WAY THROUGH RED TAPE INTO CHINA
Written on the 25 October 2011
MORE large international companies are opening overseas offices in Hong Kong than Singapore or Japan, according to property group CB Richard Ellis (CBRE).
The CBRE Business Footprints study of 280 companies shows 68.2 per cent of them are represented in HK, 67.5 per cent in Singapore, 63.9 per cent in Tokyo with 61.4 per cent based in Shanghai.
Invest Hong Kong head of Australia and New Zealand Cameron Boardman (pictured) says companies go there because it offers a more risk-free, certain and beneficial way of doing business with mainland China.
“HK is an English-speaking, a common law and low tax jurisdiction. The bridge between HK and mainland China allows companies to take advantage of HK’s legal and economic systems to transform their businesses and enter the mainland,” he says.
Boardman says mainland Chinese companies and individuals also use HK as a gateway to invest in a more secure and lower tax environment before going global.
“There are no currency or capital or information controls in HK. You can choose between Chinese or English and the common law framework gives companies absolute certainty that contracts will be enforceable by the law,” he says.
“It’s also one of HK’s strong views that it has a zero tolerance towards corruption. It also allows companies to operate with minimum regulatory interference.”
Regulatory requirements for entering the Chinese market can seem daunting for a growing enterprise, but Hong Kong is a popular starting point. Read the entire trade features section by getting your copy of Gold Coast Business News' October issue – out now in more than 500 Queensland newsagencies.