On March 31, 2025, the Securities and Futures Commission ("SFC") announced the extension of the grant scheme supporting open-ended fund companies ("OFCs") and real estate investment trusts ("REITs") in Hong Kong, with adjustments to the eligibility criteria and grant limits effective from April 11, 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On March 31, 2025, the Securities and Futures Commission ("SFC") commended the robust industry support and high participation in the grant scheme aimed at supporting the establishment of open-ended fund companies ("OFCs") and real estate investment trusts ("REITs") in Hong Kong.
As of the end of February 2025, Hong Kong registered a substantial 81% increase in OFCs year-on-year, with a total of 502, and 430 OFCs and one REIT have benefited from the grant scheme since its inception in May 2021.
In response to growing demand, the government has extended the grant scheme for three years, until 2027, to foster continued growth in the asset management industry and adoption of the OFC structure.
Effective April 11, 2025, the scheme will reimburse 70% of eligible expenses to Hong Kong-based service providers, with caps of $300,000 for public OFCs, $150,000 for private OFCs, and $5 million for REITs. Additionally, there will be a maximum of one OFC per investment manager.
Ms Christina Choi, the SFC Executive Director of Investment Products, highlighted that continued government and market support will sustain the momentum and interest in establishing new OFCs and REITs in Hong Kong, reinforcing its position as a leading asset management hub.
The SFC has adjusted the eligibility criteria for the scheme and will operate on a first-come-first-served basis until funding is exhausted or by May 2027, whichever is earlier. Grant applications submitted before April 11, 2025, will adhere to the original scheme parameters. Upon full funding utilization, applicants may not receive the original eligible grant amount or may receive less than the full amount. It is recommended to consult the SFC before submitting an application at
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