Becoming a Professional Investor in Hong Kong
A Professional Investor (“PI”) is a high-net-worth investor who is considered to have a depth of experience and market knowledge that makes them eligible for certain benefits.
As per the Securities and Futures Ordinance (“SFO”), a PI includes entities and individual investors holding over HK$40 million in assets or an HK$8 million portfolio value, respectively.
Why become a Professional Investor?
Professional Investors are considered as having sufficient capital, experience and a net worth that lets them engage in more advanced types of investment opportunities, including products such as FX Swaps, ChiNext, or virtual assets.
Generally, Professional Investors do not need to liquidate investment assets in the short term and can experience a loss of their investment without damaging their overall net worth.
Which products are available to Professional Investors?
We are constantly expanding the selection of investments available to clients and periodically adding new products and services that are only available to Professional Investors.
The following products are currently available:
|
Product/ Market |
Professional Investor eligibility |
|
ChiNext |
Institutional - Professional Investor only |
|
Star |
Institutional - Professional Investor only |
|
FX Swap |
Professional Investor |
|
Crypto related products |
Professional Investor |
|
Mutual Funds |
Professional Investor |
How do I qualify as a Professional Investor in Hong Kong?
To qualify as a Professional Investor, you must meet or exceed prescribed financial thresholds, which vary by client category:
|
Client Category |
Financial Threshold / Requirement |
|
Individual |
A High Net Worth Individual in possession of cash and/or securities or have a portfolio held by a custodian of not less than HK$8 million (or its foreign currency equivalent). |
|
Joint* |
A High Net Worth Individual, with either his or her spouse or children in a joint account, in possession of cash and/or securities or have a portfolio held by a custodian of not less than HK$8 million (or its foreign currency equivalent). |
|
Corporation/ Partnership |
A corporation or partnership in possession of cash and/or securities or have a portfolio held by a custodian of not less than HK$8 million (or its foreign currency equivalent) or total assets of not less than HK$40 million (or its foreign currency equivalent). |
|
Trust Corporations |
A trust corporation that has been entrusted under the trust(s) of which it acts as trustee with total assets of not less than HK$40 million (or its foreign currency equivalent). Please note that all trustees, if more than one, must qualify as Professional Investors in order for the trust to qualify. |
* If you are a joint account holder, you must represent and warrant to Interactive Brokers Hong Kong (IBHK) that you and the other account holder are married or parent/ child and that there is no written agreement between you and the other account holder which governs the sharing of your joint portfolio. If you and the other account holder are not married or parent/ child, or if an agreement exists which governs the sharing of your joint portfolio, you must immediately notify IBHK.
What are the risks of becoming a Professional Investor?
Professional Investors are not afforded some of the protections given to general retail investors. In particular, IBHK is not required to fulfill certain requirements under the Code of Conduct and other Hong Kong regulations when providing services to Professional Investors. These include, but aren’t limited to, rules restricting or prohibiting the issuance of advertisements, the making of unsolicited calls and the communication of an offer in relation to securities.
IBHK recommends that prospective Professional Investors obtain independent professional advice, if deemed necessary, in relation to the consequences of being treated as a professional investor (including those set forth in the SFO and the Code of Conduct).
How can I opt out of being classified as Professional Investors?
Professional Investors have the flexibility to withdraw their consent at any point in time by changing their PI classification to “Non Professional Investor” via the Account Settings in Portal Once changed, PI-related trading permissions will be immediately removed and existing open positions will be set to “Closing- Only”. You may continue to hold or close existing position of these exclusive products but cannot expand or open new positions.
You may also cease to be classified as Professional Investor if you take no action to validate your eligibility during IBHK’s annual Professional Investor review. A notification email will be sent to you if your classification is not aligned to the PI financial threshold.
Professional Investor status is subject to IBHK’s validation of your assets. Investing in financial products and services is subject to IBHK’s eligibility and suitability criteria.