Hong Kong Becomes Major Funding Centre For Mainland Chinese Firms

by Mary Swire, Tax-News.com, Hong Kong

03 January 2003

According to reports, thirty mainland companies have so far announced their intention to launch IPOs in Hong Kong over the coming year, an announcement which is likely to cement the jurisdiction's reputation as a major regional funding centre.

Reporting earlier this week, the China Daily news service revealed that the firms, which are mostly financial services and real estate ventures, will join the 176 other mainland companies (as of October 2002) which have so far opted for the SAR as the location for their initial public offering.

According tor PricewaterhouseCoopers partner, Edmond Chan:

'Hong Kong will continue to serve as the primary international capital and financial centre for Chinese mainland companies...the major attraction of Hong Kong as a premier place to launch IPOs is that it is a unique international financial centre which has a good knowledge about the mainland.'

Mr Chan went on to add that Chinese businesses also find it easier to promote themselves in the global arena and attract international investment from Hong Kong, as foreign investors are often more familiar with the SAR's stock market and business procedures.

He told the newspaper that the continuing interest from the mainland will have numerous benefits for the jurisdiction's financial services sector, and is likely to boost the city's reputation on an international level.

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