Bloomberg Report: “Hong Kong’s Bermuda Bent”
About 45 percent of the market capitalization of the Hang Seng Index consists of companies whose registered offices are in the Cayman Islands or Bermuda, according to a story by Bloomberg.
The article — entitled “Hong Kong’s Bermuda Bent” – said “As this week’s release of the Panama Papers has shown, most investors like to keep their links to offshore financial centers on the QT. Not so in Hong Kong.
“Take a look, for instance, at the front page of the latest annual report from one constituent of the Hang Seng Index, a noodle maker that Chinese consumers know by the cuddly name of Master Kong:
“The name helps remind local investors nervous of Beijing that while Tingyi’s main offices are in Shanghai, its legal base is an island 90 minutes’ flight from Miami whose Governor is appointed by the Queen of England.
“That attitude isn’t unique among the city’s businesses. About 45 percent of the market capitalization of the Hang Seng Index consists of companies whose registered offices are in the Cayman Islands or Bermuda — including its largest constituent by weighting, Tencent, and all the main firms in Li Ka-Shing’s Cheung Kong empire
“As the past week’s revelations have demonstrated, Hong Kong’s companies are far from alone in carrying out this sort of global regulatory arbitrage.
“It may not seem immediately obvious what decisive benefit Hong Kong’s offshore companies get from setting themselves up in this way. You pretty much can’t hide the identity of your owners when your company is listed on public markets, and in any case, most tax havens have become less accommodating on that point in recent years.”
Thanks for opening the eyes of the blind Mr. Mike Bloomberg…
When you have as many billions as I do it means I can’t hide all my money. I’ve tried burying it, building buildings, buying real estate, etc. I’ve got so much money that now I burn hundred dollar bills in my fireplace to keep me warm in the winter.
does Mike Bloomberg still have residency status here? Can we entice Oprah again? These folk are good for business
it’s cheaper now to entice a many ..
Oprah? Why we want that nasty, horrible expat here?? Funding our needy charities, filling our pockets. Puh-lease! Prolly jus’ wants status. Keep steppin’ lady, we dun told you once we don’t want you here.
Plp told Oprah that she could not buy a house here so she bought property in Hawaii.