The Securities and Futures Commission (SFC) today announced the implementation of the Government’s grant scheme to subsidise the setting up of open-ended fund companies (OFCs) and real estate investment trusts (REITs) in Hong Kong (Note 1).
For OFCs successfully incorporated in or re-domiciled to Hong Kong and SFC-authorised REITs successfully listed on the Stock Exchange of Hong Kong Limited, the scheme covers 70% of eligible expenses paid to Hong Kong-based service providers, subject to a cap of $1 million per OFC and $8 million per REIT.
“By encouraging a broader range of investment vehicles, the grant scheme will reinforce Hong Kong’s role as a leading capital raising venue and its status as an international asset and wealth management centre,” said Mr Ashley Alder, the SFC’s Chief Executive Officer.
The scheme will operate for three years and is open for applications starting today on a first-come-first-served basis. Details, including the eligibility criteria and application process, are set out in the Attachment.
The SFC also published frequently asked questions to provide guidance to the industry together with the grant application forms.
Investment managers are welcome to consult the SFC about the scheme before making an application (Note 2).
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Notes:
- The Financial Secretary announced the scheme in the 2021-22 Budget Speech on 24 February 2021 and the Government has allocated funding of $270 million to the scheme.
- Please email to grantscheme@sfc.hk or contact the relevant case officers in charge.