Hong Kong: Inward/ Foreign Investment

On 4 January 2010, the State Administration of Industry and Commerce ("SAIC") and the Ministry of Public Security jointly promulgated a notice that places additional restrictions and re¬quirements on new and existing foreign representative offices ("RO"). The local AIC in Beijing implemented the notice on 15 January 2010; other cities and provinces swiftly followed or are expected to do so soon. The more stringent criteria on RO registration are summarised below.

Australia has a more mature market and comprehensive listing requirements and specific index information specifically tailored to support the listing of a resources company whereas Hong Kong’s requirements for listed resources companies are still developing. However, Hong Kong has a bigger stock exchange than Australia and gives resources companies greater access to capital and a bigger investor base, including investors from the PRC.

A major legal impediment to Chinese private equity investments appears to have been repealed, although it is not yet clear whether the new regulatory regime will in fact make it easier to actually implement such investments.