Companies that are incorporated in offshore tax haven countries- any issues?

[ikur1]

I find a number of HK companies incorporated in BVI, cayman islands, etc
listed in Hang Seng mkt

is this normal?

why aren't they incorporated in HK???

[pianist]

which one?

[ikur1]

there are many in HK,

361 degree, asr holdings, belle international, huabao, sincere watch, loads of themmmm

[soros]

1. Hong Kong was previously a British Colony and during the 12 years period before July 1997 ( return date to China rule ), many businesses in Hong Kong had to decide how to protect their company assets .

Some companies like Jardine Group moved their listing to Singapore and HSBC did a takeover of Midland bank and moved their HQ to London. Other local companies decided to to moved their HQ to Off-Shore centres such as BVI and Bahamas etc

2. The other reason for using off-shore registration is that some foreign companies investing in business in China could negotiate tax concessions.