Jersey has been approved as an Acceptable Overseas Jurisdiction
by the Hong Kong Exchange, which means that Jersey companies can
join companies from Australia, Bermuda, British Columbia, Cayman
Islands, China, Ontario, Cyprus, Germany, Luxembourg, Singapore and
the United Kingdom able to float on the Exchange.
In the approval process, the Hong Kong Exchange considered
various matters including shareholder protection provisions under
Jersey law as any non Hong Kong company listing on the Exchange has
to demonstrate that shareholder protection offered by that foreign
jurisdiction is at least equivalent to that in Hong Kong.
The Exchange has now published conditions under which Jersey
companies may list on the Exchange and have confirmed that these
companies may now follow the streamlined process set out in
Guidance Letter HKEx - GL12 - 09 and will not be required to
complete a detailed line by line comparison in accordance with the
Joint Policy Statement Regarding the Listing of Overseas Companies
issued jointly by the Securities and Futures Commission and the
Exchange on 7th March 2007.
The approval for Jersey companies came as a result of two
concurrent approaches to the Hong Kong Exchange. Ogier acted for an
existing Jersey company which sought a pre IPO ruling on various
matters, including whether Jersey is an Acceptable Overseas
Jurisdiction, and this was considered by the Exchange last month.
This application was assisted by the fact that work had been
undertaken by Jersey Finance, the finance industry promotional body
in Jersey, supported by the Jersey government over many months and
this had lead to a submission being made to the Exchange seeking
guidance on the question of whether Jersey is an Acceptable
The approval is an important step forward in that any Jersey
company already operating in Asia or which has aspirations there,
will now be able to access the capital markets of one of the
largest financial centres in the region.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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