Obtaining a listing on a stock exchange is an important stage in a company’s development. It enables a company to raise capital and upgrade its status. However, once a company has decided to pursue a listing, it must consider a suitable market on which to list its shares. In this part, some of Hong Kong’s advantages are set out below:
1. Gateway to Mainland China. As an internationally recognized financial centre
with an abundance of professional expertise, Hong Kong has provided many Asian
and multinational companies with fund-raising opportunities. Together with China's
accession into the WTO and Beijing's hosting of the Olympics in 2008, companies
will be able to leverage on the multitude of opportunities offered by this escalating
economy.
2. An attractive Market. As a part of China, Hong Kong’s market is always the
first choice for Mainland Chinese companies seeking a listing on an international
overseas market, and it’s a good choice for mainland companies raise capital, as
evidenced by the fact that 443 enterprises had been listed on the Exchange by April
2008, with the promise of many more to come. Hong Kong has liberal international
market, which provides issuers with access to local and overseas funds. It offers an
attractive market for both issuers and investors alike.
3. Strong Legal System. Hong Kong has a well-established legal system based
on English common law, which provides a strong and attractive foundation for
companies to raise funds as well as confidence to investors.
4. Free Flow of Capital and Information. The Hong Kong dollar is fully convertible
and accordingly there are no foreign exchange controls, no restrictions on capital
flows into and out of Hong Kong.
5. Advanced Clearing and Settlement Infrastructure. Hong Kong is renowned for
its relatively sophisticated economy, well-regulated trading and settlement system.
Hong Kong allows local financial institutions to settle US dollar transactions real
time in the Asian time zone. This reduces the foreign exchange settlement risk
caused by the time gap between the settlement of Hong Kong dollars and US dollars.
In addition, Hong Kong has a well-developed telecommunications network and
Hong Kong’s low tax regime is simple and transparent. For a first-time investors
coming from overseas or mainland, Hong Kong’s cultural mosaic is ideal. Years
of British influence from former English rule have deemed Hong Kong just as
multilingual as its North American and European counterparts. The city’s unique
makeup in politics, economic and cultural background makes for an important
window for foreign and mainland investors; opportunities are not to be missed.
ABOUT PKF HONG KONG
PKF is a global network of professional firms providing audit, tax and advisory
services, with an industry focus. With approximately 14,500 people worldwide
and operates in over 400 locations, we have our own dedicated staffs to serve our
clients in a professional way. PKF Hong Kong is one of the member firm of PKF
International as well as the Hong Kong office of China Daxin Certified Public
Accountants Co.,Ltd. Welcome to Choice PKF Hong Kong, where we offer a
range of industry-specific solutions and services to Drive Your Success.
26/F, Citicorp Centre,
18 Whitfield Road, Causeway Bay,
Hong Kong
www.pkf-hk.com
