIES Office will examine, amongst other information, the supporting documents indicating that the relevant LPFs have been registered under the Limited Partnership Fund Ordinance (Cap. 637 of the Laws of Hong Kong), the investment amount excluding fees and charges, and date of fund flow for the acquisition of the ownership interest in LPFs.  The Applicant/Entrant should note that the total investment amount of ownership interest in private LPFs and private OFCs is subject to an aggregate cap of HK$10 million as set out in paragraph 5.1(f) of the Scheme Rules.

Meanwhile, the Applicant is reminded to deposit the ownership interest in LPFs into a designated account(s) in his/her own name to be operated by (an) eligible financial intermediary(ies) as set out in paragraph 6.1(a)(ii) of the Scheme Rules.

Under the Scheme Rules, there is no specific restriction on the underlying investments or the currency of denomination of an eligible CIS. That said, product issuers are reminded that an eligible CIS should continue to comply with all applicable laws and regulations, including those relating to its underlying investments or its currency of denomination, if any.

A designated financial intermediary must be:
(a) an authorised institution as defined in the Banking Ordinance (Cap. 155 of the Laws of Hong Kong); or
(b) a licensed corporation licensed for Type 1 or 9 regulated activities under the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong); or
(c) an insurer permitted to carry on Class C business as specified in Part 2 of Schedule 1 under the Insurance Ordinance (Cap. 41 of the Laws of Hong Kong).

An Applicant can only engage at most three financial intermediaries and these three intermediaries should be of different categories referred in (a) to (c) above. The use of more than one financial intermediary from each of the above three categories at the same time is not permitted.

The financial intermediaries concerned should abide by the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615 of the Laws of Hong Kong) (the Ordinance) and meet the relevant AML/CTF requirements. Specifically, financial institutions should formulate a set of procedures to identify, assess and understand the money laundering and terrorist financing (ML/TF) risks to which they are exposed, so that they can design and implement sufficient and appropriate internal AML/CTF policies, procedures and controls that are commensurate with the level of the ML/TF risks identified, thereby properly managing and mitigating those risks. Under the New CIES, the participating financial intermediaries are subject to the requirements relating to customer due diligence and record-keeping under the Ordinance.

An Applicant who fails to open an investment account in Hong Kong does not fulfill the Investment Requirements that made himself/herself not eligible under the New CIES.

A contract must be made between an Applicant and a financial intermediary to clearly set out the requirements to be complied with by the Applicant (e.g. the Applicant must invest cash proceeds from the sale of a particular class of Permissible investment assets in other permissible investment classes), as well as the obligations of the financial intermediary (e.g. it must notify the New CIES Office in writing within seven working days on knowing that, among others, the Applicant has withdrawn from the designated account assets other than cash dividends or interest or acquired new assets over 14 days after the sale of the original assets). For details, please refer to Annex A of the Scheme Rules.

For an Applicant’s investments in the Permissible financial assets, he/she must also make a declaration to the New CIES Office every 12 months and on request that he/she is the absolute beneficial owner of the assets in the designated account. As for the financial intermediary, it must, within 14 working days after the first anniversary of the grant of Formal Approval to the Applicant and within 14 working days after each subsequent anniversary, notify the New CIES Office in writing of the investment portfolio of the designated account on the anniversary and the acquisition cost of the Permissible financial assets held in the designated account, and confirm with the New CIES Office that, to the best of its knowledge, it has fully fulfilled its reporting obligations within the 12-month period immediately before the anniversary, or it has notified the New CIES Office in writing of all matters subject to reporting within the period. For details, please refer to Annex A of the Scheme Rules.

Concerning investments in non-residential real estate, the Applicant must be and remain the absolute beneficial owner of all non-residential real estate included as Permissible investment assets under the New CIES and is required to prove to the New CIES Office all the relevant details of material transactions including the acquisition, disposal and mortgages. The New CIES Office must be informed in writing seven Working days of any changes regarding absolute beneficial ownership of, legal title to or any mortgage of the non-residential real estate which qualified under the Scheme.

