Tuesday, December 15, 2009HKSE Approves Listing of BVIICs

Maples and CalderHKSE Approves Listing of British Virgin Islands Incorporated Companies

On 15 December 2009 the Stock Exchange of Hong Kong Limited ("HKSE") announced that it will allow companies incorporated in the British Virgin Islands ("BVI") to list in Hong Kong. The move will simplify the listing process significantly and provide a cost-efficient exit strategy for investors in BVI-incorporated companies.

Maples and Calder played a central role in facilitating this important development by submitting the application to the HKSE for inprinciple recognition of BVI as a jurisdiction for listing purposes. Maples and Calder also assisted the HKSE in its review of BVI shareholder protection standards, a necessary pre-condition to obtaining recognition. Maples and Calder is therefore in a unique position to assist clients with the listing of BVI companies on the HKSE.

Hong Kong now joins several other major exchanges worldwide, including NASDAQ and NYSE in the US, AIM in London and SGX in Singapore, that allow BVI companies to list. This significant evelopment offers businesses considering a listing on the HKSE a greater choice of well-regulated and cost-effective offshore jurisdictions as their corporate domiciles.

The BVI Financial Services Commission ("FSC") has welcomed the news that BVI companies can now list on the HKSE. FSC Managing Director and CEO, Robert Mathavious said: "This is long something that the BVI authorities and industry practitioners have hoped would be possible. It emphasises the quality of BVI companies and extends their value to users. Over the years industry personnel have championed the listing, I am particularly grateful to Maples and Calder for the important role it has played, not only in championing BVI listings, but also in making the Hong Kong authorities aware of the high standards and protections for shareholders that BVI companies offer."

Private Equity Exits

The ability to list in Hong Kong provides investors in BVI companies with an exit strategy which had previously not been available without first undertaking a significant and expensive restructuring.

Restructuring to change the jurisdiction of incorporation of the holding company can increase the legal costs of a listing by anything from 30% to more than 100%. Allowing BVI companies to list in Hong Kong negates this cost and increases the attractiveness of a Hong Kong listing.

Corporate Domicile

The HKSE's approval will potentially attract more companies to be incorporated in the BVI as it now reduces barriers to IPO exits in Hong Kong.

By jurisdiction, BVI companies provide the second largest source of foreign investment in China, at US$5.8 billion in the year to June 2009. This latest development potentially encourages more investment in China through BVI companies, as the option of an exit through an IPO is now available.

Oyster Publications Inc, PO box 3369, Road Town Tortola, British Virgin Islands, VG1110