Permissible Investment Asset Classes

The entrant should invest not less than HK$10 million* in one or a combination of the following permissible investment assets**:

(A) Equities - shares of companies that are listed on the Hong Kong Stock Exchange and traded in Hong Kong dollars.

(B) Debt securities - denominated in Hong Kong dollars including fixed or floating rate instruments and convertible bonds which are issued or fully guaranteed by the HKSAR Government, the Exchange Fund, the Hong Kong Mortgage Corporation, MTR Corporation Limited, Kowloon-Canton Railway Corporation, Hong Kong Airport Authority and other corporations, agencies or bodies wholly or partly owned by the HKSAR Government as may be specified from time to time; or by companies referred to under (A) above.

(C) Certificates of Deposits - denominated in Hong Kong dollars issued by authorized institutions as defined in the Banking Ordinance with a remaining term to maturity of not less than twelve months at the time of purchase (such purchase should take place after approval in principle has been given by the Immigration Department for the entrant to join the Scheme and that such instruments, on reaching maturity, should be replaced by Certificates of Deposits with a remaining term to maturity of not less than twelve months or by assets in other permissible investment asset classes).

(D) Subordinated debt - denominated in Hong Kong dollars issued by authorized institutions which satisfies sections 42(1) (e) and (g) of the Banking (Capital) Rules (Chapter 155L), a subsidiary legislation under the Banking Ordinance.

(E) Eligible Collective Investment SchemesNote - for the purpose of the Scheme as published and updated in the Immigration Department's website from time to time.

(Note: The material contained in this website just for reference, KCG does not guarantee its accuracy or reliability. The details of Capital Investment Entrant Scheme, please refer to HK Government’s website.)

KCG ASSET MANAGEMENT INVESTMENT OBJECTIVE AND STRATEGY

The investment objective of KCG is to maximise the total return through capital appreciation consistent with reasonable risk by primarily investing into shares listed on the stock exchange in Hong Kong which mostly have a China-related element or concept. For this purpose, KCG will mainly invest in these HK listed companies having a China-related concept, good corporate governance, big Market Cap and profit of growing rapidly.

The assets not invested in securities may be retained as cash or may be invested in money-market instruments, including, without limitation, treasury notes and bills, certificates of deposits. KCG adopts a systematic stock selection approach in combination with top down Market analysis. If the market is in uptrend, the portfolio will hold more equities and less cash positions. However, when the market is in downtrend, the portfolio will reduce equity holding and increase cash positions.

KCG aims at achieving capital appreciation in the medium term.

INVESTMENT PLAN

1. Aggressive Fund
- For the investor who is aggressive and willing to take risk
- Primarily investment in selective securities of Chinese companies listed in Hong Kong
- To achieve investment returns that maximise medium-long term capital growth potential with medium-high volatility.

2. Moderate Fund - For the investor who is risk-neutral
- Primarily investment in selective securities of Chinese companies listed in Hong Kong and bonds
- To achieve medium capital growth with medium volatility

3. Conservative Fund
- For the investor who is risk-averse
- Primarily investment in selective bonds
- To achieve a rate of return higher than that available for savings deposits and with low volatility