HK Experts Say Plan To Woo Investors Flawed

by Carla Johnson, Investors Offshore.com

03 March 2003

Investment experts in the SAR have warned that a planned extension of the investment residency options to include those bringing at least HK$6.5 million in real estate, stocks, or mutual funds to the territory is unlikely to elicit a great deal of response, because investors from the Chinese mainland are excluded from the proposal.

Speaking to the Hong Kong Standard, Salomon Smith Barney analyst Robert Fong observed that:

'The HK$6.5 million threshold is not low compared to investment immigration schemes offered in other countries.' He added that: 'The scheme is not available to the group to whom it may be the most attractive -mainland entrepreneurs.'

The seven year residency requirement for investment immigrants has also been criticised:

'Given the general poor sentiment in the SAR, it may be difficult to present immigrants with Hong Kong's best in terms of opportunity and prospects,' PricewaterhouseCoopers tax services partner, Tim Lui explained.

However, others are more optimistic, according to the Standard. Speaking to the newspaper on Friday, HSBC general manager, Raymond Or suggested that the new policy might attract investors from politically unstable countries in Southeast Asia:

'Countries in those areas, particularly those with unstable political conditions and anti-Chinese sentiment, may consider investing in Hong Kong - a city with a better legal and financial system,' he speculated.

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