新CIES-Truth Capital (Hong Kong) Limited

Introduction of New Capital Investment Entrant Scheme(”New CIES”)

The HKSAR government announced the new CIES in the 2023 Policy Address, aiming to unleash the boundless potential of Hong Kong and attract global asset owners to settle in the city with the diverse investment opportunities available here.

Applicants must demonstrate that they have net assets of not less than HK$30 million to which they have been entitled throughout the two years preceding the application. An applicant must make an investment of a minimum of HK$30 million in permissible investment assets, including investing a minimum of HK$27 million in permissible financial assets and non-residential real estate, and placing HK$3 million into a new CIES Investment Portfolio, with a view to supporting the development of innovation and technology industries and other strategic industries.

Successful applicants are allowed to bring their dependants (including spouses and unmarried dependent children aged under the age of 18) to Hong Kong.

Eligibility Criteria

· Applicants aged 18 or above
· An applicant must have net assets of not less than HK$30 million (or equivalent in foreign currencies) to which they are entitled throughout the 6 months preceding the application
· Foreign nationals; or
· Chinese nationals who have obtained permanent resident status in a foreign country; or
· Macao Special Administrative Region residents; or
· Chinese residents of Taiwan

Further Details of the Application

· InvestHK - to assess applicants’ fulfilment of net asset and other investment requirements
· Immigration Department - to assess applications for visa/entry permit, extension of stay, etc
· Permissible investment assets
· More information on Scheme applications

Introduction of New CIES Discretionary Account(”DA”)

Truth Capital offers discretionary account management
exclusively for New CIES applicants
-- Fixed Income strategy,
Conservative High Dividend Strategy and
Active Management Strategy
to protect your investment and immigration journey

What is New CIES DA

Truth Capital CIES DA

Truth Capital Select Investment Strategy

Adjust investment strategies according to market trends and demand. We have more flexible product mechanism based on investors' risk appetite

Fixed Income Investment Strategy

Strategy Intro

To select high quality HKD bonds with higher yields and appropriate durations for buy-and-hold within the investment scope of the CIES

Our Advantages

· In the OTC market, we utilize our rich counterparty resources to provide our clients with good prices and good bonds
· Credit analysis and selection of targets, and post-investment monitoring of bond risks

Investment Scope of CIES

1 Debt securities listed on the SEHK and traded in HKD or RMB (including debt instruments issued in HK by the Ministry of Finance of the People’s Republic of China and local people’s governments at any level in the Mainland)
2 Debt securities denominated in HKD or RMB, including fixed or floating rate instruments and convertible bonds issued or fully guaranteed by:
（1）The HKSAR Government, the Exchange Fund, the Hong Kong Mortgage Corporation, the MTR Corporation Limited, Hong Kong Airport Authority, and other corporations, agencies or bodies wholly or partly owned by the Government as may be specified from time to time by the Government; or
（2）Companies listed on the SEHK and traded in HKD or RMB

Fixed Income Investment Strategy Mock Portfolio

Conservative High Dividend Strategy

Strategy Intro

Quantitatively construct a pool of high-dividend stocks, buy and periodically adjust positions
Withdraw cash dividends from time to time according to account status

Our Advantages

· Quantitative modeling for stock selection and position adjustment
· Quantitative financial bathing to avoid financial risks

Investment Scope of CIES

· Any assets in the Investor account (including cash dividends or interest (if any) accrued and remaining in the account) may not be charged, transferred or created for the benefit of a third party
· Any assets in the Investor account (including cash dividends or interest (if any) accrued and remaining in the account) may not be charged, transferred or created for the benefit of a third party
· Upon approval, assuming the total value of the account falls below the minimum threshold of HK$30 million, the client is not required to invest in investment assets to make up the difference. At the same time, if the total value in the account is higher than the original minimum threshold, the client is not allowed to withdraw the capital gain
· Clients can only withdraw cash dividends or interest from the Investment account

HK Stock High Dividend 20 Portfolio:
Strategy Composition

The strategy firstly uses the financial scoring system to eliminate stocks that may have hidden financial risks, and then uses the historical data of the stock to construct factors in four dimensions: willingness to pay dividends, dividend paying ability, valuation, and liquidity, and scores the stocks accordingly. Select the 20 stocks with the highest comprehensive scores, adjust the positions on a monthly basis. All stocks are allocated equally.

