Will Hong Kong investment scheme woo the super-rich? Analysts say revamped strategy ‘more attractive, simpler’ than Singapore’s

Hong Kong has updated its investment program to attract wealthy individuals, and experts believe it's more enticing than Singapore's offering. John Lee, the Chief Executive, announced the new Capital Investment Entrant Scheme, which requires a minimum investment of HK$30 million in financial assets like stocks and bonds, excluding real estate. This amount is significantly higher than the previous HK$10 million requirement of the old program that was halted in 2015. Immigration specialists think that this new strategy is more straightforward and appealing compared to Singapore's complex investment program. Hong Kong's initiative is designed to draw affluent Asians and skilled professionals who can contribute to the city's economy by keeping their investments in the local financial market for at least seven years. The investments must be in sectors that will aid Hong Kong's future growth, particularly in innovation and technology. Although the program is not open to mainland Chinese citizens, some believe that wealthy Chinese individuals will find ways to qualify by obtaining residency elsewhere. The announcement has sparked mixed reactions on Chinese social media, with some criticizing the high investment threshold and the seven-year wait for permanent residency. Others, however, see the simplicity and lower risk of Hong Kong's program as advantages. Benny Cheung from Goldmax Immigration Consulting pointed out that unlike Singapore's program, which involves riskier investments and additional requirements like job creation, Hong Kong's scheme is simpler, focusing on low-risk financial assets. Additionally, male permanent residents in Singapore are subject to mandatory military service, which is not the case in Hong Kong. Singapore's Global Investor Programme has been successful in creating jobs and attracting business investments, but Hong Kong's previous investment scheme was suspended due to its impact on the housing market. Now, with the new program, Hong Kong is looking to re-establish itself as a desirable destination for investors, despite some challenges such as the city's investment climate and geopolitical tensions. John Hu from John Hu Migration Consulting highlighted that potential applicants must consider these factors, including the future of Hong Kong's passport privileges. Nevertheless, the scheme could offer a way for mainland Chinese to move assets out of China, which has strict capital controls.