Hong Kong

Hong Kong takes measures to combat parallel trading

Mainland Chinese traders take advantage of the tax-free and the multiple-entry visa policies in Hong Kong to stock up on everything they need from jewelry to milk powder in order to resell them at profit in mainland China. Those mainlander’s visitors are called “locust” by Hong Kong residents as they have the tendency of stripping shelves of goods and clogging up public transports.

Double tax treaty of Mexico with mainland China and Hong Kong

Trade between China and Latin America grows more and more, so it increased by 8% in 2012. However, many Latin American countries have an unfavorable tax system to invest in China, making dividends, interest and royalties taxed twice and reducing profitability of the investments. One way to counter this problem is often the appeal of tax treaties between two countries. It is this that has recently entered Mexico with China and Hong Kong. The article introduces the main points of the both tax treaties.

Hong Kong: New restrictive rules for obtaining a tax residence certificate

The Hong Kong Inland Revenue Department issued new rules for obtaining a certificate of Hong Kong residence status on January 29, 2015, with effect from February 1, 2015. This certificate is provided by the Hong Kong authorities to a resident which allows the resident to claim tax benefits under the Double Taxation Agreements (DTAs). The new rules make it more difficult to obtain them.


Hong Kong New Corporate Law

On 3rd March 2014, the new Hong Kong corporate law (Companies Ordinance) has become effective. It’s the result of enduring negotiations dating back to the year 1984.

Consisting of 80 changes, it constitutes a whole new law. The previous version, renamed in “Companies (winding up and miscellaneous) Ordinance” henceforth only focuses on insolvency and company liquidation issues. All other regulations are going to become inoperative.

The most important changes in brief:

How to avoid the Cash Trap?

Strategies to repatriating profit from China in 2014

Hong Kong Company Incorporation

Hong Kong, an internationally respected business hub, is known for being an efficient corporate vehicle for setting up business in Asia. Incorporation of a company in Hong Kong allows foreign investors to gain access to the huge market of Mainland China, and is often viewed as “Gateway to China”.

BoCom to Raise $7.9 Billion through Private Placement

Bank of Communications (BoCom), China's fifth-largest bank by assets, plans to raise RMB 50 billion (USD 7.9 billion) through a private share placement to meet stricter bank capital requirements, Reuters reports.

Of the five largest banks in China, BoCom has the lowest capital adequacy ratio which makes it the most likely for the bank to issue new stock, analysts said. Raising funds through a private share placement would help ease pressure on the stock price from a massive new supply of shares.

Outbound M&A: Minmetals offer to buy Equinox

--Equinox share price jumps 29 percent--

Minmetals Resources Ltd, the Hong Kong-listed arm of China’s largest metals trader, has made an unsolicited cash offer of CAD 6.3 billion for Australian-Canadian copper miner Equinox Minerals Ltd, to date China’s largest minerals takeover attempt.

Offshore Incorporation: Hong Kong vs British Virgin Islands (BVI)


Incorporating in Hong Kong

Hong Kong, as a major commercial, financial and international trade centre, has traditionally been a popular place for setting up an offshore holding company.

Having a low tax rate on salaries, profits and real estate, no exchange controls, and no tax being charged on income derived from outside Hong Kong ads to its attractiveness, especially for trade companies and investors targeting the PRC and East Asia markets.

Hong Kong stock exchange open to alliances

--HKEx follows international trend--

The Hong Kong stock exchange has expressed interest in forging new international alliances, following the lead of recent tie-ups between Deutsche Börse and NYSE Euronext, and the London and Toronto exchanges.

The world's biggest exchange operator by market value and a strong market from China-backed IPOs, Hong Kong Exchanges and Clearing (HKEx) released an email statement announcing that while it will consider international alliances and partnerships, it is yet to identify any potential targets.

Beijing - Shanghai - Shenzhen - Hong Kong - Paris
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