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Hong Kong Grant Scheme for Open-ended Fund Companies and Real Estate Investment Trusts commences

The Hong Kong Securities and Futures Commission (“SFC”) issued a press release on 10 May 2021 providing details of a grant scheme funded by the Hong Kong Government to provide subsidies for qualifying open-ended fund companies (“OFCs”) and real estate investment trusts (“REITs”) to set up in Hong Kong. The grant scheme, to be administered by the SFC, covers eligible expenses incurred in relation to the incorporation or re-domiciliation of an OFC or the listing of a REIT and paid to Hong Kong-based service providers.

Eligible expenses must be paid to Hong Kong-based service providers in relation to the incorporation of an OFC, re-domiciliation of a non-Hong Kong fund corporation to Hong Kong as an OFC or listing of a REIT.

  • For OFCs, the grant amount for each application is equivalent to 70% of the eligible expenses, subject to a cap of HK$1 million per OFC; and a maximum of 3 OFCs per investment manager.
  • For REITs, the grant amount for each application is equivalent to 70% of the eligible expenses, subject to a cap of HK$8 million per REIT.

The grant scheme is valid from 10 May 2021 for a period of three years unless the funding set aside by the Government is fully committed before the end of the three-year term, i.e., HK$270 million.

Further details of the grant scheme can be found on the SFC website: https://www.sfc.hk/en/Regulatory-functions/Products/Grant-Scheme-for-Open-ended-Fund-Companies-and-Real-Estate-Investment-Trusts

This information is provided for reference only. For more information please email our office at enquiry@a-pass.com.hk.