TechFlow news: In March, the Hong Kong government announced eight measures aimed at attracting family offices. Among them, details of the "Capital Investors Entry Scheme" are expected to be released by the end of the year, with the entry threshold raised to HK$30 million.
Legislator Dominic Kwok, representing the technology and innovation sector, hopes the authorities can clarify the scope of eligible assets—for example, Bitcoin traded on licensed virtual asset exchanges should theoretically be allowed as a financial product.
There have been calls to include property purchases as qualifying investments to stimulate the real estate market. While Kwok maintains a neutral stance, the government has indicated that real estate-related financial products such as Real Estate Investment Trusts (REITs) will be included.
Kwok believes the government should focus on attracting Middle Eastern family offices, given political considerations in the region and the opportunity for Hong Kong to capitalize on this trend. With Middle Eastern business culture emphasizing trust, he recommends allocating more resources to build connections with the region.
Michelle Wong, Tax Partner at PwC Hong Kong, suggests expanding the range of asset classes and income types eligible for tax concessions to include emerging and alternative investments such as art, wine, and virtual assets. She also notes that the current tax relief regime for trading income-generating assets may need optimization.
