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Pando’s View on Latest CIES
31 Oct 2024

Hong Kong's New Capital Investment Entrant Scheme

The New Capital Investment Entrant Scheme (CIES) was relaunched last year as part of Hong Kong's "Attract Enterprises and Talents" policy, officially taking effect on March 1, 2024. The scheme requires a minimum investment amount of HK$30 million.

The scheme’s investment structure consists of two parts. In the first part, applicants are required to invest at least HK$27 million in financial assets (such as stocks, funds, and bonds) or non-residential property, with the flexibility to switch between these asset types. The second part requires an investment of HK$3 million in the "Capital Investment Entrant Scheme Portfolio," managed by Hong Kong Investment Management Limited, supporting Hong Kong's innovation and technology development.

 

Target Audience and Application Process

The scheme is open to foreigners, Chinese citizens with permanent residency abroad, residents of Macau, and Taiwan. Applicants may bring their spouse and children under 18 for a two-year stay, with an option for renewal. After seven years of continuous residence, applicants become eligible for permanent residency. By the end of September, the InvestHK reported approximately 4,000 inquiries, with 579 applications submitted. Among these, over 100 passed net asset verification, and the Immigration Department granted "in-principle approval" to 88 applications, allowing applicants to stay for 180 days as visitors to conduct investment assessments. However, no applications have been fully approved yet.

 

Hong Kong’s Global Aspirations and Supportive Measures

While the Hong Kong government has not set specific targets for the new scheme, the current number of applications is lower than anticipated. Compared to the previous CIES program, which launched in 2003 and ended in 2015, there was an average annual application volume of around 4,000. Competing with international financial centers like Singapore, Hong Kong aims to enhance its attractiveness as a center for international asset and wealth management through the CIES scheme.

The government plans to further stimulate capital management in Hong Kong, supporting private equity funds in expanding their sales channels on the Hong Kong Exchange and promoting the Belt and Road Initiative. Partnerships with sovereign funds from regions such as the Middle East are also planned to invest in assets within mainland China and beyond. Additionally, the government intends to expand tax incentives and gather industry feedback to provide tax relief for more funds and single-family office transactions.

 

 

Choose Pando ETFs and Customized Account Services

 

1.Pando’s Support Services for CIES Applications

 

Pando offers comprehensive assistance for CIES applications through our dedicated team, who can assist with Immigration Department applications. Additionally, Pando provides tailored management services, creating customized investment portfolios for CIES clients to maximize returns and meet specific needs. Pando’s Innovation-themed ETF (3056.HK) and Blockchain-themed ETF (3112.HK) are both eligible investment options under the CIES program. Through bespoke account management, Pando can further structure financial products for your investment portfolio.

 

Pando Innovation-themed ETF (3056.HK)

This ETF focuses on advanced sectors such as AI, semiconductor chips, and autonomous driving, featuring companies with robust fundamentals and strong leadership, such as Nvidia, TSMC, Amazon, and Netflix. These companies drive productivity and transform lifestyles through continuous technological innovation, accumulating significant technological resources and cash reserves to support reinvestment and sustained growth.

 

Pando Blockchain-themed ETF (3112.HK)

This ETF invests in companies with established business models that either utilize or benefit from blockchain technology, such as Nvidia, MicroStrategy, and major mining companies. Pando prioritizes these companies' technological strengths, cash reserves, and management capabilities to ensure a competitive edge within the rapidly evolving blockchain industry.

 

2.Customized Account Management Services

 

Pando’s customized account services ensure active portfolio management by our professional team to meet your financial goals. Our diversified portfolio captures investment opportunities locally and globally. With risk management expertise, our global team tailors portfolios to your needs, responding to market shifts through diversified securities.

 

Compliance and Risk Management at Pando

Pando, as a licensed institution in Hong Kong, ensures that all counterparties involved in clients' investment allocations are fully licensed and compliant, including custodians, exchanges, and banking partners, minimizing compliance and operational risks.