The Applicant must also keep a contemporaneous record in writing of every change to his/her Permissible investment assets and may be required to provide this record to the New CIES Office before he/she submits application for an extension of stay or unconditional stay to Director of Immigration. The Applicant shall also provide with the New CIES Office all such information as may be required by the New CIES Office from time to time to establish the eligibility and entitlement of the Applicant under the New CIES.

If the total market value of an Applicant’s Permissible investment assets falls below HK$30 million, or even in the event of a total loss, the Applicant is not required to top up the value of his/her investment.

Even if the market value of Permissible investment assets rises above HK$30 million, an Applicant is not allowed to withdraw any capital gain. However, the Applicant is allowed to withdraw the cash dividend income, interest income and rental income derived from Permissible investment assets.

An Applicant is permitted to switch between his/her Permissible financial assets and non-residential real estate if the ring-fencing principle is adhered to, i.e. the entire proceeds from the disposal or realisation at Market value of the assets are reinvested. Switches between Permissible financial assets and/or non-residential real estate must comply with the provisions in paragraph 8.2 under the Scheme rules. The Applicant is required to notify the New CIES Office in writing within seven Working days respectively after the completion of realisation and acquisition transactions in case of a switch from non-residential real estate to Permissible financial assets or vice versa, or a switch between non-residential real estate. All supporting documents showing the change of composition of Permissible investment assets should also be provided.

If a Permissible financial asset is no longer a qualifying investment under the New CIES (e.g. delisted equities) after acquisition, an Applicant may continue to hold such asset without the need to switch to other Permissible financial asset straightaway. The Applicant is still regarded as fulfilling the Investment Requirements. If the Applicant has decided to sell the financial asset which is no longer a qualifying investment under the New CIES, he/she is required to switch to other Permissible investment assets.

No, the Director-General of Investment Promotion will directly deal with the Applicant/Entrant if the latter fails to comply with any requirements under the Scheme. However, failings of the financial intermediary of its obligations in the client agreement may impugn on its fitness and properness to remain a licensed person, and the Securities and Futures Commission may take disciplinary action against the intermediary.

The Applicant/Entrant, the appointed financial intermediary(ies) and the relevant designated account(s) are required to comply with the ring-fencing and reporting requirements as stipulated in the Scheme Rules once (a) the designated account of the Applicant/ Entrant is opened; and (b) the New CIES Application Reference Number is assigned by the New CIES Office upon receipt of the relevant application for Net Asset Assessment.

Under paragraph 6.1(a)(ii) of the Scheme Rules, the PFA may be managed on a self-directed basis by the Applicant/Entrant or at the discretion of the financial intermediary(ies).  

For the purposes of paragraph 6.1(a)(ii) of the Scheme Rules, “self-directed basis” refers to the PFA management as performed by the Applicant/Entrant in a designated account, whether on his/her own, or through his/her appointed third-party adviser(s), including but not limited to EAM, by means of duly executing a power of attorney arrangement (“POA”) with investment authority, provided that: -

(i) the PFA are ring-fenced in the designated account in the name of the Applicant/Entrant operated by appointed FIs;
(ii) for designated account, the Applicant/Entrant engages at most three FIs of different categories referred to in paragraph 6.1(a)(ii) of Scheme Rules. For the avoidance of doubt, apart from the aforementioned three FIs, any other appointed third-party adviser(s), including EAM, are not regarded any FI in paragraph 6.1(a)(ii) of Scheme Rules; and 
(iii) the appointed FIs that the Applicant/Entrant opened the designated account will continue to fully take up the primary reporting and monitoring obligations as stipulated in the Scheme Rules.

Applications and relevant investments in respect of the original scheme handled by the Immigration Department will not be affected upon the introduction of the New CIES. The Immigration Department will handle applications from Applicants and their dependants submitted under the original scheme in accordance with the original eligibility criteria and the original scheme rules. For the avoidance of doubt, the new Scheme Rules are only applicable to the New CIES, which is launched in 2024 and has no relevance to the operations of the original scheme which was previously launched in 2003 and has been suspended since 15 January 2015.