NEWS
BVI Companies Given the Green Light to List in Hong Kong
By Debby Davidson
On 16 December 2009, the Stock Exchange of Hong Kong Limited (“HKSE”) amended its “list of acceptable overseas jurisdictions” to allow companies incorporated in the British Virgin Islands (“BVI”) to list in Hong Kong.
The move significantly simplifies the process for BVI companies looking to list in Hong Kong. Previously, BVI-incorporated companies had to set up a separate holding vehicle in another recognised jurisdiction in order to list on the HKSE. Investors in BVI-incorporated companies now have a cost-efficient exit strategy, particularly as the incorporation costs and legal fees connected with a company in the BVI are cheaper than for comparable companies in Bermuda and the Cayman Islands.
It is estimated that over 40% of international corporations and private equity-backed companies in Asia are registered in the BVI, a popular and important offshore jurisdiction.
Hong Kong now joins several other major exchanges worldwide, including NASDAQ and NYSE in the US, AIM in London and SGX in Singapore, that allow BVI companies to list.