Hong Kong Government subsidises establishment of Hong Kong open-ended fund companies and real estate investment trusts

Clinton Morrow

Partner, Charltons

The Hong Kong Financial Secretary of the Hong Kong Government announced in the 2021/2022 budget speech1 that the Hong Kong Government will provide subsidies to cover 70% of the expenses paid to Hong Kong professional service providers for Hong Kong open-ended fund companies (“Hong Kong OFCs”) set up in or re-domiciled to Hong Kong in the upcoming three years, subject to a cap of HK$1 million per OFC (the “Hong Kong OFC Grant Scheme”). Additionally, the Hong Kong Financial Secretary emphasised Hong Kong’s commitment to developing the Hong Kong real estate investment trust (“Hong Kong REITs”) market and role as a capital raising hub. Accordingly, it was announced that subsidies will be provided for qualifying Hong Kong REITs authorised by the SFC and listed in Hong Kong in the coming three years. The subsidy will cover 70% of the expenses paid to local professional service providers for the listing of Hong Kong REITs, subject to a cap of HK$8 million per Hong Kong REIT (the “Hong Kong REIT Grant Scheme”).

The application period for the Hong Kong OFC Grant Scheme and the Hong Kong REIT Grant Scheme will run for a period of three (3) years and commenced on 10 May 2021 (the “Commencement Date”) and will end on 9 May 2024.

 

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