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Editorial
Firms redomiciling in Hong Kong can only be good for business
Legal changes have made it easier for firms to redomicile in Hong Kong without changes to their operations. That is a good business move
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Editorials represent the views of the South China Morning Post on the issues of the day.
Two listed firms under China Resources Group are planning to redomicile from the Cayman Islands to Hong Kong. They will follow similar actions by the Hong Kong units of French insurer AXA and Canadian insurer Manulife, both from Bermuda. Thanks to new changes in local law, such redomiciling is becoming a trend and can only be good for corporate business and professional employment in the city.
Business 101 usually explains the difference between the domicile of a company and its headquarters. The one refers to its officially registered home for tax and legal purposes, and often involves so-called tax havens. The other has to do with the primary location where its operations and management are based.
As a financial hub, Hong Kong has been a prime base for the regional headquarters of many multinationals. Recent domestic disturbances, health crises and geopolitical tensions might have deterred some firms, but things have stabilised and the stock market has rallied.
Funds raised by initial public offerings in Hong Kong jumped 220 per cent in the first nine months of 2025, making the city all but certain to be the world’s No 1 IPO hub for the whole year.
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