The government approves the first batch of investment visas in only three months. 

For some financial hubs, it is the worst of times and for others, it is the best. While Singapore continues to deal with the repercussions of a wide-ranging money laundering scandal, one of the first visible and concrete signs of Hong Kong as a new and rejigged hub in the international family office space is here.  

The government announced on Wednesday that it had approved the first batch of applications since relaunching its overhauled Capital Investment Entrant Scheme (CIES) at the start of March.

The Need for Speed

As finews.asia previously reported, speed and the ability to move quickly is the game's name right now given the competition underway with Singapore to become the regional hub of choice for family offices.

Hong Kong has wasted no time in doing that. Of 339 applications, it has provided in-principle approval for 88 applications and stamped out three fully approved visas, which means that the required investment of HK$30 million ($3.8 million) each has already been made locally.

Incoming Funds

In total, the government expects HK$10 billion in investments if more than 300 of the applications currently in play are approved, a step that they said will «enhance the development strengths of Hong Kong’s asset and wealth management industry».

Indeed, a note by the Mayer Brown law firm in March when the new scheme was announced, echoed much the same sentiment.

High Net Worth Individuals

«It is envisaged that the New CIES would incentivize more high-net-worth individuals to set foot and possibly set up family offices in Hong Kong, consolidating Hong Kong's position as an international asset and wealth management hub,» the law firm indicated.

Even then, the law firm indicated that it had «observed heightened interest» in the new CIES scheme from banks, brokers, fund sponsors and real estate clients «who are fielding inquiries from high-net-worth individuals wishing to settle in Hong Kong».

Large Numbers

The government’s immigration department indirectly confirmed that information on Tuesday when it said that it had received more than 3,700 inquiries since the scheme was relaunched earlier this year.