Hong Kong Government Halts the Capital Investment Entrant Scheme

On 14 January 2015, the Chief Executive of Hong Kong SAR Mr. CY Leung, in his Policy Address 2015, announced that the Capital Investment Entrant Scheme (“CIES”) would be suspended with effect from 15 January 2015. The explanation for the suspension was that “the Government is seeking talent, not money”.

The CIES scheme was launched in 2003 when Hong Kong was suffering from economic recession and the CIES was implemented to attract prominent investors to invest and live in Hong Kong. Foreign investors who meet certain criteria and who have the financial means to invest in Hong Kong may apply to stay in Hong Kong together with their dependants. After seven years’ of continuous stay in Hong Kong, these capital-investment entrants (together with their dependants) may apply to become permanent residents of Hong Kong. According to the scheme, foreign investors only needs to invest in Hong Kong for not less than HK$10 million without actually carrying out any business operation in Hong Kong.

According to statistics on CIES provided by the Immigration Department of Hong Kong, since the inception of CIES in 2003, the Immigration Department has received a total of 40,392 applications as at 30 September 2014. About 90% of the total applications received had been submitted by Chinese nationals with permanent residence overseas. Among such Chinese applicants, 21,822 had been granted formal approval whilst 2,315 had been granted approval-in-principle. Since 2003, applicants who have been granted formal approval have invested HK$42,588 million in real estate and HK$163,221 million in financial assets respectively.

According to the Immigration Department, more than 12,000 applications are being processed currently. The suspension of the CIES will not affect applications received before the suspension date (15 January 2015), whether already approved (including approval-in-principle and formal approval) or still being processed. Moreover, as a transitional arrangement, applications will be accepted for processing after the suspension date if those applicants have already invested no less than HK$ 10 million made within 6 months before the suspension date and their applications are made within 6 months of the investment, subject to the applicant meeting the other eligibility criteria under the CIES.

The Chief Executive Policy Address also launched a pilot scheme to attract second generation of Chinese Hong Kong permanent residents who have emigrated overseas to return to Hong Kong for development. Further, talents and entrepreneurs will be encouraged to come and stay in Hong Kong by relaxing the stay arrangements under the General Employment Policy, the Admission Scheme for Mainland Talents and Professionals and the Quality Migrant Admission Scheme.

Please contact our Mr. Hank Lo for any enquiries or further information about this news.

Stevenson, Wong & Co. presented at Bank of China (Hong Kong) Limited

On 19 January 2015, SW senior associate Ms. Freda Au, legal executives Mr. Stanley Hung, Mr. Man Wong, Mr. Peter Loo and Ms. Anita Tong delivered a presentation on stamp duty and immigration to over 30 bankers of Bank of China (Hong Kong) Limited at its Hong Kong Central and Western Commercial Centre – Corporate Banking and Financial Institutions.

In the first part of the seminar, Man and Stanley, by using several practical case examples, explained the relevant laws and regulations on stamp duty applicable to property and share transactions in Hong Kong.

In the second part of the seminar, Peter and Anita discussed the recent development in immigration practices and provided a brief overview on the investor immigration programme in Hong Kong. The current demands of immigration clients were also shared and the ways to approach those clients were discussed at the seminar.

Please contact our Eric Lui for any enquiries or further information about this event.

Stevenson, Wong & Co. attended the “AllBright’s PRC Litigation and Arbitration Committee Annual Conference 2014” in Shanghai

SW partner Mr. Eric Lui attended the “AllBright’s PRC Litigation and Arbitration Committee Annual Conference 2014” (the “Conference”) at the Shanghai International Convention Centre on 11 January 2015.

Over 50 senior partners, partners and senior consultants from all 11 branches of AllBright Law Offices in Shanghai, Beijing, Chengdu, Chongqing, Hangzhou, Nanjing, Shenzhen, Suzhou, Taiyuan, Qingdao and Xiamen attended the Conference. Topics discussed at the conference included the status of the litigation practices in each branch office, the economics in different branch locations, the working proposals of AllBright’s litigation committee and its working targets for 2015.

Please contact our Eric Lui for any enquiries or further information about this event.

Stevenson, Wong & Co. attended the “Joint Conference of AllBright’s PRC Listing Committee and Finance Committee” in Shanghai

SW partner Mr. Eric Lui attended the “Joint Conference of AllBright’s PRC Listing Committee and Finance Committee” at the Eton Hotel Shanghai on 11 January 2015.

At the meeting, over 300 members from both committees summarised their work, experience and results in 2014 in relation to listing projects in the PRC, financial trusts and other work areas. The attendees also explored the business development trend, innovation and enhancement of service products and standard as a legal intermediary under the new economic circumstances in 2015. Other topics included rapid development of the capital market and quantitative easing policy of the central bank in the financial market.

Please contact our Eric Lui for any enquiries or further information about this event.

Stevenson, Wong & Co. attended AllBright’s first partners’ meeting in 2015 in Shanghai

On 10 January 2015, SW partners Mr. Willy Cheng and Mr. Eric Lui attended AllBright’s first partners’ meeting in 2015 which was held at the Shanghai International Convention Centre. Partners from all 11 Allbright branches in China reviewed the working reports and expenditures in the past year and discussed upcoming work arrangements and budgets for 2015.

Please contact our Eric Lui for any enquiries or further information about this event.

Stevenson, Wong & Co. assisted Future Bright Mining Holdings Limited (2212.hk) in its IPO on HKEx

SW assists Future Bright Mining Holdings Limited (Stock Code: 2212), a marble mining company focusing on developing its Yiduoyan Project, an open pit mine located in Hubei Province, China, to list on the Main Board of The Stock Exchange of Hong Kong Limited. SW acted as the legal adviser for the company.

Photograph of Mr. Guo Xiao Ping (middle), chairman and chief executive officer of the Company; ETR Law Firm (sponsor’s PRC legal adviser) team members for the listing project, including Mr. Jeffrey Quan (second from left), Ms. Isabella Yang (on the left) and Ms. Stacy Yu (on the right); and SW team members for the listing project, Mr. Hank Lo (fourth from left), Ms. Eva Lee (fourth from right), Mr. Stephan Chan (second from right), Mr. Horace Chan (third from left) and Mr. Joe Lee (third from right) taken at the listing ceremony:

The shares were listed on The Stock Exchange on 9 January 2015. 88 million shares were offered, among which 79.2 million were offered for international placing. The final offer price was HK$0.88 per offer share and the net proceeds amounted to HK$56 million.

Future Bright is a marble mining company and have been focusing on developing its Yiduoyan Project, which is an open pit mine located in Hubei Province of China. As at 1 July 2014, in accordance with JORC Code, the Yiduoyan Project total resource is 10.7 million m3, and its total reserve is 0.91 m3. The Company commenced limited commercial production in September 2014. Marble blocks mined from its Yiduoyan Project are the Company’s principal product.

Guotai Junan Capital Limited acted as the sole sponsor for the Company.

Please contact our Hank Lo for any enquiries or further information about this transaction.