The Hong Kong Securities and Futures Commission has published an update on the grant scheme supporting the establishment of open-ended fund companies (OFCs) and real estate investment trusts (REITs) in Hong Kong, setting revised parameters and eligibility conditions following the government’s decision to extend the scheme to 2027. With effect from 11 April 2025, the scheme will cover 70% of eligible expenses paid to Hong Kong-based service providers for OFCs incorporated in or re-domiciled to Hong Kong and for SFC-authorised REITs newly listed on the Stock Exchange of Hong Kong Limited. Grants will be capped at HKD 300,000 for a public OFC, HKD 150,000 for a private OFC and HKD 5 million for a REIT, and will be limited to a maximum of one OFC per investment manager. The SFC reported that, since the scheme launched in May 2021, the number of registered OFCs reached 502 as of end-February 2025, a year-on-year increase of 81%, with 430 OFCs and one REIT having received support. The scheme will continue on a first-come-first-served basis and will expire when funding is fully disbursed or in May 2027, whichever is earlier, and applications submitted before 11 April 2025 will continue to be assessed under the original parameters. The SFC will update its FAQs and grant application forms to reflect the revised terms.

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