New CIES in Hong Kong: more than 3,300 applications and an investment portfolio of HK$99 billion

The new New Capital Investment Entrant Scheme (New CIES) in Hong Kong has received more than 3,300 applications, representing expected investments of roughly HK$99 billion (about US$12.6 billion). On 13 April, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, said this at a recent event.

The remarks were delivered at a reception marking the 40th anniversary of the Hong Kong Investment Funds Association (HKIFA).

According to the authorities, the figure rose modestly compared with the two-year report published in early March. At that time, there were 3,166 applications and investment expectations of HK$95 billion as of end of February. Over the following six weeks, at least 134 additional applications were received—at a slower pace than the roughly 190 applications per month seen during the second year of the programme.

At the same time, Christopher Hui did not provide updated breakdowns of capital allocation or decision outcomes. When InvestHK released detailed data in early March, confirmed capital stood at HK$55.6 billion across 1,762 approved applicants. The largest share went to funds authorised by the Securities and Futures Commission (SFC)—at 38.6%. This was followed by equities at 29% and debt securities at 9.5%.

Liquidity matters more than “productivity”

However, experts say the final numbers only partly reflect a structural constraint. Stephen Barnes, founder and managing director of Hong Kong Visa Centre and TG 2050, believes the programme’s economic impact does not match the scale of capital it attracts.

“New CIES brings in money, but it doesn’t necessarily direct it into Hong Kong’s real economy,” Barnes told IMI.

He explains the mechanism: converting foreign currency into HK$30 million generates an inflow into financial reporting that supports the Hong Kong dollar’s exchange rate and boosts reserve statistics. But if intermediaries subsequently deploy the funds outside Hong Kong, the net retention of capital falls.

In the expert’s view, most investment flows into secondary markets. “In effect, we’re seeing activity in the secondary market—buying listed securities rather than creating new capital for primary financing,” he noted. At best, the programme, he argues, inflates asset prices. “It’s liquidity, not productivity,” Barnes stressed.

Under this interpretation, the scheme’s purpose boils down to a strict formula: “At best, you’re effectively extending a HK$30 million loan to Hong Kong issuers.” If there is no mechanism that channels capital into primary placements or productive sectors, the distinction between financial transactions and real investments, the expert says, becomes blurred.

One specific example that observers say failed to attract applicants is luxury residential property. In October 2024, the government added this asset type to the list of eligible investments, and in September 2025 it simplified the criteria, lowering the cost threshold from HK$50 million to HK$30 million. As of February, no applicant had directed capital into this segment.

Still far from the target figures

Since the programme’s relaunch in March 2024, New CIES has not come close to the government’s original plans—4,000 applications per year and HK$120 billion in annual investment. In the first year, 918 applications were submitted. In the second year, 2,248 were filed, driven by reforms that shortened the asset holding confirmation period from two years to six months, and also allowed joint ownership of family assets to meet the HK$30 million threshold.

Even with the acceleration in the second year, the programme is likely to land at around 2,300 applications per year—less than half of the target level. Early signs for the third year, based on preliminary estimates, point to further slowdown.

The next day, CEO John Lee at the HSBC Global Investment Summit described Hong Kong as a “safe haven for capital.” He said the number of family offices operating in the city exceeded 3,380, up 25% over two years.

Integrating family offices into the CIES framework remains one of the recurring policy goals. In January 2025, family office structures were added as qualifying investments. And in March 2026, an amendment removed the minimum six-month threshold for incorporating holding companies.

If you’re considering an investment-based residence/citizenship path, keep an eye on schemes like Hong Kong New CIES: rising application numbers and large portfolio volumes reflect steady demand for “investment with residency intent.” The team at Digital Nomad can help you assess eligibility, prepare the right paperwork, and plan a strategy aligned with your goals—from timing to investment structure.

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