Description of Professional Investor

 

According to the provisions of the Hong Kong Securities and Futures Ordinance ("SFO") and Securities and Futures (Professional Investor) Rules, Professional Investors include Institutional Professional Investors, Corporate Professional Investors, and Individual Professional Investors.

 

Institutional Professional Investors refer to the person falling under paragraphs (a) to (i) of the definition of "Professional Investor" in section 1 of Part 1 of Schedule 1 to the SFO, such as recognized exchange company, recognized clearing house, intermediaries, authorized financial institutions, authorized insurers, authorized collective investment scheme, registered MPF schemes, registered occupational retirement schemes, governments, etc.

 

Corporate Professional Investors refer to the trust corporations, corporations, or partnerships falling under sections 4, 6, and 7 of the Securities and Futures (Professional Investors) Rules. According to the rules, a trust corporation should be entrusted with total assets of not less than HKD 40 million (or equivalent in any foreign currency); a corporation or partnership should hold an investment portfolio of not less than HKD 8 million (or equivalent in any foreign currency), or total assets of not less than HKD 40 million (or equivalent in any foreign currency).

 

Individual Professional Investors refer to the individuals falling under section 5 of the Securities and Futures (Professional Investor) Rules. Individual Professional Investors should hold a portfolio of not less than HKD 8 million (or equivalent in any foreign currency), such as cash, certificate of deposits, and securities as defined in the SFO.