SFC starts granting subsidy for setting up REITs, OFCs
The scheme will operate for three years until 9 May, 2024.
The government has launched the implementation of the scheme that will subsidize the setting up of real estate investment funds (REITS) and open-ended fund companies (OFCs), the Securities and Futures Commissions (SFC).
The scheme covers 70% of eligible expenses paid to Hong Kong-based service providers, subject to a cap of $8m per REIT and $1m per OFC.
Applicants eligible to the scheme are SFC-authorised REITs listed on the Stock Exchange of Hong Kong on or after 10 May 2021 with a minimum market capitalization of $1.5b at the time of listing.
Whilst OFC applicants must be investment managers who have successfully incorporated an OFC or re-domiciled a non-Hong Kong fund corporation in Hong Kong as an OFC on or after 10 May.
“By encouraging a broader range of investment vehicles, the grant scheme will reinforce Hong Kong’s role as a leading capital raising venue and its status as an international asset and wealth management centre,” SFC CEO Ashley Alder said.
The scheme, which will operate for three years, has started accepting applications on 10 May on a first-come, first-served basis.