On October 16, 2024 at 11:00 am, the Chief Executive of the Hong Kong Special Administrative Region (HKSAR), Mr. K.C. Lee, delivered his third Policy Address during his term of office.
We have compiled a list of new policies related to the new Capital Investment Entrant Scheme and the Admission of Talents Scheme for your better understanding.
01
Optimizing the New Capital Investment Entrant Scheme
Allow investment in residential properties
According to Eric Li, Hong Kong currently has 2,700 single-family offices and there are industry projections that Hong Kong is expected to become the world's largest cross-border wealth management center by 2028.
In order to further strengthen Hong Kong's position as an international asset and wealth management center, the Hong Kong Government will optimize the “New Capital Investment Entrant Scheme”:
① With immediate effect, investment in residential properties will be allowed, provided that the turnover is $50 million or above, and the amount invested in real estate will be capped at $10 million for the purpose of calculating the total amount of investment.
② Starting from March 1, 2025, investments made through qualified private companies wholly owned by the applicant can be counted as part of the qualifying investment amount.
In addition, the Chief Executive, Mr. Lee Ka Chiu, announced that the scope of tax relief will be expanded. The Government will consult the industry to increase the types of qualifying transactions for which funds and single family offices are eligible for tax relief.
At the same time, Hong Kong will endeavor to start cooperation with large sovereign funds in the Middle East and other regions to co-finance funds to invest in assets in mainland China and other regions.
02
Optimizing the Talent Admission Scheme
Expanding the List of Highly Talented Institutions
Li Jiachao pointed out that the Government will set up “Education, Science and Technology and Talent Commission”, aims to comprehensively promote the integrated development of education, science and technology and talent integration, to strengthen the articulation of the various links, and to promote the international high-end talents to Hong Kong gathered.
On the admission of talents, since the introduction of the new Admission of Talents Mechanism by the end of 2012, the Hong Kong Government has so far received more than 380,000 applications, and about 160,000 talents and their family members have successfully arrived in Hong Kong.
In order to build a pool of high-caliber talents to meet the development needs, the Hong Kong Government will revamp the various talent admission mechanisms, including the following specific measures:
① Updating the “Talent List” to include professionals required to promote the development of the “Eight Major Centers”;
② Expand the list of universities under the “High-end Talent Pass Program” by adding 13 top universities at home and abroad, bringing the total number to 198, and extending the validity period of the first visa for high-income earners (Category A talents) under the program from two years to three years;
(iii) Optimizing the General Employment Policy and the Admission Scheme for Mainland Talents and Professionals to open up new channels to attract young and experienced professionals of designated skilled trades, which are in acute shortage in Hong Kong, to come to Hong Kong. The new arrangement will be subject to quota restrictions;
(iv) Establishing a new mechanism under the Quality Migrant Admission Scheme to proactively invite top talents to develop in Hong Kong, so as to further accelerate the pooling of international high-end talents;
⑤ Extend the pilot arrangement of “Arrangement for Staying in Hong Kong/Returning to Hong Kong for Employment” for two years for graduates of local universities from the Greater Bay Area campuses.
It is worth noting that, as revealed by Legislative Councillor Heung Hoi-lung, among the 13 new universities at home and abroad under the “High Talent Pass” Scheme, nine are Mainland universities, including Renmin University of China, Beijing University of Aeronautics and Astronautics, Beijing University of Technology, Beijing Normal University, Southeast University, Nankai University, Tianjin University, Tongji University and Sichuan University.
Up to now, the number of Mainland universities eligible for the Highly Talented Persons Scheme has reached 22.
Photo credit: Dagong Wenhui
In addition to the above, the highlights of Policy Address 2024 include consolidating and enhancing Hong Kong's position as an international financial, shipping and trading center, developing new quality productive forces in accordance with Hong Kong's own conditions, and committing to building Hong Kong into an international innovation and technology hub, a regional intellectual property trading center, and an international healthcare innovation hub, as well as promoting the development of a digital economy that is deeply integrated with the real economy.
It also promotes the Northern Metro Area as an engine of development, deepens cooperation with the Greater Bay Area, and implements a series of effective measures aimed at benefiting people's livelihood.
Undoubtedly, the series of major favorable policies in Policy Address 2024 will not only promote Hong Kong's continued prosperity and development, but also bring more opportunities and well-being to local residents, investors from all walks of life as well as various types of talents.
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