Hong Kong Stock Exchange has issued guidance letter according to which companies incorporated in the British Virign Islands may be allowed to list on the HKSE. The consideration of this possibility was initiated due to the attempts of Hong Kong government to increase the competitiveness of the jurisdiction as a financial centre.
HK authorities have already implemented a number of initiatives in the last few years to achieve this goal, and one of them was to permit listings of companies. HKSE will consider various issues in making a decision whether to approve the listing of BVI companies, especially the level of shareholder protection under the corporate law of the British Virgin Islands, which should meet Hong Kong standards.
The listing on the HK Stock Exchange is especially important and advantageous for private equity investors with investments in China, while many companies operating in China are incorporated in BVI.
The listing is expected to be approved during 2 or 3 months, until the end of this year. Recently, HKSE decided to allow Jersey-incorporated companies to list in Hong Kong.