HK Stock High Dividend 20 Portfolio:
Strategy Backtest Results

Active Management Strategy

Strategy Intro

To select high quality HKD bonds with higher yields and appropriate durations for buy-and-hold within the investment scope of the CIES

Our Advantages

· Extensive overseas investment experience
· Systematic monitoring of account status to ensure that the investment meets the requirements of investment migration

Top-down Asset Allocation Timing

Based on the quantitative system developed internally by the team, through the continuous iteration of the macro-optimistic model, we portray the current state of market sentiment from four dimensions: economy, treasury, valuation, and behavior. And we use the methodology of cycle-setting position and logic-setting direction to effectively guide asset types, market attributes, investment strategies, and investment positions in investment, so as to fully discover potential overall market opportunities (e.g., 2014, 2017, 2017) and avoid systemic risks (e.g., 2015, 2018, 2021)

· Based on in-depth understanding of macroeconomic factors
· Quantitative analysis to assist in determining the direction and strength of each factor's impact on the market and industry
· Determine asset allocation ratios among different product types,markets and industries through asset allocation models.

Bottom-Up Value Stock Selection

Quantitative Modeling: With the aid of computers, we utilize mathematical tools to view the capital market from a statistical and probabilistic perspective. Through continuous iteration of quantitative models, such as industry sentiment and individual stock financial analysis, we identify opportunities and suggest risks
Qualitative modeling: Based on company research and communication with industry experts, we conduct qualitative analysis from the Porter's Five Forces, industry space, etc., and construct qualitative models of industries and individual stocks

Advantages of Truth Capital CIES DA

Better Understanding of Capital Market

· The key members of the management team are all from Mainland China and have a good understanding of the risk appetite of Mainland investors
· We have more than 15 years of investment experience in overseas capital markets and can better understand the rules and trading habits of overseas capital markets

More Familiar with CIES Rules

· We have been working in the Hong Kong asset management industry for many years and has served dozens of investment immigrant clients
· We are familiar with the complicated investment restriction of investment immigration and manage the investment accounts for our clients to realize the goal of "Immigration + Investment Return"

Clearer Investment Strategy

· Based on the “investment + immigration" needs of clients, we provide clear investment strategies to choose, and our team conduct in-depth strategic communication with clients prior to investment
· Under the DA model, more flexible investment strategies can be adopted at any time according to investors' needs and different market conditions, in order to achieve better investment returns

Learn more

Download the brochure of the New CIES of Truth Capital

DISCLAIMER

The information provided on this page is for reference only. Under no circumstances does this information constitute an offer, solicitation, invitation, recommendation, advice, solicitation, any investment recommendation or guarantee of return Truth Capital (Hong Kong) Limited ( “Truth Capital") in respect of any securities, funds or investment products or the conduct of any transaction. Investment involves risks. Investors should not make investment decisions based solely on this information. Investors should understand the nature and risks of the relevant investment products and make investment decisions based on their own financial situation, investment objectives and experience, risk tolerance and specific needs. In case of doubt or where necessary, investors should seek independent professional advice before making any investment. Truth Capital does not warrant or guarantee the accuracy, completeness or timeliness of this material and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this material. This material is not intended for use in jurisdictions where its distribution or transmission is prohibited. Products and services are only available in jurisdictions where they can be lawfully provided. This information has been prepared by Truth Capital and has not been reviewed by the Securities and Futures Commission of Hong Kong.
For the latest information on the Capital Investment Entrant Scheme, please visit the website of the Immigration Department of the Government of the Hong Kong Special Administrative Region at： https://www.immd.gov.hk/hkt/services/visas/newcies.html
and relevant announcements of the Government of the Hong Kong Special Administrative Region: https://www.info.gov.hk/gia/general/202403/01/P2024022900796.htm 。