Pando implements a comprehensive risk management strategy to safeguard client investments. To manage ethical risks, Pando has robust compliance and interest protection mechanisms to prevent misconduct. For operational risk, advanced internal controls and automation ensure reliability. Market risks are managed through real-time analysis and asset reallocation. Finally, liquidity and counterparty risks are managed by selecting highly liquid assets and reputable partners, ensuring stable performance under various market conditions.

 

Pando’s Professional Management Team

Pando Limited ("Pando"), as a licensed firm, provides diversified investment solutions for corporate and individual investors. With a core focus on Web 3, Pando has issued two actively managed ETFs on the Hong Kong Stock Exchange: Pando Blockchain-themed ETF (3112.HK) and Pando Innovation-themed ETF (3056.HK). Additionally, Pando holds an SFC license allowing for 100% investment in virtual assets.

Our investment team comprises experienced professionals with over a decade of industry experience, holding internationally recognized credentials such as CFA (Chartered Financial Analyst) and CAIA (Chartered Alternative Investment Analyst). With deep expertise and keen market insights, they provide clients with high-quality investment advice and tailored solutions. Through the potential of Pando Funds and the robust support of the HKCIES, investors can embrace a prosperous future, taking the first steps toward wealth and immigration success.

 

 

Contact Us

• Phone: +852-3891 3288

• Address: Suite 1408, Two Exchange Square, 8 Connaught Place, Central, Hong Kong

• Email: media@pandofinance.com.hk

 

About Pando

Pando is a licensed virtual asset management company with a global impact, operating in Europe, Asia, and North America with full retail market capabilities. As a leader in digital asset management, Pando has obtained upgraded Type 1, Type 4, and Type 9 licenses from Hong Kong’s SFC, allowing up to 100% portfolio allocation in virtual assets and offering distribution and advisory services to funds with over 10% virtual asset allocation. Pando Finance also holds a public fund qualification and has launched several high-performing actively managed ETFs.

In 2022, Pando Asset established its headquarters in Zurich and issued spot Bitcoin and Ethereum ETPs, as well as the Pando6 Index Fund ETP on the Swiss Exchange. Through strategic expansion, Pando has accumulated extensive digital asset allocation and compliance experience, dedicated to providing diversified investment solutions that attract a wide range of investors. For more details, please visit: www.pandofinance.com.hk.

Disclaimer

Please read the following information carefully before proceeding.

 

The information contained in this website has been prepared to assist potential investors in making an informed decision in relation to investing in the ETFs / products under PANDO. A product key facts statement and prospectus for the ETFs / products under the ETFs which contain the key features and risks are also issued by the manager and available in this website.

 

The contents of this website have been prepared in good faith. However, the prices quoted are for reference only and may be subject to change without prior notice. Past performance is not a reliable indicator of future performance. The value of ETFs / products can fluctuate substantially within a short period of time. The management company or the directors of the scheme (in the case of a mutual fund corporation) accept full responsibility for the accuracy of the information contained in the offering document and confirm, having made all reasonable enquiries, that to the best of their knowledge and belief there are no other facts the omission of which would make any statement misleading.

 

An investment in any ETFs / products carries various risks. Each of these may affect the net asset value, yield, total return and trading price of the units. There can be no assurance that the investment objectives of ETFs will be achieved. You should carefully evaluate the merits and risks of an investment in the relevant ETFs / products in the context of your overall financial circumstances, knowledge and experience as an investor. The offering document should be read for further details including the risk factors.

 

ETF / product under the OFC are authorized by the Securities & Futures Commission in Hong Kong (the “SFC”) under Section 104 of the Securities and Futures Ordinance. However, the SFC takes no responsibility for the financial soundness of the ETFs / products under the Trusts or for the correctness of any statements made in this website. SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

 

You should consult your financial adviser, consult your tax advisers and take legal advice as appropriate as to whether any governmental or other consents are required, or other formalities need to be observed, to enable you to acquire units as to whether any taxation effects, foreign exchange restrictions or exchange control requirements are applicable and to determine whether any investment in the ETFs / products is appropriate for you.

 

The website has not been reviewed by the Commission.

For any questions or complaints, please contact the manager at its address as set out in the “Contact Us” or call the manager on +852-38913288 during normal office hours.