The Securities and Futures Commission (SFC) announced on 10 May 2021 the details of a new grant scheme for Hong Kong Open-Ended Fund Companies (OFCs) and Real Estate Investment Trusts (REITs). The Government has allocated HK$270 million to the scheme, with the application period from 10 May 2021 to 9 May 2024, on a first-come-first served basis.
Investment managers who successfully incorporated an OFC or re-domiciled a non-Hong Kong fund corporation to Hong Kong as an OFC on or after 10 May 2021.
The grant amount will cover expenses payable to Hong Kong-based service providers in relation to the incorporation or re-domiciliation of an OFC, each application is equivalent to 70% of the eligible expenses, subject to a cap of HK$1 million per OFC and a maximum of three OFCs per investment manager.
Examples of eligible expenses include:
The formal applications must be submitted to the SFC within three months from the date of the certificate of incorporation or certificate of re-domiciliation.
The grant may be clawback if the OFC commences winding-up or applies for termination of registration within two years from the date of incorporation or re-domiciliation.