Hong Kong: Investor Types and criteria

Retail Investor

A Retail Investor is any investor that does not meet the criteria of a Professional Investor.

 

Professional Investor

A Professional Investor (a person or an entity) is defined in investor in section 1 of Part 1 of Schedule 1 to the Ordinance. The following persons are prescribed as within the meaning of that definition for the purposes of any provision of the Ordinance other than Schedule 5 —

  1. any trust corporation having been entrusted under the trust or trusts of which it acts as a trustee with total assets of not less than $40 million or its equivalent in any foreign currency at the relevant date or — (L.N. 135 of 2011)
    1. as stated in the most recent audited financial statement prepared—
      1. in respect of the trust corporation; and
      2. within 16 months before the relevant date;
    2. as ascertained by referring to one or more audited financial statements, each being the most recent audited financial statement, prepared—
      1. in respect of the trust or any of the trusts; and
      2. within 16 months before the relevant date; or
    3. as ascertained by referring to one or more custodian statements issued to the trust corporation—
      1. in respect of the trust or any of the trusts; and
      2. within 12 months before the relevant date;

  2. any individual, either alone or with any of his or her associates on a joint account, having a portfolio of not less than $8 million or its equivalent in any foreign currency at the relevant date or — (L.N. 135 of 2011)
    1. as stated in a certificate issued by an auditor or a certified public accountant of the individual within 12 months before the relevant date; or (23 of 2004 s. 56)
    2. as ascertained by referring to one or more custodian statements issued to the individual (either alone or with the associate) within 12 months before the relevant date;

  3. any corporation or partnership having —
    1. a portfolio of not less than $8 million or its equivalent in any foreign currency; or
    2. total assets of not less than $40 million or its equivalent in any foreign currency, at the relevant date, or as ascertained by referring to — (L.N. 135 of 2011)
    3. the most recent audited financial statement prepared—
      1. in respect of the corporation or partnership (as the case may be); and
      2. within 16 months before the relevant date; or
    4. one or more custodian statements issued to the corporation or partnership (as the case may be) within 12 months before the relevant date; and

  4. any corporation the sole business of which at the relevant date is to hold investments and which at the relevant date is wholly owned by any one or more of the following persons—
    1. a trust corporation that falls within the description in paragraph (1);
    2. an individual who, either alone or with any of his or her associates on a joint account, falls within the description in paragraph (2);
    3. a corporation that falls within the description in paragraph (3);
    4. a partnership that falls within the description in paragraph (3). (L.N. 135 of 2011)

A sample of a professional investor certificate can be found here