Relevant press releases

(Hong Kong, 11 November) The Hong Kong Investment Corporation Limited (“HKIC”) announced the operational details of the Investment Portfolio (“CIES IP”) under the New Capital Investment Entrant Scheme (“New CIES”). The HKIC is tasked to set up and manage the CIES IP.

According to the requirement of the Government of the Hong Kong Special Administrative Region, an eligible applicant under the New CIES must make investment of a minimum of HK$30 million in the permissible investment, including placing HK$3 million into the CIES IP.

With the ongoing progress of case approvals and gradual availability of capital, the CIES IP will start investment in the first quarter of next year. With a view to fully realising the function of the CIES IP for the long-term development of Hong Kong’s economy and society, and joining hands with multi-disciplinary stakeholders to accelerate in tapping into and strategising the planning for the cutting-edge impetus for growth for the future of Hong Kong, the operational arrangements for the first batch of capital allocation are as follows:

• (i) Capital Allocation:
  The New CIES has been open for application since March of this year. It is expected that as of end December this year, total capital available and applicable to the CIES IP will be at least HK$300 million. Investment of such capital is expected to start in the first quarter of 2025.
• (ii)Investment Mechanism:

  The HKIC will select two to four fund managers based on the mechanism to invest for the CIES IP. Priority will be given to qualified fund managers meeting the following criteria:

  • Headquartered in Hong Kong, with clear and concrete business expansion plan which demonstrates its long-term commitment to Hong Kong;
  • Having the management and decision-making personnel, including but not limited to the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer (or personnel with equivalent positions) resided and based in Hong Kong, and more than half of its employees being Hong Kong residents;
  • Having all members of its investment team holding licences for the Securities and Futures Commission Type 9 regulated activity (asset management);
  • Established for at least 5 years;
  • Asset under management of no less than HK$200 million;
  • With successful experience in raising capital from institutional investors and making venture capital investments; and
  • Committed to ensuring concrete action plans of investee companies to contribute to the future development of Hong Kong.
• (iii)Investment Areas:
  Interested fund managers must propose at least two new applications or new themes that could bring innovative advancements to Hong Kong’s technology or commercial transformation, and focus on the exploration and incubation with Hong Kong market as a basis. At the same time, the aforesaid applications and themes must align with Hong Kong’s advantages, positioning and needs, with the promotion of cross-jurisdictional development of technological applications as the long-term direction.
• (iv)Investment Stage and Type:
  Expected to be primarily companies and teams in their development stage.
• (v)Size and Arrangement of Each Fund:
  No less than HK$50 million, and will be invested having regard to aforementioned themes within two years of the fund’s establishment.
• (vi)Lock-up Period:
  Seven years starting from 1 January 2025.
• (vii)Investment Progress:
  Fund managers will compile consolidated reports regarding the progress on a regular basis to keep investors posted about the operation and performance.

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