Hong Kong half-follows Beijing by relaxing requirements that Mainland companies must mention China-related country, political or regulatory risk in their listing applications. (Non-paywalled CNN version. Exchange announcement. And an example of such a disclosure.)
Like the semi-emulation of the Mainland’s zero-Covid policy, this presumably wouldn’t have happened back in the days of a more rigorous One Country, Two Systems.
This means Hong Kong will be able to list Mainland companies that might not qualify in, say, New York. Some relevant background on the widening gap between China and the West on disclosure/due diligence.
Eric Lai of Georgetown Law in the Diplomat on the legal logic behind attempts to eradicate Glory to Hong Kong…
…an injunction order, as a civil proceeding, carries a lower threshold of proof than criminal law, which requires proof beyond a reasonable doubt. In short, it is easier for the authorities, particularly the DOJ, to use laws and courts to achieve what they want via an injunction order.
Another reason might be more pragmatic: The government tried to use the fame of the civil court to pressure tech giants, such as Google, which has operations in Hong Kong, to comply with the order. Despite the widespread, intensive criticisms against the NSL and the criminal court of Hong Kong, there remains a popular narrative that Hong Kong’s court can still handle civil and commercial cases independently and robustly. Business enterprises in Hong Kong still trust the local civil court. Against this background, using civil proceedings instead of the criminal justice system or the NSL would make the business community less able to disapprove the decision as an outcome of enforcing the problematic NSL or other draconian laws
Welcome to Marlboro country? It’s in their jeans? The Hong Kong government goes casual denim…
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Apologies to anyone offended by yesterday’s comparison of a female pro-Beijing heavyweight to a whale. An especially big sorry to cetaceans who, I hear, felt particularly insulted.