Hong Kong Securities And Futures Commission: Updates On Grant Scheme For Open-Ended Fund Companies And Real Estate Investment Trusts

The Securities and Futures Commission (SFC) is pleased to note the overwhelming industry support and take-up of grants under the scheme to support the setting up of open-ended fund companies (OFCs) and real estate investment trusts (REITs) in Hong Kong. Since the launch of the grant scheme in May 2021, the SFC recorded a strong growth in the number of OFCs. As of end-February 2025, the number of registered OFCs in Hong Kong recorded a year-on-year increase of 81% to 502. A total of 430 OFCs and one REIT have benefited from the grant scheme.

In light of industry demand, the government announced in the 2024-25 Budget the extension of the grant scheme for three years to 2027 to facilitate continued development of the asset management industry and adoption of OFC structure in Hong Kong. To enable more participants to benefit from the scheme and considering that the industry as a whole is becoming more familiar with the set-up of OFCs, the eligibility criteria of the scheme will be adjusted (Note 1).

With effect from 11 April 2025, for OFCs incorporated in or re-domiciled to Hong Kong and SFC-authorised REITs newly listed on the Stock Exchange of Hong Kong Limited, the scheme will cover 70% of eligible expenses paid to Hong Kong-based service providers, subject to a cap of $300,000 for a public OFC, $150,000 for a private OFC and $5 million for a REIT; and a maximum of one OFC per investment manager (Note 2).

“With continued support from the government and market participants, the grant scheme will continue to play an important role in sustaining the momentum and interest in setting up new OFCs and REITs in Hong Kong, thereby enhancing its status as a leading asset management hub,” said Ms Christina Choi, the SFC’s Executive Director of Investment Products.

Detailed eligibility criteria of the scheme are set out in the Attachment (Notes 3 and 4).

Notes:

1. The grant scheme operates on a first-come-first-served basis and will expire when the funding is fully disbursed or in May 2027, whichever is earlier. Upon full utilisation of the funding, an applicant may not receive a grant at all or may only receive less than the original eligible grant amount.
2. For grant applications that are submitted before 11 April 2025, the original parameters of the scheme will apply.
3. The SFC will update the frequently asked questions and the grant application forms in light of the revised terms. Market participants are welcome to consult the SFC about the scheme before making an application. Please email to grantscheme@sfc.hk or contact the relevant case officers in charge.
4. Please see the SFC’s press releases dated 10 May 2021 on the launch of the grant scheme and 26 April 2024 for a three-year extension of the scheme.