Two Hong Kong-listed units of state-run conglomerate China Resources Group announced on Friday they plan to relocate their company domiciles from the Cayman Islands to Hong Kong, citing a new rule in Hong Kong which makes such changes practical.
China Resources Building Materials Technology Holdings Ltd. (1313.HK) and China Resources Beverage (Holdings) Co. Ltd. (2460.HK) both disclosed the plan in similarly worded announcements to the Hong Kong Stock Exchange, each citing a company re-domiciliation regime that took effect in Hong Kong on May 23.
“As the company has been listed on the main board of the stock exchange with a principal place of business in Hong Kong, after the change of domicile, it can reduce the complexity of multinational compliance, streamline the legal entity structure, and effectively lower the costs associated with compliance in multiple jurisdictions,” China Resources Beverage said in its announcement.
Many Chinese companies listed overseas are often domiciled in the Cayman Islands, partly due to China’s restrictions on their ownership by foreigners.
China Resources Building Materials stock was unchanged in morning trading in Hong Kong, closing at HK$1.78 by the midday break. China Resources Beverage’s stock rose 0.36% in morning trade to close at HK$11.09 by the midday break.
By Doug Young
To subscribe to Bamboo Works weekly free newsletter, click here
