ADVANTAGES OF LISTING IN HONG KONG

Some of Hong Kong's advantages as an international fund raising platform are set out below:

1. Gateway to Asia-Pacific region

2. Leveraging on Mainland China's Growth

Hong Kong provides an ideal platform for issuers with China related operations to achieve exposure in the rapidly growing Mainland Chinese market.

3. Home Market Theory

As Hong Kong is part of Mainland China, HKEX is the first choice for Mainland Chinese companies seeking a listing on an international market. The applicability of the «home market» theory is reinforced by the statistic that a significant portion of the trading value of Mainland Chinese companies is conducted in Hong Kong where such companies have a dual listing in Hong Kong and another major overseas exchange.

4. Strong Legal System in line with the international standards

Hong Kong has a well-established legal system based on English common law which provides a strong and attractive foundation for companies to raise funds as well as confidence for investors.

5. International Accounting Standards

Apart from Hong Kong Financial Reporting Standards and International Financial Reporting Standards, HKEX also accepts the use of generally accepted accounting principles in the United States of America or other accounting standards by new applicants under certain circumstances.

6. Free flow of capital and information

With zero capital flow restrictions, numerous tax advantages (there is no tax on dividends, capital gains, territorial basis for taxing corporate profits), currency convertibility and the free transferability of securities, Hong Kong offers an attractive market for both issuers and investors alike.