HONG KONG has called a sudden halt to its capital investment immigration program, creating shock waves on both sides of the border.

    In his Policy Address on Wednesday, Hong Kong Chief Executive Leung Chun-ying announced the suspension of the Capital Investment Entrant Scheme (CIES), beginning Thursday.

    He said Hong Kong no longer has the economic environment that it had in 2003 when the program was introduced.

    The city’s Immigration Department said that in 2003, when the Hong Kong economy was in recession, the plan was brought in to attract new capital to stimulate economic growth.

    Leung said in a question-and-answer session that Hong Kong is now looking for talent, rather than money.

    Under the program, people could gain residency in the city by investing a minimum of HK$10 million (USS$1.7 million) in the local financial market. It had raised about HK$205 billion for Hong Kong by September, including money invested in real estate.

    Analysts believe the government is attempting to review the program and that the suspension won’t be permanent.

    In an interview with local media, Eddie Kwan, the founder and chairman of EK Immigration Consulting in Hong Kong, said the news is “shocking” for people who want to migrate to Hong Kong.

    Convoy Financial Services, which objects to the suspension, said it will have an impact on the industry. It hopes the government will provide a timetable for ending the suspension and consult with the industry.

    But some Weibo users brushed aside the news, with one saying: “What’s so good about Hong Kong? They always stir up trouble.”

    In October 2010, the SAR government banned investors from trying to obtain residency by buying apartments in Hong Kong.

    According to the Immigration Department, 28,168 investment immigration applications were received between 2003 and March 2013.

    The number of applications increased by 43 percent to 40,392 by the end of September last year, with the number of cases approved rising from 17,746 to 24,481.

    Workers at immigration consultancies rushed to the Immigration Department headquarters to submit applications Wednesday before the midnight deadline. A spokeswoman for the department said the suspension will not affect the 12,000 pending applications.

    With CIES out, the Hong Kong government seeks to attract second-generation emigrants, targeting educated and financially independent individuals, aged between 18 and 40 and born and raised abroad. They should at least have a parent who is a permanent Hong Kong resident, have a bachelor’s degree, and be fluent in Cantonese, Putonghua or English.

    Applicants will be given a year to find jobs to extend their stay. It is estimated that about 3,000 individuals will apply each year.

    (SD-Agencies)