OBJECTIVE OF THE SCHEME

The objective of the Scheme is to facilitate the entry for residence by capital investment entrants (the entrant), i.e. persons who make capital investment in Hong Kong but would not be engaged in the running of any business here. The entrant is allowed to make his choice of investments amongst permissible assets without the need to establish or join in a business.

SCPOE OF THE SCHEME

The Scheme is applicable to:

*foreign nationals (except nationals of Afghanistan, Albania, Cuba and Democratic People's Republic of Korea);
*Macao Special Administrative Region (Macao SAR) residents;
*Chinese nationals who have obtained permanent resident status in a foreign country;
*stateless persons who have obtained permanent resident status in a foreign country with proven re-entry facilities; and
*Taiwan residents.

ELIGIBILITY CRITERIA

To qualify for admission under the Scheme, the entrant must:
*be aged 18 or above when applying for entry under the Scheme;
*have net assets of not less than HK$6.5 million to which he is absolutely beneficially entitled throughout the two years preceding his application;
*have invested within six months before submission of his application to the Immigration Department, or will invest within six months after the granting of approval in principle by the Immigration Department, not less than HK$6.5 million in permissible investment asset classes (except Certificates of Deposit which must be invested within the latter period) as detailed in page "Permissible Investment Asset Classes";
*have no adverse record both in Hong Kong and country/region of residence; and
*Be able to demonstrate that he is capable of supporting and accommodating himself and his dependants, if any, on his own without relying on any return on the permissible investment assets, employment or public assistance in Hong Kong.

PERMISSIBLE INVESTMENT ASSET CLASSES

The entrant should invest not less than HK$6.5 million in either or both of the following two permissible investments asset classes:

(I)  Real estate
The entrant may invest in commercial, industrial or residential properties, including land and pre-completion properties in Hong Kong. There is no restriction on the number of properties bought for the purpose of the Scheme.

(II)  Financial assets

The entrant may invest in one or a combination of the following types of financial assets:
1.      Equities
2.      Debt securities
3.      Certificates of Deposits
4.      Subordinated debt
5.      Eligible Collective Investment Schemes

CHANGE IN VALUE OF INVESTMENT

The entrant is not required to top up the value of his investment in either asset class should the value of his total investment under the Scheme fall below the requisite minimum level of HK$6.5 million. He is also not allowed to withdraw any capital gain from his investment if its market value rises above the requisite level. Rental income from the qualifying property and cash dividend income and interest income derived from permissible financial assets can be retained by the entrant and need not be ring-fenced under the Scheme. The entrant is free to switch his investments from one permissible asset class to another (e.g. from real estate to financial assets or vice versa) provided that the entire proceeds from the sale of the initial assets are reinvested. He should keep a record of every change to his investment portfolio for the purpose of applying for extension of stay in Hong Kong.

ENTRY ARRANGEMENTS

A successful entrant, and his dependant(s) if any, will be issued with a visa / entry permit to be collected from the Immigration Department by himself or through his local reference in Hong Kong for onward transmission to him. The visa label should be affixed onto a blank visa page of the entrant's travel document for presentation to the immigration officer upon arrival in Hong Kong. If the entrant has no proper travel document acceptable for traveling to Hong Kong, an entry permit will be issued instead. The same entry arrangements will apply to the entrant's dependants.

ENTRY OF DEPENDANTS

Entrants may be allowed to bring in their dependants (i.e. spouse and unmarried dependent children under 18 years of age) provided that the entrant is capable of supporting and accommodating his dependants on his own without relying on any return on the permissible investment assets, employment or public assistance in Hong Kong. The entry of dependants will however be subject to any other policy applicable to such entry at the time of application.

CONDITION OF STAY

When approval in principle is given to an entrant, he will be initially allowed to enter Hong Kong on visitor status for three months. If evidence of active progress in investment can be shown, his visitor status can be extended for another three months. When the entrant has furnished proof that the requisite level of investment has been made, permission to stay for two years (formal approval) will be granted. Further extensions for two years will be granted if the entrant can demonstrate to the satisfaction of the Immigration Department that he continues to meet the eligibility criteria and portfolio maintenance requirements. Further extensions for 2 years will be granted on the same basis. Upon completion of not less than seven years of continuous ordinary residence in Hong Kong, the entrant and his dependants may apply for the right of abode in Hong Kong in accordance with the law.