Located 150 miles south of Guanzhou on the South China Sea, Hong Kong is one of the world’s leading financial, economic and trading centres. Along with New York, London, and Tokyo, Hong Kong is one of the four largest financial centres in the world. All of the leading banks and brokerage houses in the world have offices in Hong Kong.
BANKING & EXCHANGE CONTROL
Hong Kong does not have any exchange control restrictions. Nor are there any restrictions on the exchange of currency or the transfer of capital. There is no reporting requirement for depositing, remittal or withdrawing of funds with banks or carrying funds through immigration. In summary, few restrictions exist in Hong Kong on foreign investment or the transfer of income and capital.
Anyone with any intention of using companies to launder money from criminal source must not contact us. In cooperation with the worldwide governments’ effort to fight money laundering, we and the banks have to do KYC (know your customers) with our clients, and be informed of their source of funds and the purpose of the payments, which must not be related to any activity that may be in violation of any anti-money laundering laws. Clients not involved in criminal activities should comply so that the companies will not unnecessarily be investigated.
Excellent communications systems are available in Hong Kong. There are numerous flights connecting major world-wide destinations. Relative proximity to the West Coast of the United States, Japan and China makes it a popular trading base. Completion of the large airport complex at Chap Lai Kok gives Hong Kong one of the largest air travel capacities for any city in Asia.
On 1 July, 1997, Hong Kong became a Special Administrative Region (SAR) and was reverted to Chinese sovereignty. Based on the Joint Declaration signed by China and the United Kingdom, the social, legal and economic systems of Hong Kong would remain unchanged for 50 years from 1997. China’s desire for peaceful reunification with Taiwan plus the importance of Hong Kong to China’s economy ensure Hong Kong’s privileged ongoing status.
English common law applies mainly in Hong Kong. Since the Hong Kong legal system has been used as a model for recent revisions of the Chinese legal system, little change is expected.
The Hong Kong dollar is the currency used in Hong Kong. This is pegged to the United States dollar at HK$ 7.8 to US$ 1.