Two listed companies under China Resources Group are planning to redomicile from the Cayman Islands to Hong Kong, marking the first batch of listed companies to reincorporate in the city under a new law, with analysts believing the trend will continue, reports the South China Morning Post. China Resources Beverage (Holdings), the country’s second-largest water bottler under the brand C’estbon, has proposed to redomicile from the Cayman Islands to Hong Kong to reduce operating costs, according to a stock exchange filing late Friday night.
Its sister company, China Resources Building Materials Technology Holdings, announced the same move on Friday night. Both firms said they would need approval from the Hong Kong Company Registry and Cayman Islands regulators, as well as their shareholders. The change would not affect their business operations or listing status.
The move to set up in Hong Kong would reduce compliance costs as they now need to follow two sets of regulations—those of Hong Kong and the Cayman Islands—and they would also like to use the city to expand their international business, the companies said.