New CIES promotes the development of Hong Kong’s economy and financial industry and brings a win-win situation | am730

Hong Kong has been actively promoting economic development, hoping to create employment and entrepreneurship opportunities and consolidate and enhance its advantageous industries. The Hong Kong government in2023totwenty fourThe Fiscal Year Government Budget announced the official resumption of the “New Capital Investor Entry Scheme”(newCIES)plan, and3moon1Implemented on the day.

newCIESIt aims to attract asset owners to settle and develop in Hong Kong, explore diversified investment opportunities in Hong Kong through wealth allocation and management, and at the same time positively promote the financial industry, including the insurance industry, which is a “win-win” initiative.Eligible applicants must invest a minimum3,000Ten thousand yuan is allowed to be invested in assets and can be brought with its dependents after approval(including spouse and18Unmarried and dependent children under the age of)Coming to Hong Kong to stay, if he ordinarily resides in Hong Kong continuously7Years or above can apply to become a permanent resident of Hong Kong.

3,000Ten thousand yuan of investment2,700million must be invested in permitted financial assets, such as qualified collective investment schemes, and/or non-residential real estate, a total of seven categories; other300Ten thousand yuan is invested in the “Capital Investor Entry Scheme Investment Portfolio” to support the innovation and technology industry and other key industries.

Investors may consider investment-linked life insurance plans under qualified collective investment schemes(Commonly known as investment-linked insurance,ILAS), which is a hybrid of investment options and insurance, a life insurance policy that also has investment functions.Policyholders can choose the investment portfolio within the plan that suits them, and there are usually more than100There are many investment options, and the asset types are usually funds, covering stocks and bonds in different countries, or some company industries and sectors that are more popular with investors.

The financial market is changing rapidly, and so are investment trends. Investors can freely choose different investment options to build an investment portfolio according to their own investment strategies. They can also switch investment options in response to market conditions and investment goals at different stages.

For investment-linked insurance, there is generally no switching fee for switching investment options, and investors can choose multiple investment options at the same time. In addition, there are no bid-ask spreads on most investment options, saving policyholders the cost of each transaction. Investment-linked insurance is insurance that can designate a beneficiary. After death, the death benefit can be sent to the beneficiary faster, saving a lot of inheritance process and time.

Since investment-linked insurance combines investment and life protection, its fees can be divided into policy-level fees and investment-selection-level fees. Some plans on the market now have simplified the fee structure. At the policy level, only policy management fees and surrender fees are charged, and not even insurance fees are charged. As for investment selection level fees, they are charged by the relevant management companies, and the policy holder does not need to Payable directly, the fee will be reflected in the unit price of the relevant investment option.

The policy value and death benefit of investment-linked insurance are directly linked to the performance of the corresponding underlying funds selected for investment. Returns are not guaranteed and may rise or fall, and the risk is borne by the investor.

Investors can learn more about different products, clarify their personal needs, and weigh the relevant risks before making an informed decision.NewCIESBelow, qualified applicants can apply for Hong Kong permanent resident status by investing in eligible investment-linked insurance and other permitted investment assets. At the same time, they will further promote Hong Kong’s economic development, open up employment and entrepreneurship opportunities, and jointly build Hong Kong will create a win-win situation in the future.

The author is Xu Danping, chief product planning director of Wantong Insurance