Three-year extension of grant scheme for open-ended fund companies and real estate investment trusts

The Securities and Futures Commission (SFC) has announced a three-year extension of the Government’s grant scheme in Hong Kong, which subsidizes the establishment of open-ended fund companies (OFCs) and real estate investment trusts (REITs). Under the extended scheme, eligible expenses paid to Hong Kong-based service providers for OFCs and SFC-authorized REITs will be covered up to 70%, with specific caps of $1 million for publicly offered OFCs, $500,000 for privately offered OFCs, and $8 million for REITs. The SFC believes that this extension will enhance Hong Kong’s competitiveness and development as a preferred fund domicile. Starting from May 10, 2024, until May 9, 2027, interested parties can apply for the extended scheme on a first-come-first-served basis. The eligibility criteria for the scheme can be found in the provided attachment. The SFC will update the frequently asked questions and grant application form to accommodate the extension. Market participants are encouraged to consult with the SFC regarding the extended scheme before submitting their applications. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR78