Which statements correctly describe Professional Investors?

Which statements correctly describe Professional Investors?

• A. A corporation with at least HK$40 million in assets
• B. A high-net-worth individual with at least HK$8 million portfolio
• C. Both A and B
• D. Neither A nor B

Answer: (C)

The defining idea is how professional investors are identified under Hong Kong rules. In Hong Kong, a corporation becomes a professional investor if it has net assets of at least HK$40 million, and an individual becomes a professional investor if their investments amount to at least HK$8 million in a portfolio. These thresholds are the standard criteria used to grant professional-investor status, which can affect eligibility for certain private placements and exemptions from some protective requirements. Since both conditions described match these criteria, they both correctly describe professional investors.

The defining idea is how professional investors are identified under Hong Kong rules. In Hong Kong, a corporation becomes a professional investor if it has net assets of at least HK$40 million, and an individual becomes a professional investor if their investments amount to at least HK$8 million in a portfolio. These thresholds are the standard criteria used to grant professional-investor status, which can affect eligibility for certain private placements and exemptions from some protective requirements. Since both conditions described match these criteria, they both correctly describe professional investors.