A government spokeswoman said full details of the scheme would be published by June, although a date for its introduction has yet to be fixed.

Under the proposals, prospective residents would be required to have invested HK$6.5 million (US$834,400) in stocks, property or other assets in order to qualify.

Regina Ip, the Hong Kong Secretary for Security, said the proposal would be attractive to overseas investors seeking to establish businesses in Hong Kong to exploit opportunities in China followng its accession to the World Trade Organisation (WTO).

But an immigration consultant, Benny Cheung, told the South China Morning Post, that the scheme had been pitched too high and was most likely to attract Chinese entrepreneurs moving from the mainland.

Hong Kong currently has no investment migration scheme. Foreigners who secure jobs here encounter few problems obtaining working visas. There is also already provision for visas to be granted to foreigners seeking to establish businesses, although this is rarely used.

After living in Hong Kong for seven years, foreigners can apply for permanent residency. Under the proposed new scheme, foreigners would still have to stay for seven years to obtain permanent residency.

The level of investment required for residency in Hong Kong is expensive compared to other schemes around the world.

The United States requires investment of US$500,000 for residency, while Australia asks for one million Australian dollars (US$513,500), New Zealand one million New Zealand dollars (US$423,620) and Canada 400,000 Canadian dollars (US$243,900).

(Xinhua News Agency February 28, 2002)